Chesnara PLC (LSE:CSN), the life and pensions consolidator, ended the first half in a strong cash position – providing the financial firepower to fund its growth and dividend strategy.
The group, which completed two key purchases in the period and is in the process of working on a third, was sitting on a balance of £155.4mln, which it estimates will provide it with £100mln of acquisition currency.
It also allowed it to increase its payout by 3% to 8.12p, extending its record of uninterrupted dividend growth to 18 years.
In the six months ended 30 June 2022, the group made a loss measured using IFRS accounting standards of £104.6mln, compared with a profit of £20.8mln at the same time last year. The deficit was "driven by adverse investment conditions", investors were told.
Chesnara’s solvency ratio, a key benchmark for financial health was 195%, well above the usual 140%-160% operating range.
In a busy six months, the group has acquired books of business of Sanlam Life & Pensions and Robein Leven. It is currently in the process of purchasing Conservatrix's insurance portfolio in the Netherlands.