Half-year Report

Summary by AI ^BETAClose X

Chesnara PLC reported strong 2025 interim results, with cash generation up 26% to £37 million from £29 million in HY 2024. The company's Eligible Own Funds stand at £632 million, slightly down from £643 million in FY 2024, but the Solvency Coverage Ratio increased to 207% from 203%. The IFRS Capital Base is £441 million, compared to £449 million in FY 2024. New Business Contribution remained steady at £5 million. The Group Leverage ratio is unchanged at 31%, but is expected to decrease to 25% following the acquisition of HSBC Life (UK) and a recent RT1 issuance. The Economic Value is £517 million, down from £531 million in FY 2024. The interim dividend increased by 3% to 7.70p per share. The acquisition of HSBC Life (UK) is expected to generate incremental lifetime Cash Generation of over £800 million.

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Companies

Chesnara (CSN)

UK 100

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FY24 Solvency Coverage Ratio	203%	FY23 Solvency Coverage Ratio	205%
Capital Generation	8%		9%
Management Actions	4%		-
SII Adjustments	(4%)		(9%)
Shareholder Dividends	(4%)		(4%)
HY25 Solvency Coverage Ratio	207%	HY24 Solvency Coverage Ratio	201%

£m	HY25	HY24
UK	33	23
Sweden	2	2
Netherlands	20	5
Divisional Cash Generation	55	30
Central items and Adjustments	(18)	(1)
Cash Generation	37	29

	HY25 £m	HY24 £m
Opening Capital Base	449	479
CSM net of reinsurance movement (excluding FX and tax impacts)	11	4
Pre-Tax Profits	(5)	13
Other Adjustments	2	1
Capital Base pre-FX, tax and dividends	457	497
FX Impacts	17	(11)
Tax	(9)	(13)
Shareholder Dividends	(24)	(24)
Closing Capital Base	441	449

£m
FY24 Economic Value	531	FY23 Economic Value	525
Economic Earnings: Real world returns	1		32
Operating Earnings	13		(2)
New business	3		3
Other central and one-off items	(28)		(13)
HY25 Economic Value (pre-FX and Dividends)	520		545
FX Impacts	21		(13)
Shareholder Dividends	(24)		(24)
HY25 Economic Value	517	HY24 Economic Value	508

	UK	SWEDEN	NETHERLANDS		DIVISIONAL TOTAL	GROUP ADJ	TOTAL
	UK	SWEDEN	WAARD	SCILDON	DIVISIONAL TOTAL	GROUP ADJ	TOTAL
Cash Generation	33	2	4	16	55	(18)	37

Symmetric adjustment	(2)	(6)	-	(1)	(9)	(1)	(10)
WP restriction look through	(3)	-	-	-	(3)	-	(3)

Base Cash Generation	28	(4)	4	15	43	(19)	24

Half-year Report

Summary by AI ^BETAClose X

Chesnara plc (CSN.L)

("Chesnara" or "the Company")

Companies

UK 100

Latest directors dealings

£m	HY25	FY24

Own Funds	632	643
SCR	306	316
Surplus	326	327
Solvency Coverage Ratio %	207%	203%

Solvency Coverage Ratio - FY24	203%	Solvency Coverage Ratio - FY23	205%
Capital Generation	8%		9%
Management Actions	4%		-
SII Adjustments	(4%)		(9%)
Shareholder Dividends	(4%)		(4%)
Solvency Coverage Ratio - HY25	207%	Solvency Coverage Ratio - HY24	201%

£m	HY25	FY24

Own Funds (post dividend)	143	130
SCR	83	96
Buffer	17	19
Surplus	43	15
Solvency Coverage Ratio %	172%	135%

£m

FY24 EcV	531	FY23 EcV	525
EcV Earnings	(11)		20
FX Impacts	21		(13)
Pre-dividend EcV	541		532
Dividends	(24)		(24)
HY25 EcV	517	HY24 EcV	508

£m	HY25	HY24
Expected movement in period	8	10
New business	3	2
Operating experience variances	1	(4)
Operating assumption changes	7	(7)
Other operating variances	(3)	-
Total Operating Earnings	16	1
Total Economic Earnings	1	32
Other non-operating variances	(6)	(5)
Central costs	(14)	(6)
Risk margin movement	-	2
Tax	(8)	(4)
Other	(28)	(13)
EcV Earnings	(11)	20

