CHESNARA

This has a dreadful chart for last few months.
Didnt know why.
But it appears that USB has disposed of 4.2million over recent period which I think probably accounts for depressed 2 mths.

Strong points are its projected yield of 8.67% .
Peg of .36 and projected Peg of .29
Projected Profit 50% rise.

I have held these from about 98 before disposing of them at about 170 and re-buying some at 169 and 155 and 158 after recent drop on 31/102005 when it dropped probably due to USB sell..
Also bought some CFDs

My guess is that it is going to recover fairly sharply.

BDYOH

I watched for most of last year and subsequently missed 2 dividends - heyho!

Yeah, timing on buying into these is more critical to a lot of other stocks I find, very attractive though as the divvies are so good.

Sold these earlier and bought some more VLK.

Looking at AV. and RSA,

But be careful with latter, there are question marks about connection with audits.

Think the connection is irrelevant.

Cracking finish to the day ahead of the ex-div. We've got back most of the ex-div drop on today's rise. I doubt if this rise will continue and we'll probably see a couple of months in the doldrums once we've gone ex-div - until the next update looms into view.

Correct LG, 8 year high reached 263p ahead of tomorrow's Trading Update at the mo.

Interim management Statement

Strong results underpinned by equity market growth with continued operational recovery in Movestic.


· Increase in EEV to £344.8m at 31 March 2013 from £311.1m at 31 December 2012 primarily driven by net of tax profit of £27.1m together with a £7.2m gain arising from appreciation of the Swedish Krona against Sterling over the period.

· EEV pre-tax profit (excluding modelling adjustments and exchange rate impacts) for the quarter ended 31 March 2013 of £28.5m (quarter ended 31 March 2012: £22.6m), predominantly due to £26.1m of pre-tax profit emerging as a direct result of investment market performance.

· Strong net cash generation of £12.2m for the quarter ended 31 March 2013 (full year 2012: £41.0m).

· Profit on an IFRS basis before tax for the quarter ended 31 March 2013 of £8.7m (quarter ended 31 March 2012: £13.0m) is underpinned by UK product-based surpluses which remain strong.

· A £5.7m release in the provision for S&P policy guarantees has contributed to the IFRS result, reflecting the positive impact of equity market growth.

· Solvency ratios remain strong, with Group (IGD) at 245% (31 December 2012: 244%), CA at 229% (31 December 2012: 199%) and Movestic 289% (31 December 2012: 280%).

· Movestic generated £8.2m of EEV pre-tax profit (excluding modelling adjustments and exchange rate impacts) in the quarter ended 31 March 2013 (quarter ended 31 March 2012: profit of £6.0m), primarily due to a recovery in Swedish equity markets.

· Continued return of IFA support for the Movestic business has resulted in a 42% increase in Pensions and Savings new contract premium income compared with the first quarter of 2012. The recovery in IFA support has continued post 31 March 2013.

· Shareholder equity on EEV basis of 300.2p per share (31 December 2012: 270.9p per share), both before allowance for the 2012 final dividend of 11.25p to be paid in May.

· Acquisition opportunities continue to be examined and there are signs of a general upturn in M&A activity.

Is it just me, skinny, or is that IMS as good as they get?

Maybe already largely anticipated?

I've sold some today - here and elsewhere - the worlds gone mad!

CSN has taken a dive post trading statement over recent years, but with Movestic doing so well that trend might not happen this year, also the market seems determined to keep going up.. I will watch with interest.

Interim Results date http://www.moneyam.com/action/news/showArticle?id=4648978

Interim Results

Chesnara today reported interim results for the half-year ended 30 June 2013. The Group remains committed to offering shareholders an attractive long-term income stream arising from the profits of its life assurance businesses.

