Chesnara PLC (LSE:CSN), the FTSE 250 life and pensions consolidator, said it remains on the hunt for further acquisitions, with its purchase of Scottish Widows Europe on track to complete around the end of the year.
The company said regulatory approval for the change in control is anticipated in the coming months, having submitted its application after announcing the deal in February.
That transaction is expected to add roughly €1.7 billion of assets under administration, about 46,000 policies and €250 million of cash generation over the lifetime of the portfolio.
It also gives Chesnara a Luxembourg base, which the company positions as a platform for further consolidation across Europe.
Steve Murray, chief executive, said the group continued to see attractive opportunities to grow, underpinned by what he described as a healthy pipeline of merger and acquisition targets.
The second half will centre on integration work, including migrating data from the former HSBC Life UK business to the SS&C platform by the end of 2026, with the associated Part VII transfer, a court-sanctioned process for moving insurance policies between companies, expected in 2027.
Further integration of Scildon in the Netherlands is also due to conclude by the year-end.
Murray acknowledged continued market volatility driven by geopolitical tension, shifting trade policy and macroeconomic uncertainty, but said the business model had proved resilient.
The outlook comes alongside first half figures showing a sharp step up in cash generation.
Operating capital generation, which measures the Solvency II capital produced by operations, rose 79% to £96 million.
Of that, £51 million related to acquisition impacts from Chesnara Life UK, the rebranded HSBC business bought in January, with £33 million from business unit surplus and £12 million from capital optimisation at group centre.
Cash remittances to the centre climbed 31% to £73 million and adjusted operating profit rose 46% to £31 million.
Assets under administration reached £21 billion, up 38% from £15 billion at the end of last year.
The solvency coverage ratio fell to 185% from 257%, reflecting the cost of the HSBC deal, though that remains comfortably above the group's 140% to 160% operating range and five percentage points ahead of its own pro forma estimate.
Chesnara expects the ratio to stay above that range even after Scottish Widows Europe completes.
New business contribution more than doubled to £12 million, driven by demand for UK onshore bonds following recent tax changes.
The interim dividend rises 6% to 8.16p, including a one-off 3% step-up flagged at the time of the HSBC acquisition.
