Final Results

Summary by AI ^BETAClose X

Chesnara plc reported a transformational year in 2025, marked by significant strategic progress and strong financial performance. Operating Capital Generation increased by 19% to £94m, while Cash Remittances rose by 30% to £58m. The company's Solvency Coverage Ratio improved by 54 percentage points to 257%, with Own Funds growing by 34% to £859m. Adjusted Operating Profit saw a substantial 42% increase to £56m, and Assets under Administration grew by 10% to £15bn. Key strategic milestones included the completion of the HSBC Life (UK) acquisition, rebranded as Chesnara Life, and the announcement of the Scottish Widows Europe SA acquisition, alongside a successful £140m equity raise and a £150m RT1 bond raise. The Board is recommending a 6% increase in the final dividend to 14.80p per share, bringing the total FY 2025 dividend to 22.50p per share.

Disclaimer*

Companies

Chesnara (CSN)

UK 100

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		FY 2025	FY 2024	% increase
CASH	Operating Capital Generation (OCG)	£94m	£79m	19%
CASH	Cash Remittances	£58m	£45m	30%
CAPITAL	Solvency Coverage Ratio	257%	203%	54ppts
CAPITAL	Own Funds	£859m	£643m	34%
VALUE	Adjusted Operating Profit (AOP)	£56m	£39m	42%
VALUE	Assets under Administration (AUA)	£15bn	£14bn	10%

CASH	CAPITAL	VALUE
Operating Capital Generation	Solvency Coverage Ratio	AuA
£94m	257%	£15bn
FY24: £79m	FY24: 203%	FY24: £14bn
Cash Remittances	Own Funds	Adjusted Operating Profit
£58m	£859m	£56m
FY24: £45m	FY24: £643m	FY24: £39m

Final dividend
14.80p per share, up 6% year on year

£m	FY25	FY24
UK	41	32
Sweden	14	10
Netherlands	36	30
Group Centre	3	7
Total	94	79

	FY25	FY24
Cash Remittances (£m)	58	45

Solvency Coverage Ratio FY 2024	203%
Operating Capital Generation	47%
Investment Variances (including FX)	(25%)
Capital Raises (net of integration & restructuring)	54%
Tiering Restrictions	(6%)
Dividends	(16%)
Solvency Coverage Ratio FY 2025	257%

Final Results

Summary by AI ^BETAClose X

Chesnara plc (CSN.L)

("Chesnara" or "the Company")

Companies

UK 100

Latest directors dealings

Own Funds at FY 2024	643
Operating Own Funds Generation	58
Non-operating Own Funds Generation	22
Capital Raises (net integration & restructuring)	208
Tiering Restrictions	(19)
Dividends	(52)
Own Funds at FY 2025	859

	£m
Capital Base FY24	449
Capital Raises (net of costs)	280
Adjusted Operating Profit	56
Non-operating adjustments	(37)
CSM movement	(4)
Tax	(29)
Other comprehensive income	23
Shareholder Dividends	(42)
Other	(2)
Capital Base FY25	694

£m
FY24 Own Funds	643
Operating Own Funds generation	58
Non-operating Own Funds generation	22
Capital Raises (net of integrations & restructuring)	208
Tiering Restrictions	(18)
Dividends	(52)
FY25 Own Funds	859

£m	FY25	FY24*

Own Funds	232	222
SCR	99	93
Buffer	74	60
Surplus	59	69
Solvency Coverage Ratio %	234%	239%

	Solvency Coverage Ratio	Solvency Surplus
	%	£m
FY25	257	525
20% sterling appreciation	276	504
20% sterling depreciation	233	550
25% equity fall	283	475
25% equity rise	249	580
10% equity fall	266	505
10% equity rise	255	550
1% interest rate rise	261	533
1% interest rate fall	252	518
50bps credit spread rise	253	510
25bps swap rate fall	251	512
10% mass lapse	265	513
10% expense rise	244	490
1% inflation	249	500
5% mortality increase	253	516

Business Segment - £m	FY25	FY24
UK	41	32
Sweden	14	10
Netherlands	36	30
Group Centre	3	7
Operating Capital Generation	94	79

£m	31 December 2024	Operating Capital Generation	Non-Operating Capital Generation	Dividends	T2/T3 restrictions	Acquisitions	31 December 2025
Own Funds	643	58	229	(52)	(19)	-	859
SCR	(316)	36	(54)	-	-	-	(334)
Surplus	327	94	175	(52)	(19)	-	525

£m	31 December 2023	Operating Capital Generation	Non-Operating Capital Generation	Dividends	T2/T3 restrictions	Acquisitions	31 December 2024
Own Funds	684	57	(38)	(37)	(33)	10	643
SCR	(333)	22	8	-	-	(13)	(316)
Surplus	351	79	(30)	(37)	(33)	(3)	327

£m	UK	Sweden	Netherlands	Other Group activities	Total
Profit/(loss) before tax and consolidation adjustments	33	5	33	(52)	19
Tax attributable to policyholders' returns	(26)	-	-	-	(26)
Profit before tax attributable to shareholders' profits	7	5	33	(52)	(7)
Investment variances and economic assumption changes	4	1	(17)	18	6
Impairment, amortisation and profit or loss on disposal	4	2	-	-	6
Integration and restructuring costs	4	3	7	26	40
Financing costs	-	-	-	11	11
Adjusted operating profit before tax attributable to shareholders' profits	19	11	23	3	56


	FY25	FY24
	£m	£m
Net insurance service result	22	9
Net investment result	50	53
Fee, commission and other operating income	114	104
Other operating expenses	(156)	(134)
Financing costs	(11)	(11)
Profit before income taxes	19	21
Income tax (charge)/credit	(29)	(17)
(Loss)/Profit for the period after tax	(10)	4
Foreign exchange (loss)/gain	20	(15)
Other comprehensive income	2	-
Total comprehensive income	12	(11)

Movement in IFRS Capital Base
Opening IFRS Capital Base	449	479
Movement in CSM (net of reinsurance and tax)	(4)	15
Total comprehensive income	12	(11)
Other adjustments associated with shareholders' equity	279	2
Dividend	(42)	(36)
Closing IFRS Capital Base	694	449

	FY25	FY24
Leverage %	22%	31%

£bn	FY25	FY24
UK¹	6	6
Sweden	7	5
Netherlands	3	3
Total	15	14
Please note that the values above have been rounded to the nearest whole number.

