Chesnara (LSE:CSN) reported strong results for the 2025 financial year, with Operating Capital Generation increasing 19% to £94m. Cash remittances rose 30% to £58m, while adjusted operating profit climbed 42% to £56m. The group’s solvency coverage ratio improved to 257% and assets under administration reached £15bn, enabling the company to increase its final dividend by 6% to 14.80p per share.
Management described the year as transformational following the completion of the acquisition of HSBC Life (UK), now rebranded as Chesnara Life, and the agreed purchase of Scottish Widows Europe. Together, these transactions are expected to significantly increase assets and strengthen long-term cash generation. The deals were supported by a £140m equity raise, the issuance of a £150m RT1 bond and a series of capital optimisation initiatives. As a result, Chesnara has expanded its UK footprint, established a presence in Luxembourg to support future European consolidation and reinforced its role as an active consolidator in the life and pensions market.
Chesnara’s outlook is supported by strong technical indicators and a series of positive corporate developments that signal confidence in its growth strategy. Financial performance has improved, although challenges linked to profitability and equity management remain. The company’s relatively high dividend yield provides valuation support despite a negative price-to-earnings ratio.
More about Chesnara
Chesnara plc is a FTSE 250-listed European life, pensions and investment group specialising in insurance consolidation. The company administers around 1.4 million policies through business units in the UK, the Netherlands and Sweden. Its strategy focuses on efficiently managing life and savings policies while expanding through acquisitions across European insurance markets.
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