Chesnara (CSN) H2 2025 earnings summary

Executive summary

• Achieved significant strategic transformation through major M&A activity, including the acquisition of HSBC Life UK (now Chesnara Life) and restructuring in the Dutch business.

• Announced the acquisition of Scottish Widows Europe, expected to add EUR 250 million in lifetime cash flows, with integration and regulatory approval processes underway.

• Delivered strong financial results across all key metrics, with increased new business contributions and robust operating performance.

• Maintained a robust balance sheet, entered the FTSE 250 for the first time, and raised significant capital through rights issue and RT1 bond.

• Continued commitment to sustainability, publishing the first Climate Transition Plan and expanding social impact activities.

Financial highlights

• Operating capital generation rose 19% year-over-year to GBP 94 million.

• Adjusted operating profit up 42% to GBP 56 million; cash remittances increased to GBP 58 million.

• Own funds increased 34% to GBP 859 million, driven by capital raises and operational performance.

• Solvency II coverage ratio rose to 257%, up 54 percentage points year-over-year.

• Assets under administration grew to GBP 15 billion, expected to exceed GBP 20 billion post-M&A.

• Final dividend increased 6% to GBP 0.148 per share.

Outlook and guidance

• Focus for 2026 includes integration of Chesnara Life, change of control for Scottish Widows Europe SA, balance sheet optimization, and new M&A opportunities.

• Pro forma own funds projected to exceed GBP 1 billion after Chesnara Life integration.

• Anticipate near doubling of new business value in 2026 following recent M&A.

• 2026 interim dividend expected to rise by a further 6%, representing a one-off acceleration in dividend growth.

• Continued delivery of decarbonisation activities in line with the Climate Transition Plan.