PR1 Market & Liquidity Risk
PR1.1	Exposure to financial losses or value reduction arising from adverse movements in currency, investment markets, counterparty defaults, or through inadequate asset liability matching.
PR1.2	Adverse market and liquidity impacts arising from physical risks (e.g. extreme weather events) or transition risks (e.g. regulatory changes, shifts in investor sentiment, or carbon pricing) related to climate change
PR2 Insurance Risk
PR2.1	Risk of adverse demographic experience compared with assumptions (such as rates of mortality, morbidity, persistency etc.)
PR2.2	Risk that expenses may exceed planned budgets and unit costs may grow at unsustainable levels.
PR3 Strategic Risk
PR3.1	Risk that transformational projects may fail to deliver the expected strategic, operational, or financial benefits.
PR3.2	The risk of failure to source acquisitions that meet Chesnara's criteria or the execution of acquisitions with subsequent unexpected financial losses or value reduction.
PR3.3	Risk that failure to effectively integrate sustainability principles and environmental, social, and governance (ESG) considerations into the Group's long-term strategy could result in loss of competitive advantage, diminished stakeholder trust, regulatory penalties, and reduced access to capital.
PR4 Operational Risk
PR4.1	Severe disruptions or failures in critical business services could significantly impact operations and delivering positive outcomes for customers.
PR4.2	The risk that statutory reporting (financial and regulatory reports) includes material misstatements or non-compliance issues
PR4.3	Risk that intentional acts of fraud whether internal (by employees or management) or external (by customers, vendors, or third parties) could lead to financial loss, regulatory sanctions, reputational damage, and erosion of client trust.
PR4.4	Risk that counterparties, outsourced service providers (OSPs), or third parties may default on contractual obligations or fail to deliver critical business services as agreed.
PR5 IT / Data Security Risk
PR5.1	Risk that cyber-attacks or failures in IT data security controls could compromise the confidentiality, integrity, or availability of information systems and data.
PR6 Regulatory Risk
PR6.1	The risk of regulatory failure, including failure to comply with regulations or meet regulatory expectations, as well as adverse changes in regulator or industry practices or the inconsistent interpretation and application across jurisdictions.

PR1.1
SUB RISK	Exposure to financial losses or value reduction arising from adverse movements in currency, investment markets, counterparty defaults, or through inadequate asset liability matching.
RISK APPETITE	The Group accepts this risk and manages it through controls to prevent any increase or decrease in the risk exposure beyond set levels. These controls will result in early intervention if the amount of risk approaches those limits.
MITIGATION	Financial risks are managed through regular monitoring of exposures, asset-liability matching, and maintaining a well diversified portfolio supported by surplus Tier 1 liquid assets such as cash and gilts, with regular liquidity forecasting to manage liquidity risk. Concentration risk is mitigated by using a range of funds and managers within a strong governance framework that oversees external mandates. The risk-return balance of fixed interest assets is actively optimised in light of balance sheet volatility and credit risks. Currency risk is managed through consideration of hedging, where cost-effective.
RECENT CHANGE / OUTLOOK	There continues to be a high level of uncertainty in the external operating environment with a varied outlook globally. Geopolitical tensions, ongoing global conflicts and an evolving monetary policy landscape remain key sources of risk, contributing to market volatility and the potential for sudden shocks. Persistent geopolitical instability and conflict bring additional economic uncertainty and financial market volatility. This creates additional risk of poor mid-term performance on shareholder and policyholder assets.
PR1.2
SUB RISK	Exposure to adverse market and liquidity impacts arising from physical risks (e.g. extreme weather events) or transition risks (e.g. regulatory changes, shifts in investor sentiment, or carbon pricing) related to climate change.
RISK APPETITE	The Group aims to restrict its exposure to climate change risk, such that it can continue to operate within the existing risk tolerance limits for the associated risks and potential impacts. The risk impacts can have a direct impact on the operations of the Group and, more significantly, to the businesses within the Group's investment universe.
MITIGATION	Climate related risks are managed through an approach that integrates scenario analysis, continuous monitoring, and proactive assessment of both physical and transitional exposures. Focusing on positive investment solutions by engaging asset managers and investee companies to support decarbonisation and credible transition planning, while increasing exposure to green bonds, net-zero aligned funds, and nature-based partnerships as a mitigating action to support emissions reduction and long-term portfolio resilience.
RECENT CHANGE / OUTLOOK	To manage the risks associated with climate change, financial institutions are increasingly adopting advanced data and modelling techniques. Additionally, regulatory bodies require financial institutions to perform climate scenario analyses to test their resilience to emerging climate-related financial risks. Work continues to embed sustainability considerations into the Group's broader strategy and investment framework. The Group has aligned its targets with the Paris Climate Agreement and aims to be net zero for all emissions by 2050. In September 2025 we published our Climate Transition Plan which has been developed using the IIGCC's Net Zero Investment Framework 2.0.

