30th Mar 2020 11:58
(Alliance News) - Chesnara PLC said Monday it remains well capitalised and expects to continue with its dividend payments.
Shares in the life insurance and pensions consolidator were 11% higher in London on Monday at 288.00 pence each.
Chesnara said its cover ratio is estimated at about 164% as of March 20, compared to 155% at the end of 2019. The company noted its cover ratio takes into account its 13.97 pence final dividend payment for 2019.
The value of its surplus above solvency capital required stood at GBP193 million on the same date, down from GBP210.8 million at December 31.
"Solvency estimates within our divisions show that all remain above their local requirements, and hence we continue to expect material dividend payments to be paid to Chesnara during the second quarter of the year, further supporting the group's longstanding dividend strategy," the life assurance firm said.
Despite this, Chesnara noted its economic value has taken a GBP100 million hit from its GBP670 million position on December 31.
The company also noted it is delaying its 2019 results and postponing its annual general meeting. Chensara's annual results will be released on April 15 and the AGM will take place on May 26.
"Despite the challenging circumstances, our operations at both head office and our divisions, continue to function effectively. Our business continuity plans have been implemented and continue to be adapted as the situation evolves, with new working arrangements in place and with the vast majority of our colleagues and outsource partners now working from home. Our risk management and control framework continues to be effective," Chesnara said.
By Paul McGowan; [email protected]
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