Chesnara plc reported a 79% year-over-year surge in operating capital generation to £96 million for the first half of 2026, underpinned by the integration of Chesnara Life UK. The figure compares with £54 million in H1 2025, with £51 million of the increase attributed to the acquisition, alongside £33 million from surplus emergence and £12 million from management actions.
The insurer’s solvency coverage ratio stood at 185%, down from 257% at year-end 2025 but above the proforma estimate of 180% and the operating range of 140–160%. Own funds increased 14% to £976 million, while adjusted operating profit rose 46% to £31 million. New business contribution more than doubled to £12 million, up 152% from the prior-year period.
Cash remittances grew 31% to £73 million, and assets under administration expanded to £21 billion from £15 billion. The IFRS capital base climbed 22% to £850 million, with the contractual service margin rising by £196 million to £327 million. Leverage remained at 19%, and central liquidity totaled £271 million, comprising £150 million in revolving credit facility capacity and £121 million in cash.
Chesnara’s shares rose 4.09% to £343.50, near a 52-week high of £352. The interim dividend was increased by 6% to 8.16 pence per share, marking a 21-year streak of dividend growth. The current dividend yield stands at 6.82%, with shareholder payments totaling £19 million.
The acquisition of Chesnara Life UK contributed £5 billion in assets under administration, over 440,000 policies, and expected lifetime cash generation exceeding £800 million, including £140 million over the first five years. During H1 2026, the deal generated £51 million in operating capital generation and £20 million in cash remittances. A further acquisition, Scottish Widows Europe SA, is expected to complete around the end of fiscal 2026, adding €1.7 billion in assets under administration and 46,000 policies, with projected lifetime cash flows of approximately £500 million.
Own funds comprised £616 million in unrestricted Tier 1 capital, £148 million in restricted Tier 1 capital, and £212 million in Tier 2 and 3 capital. Chesnara estimates £100–130 million of self-financing firepower and an additional £150 million of debt capacity. The solvency II liabilities mix remained heavily weighted toward unit-linked products at 92%, with 4% in guaranteed products and 3% in non-linked savings.
Management described the results as another period of very strong performance, with Chief Executive Steve Murray reaffirming the group’s ambition to become a larger FTSE 250 company through acquisitions, platform integration, and capital management.
