REG - Chesnara PLC - Half Yearly Report <Origin Href="QuoteRef">CSN.L</Origin> - Part 7
29/10/2014 16:08
- Part 7: For the preceding part double click ID:nRSc2947Qf
93,863 55,276 61,431 (38,462) 247,102
Reclassifications
Debt finance - (29,699) (43,341) - 73,040 -
Other (258) - - - 258 -
Adjustments
Deferred acquisition costs (4,026) - - (23,264) - (27,290)
Deferred income 7,261 - - - - 7,261
Adjustment to provisions on investment contracts, net of amounts deposited with reinsurers (11,020) - - - - (11,020)
Adjustments to provisions on insurance contracts, net of reinsurers' share 33 (12,697) - - - (12,664)
Acquired in-force value (9,751) (5,172) (16,034) (49,873) - (80,830)
Acquired value of customer relationships - - - (1,164) - (1,164)
Software assets - - - (5,004) - (5,004)
Adjustment to borrowings - - - (5,913) - (5,913)
Deferred tax 1,623 - - 2,108 - 3,731
Shareholder net worth 58,856 46,295 (4,099) (21,679) 34,836 114,209
Value of in-force business 67,171 30,482 25,507 139,001 - 262,161
Shareholders' equity on the EEV basis 126,027 76,777 21,408 117,322 34,836 376,370
Shareholder net worth comprises:
Shareholder net worth in regulated entities 58,856 75,994 39,242 (23,573) - 150,519
Shareholders' net equity in other Group companies - - - 1,894 34,836 36,730
Debt finance - (29,699) (43,341) - - (73,040)
Total 58,856 46,295 (4,099) (21,679) 34,836 114,209
9 Profit recognised on business combination
During the year ended 31 December 2013 an EEV profit arose as a result of the purchase of 100% of the share capital of
Protection Life Company Limited on 28 November 2013. The profit was measured as the difference between the purchase
consideration of £39,300,000 and the European Embedded Value of Protection Life at the purchase date, being £51,583,000,
which was established in accordance with the methodology set out in Notes 2 to 4 of the EEV supplementary financial
information.
10 Earnings per share
UnauditedSix months ended30 June Yearended 31 December
2014 2013 2013
p p p
Basic earnings per share
Based on profit for the period 41.17 31.59 75.55
Based on profit for the period before exceptional item 41.17 30.85 72.00
Diluted earnings per share
Based on profit for the period 41.17 31.59 75.55
Based on profit for the period before exceptional item 41.17 30.85 72.00
11 Foreign exchange translation reserve
A foreign exchange translation reserve arises on the translation of the financial statements of Movestic, the functional
currency of which is the Swedish Krona, into pounds sterling, which is the presentational currency of the Group financial
statements. Items in the consolidated income statement are translated at the average exchange rate of SEK 10.9034 = £1
ruling in the six months ended 30 June 2014 (year ended 31 December 2013: SEK 10.1901 = £1), while all items in the balance
sheet are stated at the closing rates ruling at the reported balance sheet date, being SEK 11.4339 = £1 at 30 June 2014
(SEK 10.5919 = £1 at 31 December 2013). The differences arising on translation using this methodology are recognised
directly in shareholders' equity within the foreign exchange translation reserve.
The reported embedded value is sensitive to movements in the SEK: £ exchange rate. Had the exchange rate as at 30 June
2014 been 10% higher at SEK 12.5773 = £1, then the reported embedded value of £400.3m as at 30 June 2014 would have been
reported as £388.2m.
additional information
BOARD OF DIRECTORS
Peter Masonwas appointed as Chairman of Chesnara plc and Chairman of the Nomination Committee on 1 January 2009 and was
appointed as Chairman of Movestic Livförsäkring AB with effect from 23 July 2009. He is also a member of the Remuneration
Committee. He was the Investment Director and Actuary of Neville James Group, an investment management company and was
admitted as a Fellow of the Institute of Actuaries in 1979. He has over 40 years' experience in financial services and
held several non-executive posts within the industry.
Graham Kettleboroughis the Chief Executive of Chesnara plc. He joined Countrywide Assured plc in July 2000 with
responsibility for marketing and business development and was appointed as Managing Director and to the Board in July 2002.
He was appointed as a Non-executive Director of Movestic Livförsäkring AB and as Chairman of Movestic Kapitalförvaltning AB
with effect from 23 July 2009. He has lifetime experience in the financial services industry, primarily in customer
service, marketing and product and business development, gained with Scottish Provident, Prolific Life, City of Westminster
Assurance and Target Life.
