Chesnara’s shares advanced 3% on Tuesday after the UK-based life insurer reported a 79% increase in operating capital generation to £96 million in the first half of 2026, up from £54 million a year earlier.
The company attributed £51 million of the increase to its acquisition of Chesnara Life UK, formerly HSBC Life (UK) Ltd, completed in January 2026. An additional £12 million came from capital optimization actions elsewhere in the group. Cash remittances rose 31% to £73 million from £56 million, while adjusted operating profit climbed 46% to £31 million from £21 million.
Assets under administration grew 38% to £21 billion from £15 billion, and own funds increased 14% to £976 million from £859 million. The solvency coverage ratio declined to 185% from 257% at the end of 2025, reflecting the impact of the Chesnara Life UK deal, but remained above the company’s target range of 140% to 160% and its prior pro forma estimate of around 180%.
Chesnara also extended its dividend growth streak, raising its interim dividend for the 22nd consecutive year. The board declared an 8.16 pence per share payout, a 6% increase that included a one-off boost tied to the HSBC Life UK acquisition alongside 3% underlying growth. The dividend is payable on October 16 to shareholders on the register as of September 4, 2026.
The insurer’s growth strategy includes a proposed acquisition of Scottish Widows Europe SA, announced in February 2026. If completed around the end of 2026—subject to regulatory approval—it is expected to add €250 million in lifetime cash generation, €1.70 billion in assets under administration, and roughly 46,000 policies. Chesnara currently administers about 1.3 million policies across its UK, Netherlands, and Sweden businesses.
