Chesnara’s shares advanced 3% on Tuesday after the life insurance group reported a near-80% increase in operating capital generation and raised its interim dividend for the 22nd consecutive year.
The company generated £96 million in operating capital in the first half of 2026, up 79% from £54 million a year earlier. Of the total, £51 million stemmed from the acquisition of Chesnara Life UK, while a further £12 million came from capital optimisation measures elsewhere in the group. Cash remittances climbed 31% to £73 million, supported by higher payments from Chesnara Life UK and increased contributions from the Netherlands business following the legal merger of its Dutch units.
Own funds rose 14% to £976 million, while adjusted operating profit increased 46% to £31 million. Assets under administration grew 38% to £21 billion, reflecting the addition of Chesnara Life UK’s portfolio. The solvency coverage ratio declined to 185% from 257% at the end of 2025 due to the acquisition, though it remained above the company’s target operating range of 140% to 160% and the pro forma estimate of around 180%.
Chesnara declared an interim dividend of 8.16 pence per share, a 6% increase that includes 3% underlying growth and a one-off boost tied to the HSBC Life UK deal. The payment is scheduled for October 16, with the record date set for September 4, 2026. This marks the insurer’s 22nd consecutive year of dividend growth.
The company also highlighted its proposed acquisition of Scottish Widows Europe SA, announced in February 2026. The deal is expected to add €250 million in lifetime cash generation, €1.7 billion in assets under administration, and approximately 46,000 policies, pending regulatory approval for a change in control. Chesnara currently administers about 1.3 million policies across the UK, Netherlands, and Sweden.