	£m		£m

FY24 CSM (gross of tax)	176	FY23 CSM (gross of tax)	157
Interest accreted	4		4
New business	8		7
Acquisition impacts	7		1
Experience & assumption changes	(13)		33
CSM release	(20)		(19)
Foreign exchange impact	8		(7)
FY25 CSM (gross of tax)	170	FY24 CSM (gross of tax)	176


Year ended 31 December	2025	2024
	£m	£m
Insurance revenue	227.0	261.9
Insurance service expense	(208.1)	(244.1)
Net expenses from reinsurance contracts held	3.0	(9.2)
Insurance service result	21.9	8.6
Net investment return	649.2	1,286.1
Net finance (expenses) / income from insurance contracts issued	(205.6)	(334.8)
Net finance income / (expenses) from reinsurance contracts held	14.2	2.6
Net change in investment contract liabilities	(345.2)	(740.4)
Change in liabilities relating to policyholders' funds held by the group	(62.4)	(160.8)
Net investment result	50.2	52.7
Fee, commission and other operating income	114.2	104.2
Total revenue net of investment result	186.3	165.5
Other operating expenses	(156.1)	(133.6)
Total income less expenses	30.2	31.9
Financing costs	(11.4)	(11.1)
Profit / (loss) before income taxes	18.8	20.8
Income tax credit	(29.2)	(16.9)

Profit / (loss) for the period	(10.4)	3.9
Items that may be reclassified subsequently to profit and loss:
Foreign exchange translation differences arising on the revaluation of foreign operations	20.5	(15.3)
Revaluation of land and building	-	0.4
Items that will not be reclassified to profit and loss:
Revaluation of pension obligations after tax	2.1	-
Other comprehensive (expense) / income for the period, net of tax	22.6	(14.9)
Total comprehensive income / (expense) for the period	12.2	(11.0)
Basic earnings per share (based on profit or loss for the period)	(5.05p)	2.27p
Diluted earnings per share (based on profit or loss for the period)	(5.05p)	2.23p

	2025	2024
	£m	£m
Assets
Intangible assets	89.4	87.2
Property and equipment	7.6	7.8
Investment properties	91.0	91.7
Deferred tax assets	31.8	38.9
Insurance contract assets	-	1.8
Reinsurance contract assets	168.0	169.9
Amounts deposited with reinsurers	35.0	34.3
Financial investments	13,948.2	12,116.7
Derivative financial instruments	0.9	0.1
Other assets	58.8	68.7
Cash and cash equivalents	145.3	138.0
Total assets	14,576.0	12,755.1
Liabilities
Insurance contract liabilities	3,940.7	4,099.1
Reinsurance contract liabilities	10.5	16.6
Other provisions	21.7	20.3
Investment contracts at fair value through profit or loss	6,717.0	6,116.7
Liabilities relating to policyholders' funds held by the group	2,938.5	1,825.5
Lease contract liabilities	1.7	0.6
Borrowings	203.0	204.8
Derivative financial instruments	0.1	0.6
Deferred tax liabilities	48.3	24.7
Deferred income	1.1	1.3
Other current liabilities	129.5	129.7
Bank overdrafts	0.6	0.8
Total liabilities	14,012.7	12,440.7
Net assets	563.3	314.4
Shareholders' equity
Share capital	11.5	7.5
Share premium	270.9	142.5
Merger reserve	36.3	36.3
Tier 1 Notes	147.8	-
Treasury shares	(1.0)	-
Other reserves	14.2	(8.4)
Retained earnings	83.6	136.5
Total shareholders' equity	563.3	314.4

Year ended 31 December
	2025	2024 (restated)
	£m	£m
Profit / (Loss) for the period	(10.4)	3.9
Adjustments for:
Depreciation of property and equipment	1.0	0.9
Depreciation on right of use assets	0.6	0.8
Amortisation and impairment of intangible assets	16.7	16.1
Share based payment	(0.5)	2.0
Tax expense	29.2	16.9
Interest receivable	(22.6)	(18.5)
Dividends receivable	(29.7)	(34.9)
Interest expense	11.3	10.5
Fair value gains on financial assets and investment properties	(649.2)	(1,286.1)
Increase in intangible assets related to investment contracts	(10.9)	(11.3)
Adjustment total	(654.1)	(1,303.6)
Interest received	21.5	18.1
Dividends received	29.1	35.2
Changes in operating assets and liabilities:
(Increase) / decrease in financial assets and investment properties	(394.3)	156.1
(Increase) / decrease in net reinsurance contract assets	(3.2)	14.8
Increase in amounts deposited with reinsurers	(0.8)	(1.8)
Decrease in other assets	52.6	16.2
(Decrease) / increase in net insurance contract liabilities	(318.2)	35.7
Increase in investment contract liabilities	1,093.9	1,121.0
Increase / (decrease) in provisions	0.7	(2.2)
Decrease in other current liabilities	(36.1)	(53.7)
Cash (utilised)/ generated by operations	(219.3)	39.7
Income tax (paid)/recovered	(0.5)	3.7
Net cash (utilised)/generated from operating activities	(219.8)	43.4
Cash flows from investing activities
Clawback of consideration for acquisition of a subsidiary	-	1.0
Net purchases of property and equipment	(0.9)	(0.8)
Net cash (utilised)/generated by investing activities	(0.9)	0.2
Cash flows from financing activities
Net proceeds from the rights issue	136.4	-
Transaction costs related to rights issue	(4.0)	-
Net proceeds from the issue of Tier 1 Notes	148.7	-
Transaction costs related to issue of Tier 1 Notes	(0.9)	-
Repayment of borrowings	(1.8)	(2.6)
Repayment of lease liabilities	(0.6)	(0.3)
Purchase of treasury shares	(1.0)	-
Dividends paid	(42.0)	(36.5)
Interest paid	(11.0)	(10.3)
Net cash generated/(utilised) by financing activities	223.8	(49.7)
Net increase / (decrease) in cash and cash equivalents	3.1	(6.1)
Net cash and cash equivalents at beginning of period	137.2	145.9
Effect of exchange rate changes on net cash and cash equivalents	4.4	(2.6)
Net cash and cash equivalents at end of the period	144.7	137.2

