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Chesnara confident about dividends going forward

Chesana also the balance sheet strength to make further acquisitions both in the Netherlands and UK,

Chesnara PLC - Chesnara confident over dividends going forward

Life and pensions group Chesnara PLC (LON:CSN) expects to maintain its dividend policy even though current market conditions are putting pressure on the cash it generates.

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%).

Quick facts: Chesnara PLC

Price: 280.5 GBX

LSE:CSN
Market: LSE
Market Cap: £420.93 m
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