	£m		£m

FY24 Restated CSM (gross of tax)	176	FY23 Restated CSM (gross of tax)	157
Interest accreted	2		2
New business	3		3
Acquisition	7		-
Experience & assumption changes	10		8
CSM release	(11)		(9)
FX Impact	5		(3)
HY25 CSM (gross of tax)	192	FY24 Restated CSM (gross of tax)	158


	HY25	HY24 restated
	£m	£m
Net insurance service result	2	(3)
Net investment result	16	40
Fee, commission and other operating income	60	55
Other operating expenses	(78)	(73)
Financing costs	(5)	(6)
(Loss)/Profit before income taxes	(5)	13
Income tax (charge)/credit	(6)	(12)
(Loss)/Profit for the period after tax	(11)	1
Foreign exchange (loss)/gain	12	(8)
Other comprehensive income	1	-
Total comprehensive income	2	(7)

Movement in IFRS Capital Base
Opening IFRS Capital Base (restated)	449	479
Movement in CSM (net of reinsurance and tax)	13	-
Total comprehensive income	2	(7)
Other adjustments made directly to shareholders' equity	1	1
Dividend	(24)	(24)
Closing IFRS Capital Base	441	449

		Unaudited Six months ended 30 Jun 2025	Unaudited restated Six months ended 30 Jun 2024	Year ended 31 Dec 2024
	Note	£m	£m	£m
Insurance revenue		136.0	136.0	261.9
Insurance service expense		(136.7)	(138.2)	(244.2)
Net expenses from reinsurance contracts held		3.0	(1.2)	(9.2)
Insurance service result	6	2.3	(3.4)	8.6
Net investment return		(21.4)	811.8	1,286.
Net finance (expenses)/income from insurance contracts issued		(18.4)	(174.6)	(334.8)
Net finance income/(expenses) from reinsurance contracts held		4.6	2.5	2.6
Net change in investment contract liabilities		46.5	(490.9)	(740.4)
Change in liabilities relating to policyholders' funds held by the Group		5.1	(109.0)	(160.8)
Net investment result	7	16.4	39.8	52.7
Fee, commission and other operating income		60.1	54.9	104.2
Total revenue net of investment result		78.8	91.3	165.5
Other operating expenses		(77.9)	(72.9)	(133.6)
Total income less expenses		0.9	18.4	31.9
Financing costs		(5.5)	(5.6)	(11.1)
Profit arising on business combinations and portfolio acquisitions		-	-	-
(Loss)/profit before income taxes	5	(4.6)	12.8	20.8
Income tax (expense)/credit		(6.2)	(12.4)	(16.9)

(Loss)/profit for the period	5	(10.8)	0.4	3.9
Items that may be reclassified subsequently to profit and loss:
Foreign exchange translation differences arising on the revaluation of foreign operations		12.0	(8.2)	(15.3)
Revaluation of pension obligations after tax		0.7	0.5	0.4
Revaluation of land and building		-	-	-
Other comprehensive income/(expense) for the period, net of tax		12.7	(7.7)	(14.9)
Total comprehensive income/(expense) for the period		1.9	(7.3)	(11.0)
Basic earnings per share (based on profit or loss for the period)	3	(7.14)p	0.24p	2.56p
Diluted earnings per share (based on profit or loss for the period)	3	(7.02)p	0.24p	2.52p

