Chesnara (LSE:CSN) reported operating capital generation of £96m for the first half of 2026, up 79% from £54m a year earlier, as its largest-ever acquisition began contributing capital ahead of expectations.
The FTSE 250 life, pensions and investment consolidator, which administers around 1.3m policies across the UK, Netherlands and Sweden, said the increase reflected £51m of acquisition-related impacts from Chesnara Life UK, formerly HSBC Life (UK), alongside £33m of surplus emergence from its business units and £12m from Group Centre capital optimisation.
Cash remittances to Group Centre rose 31% to £73m, while adjusted operating profit climbed 46% to £31m and assets under administration grew 38% to £21bn.
The Solvency Coverage Ratio fell to 185% from 257% at the end of 2025, reflecting the purchase price and capital requirement of the HSBC Life UK deal, though it remains above the Group's 140% to 160% operating range and ahead of its own prior estimate of around 180%.
"Chesnara has delivered a very strong financial performance in the first half of 2026 with Operating Capital Generation up 79% and a 6% increase in the interim dividend", said Group CEO Steve Murray.
The board declared an interim dividend of 8.16p per share, up 6%, including a one-off 3% step-up flagged when the HSBC Life UK acquisition was announced.
Chesnara's proposed acquisition of Scottish Widows Europe, expected to add €1.7bn of assets under administration and around 46,000 policies, awaits regulatory Change in Control approval, anticipated around the end of 2026.
