European-focused life insurer Chesnara PLC (LSE:CSN) maintained its policy of raising dividends by 3% in its latest half-year, putting it on course for a 21st year of consecutive rises, something it says only seven companies across Europe can match.
Profit before tax for the six months to end June 2024 fell to £13.4 million (£15.3 million), with the value of policies in force (EcV) also down at £508 million (£524.7 million).
Margins were affected by acquisitions, said Chesnara, which affected the bottom line, with the IFRS capital base dropping to £458 million from £487 million.
Funds under management across its business in the UK, Scandinavia and the Netherlands rose to £11.9 billion (£11.5 billion).
Solvency was 201%, against a target of 140-160%, with cash balances at £137 million after £29.2 million was generated in the half year though unlike other life insurers, Chesnara says this is earmarked for more acquisitions rather than buybacks.
Steve Murray, chief executive, added: “Looking forward, we continue to have a strong line of sight to future cash generation over the medium and longer term from the unwind of risk margin and SCR, investment returns above risk-free rates, wider synergies and management actions.“
The interim dividend goes up to 8.61p from 8.36p.