Operational & Financial Highlights

IFRS pre-tax profits are boosted by positive investment returns in the period and the continued steady release of the contractual service margin (CSM).

The opening half of 2024 has been another period of strong cash generation for the group. Group cash generation of £19.6m (six months ended 30 June 2023: £10.6m) allows for the short-term requirement to hold additional equity risk capital (£9.3m) as defined by the Solvency II symmetric adjustment (SA).

EcV earnings of £20.2m have been offset by the impact of dividend payments (£23.5m) and foreign exchange consolidation impacts (£13.3m). Investment returns have provided the most material contribution to the EcV earnings, with new business also contributing positively.

The group’s solvency has reduced slightly since the start of the year remaining well above our normal operating range of 140-160%. The ratio does not include any temporary impacts from either transitional benefits or a positive closing SA position (looking through the impact of the SA, the groups’ solvency increased in the period). The solvency position continues to provide substantial headroom for future acquisitions, while all operation divisions remain well in excess of risk appetite levels

FuM have increased by c4% since the start of the year, reflecting positive investment returns on our existing business during the period.

Increase in the interim dividend for the year of 3% to 8.61p per share (2023: 8.36p interim), supported by continued commercial cash generation from our divisions and strong, resilient capital position. Our 20 year dividend growth track record is unrivalled across UK and European Listed insurers with Chesnara one of only 7 companies across the main UK, French, German, Dutch and Swedish exchanges to raise their dividend every year for 20 years or more, with c£489m of cumulative dividends paid to our shareholders.