Chesnara PLC (LON:CSN) said its strong financial position will enable it to continue to pay dividends despite the coronavirus (COVID-19) pandemic disruption as it reported full-year 2019 results.
The life insurance and pensions group raised its dividend by 3% to 21p for the year ended December 31, 2019, as its economic value - which includes the value of future policies - rose by 7% to £690mln.
WATCH: Chesnara PLC to continue to pay dividends despite pandemic disruption
Recent market movements have seen the economic value subsequently drop by £90mln, but Chesnara said its financial solvency ratio had increased to 163% at the end of March from 155% at the year-end.
John Deane, Chesnarar's chief executive said: “Prudent, yet progressive, historical dividend payments, a low gearing ratio (11%) and a keen focus on operational resilience have resulted in the business being able to cope well with the challenges of COVID-19.
“The solvency of the group has held up well which has enabled us to continue our dividend strategy without compromising the financial stability of the business."