Chesnara (CSN) H1 2026 earnings summary

Executive summary

• Delivered strong financial performance in H1 2026, with Operating Capital Generation up 79% year-over-year and a 6% increase in the interim dividend, supported by the integration of Chesnara Life UK and ongoing M&A activity.

• Completed the largest acquisition in company history (HSBC Life UK, now Chesnara Life UK), with integration progressing well, and announced the proposed acquisition of Scottish Widows Europe SA, expected to complete around the end of 2026.

• Group now manages over £21bn in assets and 1.3 million policies, maintaining a robust M&A pipeline.

• Announced a 6% increase in the interim 2026 dividend to 8.16p per share, marking an accelerated dividend growth trajectory and maintaining a 21-year track record.

Financial highlights

• Operating Capital Generation rose 79% to £96m, with £51m from acquisition-related impacts and £12m from capital optimisation.

• Cash remittances up 31% to £73m compared to H1 2025.

• Own Funds increased 14% to £976m; Solvency II coverage ratio at 185%, above the upper end of the operating range.

• Assets under administration reached £21bn (up from £15bn at FY25); adjusted operating profits up 46% to £31m.

• IFRS capital base grew 22% to £850m; Contractual Service Margin increased from £131m to £327m, reflecting Chesnara Life integration.

Outlook and guidance

• Focus remains on integrating Chesnara Life UK, progressing the Scottish Widows Europe SA acquisition, and pursuing further M&A opportunities.

• Expect value from new business in 2026 to be around double that of 2025.

• Confident in maintaining solvency and leverage within target ranges post-acquisition, with solvency coverage ratio expected to remain above the upper end of the target range.

• Further details on synergy realization and capital actions to be provided at year-end 2026.

• Continued commitment to profitable new business growth and decarbonisation in line with the Climate Transition Plan.