Chesnara has seen its operating capital generation reach £96m in its half year results with a solvency coverage ratio of 185%, above the upper end of the group’s targeted operating range.
Operating capital generation (OCG) was up 79% from £54m in HY25 while cash remittances were up 31% from £56m to £73m.
Adjusted operating profit (AOP) increased by 46% from £21m to £31m and assets under administration (AuA) climbed 38% from £15bn to £21bn.
The board has declared a 6% increase in the interim dividend to 8.16p per share in line with the guidance provided at the time of announcement of the HSBC Life (UK) acquisition, representing a one-off additional step-up of 3% to the interim dividend.
The results follow the completion of the HSBC Life (UK) acquisition in January 2026 and subsequently – Chesnara’s largest transaction to date – and the proposed acquisition of Scottish Widows Europe SA, which was announced in February 2026 and is expected to add a further €250m of lifetime cash generation. Chesnara also successfully completed the Part VII transfer of the second Canada Life portfolio with the subsequent migration in early August.
Steve Murray, Chesnara group CEO, said: “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.
“The integration of Chesnara Life UK, our largest acquisition to date, continues at pace with strong capital generation already delivered from our first five months of ownership.
“The regulatory change in control for the proposed acquisition of Scottish Widows Europe SA is anticipated around the end of 2026, and we continue to see attractive opportunities to grow the business, underpinned by a healthy M&A pipeline and disciplined execution across the group.”
