Chesnara posts strong interims with 26% cash growth, higher dividend, and HSBC Life acquisition

Proactive - Interviews for investors

Chesnara Plc CEO Steve Murray joined Steve Darling from Proactive to discuss the company’s strong interim results for the first half of 2025, highlighting significant improvements in cash generation, capital strength, and shareholder returns. For the six-month period, cash generation rose 26%, supported by improved operational performance and disciplined financial management. Chesnara also reported a 3% increase in its interim dividend, lifting it to 7.7p per share, further underlining the company’s commitment to delivering sustainable, long-term value for shareholders. The group’s eligible own funds stood at £632 million, while its Solvency Coverage Ratio increased to 207%, up from 203% a year earlier. Murray emphasized that this robust capital position provides Chesnara with significant financial headroom to pursue M&A opportunities and further strengthen its European life and pensions consolidation platform, which today administers nearly one million policies. A key highlight of the reporting period was Chesnara’s transformational acquisition of HSBC Life, completed in July 2025. The £800 million lifetime cash generation deal was supported by a £140 million rights issue and a £150 million bond issue. The transaction also added approximately £4 billion in assets under administration, further enhancing Chesnara’s scale and diversification across Europe. Murray described the HSBC Life acquisition as a pivotal step forward, strengthening Chesnara’s growth profile and supporting the company’s decision to implement a one-year step-up in the dividend. He noted that this move not only rewards shareholders but also reflects confidence in the company’s ability to sustain and grow cash flows over the long term. Looking ahead, Murray said Chesnara is well positioned, with both the financial firepower and the track record to continue executing on an active pipeline of opportunities. He reiterated that Chesnara’s strategy remains focused on disciplined acquisitions, operational resilience, and delivering dependable returns, positioning the company as one of the most reliable consolidators in the European life and pensions sector. #proactiveinvestors #chesnaraplc #lse #csn #lieinsurance #pension #FTSE250 #HSBCLifeUK #SteveMurray #InsuranceM&A #InvestorUpdate #HalfYearResults #CashGeneration #UKInsurance #ProactiveInvestors #FinancialResults #InsuranceGrowth #StrategicAcquisition #CapitalMarkets