		Unaudited As at 30 Jun 2025	Restated Unaudited As at 30 Jun 2024	As at 31 Dec 2024
	Note	£m	£m	£m
Assets
Intangible assets		88.7	92.1	87.2
Property and equipment		8.1	7.6	7.8
Investment properties		94.0	96.2	91.7
Deferred tax assets		37.8	41.1	38.9
Insurance contract assets	11	-	2.4	1,8
Reinsurance contract assets	11	162.8	179.8	169.9
Amounts deposited with reinsurers		34.1	33.5	34.3
Financial investments	9	12,859.5	11,885,7	12,116.7
Derivative financial instruments		0.6	0.1	0.1
Other assets		53.5	68.4	68.7
Cash and cash equivalents		170.2	131.1	138.0
Total assets	5	13,509.3	12,538.0	12,755.1
Liabilities
Insurance contract liabilities	11	4,113.6	4,179.4	4,099.1
Reinsurance contract liabilities	11	12.9	14.4	16.6
Other provisions		24.2	21.5	20.3
Investment contracts at fair value through profit or loss		6,143.7	6,065.3	6,116.7
Liabilities relating to policyholders' funds held by the Group		2,568.8	1,563.6	1,825.5
Lease contract liabilities		1.9	0.8	0.6
Borrowings	12	203.8	206.1	204.8
Derivative financial instruments		8.8	(0.2)	0.6
Deferred tax liabilities		28.2	21.4	24.7
Deferred income		1.2	2.6	1.3
Other current liabilities		108.1	133.2	129.7
Bank overdrafts		0.8	0.4	0.8
Total liabilities	5	13,216.0	12,208.5	12,440.7
Net assets		293.3	329.5	314.4
Shareholders' equity
Share capital		7.5	7.5	7.5
Merger reserve		36.3	36.3	36.3
Share premium		142.5	142.5	142.5
Other reserves		4.3	(1.2)	(8.4)
Retained earnings	4	102.7	144.4	136.5
Total shareholders' equity		293.3	329.5	314.4

Unaudited	Six months ended 30 Jun 2025	Restated Six months ended 30 Jun 2024
	£m	£m
(Loss)/profit for the period	(10.8)	0.4
Adjustments for:
Depreciation of property and equipment	0.4	0.3
Depreciation on right of use assets	0.3	0.3
Amortisation of intangible assets	9.7	6.7
Share based payment	1.0	0.5
Tax expense / (credit)	6.2	12.4
Interest receivable	(8.6)	(4.1)
Dividends receivable	(10.1)	(2.1)
Interest expense	5.3	5.2
Fair value (gains) / losses on financial assets and investment properties	(27.9)	(811.8)
Increase in intangible assets related to investment contracts	(5.5)	(4.8)
Adjustment total	(29.2)	(797.4)
Interest received	7.6	5.9
Dividends received	9.2	4.0
Changes in operating assets and liabilities:
Decrease / (increase) in financial assets and investment properties	(304.8)	130.1
Decrease / (increase) in net reinsurance contract assets	3.8	2.8
Decrease / (increase) in amounts deposited with reinsurers	0.2	(1.0)
(Increase) / decrease in other assets	38.6	5.2
Increase / (decrease) in net insurance contract liabilities	(88.4)	43.0
Increase / (decrease) in investment contract liabilities	467.8	656.5
Increase / (decrease) in provisions	3.5	(1.3)
Increase / (decrease) in other current liabilities	(48.8)	7.6
Cash generated/(utilised) by operations	48.7	55.8
Income tax paid	2.0	(38.7)
Net cash generated/(utilised) from operating activities	50.7	17.1
Cash flows from investing activities
Net proceeds / (purchases) of property and equipment	(0.5)	(0.1)
Net cash (utilised)/generated by investing activities	(0.5)	(0.1)
Cash flows from financing activities
Repayment of borrowings	(0.9)	(1.8)
Repayment of lease liabilities	(0.2)	(0.3)
Dividends paid	(24.3)	(23.5)
Interest paid	5.3	(5.2)
Net cash utilised by financing activities	(20.1)	(30.8)
Net increase /(decrease) in cash and cash equivalents	30.1	(13.8)
Net cash and cash equivalents at beginning of period	137.2	145.9
Effect of exchange rate changes on net cash and cash equivalents	2.1	(1.4)
Net cash and cash equivalents at end of the period	169.4	130.7

Title	Effective date
IFRS 9 / IFRS 7 Amendments to the classification and measurement of financial instruments	1 January 2026
IFRS 18 Presentation and disclosure financial statements	1 January 2027

