UK's Chesnara interim operating capital generation jumps 79%
UK's Chesnara interim operating capital generation jumps 79%
Overview
UK life, pensions and investment firm's interim Operating Capital Generation rose 79% yr/yr
Adjusted Operating Profit for the half rose 46% yr/yr
Company completed Chesnara Life UK acquisition, boosting Assets under Administration 38%
Outlook
Company expects to complete Scottish Widows Europe SA acquisition around end-2026, pending regulatory approval
Chesnara says integration of Chesnara Life UK and operational integration in Scildon remain key priorities for H2 2026
Company says business model remains resilient amid ongoing market volatility and macroeconomic uncertainty
Result Drivers
ACQUISITION IMPACTS - Acquisition of Chesnara Life UK provided £51m of Operating Capital Generation and £5bn of Assets under Administration, significantly increasing scale
CAPITAL OPTIMISATION - Mass lapse reinsurance, foreign exchange hedging, and capital relief actions enhanced capital generation and solvency resilience
NEW BUSINESS GROWTH - Increased demand for UK onshore bond offerings and new product launches in Sweden and the Netherlands drove new business contribution
Company press release: ID:nRSY9567Ra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Dividend |
| GBP 0.08 |
|
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 GBp380.00, about 15.2% above its August 24 closing price of GBp330.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 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.)