Chesnara reported a 79% increase in operating capital generation to £96 million in the first half of 2026, driven by the acquisition of Chesnara Life and capital optimization actions. The insurer’s solvency position strengthened further, with its Solvency II coverage ratio rising to 185%, well above the 140%-160% target range.
Cash remittances climbed 31% to £73 million, with Scildon in the Netherlands contributing a record £30 million and Chesnara Life adding £20 million. The company also increased its interim dividend by 6% to 8.16 pence per share, marking 23 consecutive years of payouts.
Own funds grew 14% to £976 million, including a £79 million day-one boost from the Chesnara Life acquisition. Adjusted operating profit rose 41%-46% to £31 million, while the Contractual Service Margin expanded to £327 million from £131 million at the end of 2025. The IFRS capital base increased 22% to £850 million.
Chesnara Life, acquired in January, contributed £51 million to operating capital generation in its first five months and is expected to generate £140 million in cash over its first five years of ownership. Data migration from HSBC remains on track for completion by the end of 2026. The proposed acquisition of Scottish Widows Europe, announced in February, is slated for legal completion around the end of 2026, subject to regulatory approval, with an expected £500 million in lifetime cash flows.
The insurer’s assets under administration reached £21 billion, up from £20.3 billion at year-end 2025, with Movestic adding approximately £700 million. New business value doubled to £12 million compared with the prior year.
Chesnara’s solvency position remains robust, with leverage substantially below its 30% long-term target. The company estimates self-financing firepower of £100 million to £130 million, alongside an additional £150 million of debt capacity. Group central liquidity stood at £271 million after funding the Chesnara Life acquisition.
Shares rose 4.4% to $344.53, nearing the 52-week high of $352. The insurer’s management highlighted recurring capital optimization actions, including foreign exchange hedging and mass lapse reinsurance, as key contributors to its operating capital generation trajectory.