Year ended 31 December 2025	Share capital	Share premium	Merger reserve	Tier 1 Notes	Treasury shares	Other reserves	Retained earnings	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equity shareholders' funds at 1 January 2025	7.5	142.5	36.3	-	-	(8.4)	136.5	314.4
Profit for the year	-	-	-	-	-	-	(10.4)	(10.4)
Foreign exchange translation differences	-	-	-	-	-	20.5	-	20.5
Other items of comprehensive income	-	-	-	-	-	2.1	-	2.1
Total comprehensive income	-	-	-	-	-	22.6	(10.4)	12.2
Issue of new ordinary shares	4.0	128.4	-	-	-	-	-	132.4
Issue of Tier 1 Notes	-	-	-	147.8	-	-	-	147.8
Dividends paid	-	-	-	-	-	-	(42.0)	(42.0)
Shares purchased by the employee benefit trust	-	-	-	-	(1.0)	-	-	(1.0)
Share based payment	-	-	-	-	-	-	(0.5)	(0.5)
Equity shareholders' funds at 31 December 2025	11.5	270.9	36.3	147.8	(1.0)	14.2	83.6	563.3

Year ended 31 December 2024	Share capital	Share premium	Merger reserve	Tier 1 Notes	Treasury shares	Other reserves	Retained earnings	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equity shareholders' funds at 1 January 2024	7.5	142.5	36.3	-	-	6.5	167.0	359.8
Profit for the year	-	-	-	-	-	-	3.9	3.9
Foreign exchange translation differences	-	-	-	-	-	(15.3)	-	(15.3)
Other items of comprehensive income	-	-	-	-	-	0.4	-	0.4
Total comprehensive income	-	-	-	-	-	(14.9)	3.9	(11.0)
Dividends paid	-	-	-	-	-	-	(36.5)	(36.5)
Share based payment	-	-	-	-	-	-	2.1	2.1
Equity shareholders' funds at 31 December 2024	7.5	142.5	36.3	-	-	(8.4)	136.5	314.4

	As reported	Restated
	£m	£m
Increase / (decrease) in other current liabilities	(12.9)	(53.7)
Cash generated / (utilised) by operations	80.5	39.7
Income tax (paid) / recovered	(37.1)	3.7
Net cash generated / (utilised) from operating activities	43.4	43.4


Group Year ended 31 December
	2025 £m	2024 £m
Retained earnings attributable to equity holders of the parent company comprise:
Balance at 1 January	136.5	167.0
Profit / (loss) for the year	(10.4)	3.9
Share based payment	(0.5)	2.1
Dividends
Final approved and paid for 2023	-	(23.5)
Interim approved and paid for 2024	-	(13.0)
Final approved and paid for 2024	(24.3)	-
Interim approved and paid for 2025	(17.7)	-
Balance at 31 December	83.6	136.5

	UK	Sweden	Netherlands (restated)	Other Group activities	Total
	£m	£m	£m	£m	£m
Insurance revenue	71.3	10.2	180.4	-	261.9
Insurance service expense	(64.9)	(2.6)	(176.6)	-	(244.1)
Net expenses from reinsurance contracts held	(0.9)	(1.8)	(6.5)	-	(9.2)
Segmental insurance service result	5.5	5.8	(2.7)	-	8.6
Net investment return	380.7	666.6	229.5	9.3	1,286.1
Net finance (expenses)/income from insurance contracts issued	(98.4)	(23.6)	(212.8)	-	(334.8)
Net finance expenses from reinsurance contracts held	3.1	0.3	(0.8)	-	2.6
Net change in investment contract liabilities	(260.0)	(479.6)	(0.8)	-	(740.4)
Change in liabilities relating to policyholders' funds held by the group	-	(160.8)	-	-	(160.8)
Segmental investment result	25.4	2.9	15.1	9.3	52.7
Fee, commission and other operating income	37.4	65.5	0.3	1.0	104.2
Segmental revenue, net of investment result	68.3	74.2	12.7	10.3	165.5
Other operating expenses	(39.7)	(54.9)	(7.6)	(22.0)	(124.2)
Financing costs	(0.2)	(0.4)	-	(10.5)	(11.1)
Profit/(loss) before tax and consolidation adjustments	28.4	18.9	5.1	(22.2)	30.2
Other operating expenses:
Amortisation and impairment of intangible assets	(0.1)	(9.3)	-	-	(9.4)
Segmental income less expenses	28.3	9.6	5.1	(22.2)	20.8
(Loss)/profit before tax	28.3	9.6	5.1	(22.2)	20.8
Income tax credit / (charge)	(17.0)	(0.5)	(1.2)	1.8	(16.9)
(Loss)/profit after tax	11.3	9.1	3.9	(20.4)	3.9


31 December
	2025 £m	2024 £m
Tier 2 Debt	201.1	200.8
Amount due in relation to financial reinsurance	1.0	2.4
Term finance	0.9	1.6
Total	203.0	204.8
Current	0.8	1.4
Non-current	202.2	203.4
Total	203.0	204.8

