19th May 2014 09:24
LONDON (Alliance News) - Chesnara PLC Monday said its first-quarter pretax profit fell 16% on the previous year due to "fairly flat" economic conditions.
In a statement, Chesnara, which buys and manages life and pension books in Western Europe, said it made a GBP7.3 million pretax profit in the three months ended March 31, compared with GBP8.7 million in the corresponding quarter a year earlier.
Chesnara owns UK life assurance subsidiary Countrywide Assured PLC, Protection Life Company Ltd - formerly Direct Line Life Insurance Company Ltd - and Swedish life assurance company Movestic Livförsäkringar AB, which, unlike Countrywide, is open to new business.
According to Chesnara, its pretax profit fell due to the FTSE 100 index closing 2.2% lower at the end of March than at the end of 2013, against an 8.7% increase a year earlier. In addition, 10-year gilt yields fell by about 20 basis points, compared with being broadly flat in the first-quarter of 2013.
Countrywide Assured's pretax profit increased to GBP6.5 million from GBP1.6 million, while Save & Prosper Insurance Ltd, which was hit by interest rate movements, saw pretax profit decline to GBP100,000 from GBP9.0 million. Protection Life contributed GBP2.2 million in profit, while Movestic swung to a GBP1.2 million pretax profit, from a GBP200,000 pretax loss.
Protection Life was acquired from Direct Line Insurance Group PLC for GBP39.3 million in November 2013.
Chesnara said it continues to see a number of potential acquisition opportunities.
Chesnara shares were Monday quoted at 306.86, down 2.0%.
By Samuel Agini; [email protected]; @samuelagini
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