Low interest rates are an issue said John Deane, chief executive, but the UK business remains a robust source of cash, with additional potential to enhance the core cash if required.
Overseas, Deane added there is scope for future capital reduction actions, particularly in Dutch business Scildon.
New business profits at Scildon are still below par added Deane, but volumes are increasing and costs are dropping.
Chesnara also has the balance sheet strength to make further acquisitions in the Netherlands and UK, with Brexit seen as having little direct impact on the business.
In the six months to June, economic value (which includes expected future profits from policies) rose to £645mln (£626mln).
Net earnings rose to £47.1mln (£13.6mln), while the interim dividend rose 3% to 7.43p.
Cash generation over the six months was £13.4mln (£48.6mln) with the solvency ratio remaining strong at 155% (158%).