Final Results

Summary by AI BETAClose X

Chesnara plc (CSN.L)

("Chesnara" or "the Company")

Companies

UK 100

Latest directors dealings

Summary by AI ^BETAClose X


31 December 2025	Amortised Cost	FVTPL - Designated	FVTPL - Mandatory	Total
	£m	£m	£m	£m
Financial investments:
Equity securities	-	-	208.2	208.2
Holdings in collective investment schemes	-	-	9,388.4	9,388.4
Debt securities - government bonds	-	420.3	-	420.3
Debt securities - other	-	635.1	-	635.1
Policyholder funds held by the group	-	2,939.3	-	2,939.3
Mortgage loan portfolio	-	356.9	-	356.9
Total	-	4,351.6	9,596.6	13,948.2
Derivatives and other financial assets:
Amounts deposited with reinsurers	-	35.0	-	35.0
Derivative financial instruments	-	-	0.9	0.9
Other assets	58.8	-	-	58.8
Cash and cash equivalents	-	145.3	-	145.3
Total financial investments and financial assets	58.8	180.3	0.9	240.0

Financial liabilities
Investment contracts at fair value through profit or loss	-	6,717.0	-	6,717.0
Liabilities relating to policyholder funds held by the group	-	2,938.5	-	2,938.5
Derivative financial instruments	-	-	0.1	0.1
Borrowings	203.0	-	-	203.0
Other current liabilities	129.5	-	-	129.5
Total financial liabilities	332.5	9,655.5	0.1	9,988.1


31 December 2024	Amortised Cost	FVTPL - Designated	FVTPL - Mandatory	Total
	£m	£m	£m	£m
Financial investments:
Equity securities	-	-	191.5	191.5
Holdings in collective investment schemes	-	-	8,661.6	8,661.6
Debt securities - government bonds	-	446.1	-	446.1
Debt securities - other	-	634.7	10.1	644.8
Policyholder funds held by the group	-	1,825.8	-	1,825.8
Mortgage loan portfolio	-	346.9	-	346.9
Total	-	3,253.5	8,863.2	12,116.7
Derivatives and other financial assets:
Amounts deposited with reinsurers	-	34.3	-	34.3
Derivative financial instruments	-	-	0.1	0.1
Other assets	68.7	-	-	68.7
Cash and cash equivalents	-	138.0	-	138.0
Total financial investments and financial assets	68.7	3,425.8	8,863.3	12,357.8

Financial liabilities
Investment contracts at fair value through profit or loss	-	6,116.7	-	6,116.7
Liabilities relating to policyholder funds held by the group	-	1,825.5	-	1,825.5
Derivative financial instruments	-	-	0.6	0.6
Borrowings	204.8	-	-	204.8
Other current liabilities	129.7	-	-	129.7
Total financial liabilities	334.5	7,942.2	0.6	8,277.3

Fair value measurement at 31 December 2025
	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Investment properties	-	-	91.0	91.0
Financial assets
Equities - Listed	208.0	0.1	0.1	208.2
Holdings in collective investment schemes	9,176.7	35.6	176.1	9,388.4
Debt securities - government bonds	420.3	-	-	420.3
Debt securities - other debt securities	635.1	-	-	635.1
Policyholders' funds held by the group	2,864.8	-	74.5	2,939.3
Mortgage loan portfolio	-	356.9	-	356.9
Amounts deposited with reinsurers	-	35.0	-	35.0
Derivative financial instruments	-	0.9	-	0.9
Total	13,304.9	428.5	341.7	14,075.1

Financial liabilities
Investment contracts at fair value through profit or loss	-	6,717.0	-	6,717.0
Liabilities related to policyholders' funds held by the group	-	2,938.5	-	2,938.5
Derivative financial instruments	-	0.1	-	0.1
Total	-	9,655.6	-	9,655.6


31 December	Carrying amount			Fair value
		2025	2024		2025	2024
		£m	£m		£m	£m

Financial liabilities:
Borrowings		200.1	200.8		185.8	166.1
Amounts due in relation to financial reinsurance		1.0	2.4		1.0	2.3
Term finance		0.9	1.6		0.9	1.6
Total		202.0	204.8		187.7	170.0

	Liabilities for Remaining Coverage				Liabilities for Incurred Claims
	Excluding Loss Component		Loss component	For contracts not under PAA			PV of future cash flows		Risk adjustment	Total
	£m		£m	£m			£m		£m	£m
Insurance contract liabilities as at 1 January 2025	3,866.4	102.2			98.5	28.5		1.7			4,097.3
Changes in the statement of profit and loss
Insurance revenue
Contracts measured under the fair value approach	(62.2)	-			-	-		-			(62.2)
Contracts measured under the fully retrospective approach	(164.8)	-			-	-		-			(164.8)
Insurance revenue total	(227.0)	-			-	-		-			(227.0)
Insurance service expenses Incurred claims and other directly attributable expenses	-	(81.0)			234.3	8.8		0.1			162.2
Adjustments to liabilities for incurred claims	-	-			-	(4.5)		(0.2)			(4.7)
Losses and reversals of losses on onerous contracts	-	47.3			-	-		-			47.3
Amortisation of insurance acquisition cash flows	3.3	-			-	-		-			3.3
Insurance service expense total	3.3	(33.7)			234.3	4.3		(0.1)			208.1

