Chesnara PLC (LSE:CSN) has extended its track record of dividend growth to an impressive 20th consecutive year, underpinned by rising cash generation and a strong capital position that continues to support its M&A ambitions.
The life and pensions consolidator reported a 14% rise in commercial cash generation to £60 million in 2024, up from £52 million the year before.
On the table is a final dividend of 16.1p per share, taking the full-year payout to 24.7p, a 3% increase on 2023. The company noted that its two-decade streak of uninterrupted dividend growth is unmatched among listed insurers in the UK and Europe.
Chief executive Steve Murray said the results reflected “positive organic EcV economic value] earnings and a robust solvency position,” enabling the group to deliver sustainable returns while continuing to invest in operational programmes and acquisitions.
Chesnara remains on the hunt for more deals. In December, it announced its second portfolio acquisition from Canada Life, adding £11 million of EcV - £3 million more than originally expected.
It now has up to £200 million of immediately available capital, including £109 million in liquidity and further expected divisional dividends.
The company ended the year with a Solvency II coverage ratio of 203%, well above its 140–160% operating range, giving it ample headroom for investment.
IFRS pre-tax profit jumped to £21 million, up from £2 million in 2023, while Economic value earnings rose 17% to £69 million.
While new business contribution was stable at £9 million, Chesnara’s focus remains squarely on efficient capital deployment and acquisition-led growth.
Murray said the M&A pipeline “remains positive,” with the group ready to pursue further opportunities in line with its strategy.