- IFRS profit before tax, for the six months ended 30 June 2013 increased by 134% to £21.8m (30 June 2012: £9.3m excluding exceptional item)

- Increase of 8.5% in EEV to £337.4m (31 December 2012: £311.1m)

- Increase of 122.6% in EEV post-tax profit to £35.4m (30 June 2012: £15.9m), excluding modelling adjustments

- Strong and increased cash generation of £21.9m (30 June 2012: £12.4m)

- Group solvency ratio remains, post dividend, strong at 232% (30 June 2012: 198%)

- Subsidiary solvency ratios also strong and above targets. CA at 244% (30 June 2012: 213%) and Movestic at 309% (30 June 2012: 277%)

- Movestic increases IFRS pre-tax profit to £1.0m (30 June 2012: £0.1m)

- Shareholder equity on EEV basis now £2.94p per share (31 December 2012: £2.71p per share)

- Earnings per share (on IFRS basis) of 15.01p (30 June 2012: 6.19p)

- 6.25p interim dividend per share declared (2012: 6.1p), an increase of 2.5%

- Board remains focused on offering shareholders an attractive dividend flow

- Search for value adding acquisition opportunities continues

Very good set of interim results, and yet another dividend increase, albeit a small one.

Ex dividend Wednesday 6.25p.

Yes indeed and paying a rather attractive 2.38% as at last week, but beware it can take a time to recover SP.

Stan - we've been here before! :-)

Ahh yes I remember now -):

.

Proposed acquisition of Direct Line Life by Chesnara

Chesnara Plc ("Chesnara") is pleased to announce that it has entered into an agreement to acquire the entire issued share capital of Direct Line Life Insurance Company Limited ("Direct Line Life"), from Direct Line Insurance Group Plc ("Direct Line Group"), for a total consideration of £39.3 million, payable in cash on completion (the "Acquisition"). The Acquisition will be financed from a combination of existing cash resources and a new bank facility.

Direct Line Life is a UK-based life insurance company and wholly-owned subsidiary of Direct Line Group. It became substantially closed to new business on 5 July 2011 and has been focused since then on managing the existing portfolio in line with the run-off plan agreed at the time with the then FSA. Prior to closure to new business, Direct Line Life predominantly offered non-linked products including mortgage life cover, fixed term life cover (both with and without critical illness cover) and over 50's life cover to UK customers distributed under both its own brand and also in recent years, but before the closure to new business, on a white label basis.

Direct Line Life is being acquired at an effective 74.7 per cent. of Chesnara Directors' estimate of the residual embedded value of £52.6 million as at 30 June 2013, adjusted to reflect a capital extraction of £23.0 million by the seller immediately at completion.

The effect of this capital extraction is that Chesnara will acquire the business with a lower solvency margin than its long term target of 150%, and will therefore immediately on completion inject capital, estimated at £10.4 million. This increased funding requirement is temporary and is expected to be released by way of a Part VII transfer of Direct Line Life into Chesnara's existing UK life book, Countrywide Assured Plc, by the end of 2014.

As part of the Acquisition, Chesnara has agreed a new loan facility with The Royal Bank of Scotland plc of £73.8 million. This is made up of two facilities. The first facility is divided into two tranches. Tranche A of the first facility will be used to refinance some £30 million of Chesnara's existing outstanding bank debt and Tranche B, which is in the amount of £31 million, will be used to finance part of the consideration for the Acquisition. The second facility will be used to provide short term funding of £12.8 million in relation to the capital extraction described above (the second facility will be repaid at the latest by 30 June 2015).

Chesnara has a clear objective to make strategic acquisitions in the life assurance sector and in particular in its core UK life operations. Chesnara is experienced in managing closed UK life books and Direct Line Life will be an attractive complementary addition. The Acquisition is expected to have a positive impact on the embedded value and cash generation ability of Chesnara in the medium term once integrated.

In the financial year ended 31 December 2012, Direct Line Life had an operating profit before tax of £9.4 million, reported a profit for the period after tax of £6.9 million and had gross assets of £177.6 million. Direct Line Life had approximately 150,000 policies in force as at 31 July 2013. The results of Direct Line Life will be presented using Chesnara's accounting policies in the circular to be sent to shareholders (as noted below).

Following completion, Chesnara intends to transfer the administration role to HCL (one of Chesnara's current outsourcing partners). Management intends to focus on realising potential synergies when they might be available, such as combining the underlying life companies of the enlarged group by means of a transfer pursuant to the provisions of Part VII of FSMA 2000.

The Acquisition is subject to approval from the Prudential Regulation Authority ("PRA"). The Acquisition is a Class 1 transaction for Chesnara under the Listing Rules and is conditional on the approval of Chesnara shareholders at a general meeting, notice of which will be included in a circular to be sent to shareholders shortly.

Interesting... Very interesting.

On the move now.