Chesnara plc (LON:CSN) has reported its 2025 full year results, demonstrating a period of transformational strategic delivery with two major acquisitions announced over the past 12 months. Performance was underpinned by disciplined operational delivery alongside the impact of exceptional capital markets activity undertaken during the year, with significant year‑on‑year growth across our key performance indicators. The Group’s updated financial metrics are used for the first time in these results, to support clearer understanding of the Group’s performance and to facilitate comparison with peers.
CASH:
o Operating Capital Generation1 (OCG) of £94m, up 19% (FY 2024: £79m)
o Cash Remittances2 of £58m, up 30% (FY 2024: £45m)
CAPITAL:
o Solvency Coverage Ratio of 257%, up 54 percentage points (FY 2024: 203%)
o Own Funds of £859m, up 34% (FY 2024: £643m)
VALUE:
o Adjusted Operating Profit3 (AOP) of £56m, up 42% (FY 2024: £39m)
o Assets under Administration4 (AUA) of £15bn, up 10% (FY 2024: £14bn)
MAJOR STRATEGIC MILESTONES ACHIEVED:
o HSBC Life (UK) acquisition completed in January 2026, with the business rebranded as Chesnara Life, marking Chesnara’s largest transaction and substantially increasing the scale of the Group.
o Acquisition of Scottish Widows Europe SA announced in February 2026, adding ~€1.7bn of AUA and ~46,000 policies, and creating a foothold in Luxembourg for future European consolidation.
o UK integrations, including Chesnara Life, progressing well.
o Dutch entities successfully merged, simplifying our footprint.
o Successful £140m equity raise with strong shareholder support.
o £150m RT1 bond raise at an attractive coupon.
In line with the announcement made at the time of the HSBC Life (UK) acquisition, the Board is recommending a 6% increase in the final dividend to 14.80p per share. Total dividend for FY 2025 of 22.50p per share.
Commenting on the results and outlook, Steve Murray, Group CEO, said:
“The Group has delivered strong financial results alongside two material deals, the acquisition of HSBC Life (UK) Ltd which completed in January 2026 and the proposed acquisition of Scottish Widows Europe SA. These deals are expected to significantly increase the Group’s scale and longer-term Operating Capital Generation potential. And we continue to see further opportunities to grow, with a positive M&A pipeline and a great track record of disciplined execution.”
A full year results presentation will be held at 9:30am on 24 March 2026 – participants can register here.
Further details on the financial results are as follows:
2025 FULL YEAR FINANCIAL AND STRATEGIC HIGHLIGHTS
STRONG FINANCIAL DELIVERY AND 6% INCREASE IN FINAL DIVIDEND
| FY 2025 | FY 2024 | % increase | ||
| CASH | Operating Capital Generation (OCG) | £94m | £79m | 19% |
| Cash Remittances | £58m | £45m | 30% | |
| CAPITAL | Solvency Coverage Ratio | 257% | 203% | 54ppts |
| Own Funds | £859m | £643m | 34% | |
| VALUE | Adjusted Operating Profit (AOP) | £56m | £39m | 42% |
| Assets under Administration (AUA) | £15bn | £14bn | 10% |
A comprehensive reconciliation of the Group’s Alternative Performance Measures (APMs) to GAAP metrics is provided within the Additional Information section of the 2025 Annual Report and Accounts.
· CASH: Growth in OCG driven by robust operating performance in each of our business units and capital optimisation actions in the UK and at Group Centre. Sustained growth in OCG across our business units has driven strong year-on-year growth in Cash Remittances from the business units to Group Centre.
· CAPITAL: The Solvency Coverage Ratio of 257% is significantly higher than the upper-end of the Group’s operating range. This provides ongoing capacity to pursue inorganic investment opportunities. The increase of 54 percentage points over 2025 was driven primarily by higher Own Funds from positive operating and economic variances and the impact of the Group’s equity and debt issuances over 2025. The Group’s solvency capital requirements benefited from the implementation of mass-lapse and foreign exchange hedging optimisation actions in the UK and the optimisation of foreign exchange hedging arrangements at Group Centre. On a proforma basis for the impacts of the recently completed Chesnara Life acquisition, we expect the Solvency Coverage Ratio to reduce to ~180%, still comfortably above our operating range; and we expect Own Funds to increase to ~£1bn.
· VALUE: Strong operating performance in each of our business units has contributed to a 42% increase in AOP, with the insurance result benefiting from the merger and simplification synergies in the Netherlands. The Group’s AUA has also benefited from strong custodian inflows in Sweden and depreciation of GBP relative to the Swedish krona and the Euro. Post the completion of the Chesnara Life acquisition, on a proforma basis we expect the AUA of the Group to increase to ~£20bn.
MAJOR STRATEGIC MILESTONES ACHIEVED
It has been a transformational period for the Group. We announced two major transactions, the completion of significant migration and restructuring activity and capital optimisation initiatives including:
· Completion of the acquisition of HSBC Life (UK), rebranded as Chesnara Life, in January 2026: Largest acquisition in Chesnara’s history, announced in July 2025. The deal was funded through a combination of internal resources and a fully underwritten £140m equity raise, with a total consideration of £247m. Integration activities began in 2025, and a Part VII transfer is expected in 2027. The deal is expected to add £5bn of AUA, and deliver £140m of Cash Generation over the first five years, transforming our scale in the UK.
· Announcement of the proposed €110m acquisition of Scottish Widows Europe in February 2026: Expected to add €250m Cash Generation, €100m of which is in the first five years at a consideration of €110m. This deal continues our M&A momentum and marks our entry into Luxembourg, broadening continental European consolidation opportunities from a strong platform. Expected to complete around the end of 2026.
· Other strategic actions in the year
o Dutch merger completed, simplifying the organisation and creating efficiencies, with integration to complete in 2026.
o Continued delivery of the UK platform transformation programme, with further migrations to SS&C completed.
o Successful completion of Chesnara’s RT1 bond debut issuance raising £150m at an attractive coupon, providing flexible financing capacity for future M&A.
o £140m equity raise completed to fund the HSBC Life (UK) transaction, receiving strong shareholder support.
o Admitted to the FTSE 250 in August 2025.
o Ongoing delivery of sustainability commitments, including publication of the Group’s first Climate Transition Plan in September 2025.
o New business growth, driven by increasing demand for our UK onshore bond. Movestic also showed strong momentum, supported by expanded partnerships and a new distribution agreement in Norway.
o We completed a number of capital management actions over the year. Key actions include: extension of our existing mass lapse reinsurance arrangements in the UK; introduction of a new FX hedge in the UK business; and renewal of the Group’s FX hedge.
o Updated our Financial Framework to simplify the investor story and align to peers.
DIVIDEND DETAILS
· The recommended final dividend of 14.80p per share represents a 6% increase on the prior year and is expected to be paid on 20 May 2026. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 2 April 2026. The record date for eligibility for payment will be 7 April 2026.
ANALYST AND INVESTOR PRESENTATION
· A presentation for analysts and investors will be held at 09:30am GMT on 24th March 2026 at the offices of RBC Capital Markets, 100 Bishopsgate, London, EC2N 4AA, which will be available to join online and subsequently be posted to the corporate website at www.chesnara.co.uk. To join the webcast, please register using the following link here.
· Chesnara is also pleased to confirm that their management team will host a second live interactive presentation on the Engage Investor platform for retail investors, on 24th March 2026, at 3:30pm GMT. Chesnara welcomes all current and interested retail investors to join and encourages investors to pre-submit questions. Investors can also submit questions at any time during the live presentation. Investors can sign up to Engage Investor at no cost and follow Chesnara from their personalised investor hub.
