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Chesnara PLC on Thursday said it swung to a loss in 2022 due to ‘adverse investment conditions’ which saw a fall in asset values. The Preston, England-based life insurance and pensions consolidator said it swung to a pretax loss of £146.9 million from a profit of £28.8 million in 2021. This was driven by a net investment loss of £1.49 billion in 2022, swung from a gain of £1.17 billion in 2021. This was partly offset by positive net insurance contract claims and benefits of £70.1 million last year from a loss of £469.9 million in 2021 and a swing to positive net change in investment contract liabilities of £1.00 billion from a negative £898.5 million. Net insurance premium revenue rose by 39% to £272.6 million from £196.2 million. Chesnara declared a final dividend of 15.6 pence per share for a total dividend of 23.28p per share, up 3.0% from 22.60 pence the year before. Looking ahead, Chesnara said its outlook remains positive as it expects recovery in economic value in the first quarter of 2023 as a result of its completion of the Conservatrix acquisition in January. Conservatrix is a Dutch insurance firm based in Utrecht that filed for bankruptcy in 2020. Chesnara Chief Executive Officer Steve Murray said: ‘The wider business has performed robustly despite the high level of market volatility reducing the group’s economic value. We retain a strong and resilient solvency position with substantial cash balances at the holding company level, supporting our continued track record of growing our dividend.’ Shares were up 2.6% at 286.80 pence in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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