Our Strategic Objectives

WHY THIS MATTERS

The existing in-force books are the core source of cash and are at the heart of our investment case.

HOW WE DELIVER

A centralised governance oversight and corporate management team ensure robust and consistent governance across the group. Operating autonomy is delivered to the divisions to ensure we benefit from our strong divisional management teams. In the UK Chesnara adopts an outsourced business model. Core operations are not outsourced in Sweden or the Netherlands because it would not suit the business models in those territories.

TRACK RECORD

The profitability of our existing business remains at the heart of our business model. We have delivered positive group commercial cash generation of £29.2m for the six months ended 30 June 2024.

WHY THIS MATTERS

Acquisitions maintain the scale and effectiveness of the operating model. In addition, they create a source of value enhancement and sustain the cash generation potential of the Group.

HOW WE DELIVER

Identify potential deals through an effective network of advisers and industry associates.

We work co-operatively with regulators and assess deals by applying well established criteria which consider the impact on cash generation and economic value under best estimate and stressed scenarios.

The financial benefits are viewed in the context of the impact the deal will have on the enlarged Group’s risk profile.

Transaction risk is minimised through stringent risk-based due diligence procedures and the senior management team’s acquisition experience and track record.

We fund deals with debt, equity or cash depending on the size and cash flows of each deal.

TRACK RECORD

Chesnara has made thirteen acquisitions since the company was established in 2004; five in the UK, one in Sweden and seven in the Netherlands. The subsequent embedded value growth has been the primary driver of the Group’s total economic value increase from £126m in 2004 to £508m at 30 June 2024. The acquisitions have also made a significant contribution to the Group’s cash generation thereby funding our dividend strategy. Importantly, no deals have resulted in any form of detrimental customer outcomes and customers benefit from the financial stability the Chesnara Group offers.​​

WHY THIS MATTERS

Whilst new business profits are a relatively modest component of the Chesnara financial model, they are an important, welcome and regular source of value growth which supplements growth delivered by acquisitions.

HOW WE DELIVER

Movestic in Sweden and Scildon in the Netherlands are open to new business. Movestic primarily focuses on unit-linked pensions and savings business, distributed through IFAs, and targets a realistic share of our target market of between 6-10%. Scildon sells protection products, individual savings and group pensions contracts via a broker-led distribution model, and targets a market share of 6-10%. For both open businesses, we believe that to achieve higher volumes would require a pricing strategy that may compromise the keen focus on ensuring the business we write is profitable.

Newly acquired UK business, CASLP,  remains open to new business with its onshore bond via third party platform links.

TRACK RECORD

Movestic has reported a new business profit for six months ended 30 June 2024 of £2.1m.

Scildon has reported a new business profit for six months ended 30 June 2024 of £1.8m.

CASLP has reported a new business profit for six months ended 30 June 2024 of £1.0m.