Chesnara plc, the FTSE 250 European life, pensions and investment company, reported robust full-year financial results for 2025 on Tuesday, posting an operating capital generation of £94m and a proposed 6% increase in its final dividend to 14.80p per share – its 21st consecutive year of dividend growth.
According to the group’s annual report and accounts, operating capital generation rose 19% from £79m in 2024, while Cash Remittances climbed 30% to £58m. The group’s adjusted operating profit surged 42% to £56m, from £39m the previous year. Assets under administration reached £15bn, up 10% year on year.
The solvency coverage ratio stood at 257% at year-end, a 54 percentage point increase from 203% in 2024, and significantly above the group’s normal operating range of 140% to 160%. Own Funds grew 34% to £859m.
The group completed the acquisition of HSBC Life (UK) Ltd – subsequently rebranded as Chesnara Life – in January 2026 in what the company described as its largest transaction to date. The deal, valued at £260m, is expected to add more than £800m in lifetime cash generation and more than double the UK policy count, adding approximately 450,000 policyholders and £5bn in assets under administration.
In February 2026, Chesnara separately announced the proposed acquisition of Scottish Widows Europe SA, a Luxembourg-based closed life insurance business, from Scottish Widows Ltd, a subsidiary of Lloyds Banking Group plc, for €110m. The deal is expected to add approximately 46,000 policies and €1.7bn of assets under administration and marks the group’s entry into Luxembourg. Completion is anticipated around the end of 2026, subject to regulatory approvals.
“The group has delivered a strong set of financial results, completed a transformational acquisition and announced a second significant acquisition. This has supported a 6% step up in the proposed final dividend, a total shareholder return of 43% for 2025 and reinforced our belief that the group can deliver sustainable long-term growth,” said chair Luke Savage.
Chief executive officer Steve Murray noted the scale of the group’s recent progress, saying: “The group has again delivered strong financial results alongside two material deals. The acquisition of HSBC Life (UK) Ltd and the proposed acquisition of Scottish Widows Europe SA are expected to materially increase the group’s scale and longer-term operating capital generation potential.”
The full-year results included an IFRS profit before tax of £19m, slightly below the £21m recorded in 2024, with integration and restructuring costs of £40m and financing charges of £11m weighing on the statutory figure. The IFRS capital base rose sharply to £694m from £449m, driven principally by the group’s £140m rights issue and £150m Restricted Tier 1 bond issuance completed in July 2025.
The Dutch businesses Scildon and Waard completed their legal merger in July 2025, while Scildon’s group pension portfolio was transferred to Allianz, effective 30 September 2025. In Sweden, Movestic expanded its custodian distribution network and reported a 62% increase in net client cash flows within its pension and savings segment.
Chesnara’s financial statements were audited by Deloitte LLP.