Yield Curve	Broad Product Category	Currency	30 June 2024					31 December 2024
			Years					Years
			1	5	10	20	30	1	5	10	20	30
Risk-Free Rate	Unit-linked/index-linked/with-profits - VFA	EUR	1.90%	2..17%	2.52%	2.75%	2.84%	2.24%	2.14%	2.27%	2.26%	2.39%
	Unit-linked/index-linked/with-profits - GMM (with high liquidity)	GBP	3.80%	3.66%	4.04%	4.54%	4.57%	4.46%	4.04%	4.07%	4.30%	4.23%
	Short-term protection	SEK	1.73%	2.07%	2.46%	2.85%	3.00%	2.25%	2.41%	2.63%	2.93%	3.05%
Risk-Free Rate + VA	Immediate annuities	EUR	2.10%	2.37%	2.72%	2.95%	3.01%	2.47%	2.37%	2.50%	2.49%	2.58%
	Term assurance & other non-linked	GBP	4.05%	3.91%	4.29%	4.79%	4.82%	4.70%	4.28%	4.31%	4.54%	4.47%
	Unit-linked/index-linked/with-profits - GMM (with medium liquidity)	GBP	4.05%	3.91%	4.29%	4.79%	4.82%	4.70%	4.28%	4.31%	4.54%	4.47%
Market Mortgage Rates	Waard Savings Mortgage	EUR	2.81%	3.08%	3.43%	3.66%	3.75%	3.36%	3.32%	3.43%	3.39%	3.51%

	Six months ended 30 Jun 2025	Year Ended 31 Dec 2024
	Pence	Pence

Interim - approved/paid	7.70	8.61
Final - proposed/paid	-	16.08
Total	7.70	24.69

Unaudited	UK	Movestic	Waard Group	Scildon	Other Group and consolidation adjustments	Group
	£m	£m	£m	£m	£m	£m

Segment assets	4,401.1	6,047.7	855.6	2,067.8	137.1	13,509.3
Segment liabilities	(4,313.5)	(5,948.2)	(795.9)	(1,940.6)	(217.7)	(13,216.0)
Segment net assets	87.6	99.4	59.7	127.2	(80.6)	293.3

Unaudited - six months ended 30 June 2025	Share capital	Share premium	Merger reserve	Other reserves	Retained earnings	Total
	£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
(Loss) for the year	-	-	-	-	(10.8)	(10.8)
Foreign exchange translation differences	-	-	-	12.0	-	12.0
Other items of comprehensive income	-	-	-	0.7	-	0.7
Total comprehensive income	-	-	-	12.7	(10.8)	1.9
Dividends paid	-	-	-	-	(24.3)	(24.3)
Share based payment	-	-	-	-	1.3	1.3
Equity shareholders' funds at 30 June 2025	7.5	143.0	36.3	4.3	102.7	293.3

Balance Sheet	As reported £m	Restated £m
Present value of future cash flows	14.6	2.8
Risk adjustment	(1.0)	-
CSM	(10.5)	(0.4)
Assets for incurred claims	0.7	0.7
Insurance contract assets total	3.8	3.1

	Restated Unaudited Six months ended 30 Jun		Year ended 31 Dec
	2025	2024	2024
(Loss)/profit for the period attributable to shareholders (£m) (restated)	(10.8)	0.4	3.9
Weighted average number of ordinary shares	151,028,196	150,886,918	150,938,024
Basic earnings per share	(7.14)p	0.24p	2.56p
Diluted earnings per share	(7.03)p	0.24p	2.52p

Unaudited	Six months ended 30 Jun
	2025	2024
	£m	£m
Retained earnings attributable to equity holders of the parent company comprise:
Balance at 1 January (restated)	136.5	167.0
(Loss)/ profit for the period (restated)	(10.8)	0.4
Share-based payment	1.3	0.5
Dividends:
Final approved and paid for 2023	-	(23.5)
Final approved and paid for 2024	(24.3)	-
Balance at 30 June (restated)	102.7	144.4

Unaudited	Six months ended 30 Jun 2025	Six months ended 30 Jun 2024 (restated)
	£m	£m
Insurance revenue
Contracts not measured under the PAA:
Amounts relating to changes in the liability for remaining coverage:
Expected incurred claims and other directly attributable expenses	116.7	116.2
Change in risk adjustment for non-financial risk for the risk expired	1.4	2.7
CSM recognised for the services provided	11.5	10.5
Insurance acquisition cash flows recovery	1.6	1.9
Insurance revenue for contracts not measured under the PAA	131.2	131.3
Insurance revenue for contracts measured under the PAA	4.8	4.7
Total insurance revenue	136.0	136.0

