Chesnara hails early boost from newly acquired Chesnara Life UK

Chesnara PLC on Tuesday said integration of its largest acquisition to date was progressing at pace and highlighted "strong capital generation" in the first five months of ownership.

The Preston, England-based life and pensions consolidator completed the acquisition of Chesnara Life UK, formerly known as HSBC Life, in January 2026 and said the acquisition "has significantly increased the scale of the group."

Pretax profit for the first half of 2026 was £61.0 million, swinging from a £4.6 million loss a year earlier.

Operating capital generation increased 79% to £96 million from £54 million. Recurring operating capital generation was £70 million, while £51 million was generated through Chesnara Life UK.

Total insurance revenue was £255.9 million, nearly doubling from £136.0 million a year earlier. Insurance service expenses increased to £176.1 million from £136.7 million.

Assets under administration grew 38% to £21 billion from £15 billion. Cash remittances increased to £73 million from £56 million a year earlier.

Chesnara declared an interim dividend of 8.16 pence per share, up 6.0% from 7.70 pence, which it said was in line with previous guidance provided at the time of the announcement of the HSBC Life acquisition.

The solvency coverage ratio was 185%, down from 257% at the end of 2025. However, the group said 185% was "significantly" above the group's operating range of 140% to 160%, exceeding the company's forecast of about 180%.

Reflecting on the first half of 2026, Chief Executive Steve Murray said the company delivered a "very strong" performance. He highlighted the ongoing integration of Chesnara Life UK and the proposed acquisition of Scottish Widows Europe SA, with regulatory Change in Control approval anticipated around the end of 2026.

"We continue to see attractive opportunities to grow the business, underpinned by a healthy M&A pipeline and disciplined execution across the group," he added.

Shares in Chesnara were up 3.5% at 341.50 pence per share on Tuesday morning in London.

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