Insurance service result	(223.7)	(33.7)			234.3	4.3		(0.1)			(18.9)
Net finance expenses from insurance contracts	204.5	0.7			-	0.4		-			205.6
Effect of movements in exchange rates	151.5	4.2			2.6	3.2		0.1			161.6
Total amounts recognised in comprehensive income	132.3	(28.8)			236.9	7.9		-			348.3
Investment components	(587.6)	-			297.2	-		-			(290.4)
Cash flows
Premiums received	312.1	-			0.9	-		-			313.0
Claims and other directly attributable expenses paid	-	-			(513.1)	(8.7)		-			(521.8)
Insurance acquisition cash flows	(5.7)	-			-	-		-			(5.7)
Total cash flows	306.4	-			(512.2)	(8.7)		-			(214.5)
Insurance contract liabilities as at 31 December 2025	3,717.5	73.4			120.4	27.7		1.7			3,940.7

	Present value of future cash flows	Risk Adjustment	CSM (new contracts and contracts measured under FRA)	CSM (contracts measured under FVA)	Total
	£m	£m	£m	£m	£m
Insurance contract liabilities as at 1 January 2025	3,826.5	30.1	167.9	40.8	4,065.3
Changes that relate to current service
CSM recognised for services provided	-	-	(19.5)	(3.5)	(23.0)
Change in risk adjustment for non-financial risk for risk expired	-	(5.1)	-	-	(5.1)
Experience adjustments	(31.4)	(0.9)	-	-	(32.3)
Total changes that relate to current service	(31.4)	(6.0)	(19.5)	(3.5)	(60.4)
Changes that relate to future service
Contracts initially recognised in the period	(17.7)	5.1	18.0	-	5.4
Changes in estimates that adjust the CSM	17.9	(0.9)	(21.5)	4.5	-
Changes in estimates that result in losses or reversals of losses on onerous underlying contracts	41.9	(0.1)	-	-	41.8
Total changes that relate to future service	42.1	4.1	(3.5)	4.5	47.2
Insurance service result	10.7	(1.9)	(23.0)	1.0	(13.2)
Net finance expenses from insurance contracts	200.7	(0.2)	3.9	0.9	205.3
Effect of movements in exchange rates	146.9	1.3	9	0.9	158.1
Total amounts recognised in comprehensive income	358.3	(0.8)	(10.1)	2.8	350.2
Disposals	(290.4)	-	-	-	(290.4)
Cash flows
Premiums received	302.1	-	-	-	302.1
Claims and other directly attributable expenses paid	(513.1)	0.9	-	-	(512.2)
Insurance acquisition cash flows	(5.7)	-	-	-	(5.7)
Total cash flows	(216.7)	0.9	-	-	(215.8)
Insurance contract liabilities as at 31 December 2025	3,677.7	30.2	157.8	43.6	3,909.3

	Assets for Remaining Coverage		Assets for Incurred Claims
	Excluding Loss-Recovery Component	Loss-Recovery component	For contracts not under PAA	Future cash flows	Risk adjustment	Total
	£m	£m	£m	£m	£m	£m
Reinsurance contract assets as at 1 January 2025	120.6	5.1	15.9	11.6	0.1	153.3

Reinsurance expenses - allocation of reinsurance premiums paid	(58.1)	-	-	-	-	(58.1)

Amounts recoverable from reinsurers
Recoveries of incurred claims and other directly attributable expenses	-	-	58.4	2.2	-	60.6
Changes in the expected recoveries for past claims	-	-	-	(1.5)	-	(1.5)
Changes in the loss-recovery component	-	2.0	-	-	-	2.0
Net expenses / (income) from reinsurance contracts held	(58.1)	2.0	58.4	0.7	-	3.0
Net finance expenses from reinsurance contracts	14.1	-	-	0.1	-	14.2
Effect of movements in exchange rates	(1.0)	0.3	0.2	1.3	-	0.8
Total amounts recognised in comprehensive income	(45.0)	2.3	58.6	2.1	-	18.0
Investment components	(4.0)	-	4.0	-	-	-
Cash flows
Premiums paid	40.2	-	-	-	-	40.2
Recoveries from reinsurance contracts held	-	-	(51.6)	(2.4)	-	(54.0)
Acquisitions	-	-	-	-	-	-
Total cash flows	40.2	-	(51.6)	(2.4)	-	(13.8)
Reinsurance contract assets as at 31 December 2025	111.8	7.4	26.9	11.3	0.1	157.5