Insurance service expenses
Incurred claims and other directly attributable expenses	(86.3)	(97.4)
Changes that relate to past service - changes in the FCF relating to the LIC	3.6	2.2
Losses on onerous contracts and reversals of those losses	(52.4)	(41.1)
Insurance acquisition cash flows amortisation	(1.6)	(1.9)
Total insurance service expenses	(136.7)	(138.2)

Net income/(expenses) from reinsurance contracts held
Reinsurance expenses (allocation of reinsurance premiums paid) - contracts not measured under the PAA
Amounts relating to changes in the remaining coverage:
Expected amount recoverable for claims and other insurance service expenses	(25.8)	(23.2)
Change in risk adjustment for non-financial risk for the risk expired	(0.4)	(1.1)
CSM recognised for the services received	(1.3)	(1.6)
Reinsurance expenses (allocation of reinsurance premiums paid) - contracts not measured under the PAA	(27.5)	(25.9)
Reinsurance expenses (allocation of reinsurance premiums paid) - contracts measured under the PAA	(1.4)	(1.4)

Amounts recoverable for incurred claims and other incurred insurance service expenses	33.3	26.9
Changes in amounts recoverable that relate to past service - adjustments to incurred claims	(1.3)	(0.8)
Recoveries of loss on recognition of onerous underlying contracts	0.5	0.2
Recoveries of losses on onerous underlying contracts and reversals of such losses	(0.6)	(0.2)
Total net expenses from reinsurance contracts held	3.0	(1.2)
Total insurance service result	2.3	(3.4)

Unaudited Investment result for the six months ended 30 June 2025	Insurance contracts	Investment contracts (without DPF's)	Total
Net investment return	£m	£m	£m

Interest revenue from financial assets not measured at FVTPL	0.1	-	0.1
Net gains on financial investments mandatorily measured at FVTPL	(0.3)	(46.8)	(47.1)
Net gains on financial investments designated as FVTPL	23.4	(5.1)	18.3
Net gains from fair value adjustments to investment properties	7.3	-	7.3
Total net investment return	30.5	(51.9)	(21.4)

Finance income/(expenses) from insurance contracts issued
Change in fair value of underlying assets of contracts measured under the VFA	(1.8)	-	(1.8)
Interest accreted	(32.6)	-	(32.6)
Effect of changes in interest rates and other financial assumptions	16.6	-	16.6
Effect of changes in fulfilment cash flows at current rates when CSM is unlocked at locked in rates	(0.6)	-	(0.6)
Total finance income from insurance contracts issued	(18.4)	-	(18.4)

Finance income from reinsurance contracts issued
Interest accreted	3.4	-	3.4
Effect of changes in interest rates and other financial assumptions	1.6	-	1.6
Effect of changes in fulfilment cash flows at current rates when CSM is unlocked at locked in rates	(0.4)	-	(0.4)
Total finance expenses from reinsurance contracts issued	4.6	-	4.6
Net insurance finance expenses	(13.8)	-	(13.8)
Net change in investment contract liabilities	-	46.5	46.5
Change in liabilities relating to policyholder funds held by the Group	-	5.1	5.1
Net investment result	16.7	(0.3)	16.4

Unaudited 30 June 2025	Amortised cost	FVTPL - Designated	FVTPL - Mandatory	Total
	£m	£m	£m	£m
Financial investments
Equity securities	-	-	189.8	189.8
Holdings in collective investment schemes	-	-	6,688.9	6,688.9
Debt securities - government bonds	-	394.6	-	394.6
Debt securities - other	-	652.6	10.2	662.8
Policyholder funds held by the Group	-	2,569.5	-	2,569.5
Mortgage loan portfolio	-	353.9	-	353.9
Total	-	3,970.6	8,888.9	12,859.5
Derivatives and other financial assets
Amounts deposited with reinsurers	-	34.1	-	34.1
Derivative financial instruments	-	-	0.6	0.6
Other assets	53.5	-	-	53.5
Cash and cash equivalents	-	170.2	-	170.2
Total financial investments and financial assets	53.5	4,174.9	8,889.5	13,117.9
Financial liabilities
Investment contracts at fair value through profit or loss	-	6,143.7	-	6,143.7
Liabilities relating to policyholder funds held by the Group	-	2,568.8	-	2,568.8
Derivative financial instruments	-	-	8.8	8.8
Borrowings	203.8	-	-	203.8
Other current liabilities	108.1	-	-	108.1
Total financial liabilities	311.9	8712.5	8.8	9,033.2

