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Highlights

  • Robust cash generation: £60 million in FY 2024, a 14% rise from the previous year.

  • Dividend increase: 2024 total dividend rises to 24.7p per share, marking 20 years of uninterrupted growth.

  • M&A momentum: Canada Life portfolio transfer adds £11 million in Economic Value.

Chesnara (LSE:CSN) has announced its full-year results for 2024, showcasing continued growth in profitability, and an increased dividend for the 20th consecutive year. The life insurance and pension consolidator delivered cash generation of £60 million, a 14% increase from £52 million in 2023, ensuring strong dividend coverage of 1.60x.

The company’s Solvency Coverage Ratio remained high at 203% (2023: 205%), significantly above its operating range of 140% to 160%, giving Chesnara flexibility for mergers and acquisitions (M&A) and strategic investments. Economic Value (EcV) earnings rose by 17% to £69 million, supporting an increase in EcV per share to 352p, even after dividend payments.

Chesnara’s IFRS pre-tax profits surged to £21 million, up from just £2 million in 2023. The company’s Contractual Services Margin (CSM), which measures the future value of its insurance portfolio, grew to £176 million.

Dividend Growth and M&A Expansion

The Board has proposed a final dividend of 16.1p per share, bringing the total dividend for 2024 to 24.7p—a 3% increase from 2023. This cements Chesnara’s reputation as a reliable dividend-paying company, with a track record of 20 consecutive years of full-year dividend growth. Over this period, the company has distributed approximately £502 million in cumulative dividends.

Chesnara continues to pursue strategic M&A opportunities, with the acquisition of Canada Life’s UK portfolio in December 2024 adding £11 million in Economic Value, £3 million higher than initial projections.

Financial Strength and Future Outlook

The company maintains a positive financial position, with Group Centre liquidity at £109 million and an additional £57 million in expected divisional dividends in 2025. With access to a £200 million credit facility.

The recommended final dividend of 16.1p per share will be paid on May 20, 2025, with shares trading ex-dividend on April 3, 2025.