APM	What is it?	Why do we use it?
Adjusted Operating Profit (AOP) NEW	Adjusted Operating Profit is IFRS profit before tax adjusted for the impacts of economic volatility, amortisation and impairments of intangibles, finance and restructuring costs and other non-operating items which in the Director's view should be excluded by their nature or incidence to enable a full understanding of financial performance.	It helps give stakeholders a better understanding of the performance of the Group by identifying and analysing non-operating items.
Assets under Administration (AuA)	AuA reflects the value of the financial assets that the business administers, as reported in the IFRS Consolidated Balance Sheet.	AuA provides an indication of the scale of the business, and the potential future returns that can be generated from the assets that the Group manages and administers on behalf of customers.
Leverage	A financial measure that demonstrates the degree to which the Company is funded by debt financing versus equity capital, presented as a ratio. It is defined as debt divided by debt plus equity, with the equity denominator adding back the net of tax CSM liability, as measured under IFRS.	This measure indicates the overall level of indebtedness of the Group and is also a key component of the bank covenant arrangements held by Chesnara.
IFRS Capital Base	IFRS net equity plus the consolidated CSM net of reinsurance and tax	It is a more appropriate measure of the value of the business than net equity as it allows for the store of deferred profits held in the balance sheet, as represented by the CSM, including those as yet unrecognised profits from writing new business and acquisitions.
Operating Capital Generation (OCG) NEW	OCG measures the amount of Solvency II capital the Group generates from operating activities. OCG reflects only the operational movements in Own Funds and SCR, removing the impacts of investment variances, integration and restructuring costs and other non-operating variances.	OCG enhances Solvency II surplus which can be used to support sustainable cash remittances from our businesses, which in turn, supports the Group's dividend as well as funding further investment to provide sustainable growth.
Solvency Coverage Ratio	Solvency is a fundamental financial measure which is of paramount importance to investors and policyholders. It represents the relationship between the value of the business as measured on a Solvency II basis - Own Funds and the capital the business is required to hold - the Solvency Capital Requirement (SCR). Solvency can be reported as an absolute surplus value or as a ratio.	Solvency gives policyholders comfort regarding the security of their provider. This is also the case for investors together with giving them a sense of the level of potential surplus available to invest in the business or distribute as dividends, subject to other considerations and approvals.
Cash Generation Note - this measure was previously referred to as 'Commercial Cash Generation'. There has been no change to the basis of calculation.	Cash Generation is used by the Group as a measure of assessing how much dividend potential has been generated, subject to ensuring other constraints are managed. Cash Generation excludes the impact of technical adjustments and modelling changes; representing the inherent commercial cash generated by the business.		#The measure provides stakeholders with enhanced insight into cash generation, drawing out components of the result relating to technical complexities or exceptional items. The result is deemed to better reflect the Group's view of commercial performance, showing key drivers within that.
Economic Value (EcV)	EcV is a financial metric that is derived from Solvency II Own Funds. It provides a market consistent assessment of the value of existing insurance businesses, plus adjusted net asset value of the non-insurance business within the group. We define EcV as Own Funds adjusted for contract boundaries, risk margin and restricted with-profit surpluses. As such, EcV and Own Funds have many common characteristics and tend to be impacted by the same factors.		EcV reflects the market-related value of in-force business and net assets of the non-insurance business and hence is an important reference point by which to assess the Group's value. A life and pensions group may typically be characterised as trading at a discount or premium to its Economic Value. Analysis of EcV provides additional insight into the development of the business over time. The EcV development of the Group over time can be a strong indicator of how we have delivered to our strategic objectives.
Economic Value (EcV) Earnings	The principal underlying components of the EcV Earnings are: - The expected return from existing business (being the effect of the unwind of the rates used to discount the value in-force); - Value added by the writing of new business; - Variations in actual experience from that assumed in the opening valuation; - The impact of restating assumptions underlying the determination of expected cash flows; and - The impact of acquisitions.		By recognising the market-related value of in-force business (in-force value), a different perspective is provided in the performance of the group and on the valuation of the business. EcV earnings are an important KPI as they provide a longer-term measure of the value generated during a period. The EcV Earnings of the Group can be a strong indicator of how we have delivered against all three of our core strategic objectives.
New Business Contribution	A more commercially relevant measure of new business profit than that recognised directly under the Solvency II regime, allowing for a modest level of return, over and above risk-free, and exclusion of the incremental risk margin Solvency II assigns to new business.		This provides a fair commercial reflection of the value added by new business operations and is more comparable with how new business is reported by our peers, improving market consistency.
Cash Remittances NEW	Cash paid by our Business Units to the Group, primarily consisting of dividends.		Cash remittances are considered a useful measure as they support the payments of external dividends.
Policies/ Policy Count	Policy count is the number of policies that the Group manages on behalf of customers.		This is important to show the scale of the business, particularly to provide context to the rate at which the closed-book business is maturing. In our open businesses, the policy count shows the net impact of new business versus policy attrition.

