Chesnara (CSN) H1 2024 earnings summary

Executive summary

• Delivered strong commercial cash generation of £29.2m in H1 2024, up from £21.8m in H1 2023, 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 the period, but a positive and active M&A pipeline is highlighted, with over £200m in immediate firepower and further capacity available.

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

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

Financial highlights

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

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

• Funds under management increased 4% to £11.9bn since year-end 2023, with 85% in linked products.

• Commercial new business profit was £4.9m (H1 2023: £6.3m), with strong new business in Sweden and the UK, but lower volumes in the Netherlands.

• Leverage ratio stable at 30% (FY 2023: 29%).

Outlook and guidance

• Confident in reliable, recurring future cash and economic earnings generation to support ongoing dividend growth.

• Positive and broader M&A pipeline supported by strong financing capacity and investment grade rating.

• Focus remains on maximizing value from in-force books, value-adding acquisitions, and targeted new business.

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