UK's Chesnara FY operating profit jumps 42% after HSBC Life deal

Chesnara

24/03/2026 07:15

Overview

UK life and pensions provider's FY 2025 Operating Capital Generation rose 19% yr/yr

Adjusted operating profit for FY 2025 increased 42% yr/yr

Company completed HSBC Life (UK) acquisition and announced Scottish Widows Europe SA purchase

Outlook

Chesnara expects Solvency Coverage Ratio to reduce to ~180% post-acquisition, Own Funds to rise to ~£1bn

Company expects assets under administration to increase to ~£20bn after Chesnara Life integration

Acquisition of Scottish Widows Europe SA expected to add €250m cash generation, €100m in first five years

Result Drivers

ACQUISITIONS - Completion of HSBC Life (UK) acquisition and announcement of Scottish Widows Europe SA purchase expected to increase scale and future cash generation, per CEO Steve Murray

OPERATING PERFORMANCE - Growth in Operating Capital Generation driven by robust performance in business units and capital optimisation actions in UK and Group Centre

MERGER SYNERGIES - Adjusted operating profit benefited from merger and simplification synergies in the Netherlands

Company press release: ID:nRSX7791Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Dividend
GBP 0.23


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the life & health insurance peer group is "buy"

Wall Street's median 12-month price target for Chesnara PLC is GBp333.00, about 11.6% above its March 23 closing price of GBp298.50

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)