Adjusted Operating profit	A measure of the pre-tax profit earned from a Company's ongoing core business operations, excluding any profit earned from investment market conditions in the period and any economic assumption changes in the future (Alternative Performance Measure - APM).
ALM	Asset Liability Management - management of risks that arise due to mismatches between assets and liabilities.
APE	Annual Premium Equivalent - an industry wide measure that is used for measuring the annual equivalent of regular and single premium policies.
ASR	Annual Sustainability Report
CA	Countrywide Assured plc.
CALH	Countrywide Assured Life Holdings Limited and its subsidiary companies.
CASLP	Sanlam Life & Pensions UK Limited
BLAGAB	Basic life assurance and general annuity business
Base Cash Generation	This represents the cash that has been generated in the period. The cash generating capacity of the Group is largely a function of the movement in the solvency position of the insurance subsidiaries within the Group and takes account of the buffers that management has set to hold over and above the solvency requirements imposed by our regulators. Cash generation is reported at a Group level and also at an underlying divisional level reflective of the collective performance of each of the divisions prior to any Group level activity.
Cash Generation	Base Cash Generation excluding the impact of technical adjustments, modelling changes and exceptional corporate activity; the inherent commercial cash generated by the business.
Chesnara Life	Chesnara Life (UK) Limited (formerly HSBC Life (UK) Limited)
Core Surplus Emergence	Absolute surplus movement of the divisions including Chesnara entity but adjustments will be made for the impact of items such as FX, T2/T3 restrictions, acquisition impacts and shareholder dividends as deemed appropriate. ^{Note: Any adjustments will be subject to Board approval (and Remco approval if they impact remuneration) and will be transparently reported.}
CSM	Contractual Service Margin (CSM) represents the unearned profit that an entity expects to earn on its insurance contracts as it provides services.
CSRD	Corporate Sustainability Reporting Directive
Divisional Cash Generation	This represents the cash generated by the three operating divisions of Chesnara (UK, Sweden and the Netherlands), exclusive of Group level activity.
Dividend Cover	Defined as Cash Generation divided by the total of the interim and final proposed shareholder dividend for the financial year.
DORA	Digital Operational Resilience Act (European Union regulation)
DNB	De Nederlandsche Bank is the central bank of the Netherlands and is the regulator of our Dutch subsidiaries.
DPF	Discretionary Participation Feature - A contractual right under an insurance contract to receive, as a supplement to guaranteed benefits, additional benefits whose amount or timing is contractually at the discretion of the issuer.
Dutch business	Scildon and the Waard Group, consisting of Waard Leven N.V., Waard Schade N.V. and Waard Verzekeringen B.V.
Economic profit	A measure of pre-tax profit earned from investment market conditions in the period and any economic assumption changes in the future (Alternative Performance Measure - APM).
EcV	Economic Value is a financial metric that is derived from Solvency II Own Funds. It provides a market consistent assessment of the value of existing insurance businesses, plus adjusted net asset value of the non-insurance business within the Group.
EcV Earnings	Measure of the value generated by the Group in a period.
FCA	Financial Conduct Authority
FI	Finansinspektionen, being the Swedish Financial Supervisory Authority.
Form of proxy	The form of proxy relating to the General Meeting being sent to shareholders with this document.
FSMA	The Financial Services and Markets Act 2000 of England and Wales, as amended.
GMM	General Measurement Model - the default measurement model which applies to insurance contracts with limited or no pass-through of investment risks to policyholders.
Group	Chesnara plc and its subsidiary undertakings.
Group Centre	Parent Company operations of Chesnara plc
Group Own Funds	In accordance with the UK's regulatory regime for insurers it is the sum of the individual capital resources for each of the regulated related undertakings less the book-value of investments by the group in those capital resources.
Group SCR	In accordance with the UK's regulatory regime for insurers it is the sum of individual capital resource requirements for the insurer and each of its regulated undertakings.
Group solvency	Group solvency is a measure of how much the value of the company exceeds the level of capital it is required to hold in accordance with Solvency II regulations.
HCL	HCL Insurance BPO Services Limited.
IFRS	International Financial Reporting Standards.
IFA	Independent Financial Advisor.
KPI	Key performance indicator.
LACDT	Loss Absorbing Capacity of Deferred Tax
Leverage	A financial measure that demonstrates the degree to which the Company is funded by debt financing versus equity capital, usually presented as a ratio, defined as debt divided by debt plus equity, with the equity denominator adding back the net of tax CSM liability, as measured under IFRS
LTI	Long-Term Incentive Scheme - A reward system designed to incentivise executive directors' long-term performance.
Movestic	Movestic Livförsäkring AB.
London Stock Exchange (LSE)	London Stock Exchange plc.
New business	The present value of the expected future cash inflows arising from business written in the reporting period.
Official List	The Official List of the Financial Conduct Authority.
Ordinary shares	Ordinary shares of 5 pence each in the capital of the company.
ORSA	Own Risk and Solvency Assessment.
Own Funds	In accordance with the UK's regulatory regime for insurers it is the sum of the individual capital resources for each of the regulated related undertakings less the book-value of investments by the Company in those capital resources.
PAA	Premium allocation approach - a simplified measurement model which can be applied to short term contracts.
PRA	Prudential Regulation Authority.
QRT	Quantitative Reporting Template.
RA	Risk adjustment is the additional reserve held for non-financial risks.
Resolution	The resolution set out in the notice of General Meeting set out in this document.
RCF	3 year Revolving Credit Facility of £150m (currently unutilised) renewed in July 2024
RMF	Risk Management Framework.
Robein Leven	Robein Leven N.V.
Scildon	Scildon N.V.
Shareholder(s)	Holder(s) of ordinary shares.
Solvency II	A fundamental review of the capital adequacy regime for the European insurance industry. Solvency II aims to establish a set of EU-wide capital requirements and risk management standards and has replaced the Solvency I requirements.
Solvency (absolute) surplus	A measure of how much the value of the Company (Own Funds) exceeds the level of capital it is required to hold
Standard Formula	The set of prescribed rules used to calculate the regulatory SCR where an internal model is not being used.
STI	Short-Term Incentive Scheme - A reward system designed to incentivise executive directors' short-term performance.
SCR	In accordance with the UK's regulatory regime for insurers it is the sum of individual capital resource requirements for the insurer and each of its regulated undertakings.
Swedish business	Movestic and its subsidiaries and associated companies.
S&P	Save & Prosper Insurance Limited and Save & Prosper Pensions Limited.
TCF	Treating Customers Fairly - a central PRA principle that aims to ensure an efficient and effective market and thereby help policyholders achieve fair outcomes.
TCFD	Task Force on Climate-related Financial Disclosures. An international framework that provides recommendations for how organisations should disclose climate‑related financial risks and opportunities in a consistent, decision‑useful way
Tier 2	Term debt capital (Tier 2 Subordinated Notes) issued in February 2022 with a 10.5 year maturity and 4.75% coupon rate.
Transfer ratio	The proportion of new policies transferred into the business in relation to those transferred out.
TSR	Total Shareholder Return, measured with reference to both dividends and capital growth.
UK or United Kingdom	The United Kingdom of Great Britain and Northern Ireland.
UK business	CA, S&P and CASLP
VA	The Volatility Adjustment is a measure to ensure the appropriate treatment of insurance products with long-term guarantees under Solvency II. It represents an adjustment to the rate used to discount liabilities to mitigate the effect of short-term volatility bond returns.
VFA	Variable Fee Approach - the measurement model that is applied to insurance contracts with significant investment-related pass-through elements.
Waard	The Waard Group (now part of Scildon following the legal merger in 2025).