Chesnara PLC Reports Strong 2023 Full Year Results and Positive Outlook for M&A

Chesnara PLC has released its 2023 full year results, highlighting the completion of the acquisition of Conservatrix's insurance portfolio in the Netherlands and an individual protection portfolio from Canada Life UK. The company also announced a new UK strategic partnership with SS&C Technologies for policy administration. The results show a strong group commercial cash generation of £53.0m, robust solvency of 205%, and a proposed 3% increase to the full year dividend. The IFRS pre-tax profit for 2023 was £1.8m, a significant improvement from the £62.1m loss in 2022.

Steve Murray, Group CEO, expressed confidence in the company's acquisition strategy, stating, "The two acquisitions we delivered in 2023 show we have continued momentum behind our acquisition strategy." He also mentioned a positive pipeline for M&A in 2024 and the company's ability to finance and execute transactions on attractive terms for both vendors and shareholders. The company's financial and strategic highlights include 19 years of dividend growth, a solvency II ratio of 205%, and a leverage ratio of 29.2% as of 31 December 2023.

The acquisitions of the Conservatrix insurance portfolio and the Canada Life UK protection portfolio added further scale to the Group's Dutch and UK businesses, generating a combined day one EcV gain of £28.4m. The economic value ("EcV") of £524.7m as at 31 December 2023 has grown over the year due to the acquisitions and positive equity markets. The introduction of IFRS 17 during the period resulted in IFRS pre-tax profits of £1.8m in FY 2023, driven by positive investment returns over the period.

The recommended final dividend of 15.61p per share is expected to be paid on 28 May 2024, with the ordinary shares quoted ex-dividend on the London Stock Exchange as of 11 April 2024. A presentation for analysts will be held at 9.30am on 28 March 2024 at the offices of RBC Capital Markets, 100 Bishopsgate, London, EC2N 4AA, and will be available to join online and subsequently posted to the corporate website at www.chesnara.co.uk.