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Highlights
CSN's cash Generation rose 26% year-on-year to GBP 37m (HY 2024: GBP 29m), while Solvency II Coverage Ratio increased to 207% (FY 2024: 203%).
Transformational acquisition of HSBC Life (UK) expected to generate over GBP 800m in lifetime Cash Generation, more than three times its GBP 260m consideration.
Interim dividend declared at 7.70 pence per share, up 3% from the prior year, payable on 17 October 2025.
Chesnara plc (LSE:CSN), the UK-based life and pensions consolidator, has published its interim results for the six months ended 30 June 2025, reporting both financial resilience and significant strategic developments, including a landmark acquisition.
Financial Performance
Cash Generation for the period was GBP 37m, a 26% increase from GBP 29m in HY 2024. Eligible Own Funds stood at GBP 632m (FY 2024: GBP 643m), supported by a higher Solvency Coverage Ratio of 207% (FY 2024: 203%), well above the company’s operating range of 140–160%.
The IFRS Capital Base was GBP 441m (FY 2024: GBP 449m), with Contractual Services Margin and insurance results contributing to growth before shareholder dividends. New Business Contribution was GBP 5m, in line with the prior year.
Economic Value (EcV) was reported at GBP 517m (FY 2024: GBP 531m), with positive operating and economic earnings offset by central costs and dividend payments. The Group recorded an IFRS pre-tax loss of GBP 5m (HY 2024 restated: GBP 13m profit), attributed to a lower investment result in less favourable market conditions despite encouraging insurance performance.
Dividend Declaration
The Board declared an interim dividend of 7.70p per share, an increase of 3% from the prior year. The dividend will be paid on 17 October 2025 to shareholders on the register as of 5 September 2025, with shares trading ex-dividend from 4 September 2025.
Strategic Developments
On 3 July 2025, Chesnara announced the acquisition of HSBC Life (UK) Ltd for a consideration of GBP 260m, a deal expected to deliver over GBP 800m in incremental lifetime Cash Generation. The acquisition adds approximately GBP 4bn in Assets under Administration (AuA) and around 454,000 policies, bringing total expected AuA to GBP 18bn and policies to about 1.4 million.
To fund the transaction, the company successfully raised GBP 290m through a Rights Issue and a Restricted Tier 1 (RT1) Bond issuance. The GBP 150m RT1 Bond, issued at an 8.5% pre-tax coupon, provides further capital flexibility. These measures are expected to reduce the Group’s leverage ratio from 31% at HY 2025 to around 25%.
The Group also reported the completion of the legal merger of its Dutch businesses on 2 July 2025, which is expected to generate synergies and enhance operational efficiency.
Financial Flexibility
Group Centre liquidity rose to GBP 126m (FY 2024: GBP 109m), with divisional remittances of GBP 56m received during H1 2025.
Chesnara enters the second half of 2025 with the completion of significant financing initiatives, and the HSBC Life (UK) acquisition underway.
