Business
Interim Results
Interim Results.
About this update from Chesnara Plc
[{"type":"text","content":"\n \nChesnara plc - Interim Results for the six months ended 30 June 2006\n\nStrong emergence of surplus and improved solvency position support dividend\nincrease\n\nPart VII transfer delivers shareholder benefits\n\nFirst-time adoption of EEV principles for supplementary reporting\n\n\n6 September 2006\n\nChesnara today reported interim results for the first half of 2006. The Group\nis committed to offering shareholders an attractive long-term income stream\narising from the profits of its closed life assurance businesses.\n\n * Profit (on IFRS basis) before tax for the six months ended 30 June 2006\n increased by 152% to £10.6m, 7.34p earnings per share (2005 half year\n profit before tax: £4.2m, 3.81p earnings per share)\n * Completion of transfer of City of Westminster Assurance (CWA) long-term\n business to Countrywide Assured (CA) under Part VII of FSMA 2000 delivers\n positive solvency effects, tax benefits and operational efficiencies\n * Disposal of Premium Life International improves strong solvency position\n * On EEV basis pre-tax result for the half year increased by 26% to £6.8m\n (half year 2005: £5.4m, pre-exceptional item)\n * Mortgage endowment misselling provision and persistency assumptions prove\n adequate\n * Future operating expense assumptions strengthened\n * Shareholder equity on EEV basis (pre proposed interim dividend payment) now\n £175.7m (30 June 2005: £170.8m, 31 December 2005: £176.2m)\n * Life company solvency ratio improves to 219% (post dividend) (30 June 2005:\n 186%). Group solvency ratio (post-dividend) increased to 188% (30 June\n 2005:139%)\n * 5.05p interim dividend per share proposed: increased by 3.1%\n * Board remain optimistic about future dividend flows\n * Research continues into further consolidation opportunities\n\n \n\nGraham Kettleborough, Chief Executive said:\n\nThis has been a very positive first half performance. The completion of the\ntransfer of CWA's business to CA under the Part VII regime has begun to deliver\nthe benefits we signalled at the time of purchase of the business. The\ncontinuing strong emergence of surplus, the adequacy of our mortgage endowment\nmisselling provisions and our persistency experience all combine to deliver a\nstrong result.\n\nWith further improvement in our financial position, as evidenced by our\nimproved solvency ratios, we are ab...