After a difficult 2022, Chesnara’s latest results show it saw strong cash generation in 2023 which sets it up for more acquisitions this year.
Cash generation was up 14 per cent to £53mn, from £46.6mn in 2022.
The pension consolidator’s 2023 dividend was also up 3 per cent to 23.97p, the 19th year in a row it has risen.
Steve Murray, group CEO, said: “In 2022, because there was some quite big equity market falls, our overall economic value dropped.
“We've seen the economic value grow this year and that's after the payment of the dividend as well, which was pleasing to see.”
The Solvency II rate was also up to 205 per cent from 197 per cent in 2022.
Murray said this gives the firm headroom to grow the business, including through mergers and acquisitions.
In 2023, Chesnara bought Netherlands-based Conservatrix’s insurance portfolio and a protection portfolio from Canada Life in the UK.
Murray said the firm has ambition to continue with acquisitions as a way to grow the business.
He said: “We see that as a major area where we can bring a high level of growth into the business.
“Looking at the two deals we did in 2023, they weren't massive but brought another £28mn of economic value into the group.
“We also see the benefits of the further scale those deals bring for us.
“So, we will continue to write new business in a discerning way, making sure that we can make profit.”
The results, released this morning (March 28), described 2023 as a tale of two halves.
Positive recovery from losses seen in 2022, slowed in the second half of the year and total income for 2023 was 10.3mn, down from 26.1mn in 2022.
Murray added: “We saw the market started quite strongly in 2023 and then kind of stabilised or backed off a little bit.
“We still think the results were good and it's pleasing that we've turned to a position that the overall economic value of that group has, has grown and we know our shareholders really like this stability and consistency of the dividends.”
tara.o'connor@ft.com
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