Business
Statement re Pre-close Period Trading Update
Statement re Pre-close Period Trading Update.
About this update from Chesnara Plc
[{"type":"text","content":"\n \nChesnara plc (\"Chesnara\" or the \"Company\")\n\n26 June 2006\n\nPre-close Period Trading Update\n\nCity of Westminster Assurance Part V11 Transfer approved\n\nOn 2 June 2005, Chesnara announced the acquisition of City of Westminster\nAssurance Company Limited (\"CWA\") and is now pleased to advise that today Court\nclearance was granted for the transfer of the long-term business of CWA into\nCountrywide Assured plc, a subsidiary of Chesnara, pursuant to Part VII of the\nFinancial Services and Markets Act 2000 (the \"Transfer\").\n\nAs a result of synergies arising as a direct result of the Transfer, which were\nnot previously reflected in Chesnara's embedded value assumptions, the\ncompletion of the Transfer is expected to have a positive effect on the\nfinancial position and results of the Company for the six-month financial\nperiod ending 30 June 2006.\n\nIt should also be noted that changes in the results and reported financial\nposition of the Company, as reflected in information which is supplementary to\nfinancial reporting in accordance with IFRS, are likely to arise following the\ndecision to begin presenting the results and financial position of the Company\nin accordance with European Embedded Value methodology. The effect of these\nchanges on the Company's Embedded Value will be in lieu of the Achieved Profit\nbasis of reporting and it is intended to implement them with effect from the\nsix-month financial period ending 30 June 2006.\n\nThe Board currently believes that the above changes, taken as a whole, will\nhave a marginally positive effect on the Company's embedded value and\nshareholders should await the publication of the Company's Interim Results in\nSeptember 2006 for a full and detailed analysis of the effects of these\nchanges.\n\nCommenting on the Court clearance, Graham Kettleborough, Chief Executive of\nChesnara plc, said:\n\n\"We are very pleased with the outcome of our application to transfer the\nbusiness of CWA into our subsidiary, Countrywide Assured plc. We are encouraged\nby the progress we have made towards integrating CWA and expect the additional\nsynergies generated to assist us in maintaining a strong dividend yield for our\nshareholders.\"\n\nEndowment Claims\n\nThe Company has previously made significant increases to the provisions which\nit maintains in respect of its exposure to c...