Frank Hughesis the Business Services Director of Chesnara plc. He joined Countrywide Assured plc in November 1992 as an IT
Project Manager and was appointed to the Board as IT Director in May 2002. He has 26 years' experience in the life
assurance industry gained with Royal Life, Norwich Union and CMG.
Peter Wrightis an Independent Non-executive Director who was appointed to the Chesnara plc Board on 1 January 2009. At the
same date he was appointed as Chairman of the Audit & Risk Committee. He was appointed as a member of the Nomination
Committee with effect from 9 July 2009. He retired as a Principal of Towers Perrin on 1 January 2008 and is a former Vice
President of the Institute of Actuaries, having been admitted as a Fellow in 1979. He is Chairman of the Risk Committee
and of the With-profits Committee of Countrywide Assured plc.
Veronica Franceis an Independent Non-executive Director who was appointed to the Chesnara plc Board on 16 January 2013. She
serves on the Nomination and Audit & Risk Committees and took over the role of Chairman of the Remuneration Committee when
Mike Gordon stepped down on 17 May 2013. She is currently a Non-executive Director of Family Assurance where she is a
member of their Risk & Audit and Nominations Committees and chairs their Remuneration Committee. Having held a number of
positions within life companies, including Marketing Director, in 1992, Veronica set up her own financial services
consultancy business advising on strategy, business development, product development and related activities. Veronica was
Chairman of the trade body, the Investment and Life Assurance Group in 2002/3 and served on its Management Committee for
over ten years before stepping down in 2010.
David Brand is an Independent Non-executive Director who was appointed to the Chesnara plc Board and the Board of Movestic
Livförsäkring AB on 16 January 2013. He serves on the Nomination, and Audit & Risk Committees. He was appointed as a
Non-executive Director at Exeter Friendly Society in January 2014, where he sits on the Audit, Risk and Compliance
Committee and the Investment Committee. He is a qualified actuary who, prior to his retirement in June 2012, had worked
for the Hannover Re Group in the UK, acting as the Managing Director of the UK life reinsurance subsidiary since 2003.
David had been with the company since 1988, and a Director since 1990. During his career David has also held various roles
with the Institute of Actuaries, including being a member of Council and he also served on the ABI Health Committee from
2006 to 2012.
Mike Evans is currently non-executive Chairman of Hargreaves Lansdown plc, a FTSE 100 listed company, a position he has
held since 2009. He chairs their Nomination Committee and sits on their Remuneration Committee. He originally joined the
Hargreaves Lansdown Board as a Non Executive Director in 2006. Mike is also non-executive Chairman of Zoopla Property Group
plc and a Non Executive Director of esure Group plc. In addition he is a member of the advisory board of Spectrum Corporate
Finance and he is a Trustees of Wessex Heartbeat, a charity associated with cardiac care in Southampton. Mike is a
qualified Actuary and served in a number of Director level positions within Skandia UK between 1991 and 2006.
David Rimmingtonwas appointed as Group Finance Director with effect from 17 May 2013. He trained as a chartered accountant
with KPMG, has more than 17 years' experience in financial management within the life assurance and banking sectors and has
had a significant role in a number of major acquisitions and business integrations. Prior to joining Chesnara plc in 2011
as Associate Finance Director David held a number of financial management positions within the Royal London Group including
6 years as Head of Group Management Reporting.
financial calendar
29 August 2014
Interim results for the six months ending 30 June 2014 announced.
10 September 2014
Ex dividend date.
12 September 2014
Dividend record date.
15 October 2014
Interim dividend payment date.
19 November 2014
Interim Management Statement for the quarter ending 30 September 2014 announced.
31 March 2015
Results for the year ending 31 December 2014 announced.
key contacts
Registered and Head Office
Harbour House
Portway
Preston
Lancashire
PR2 2PR
Tel: 01772 840000
Fax: 01772 840010
www.chesnara.co.uk
Legal Advisors
Ashurst LLP
Broadwalk House
5 Appold Street
London
EC2A 2HA
Addleshaw Goddard LLP
100 Barbirolli Square
Manchester
M2 3AB
Auditor
Deloitte LLP
Chartered Accountants and Statutory Auditor
PO Box 500
2 Hardman Street
Manchester
M60 2AT
United Kingdom
Registrars
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Stockbrokers
Panmure Gordon
One New Change
London
EC4M 9AF
Canaccord Genuity Limited
88 Wood Street
London
EC2V 7QR
Bankers
National Westminster Bank plc
135 Bishopsgate
London
EC2M 3UR
The Royal Bank of Scotland
8th Floor, 135 Bishopsgate
London
EC2M 3UR
Lloyds TSB Bank plc
3rd Floor, Black Horse House
Medway Wharf Road
Tonbridge
Kent
TN9 1QS
Public Relations Consultants
Newgate Threadneedle
5th Floor
33 King William Street
London
EC4R 9AS
Corporate Advisors
Canaccord Genuity Limited
88 Wood Street
London
EC2V 7QR
GLOSSARY
ABI Association of British Insurers - Represents the collective interests of the UK's insurance industry London Stock Exchange London Stock Exchange plc.
