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Chesnara PLC on Tuesday said recent acquisitions were integrating well as it reported growth in operating profit and an improved solvency coverage metric. The Preston, England-based life and pensions consolidator said pretax profit fell to £19 million in 2025 from £21 million in 2024. But adjusted operating profit increased 42% to £56 million from £39 million. Assets under administration grew 10% to £15 billion from £14 billion. Operating capital generation increased 19% to £94 million from £79 million, and cash remittances of £58 million were up 30% from £45 million. Growth in operating capital generation was driven by robust operating performance in each business unit and capital optimisation actions in the UK, the group said. The sustained growth in operating capital generation drove strong year-on-year growth in cash remittances from the business units to group centre, the firm added. The solvency coverage ratio improved to 257%, from 203% the year before, which Chesnara said is ‘significantly higher’ than the upper-end of the group’s operating range of 140% to 160%. ‘This provides ongoing capacity to pursue inorganic investment opportunities,’ the firm added. Since the year-end, Chesnara has completed the acquisitions of HSBC Life UK and Scottish Widows Europe SA. On Tuesday, Chesnara said integrations are ‘progressing well’. On a proforma basis for the impact of the recent acquisitions, the firm expects the solvency coverage ratio to reduce to around 180% in 2026, still comfortably above its operating range. Chesnara increased its final dividend by 6.0% to 14.80p per share from a rebased 13.96p the year before. This takes the total payout to 22.50p, up from a rebased 21.40p the year prior, the 21st successive year of dividend growth since the initial public offer. The firm explained the dividend per share has been rebased to reflect the rights issue bonus factor of 1.15 times applied to historical dividend per share metrics. Chesnara shares were down 1.0% at 295.50 pence each in London on Tuesday morning. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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