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Chesnara’s continued acquisition momentum drives value growth and cash generation

Last updated: 08:39 28 Mar 2024 GMT, First published: 08:15 22 Sep 2023 BST

Snapshot

  • Chesnara showcases European growth in full-year results
  • Chesnara: Broker hails steady growth and strong cash generation
  • Chesnara well-positioned for the year ahead following pivotal 2023
stock market

About the company

Chesnara PLC is an established life and pensions consolidator in the UK and Europe 

The group comprises closed consolidation businesses in the UK and the Netherlands. In addition, it has a separate Dutch new business operation and a separate open business in Sweden.

How it is doing

28 Mar 2024

Life and pensions consolidator Chesnara PLC (LSE:CSN) highlighted European growth in today’s full-year results, underscored by the acquisition of the insurance portfolio of Conservatrix in the Netherlands and an individual protection portfolio from Canada Life UK.

Financial highlights for the year include a marked improvement in commercial cash generation, with the group reporting £53 million, up from £46.6 million the previous year.

This growth was attributed to the company's strategic acquisitions and operational efficiency improvements, which also helped to recover pre-tax profit to £1.8 million from a £62.1 million loss in the 2022 financial year.

Chesnara's solvency position also strengthened, with a solvency ratio of 205%, well above its normal operating range of 140-160%.

24 Feb 2024

In a recent conversation with Proactive's Stephen Gunnion (SG), Steve Murray (SM), chief executive of Chesnara PLC (LSE:CSN), shed light on the significant strides made by the company in 2023, setting a robust foundation for future growth.

The year was marked by notable partnerships, acquisitions, leadership transitions, and resilience in the face of macroeconomic challenges.

07 Dec 2023

Chesnara said finance director David Rimmington is to step down at the AGM next May with Tom Howard, the former chief financial officer at Aviva’s investment arm, to take over the role.

Most recently, Howard was CFO of Aviva Investors having held several management roles at the insurer including Director of Mergers & Acquisitions and CFO for Aviva's Life and General Insurance business in Ireland.

What the brokers say

21 Sep 2023

Chesnara PLC (LSE:CSN), the insurance and financial services company, has reported a 2% increase in its economic value, reaching £523 million, slightly missing Peel Hunt's estimate of £549 million.

According to Peel Hunt, the company's earnings were generally in line with expectations at £61 million. This includes a contribution of approximately £8.6 million from management initiatives and about £28 million from mergers and acquisitions (M&A).

The company generated £11 million in cash, slightly below Peel Hunt's forecast of £13.6 million.

What management says

12 Feb 2024

Chesnara PLC (LSE:CSN) CEO Steve Murray discusses the company's milestones achieved in 2023, which marked a pivotal year for the company.

Highlighting a major partnership with fintech market leader SS&C in the UK, Murray noted the collaboration as a cornerstone for enhancing Chesnara's M&A strategy and operational efficiency, particularly for outsourced services. The company also completed two key acquisitions: an insurance portfolio from Conservatrix in the Netherlands and a protection portfolio from Canada Life in the UK. These moves underscore Chesnara's commitment to expanding its scale through strategic M&A activities.

Murray also discussed leadership transitions within the company, including the appointment of Tom Howard as the new group finance director, succeeding Dave Rimmington. This change, along with the introduction of three new chief executives to its underlying businesses, was positioned as a testament to Chesnara's stable and strong foundation, which facilitated these significant organisational changes.

Chesnara well-positioned for the year ahead following pivotal 2023

Chesnara PLC (LSE:CSN) CEO Steve Murray discusses the company's milestones achieved in 2023, which marked a pivotal year for the company. Highlighting a major partnership with fintech market leader SS&C in the UK, Murray noted the collaboration as a cornerstone for enhancing Chesnara's...

on 12/2/24