Unaudited Fair value measurement at 30 June 2025	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Investment properties	-	-	94.0	94.0
Financial assets
Equities - Listed	189.8	-	-	189.8
Holdings in collective investment schemes	8,494.4	-	194.5	8,688.9
Debt securities - government bonds	394.6	-	-	394.6
Debt securities - other debt securities	662.8	-	-	662.8
Policyholders' funds held by the Group	2,524,9	-	44.6	2,569.5
Mortgage loan portfolio	-	353.9	-	353.9
Amounts deposited with reinsurers	-	34.1	-	34.1
Derivative financial instruments	-	0.6	-	0.6
Total	12,266.5	388.6	333.1	12,988.2

Financial liabilities
Investment contracts at fair value through profit or loss	-	6,143.7	-	6,143.7
Liabilities related to policyholders' funds held by the Group	-	2,568.8	-	2,568.8
Derivative financial instruments	-	8.8	-	8.8
Total	-	8,721.3	-	8,721.3

Fair value measurement at 31 December 2024	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Investment properties	-	-	91.7	91.7
Financial assets
Equities - Listed	191.5	-	-	191.5
Holdings in collective investment schemes	8,454.1	38.9	168.6	8,661.6
Debt securities - government bonds	446.1	-	-	446.1
Debt securities - other debt securities	644.8	-	-	644.8
Policyholders' funds held by the Group	1,781.6	-	44.2	1,825.8
Mortgage loan portfolio	-	346.9	-	346.9
Amounts deposited with reinsurers	-	34.3	-	34.3
Derivative financial instruments	-	0.1	-	0.1
Total	11,518.1	420.2	304.5	12,242.8

Financial liabilities
Investment contracts at fair value through profit or loss	-	6,116.7	-	6,116.7
Liabilities related to policyholders' funds held by the Group	-	1,825.5	-	1,825.5
Derivative financial instruments	-	0.6	-	0.6
Total	-	7,942.8	-	7,842.8

Unaudited 30 June 2025	Investment properties	Holdings in collective investment schemes	Policyholder funds held by Group	Total
	£m	£m	£m	£m
At start of period	91.7	168.6	44.2	304.5
Total gains and losses recognised in the income statement	6.4	19.3	(6.7)	19.0
Purchases	0.7	-	11.5	12.2
Settlements	(4.8)	-	(7.0)	(11.8)
Exchange rate adjustment	-	6.6	2.6	9.2
At the end of period	94.0	194.5	44.6	333.1

Half-year Report

Summary by AI BETAClose X

Chesnara plc (CSN.L)

("Chesnara" or "the Company")

Companies

UK 100

Latest directors dealings

Summary by AI ^BETAClose X

	Carrying amount		Fair value
	Unaudited 30 Jun	31 Dec	Unaudited 30 Jun	31 Dec
£m	2025	2024	2025	2024
Financial liabilities
Borrowings	201.0	200.8	170.7	166.1
Amounts due in relation to financial reinsurance	1.6	2.4	1.6	2.3
Term finance	1.2	1.6	1.2	1.6

	Liabilities for Remaining Coverage				Liabilities for Incurred Claims
						Contracts under PAA
Unaudited	Excluding Loss Component	Loss component		For contracts not under PAA		PV of future cash flows		Risk adjustment	Total
	£m	£m		£m		£m		£m	£m
Net 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	(32.1)		-		-		-	-	(32.1)
Contracts measured under the full retrospective approach	(103.9)		-		-		-	-	(103.9)
Insurance revenue total	(136.0)		-		-		-	-	(136.0)
Insurance service expenses Incurred claims and other directly attributable expenses	-		(38.8)		120.9		4.2	-	86.3
Adjustments to liabilities for incurred claims	-		-		-		(3.5)	(0.1)	(3.6)
Losses and reversals of losses on onerous contracts	-		52.4		-		-	-	52.4
Amortisation of insurance acquisition cash flows	1.6		-		-		-	-	1.6
Insurance service expense total	1.6		13.6		120.9		0.7	(0.1)	136.7

