Chesnara (CSN) H1 2024 earnings summary

Executive summary

• Delivered strong commercial cash generation of £29.2 million in H1 2024, up from £21.8 million year-over-year, supporting a 3% interim dividend increase to 8.61p per share and marking 20 consecutive years of dividend growth.

• Maintained a robust Solvency II ratio at 201%, well above the 140–160% target range, providing significant headroom for strategic activity and M&A.

• No acquisitions completed in H1, but a positive and active M&A pipeline is in place, with over £200 million of readily available firepower.

• Significant operational progress across UK, Sweden, and Netherlands, including ongoing policy transfers, expanded distribution, digitalisation, and strengthened leadership.

• Economic Value (EcV) at £508.0 million, with EcV earnings of £20.2 million pre-FX and dividend, offset by dividend payments and FX losses.

Financial highlights

• Group commercial cash generation reached £29.2 million (H1 2023: £21.8 million); group cash generation £19.6 million (H1 2023: £11.1 million).

• Economic Value earnings of £20.2 million (H1 2023: £32.6 million excluding acquisitions); IFRS pre-tax profit of £13.4 million (H1 2023: £15.3 million); IFRS capital base at £458 million.

• Commercial new business profits of £5 million, with strong contributions from Movestic and the UK, but lower volumes in the Netherlands.

• Interim dividend increased by 3% to 8.61p per share.

• Funds under management increased 4% to £11.9 billion since year-end 2023, driven by positive investment returns.

Outlook and guidance

• Confident in continued strong cash and economic earnings generation, with clear line of sight on recurring future cash flows and further upside from disciplined, value-accretive M&A.

• Expect continued dividend growth and robust solvency, with further operational and digital transformation initiatives underway.

• Management actions and operational improvements expected to further enhance value and cash generation.