24th Mar 2026 10:00
(Alliance News) - Chesnara PLC on Tuesday said recent acquisitions were integrating well as it reported growth in operating profit and an improved solvency coverage metric.
The Preston, England-based life and pensions consolidator said pretax profit fell to GBP19 million in 2025 from GBP21 million in 2024.
But adjusted operating profit increased 42% to GBP56 million from GBP39 million.
Assets under administration grew 10% to GBP15 billion from GBP14 billion.
Operating capital generation increased 19% to GBP94 million from GBP79 million, and cash remittances of GBP58 million were up 30% from GBP45 million.
Growth in operating capital generation was driven by robust operating performance in each business unit and capital optimisation actions in the UK, the group said.
The sustained growth in operating capital generation drove strong year-on-year growth in cash remittances from the business units to group centre, the firm added.
The solvency coverage ratio improved to 257%, from 203% the year before, which Chesnara said is "significantly higher" than the upper-end of the group's operating range of 140% to 160%.
"This provides ongoing capacity to pursue inorganic investment opportunities," the firm added.
Since the year-end, Chesnara has completed the acquisitions of HSBC Life UK and Scottish Widows Europe SA.
On Tuesday, Chesnara said integrations are "progressing well".
On a proforma basis for the impact of the recent acquisitions, the firm expects the solvency coverage ratio to reduce to around 180% in 2026, still comfortably above its operating range.
Chesnara increased its final dividend by 6.0% to 14.80p per share from a rebased 13.96p the year before.
This takes the total payout to 22.50p, up from a rebased 21.40p the year prior, the 21st successive year of dividend growth since the initial public offer.
The firm explained the dividend per share has been rebased to reflect the rights issue bonus factor of 1.15 times applied to historical dividend per share metrics.
Chesnara shares were down 1.0% at 295.50 pence each in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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