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(Sharecast News) - Shares in Chesnara rose on Tuesday after the FTSE 250 insurance group's interim results impressed, with cash generation and profits surging year-on-year.
The European life, pensions and investment company reported operating capital generation of £96m for the six months to 30 June, up 79% over the year before, during a busy operating period, which saw the completion of the HSBC Life UK acquisition and the proposed takeover of Scottish Widows Europe.
Assets under administration (AuA) jumped 38% to £21bn, largely driven by the acquisition of HSBC Life UK, now named Chesnara Life UK. Meanwhile, adjusted operating profit surged 46% to £31m.
The company also said that new business growth was strong, driven by increased demand for UK onshore bond offerings across Countrywide Assured and Chesnara Life UK. The total new business contribution was £12m, up 152% over the year before.
"The integration of Chesnara Life UK, our largest acquisition to date, continues at pace with strong capital generation already delivered from our first five months of ownership," said chief executive Steve Murray.
"The regulatory change in control for the proposed acquisition of Scottish Widows Europe SA is anticipated around the end of 2026, and we continue to see attractive opportunities to grow the business, underpinned by a healthy M&A pipeline and disciplined execution across the group."
Chesnara declared an interim dividend 8.16p per share, up 6% from the year before. "This is in line with the guidance provided at the time of announcement of the HSBC Life (UK) acquisition and represents a one-off additional step-up of 3% to the interim dividend," the company said.
The stock was 3.8% higher at 342.5p by 0847 BST.
See the latest RNS on Investegate.
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