AGM Annual General Meeting. LTICR Long-Term Insurance Capital Requirement - Capital required to be held for regulatory purposes in respect of investment, expense and insurance risks.
ALM Asset Liability Management - management of risks that arise due to mismatches between assets and liabilities. LTI Long-Term Incentive Scheme - A reward system designed to incentivise employees' long-term performance.
APE Annual Premium Equivalent - an industry wide measure that is used for measuring the annual equivalent of regular and single premium policies. MCEV Market Consistent Embedded Value.
ASB Accounting Standards Board MECR Mortgage Endownment Complaints Reserve
CA Original business of Countrywide Assured plc
CWA Original business of City of Westminster Assurance Company Limited
CAplc Countrywide Assured plc; Movestic Movestic Livförsäkring AB.
CALH Countrywide Assured Life Holdings Limited and its subsidiary companies. Modernac Modernac SA , an associated company which is 49% owned by Movestic.
Directors or Board the directors of the Company as at the date of this document whose names are set out in the Board of Directors section of this document. Official List the Official List of the Financial Conduct Authority.
DPF Discretionary Participation Feature - A contractual right under an insurance contract to receive, as a supplement to guaranteed benefits, additional benefits whose amount or timing is contractually at the discretion of the issuer. Ordinary Shares ordinary shares of five pence each in the capital of the Company.
ORSA Own Risk and Solvency Assessment
EEV European Embedded Value. PRA the Prudential Regulation Authority.
FCA the Financial Conduct Authority
FI Finansinspektionen, being the Swedish Financial Supervisory Authority. PL Protection Life Company Limited
Form of Proxy the form of proxy relating to the General Meeting being sent to Shareholders with this document. RCR Risk Capital Requirement - additional amounts of capital required to be held for regulatory purposes as a result of two stress tests.
FRS Financial Reporting Standards
FSA the Financial Services Authority
FSMA the Financial Services and Markets Act 2000 of England and Wales, as amended. Resolution the resolution set out in the notice of General Meeting set out in this document.
GCR Group Capital Resources - in accordance with the UK's regulatory regime for insurers it is the sum of the individual capital resources for each of the regulated related undertakings less the book-value of investments by the Group in those Shareholder(s) holder(s) of Ordinary Shares.
capital resources.
GCRR Group Capital Resource Requirement - in accordance with the UK's regulatory regime for insurers it is the sum of individual capital resource requirements for the insurer and each of its regulated undertakings. Solvency II A fundamental review of the capital adequacy regime for the European insurance industry. Solvency II aims to establish a set of EU-wide capital requirements and risk management standards that will replace the current Solvency I
requirements.
Group the Company and its existing subsidiary undertakings. STI Short-Term Incentive Scheme - A reward system designed to incentivise employees' short-term performance.
Guardian Guardian Assurance plc. Swedish Business Movestic and its subsidiaries and associated companies.
HCL HCL Insurance BPO Services Limited. S&P Save & Prosper Insurance Limited and Save & Prosper Pensions Limited.
IAS International Accounting Standards SPI Original business of Save & Prosper Insurance Limited
IFRIC International Financial Reporting Interpretations Committee SPP Original business of Save & Prosper Pensions Limited
IFRS International Financial Reporting Standards. TCF Treating Customers Fairly - a central PRA principle that aims to ensure an efficient and effective market and thereby help policyholders achieve a fair deal.
IFA Independent Financial Adviser TSR Total Shareholder Return , measured with reference to both dividends and capital growth.
IGD Insurance Groups Directive - The European directive setting out the current capital adequacy regime for insurance groups. UK or United Kingdom the United Kingdom of Great Britain and Northern Ireland.
KPI Key performance indicator UK Business CA, S&P, CALH and PL.
IFA Independent Financial Advisor VIF Value of In-force business
This information is provided by RNS
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