Insurance service result	(134.4)		13.6		120.9		0.7	(0.1)	0.7
Net finance expenses from insurance contracts	17.3		0.4		-		0.7	-	18.4
Effect of movements in exchange rates	98.2		3.3		1.7		1.7	0.1	105.0
Total amounts recognised in comprehensive income	(18.9)		17.3		122.6		3.1	-	124.1
Investment components	(150.7)		-		150.7		-	-	-
Cash flows
Premiums received	147.0		-		1.6		-	-	148.6
Claims and other directly attributable expenses paid	-		-		(249.4)		(4.1)	-	(253.5)
Insurance acquisition cash flows	(2.9)		-		-		-	-	(2.9)
Total cash flows	144.1		-		(247.8)		(4.1)	-	(107.8)
Net insurance contract liabilities as at 30 June 2025	3,840.9		119.5		124.0		27.5	1.7	4,113.6

	Assets for Remaining Coverage				Liabilities for Incurred Claims
					Contracts under PAA
Unaudited	Excluding Loss-Recovery Component	Loss-Recovery component		For contracts not under PAA		Future cash flows		Risk adjustment		Total
	£m	£m		£m		£m		£m		£m
Net reinsurance contract assets as at 1 January 2025	120.6		5.1		15.9		11.6		0.1	153.3
Does this
Reinsurance expenses - allocation of reinsurance	(29.1)		-		-		-		-	(29.1)

Amounts recoverable from reinsurers: Recoveries of incurred claims and other directly attributable expenses	-		-		27.1		1.0		-	28.1
Changes in the expected recoveries for past claims	-		-		5.4		(1.3)		-	4.1
Changes in the loss recovery component	-		(0.1)		-		-		-	(0.1)
Net (expenses)/income from reinsurance contracts held	(29.1)		(0.1)		32.5		(0.3)		-	3.0
Net finance expenses from reinsurance contracts	4.3		-		-		0.3		-	4.6
Effect of movements in exchange rates	(0.6)		0.2		0.1		0.7		-	0.4
Total amounts recognised in comprehensive income	(25.4)		0.1		32.6		0.7		-	8.0
Investment components	(1.4)		-		1.4		-		-	-
Cash flows
Premiums paid net of ceding commission	17.6		-		-		-		-	17.6
Recoveries from reinsurance contracts held	-		-		(28.0)		(1.0)		-	(29.0)
Total cash flows	17.6		-		(28.0)		(1.0)		-	(11.4)
Net reinsurance contract assets as at 30 June 2025	111.4		5.2		21.9		11.3		0.1	149.9

APM	What is it?	Why do we use it?
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.	Cash Generation 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.
Base Cash Generation	Base 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. Base Cash Generation is calculated as the movement in the Group's surplus Own Funds above the Group's internally required capital, as determined by applying the Group's Capital Management Policy, which has Solvency II rules at its heart.	Base Cash Generation is a key measure, because it is the net cash flows to Chesnara from its life and pensions businesses which support Chesnara's dividend-paying capacity and acquisition strategy. Cash generation can be a strong indicator of how we are performing against our stated objective of 'maximising value from existing business'.
Divisional Cash Generation	Divisional Cash Generation represents the movement in surplus Own Funds above local capital management policies within the three operating divisions of Chesnara. Divisional Cash Generation is used as a measure of how much dividend potential a division has generated, subject to ensuring other constraints are managed.	It is an important indicator of the operating performance of the business before the impact of Group level operations and consolidation adjustments.
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.
EcV Operating Earnings	This is the element of EcV Earnings (see above) that is generated from the 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.	EcV Operating Earnings provide an indication of the underlying value generated by the business. This measure can identify profitable activities and also inefficient processes and potential management actions.
EcV Economic Earnings	This is the element of EcV Earnings (see above) that is derived from investment market conditions in the period and any economic assumption changes in the future.	EcV Economic Earnings are important in order to measure the additional value generated from investment market factors.
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.
Solvency	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 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.
Assets under Administration (AuA)	AuA reflects the value of the financial assets that the business manages, 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.
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.

AGM	Annual General Meeting.
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.
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.
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.
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 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.
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.
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).
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.
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.
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.