Chesnara Plc · LSE:CSN
Chesnara — H1 2025 Earnings Presentation
37 slides from Chesnara's earnings presentation, Aug 28, 2025
Slide 1: Half Year Results 2025
CHESNARA HALF YEAR RESULTS 2025 Strong financial performance and major strategic progress 28 AUGUST 2025
Slide 2: Agenda
AGENDA 01. Overview of strategic delivery Steve Murray Group Chief Executive Officer 02. Financial highlights Tom Howard 03. Outlook and summary Group Chief Financial Officer 1
Slide 3: Overview of Strategic Delivery
OVERVIEW OF STRATEGIC DELIVERY Steve Murray Group Chief Executive Officer
Slide 4: Chesnara: Strategy in Motion
CHESNARA: STRATEGY IN MOTION Through disciplined strategic delivery, we manage insurance books with efficiency and purpose, driving outcomes that benefit customers, investors, and wider stakeholders 3 ENHANCE VALUE 1 2 MAXIMISE THE ACQUIRE LIFE THROUGH VALUE FROM AND PENSION PROFITABLE NEW EXISTING
Slide 5: Continued Financial Delivery
CONTINUED FINANCIAL DELIVERY Cash Continued robust New Business Interim DPS Generation(1) Solvency Contribution Increased £37m 207% £5m 7.70p (2) ↑ +26% ↑ +4ppts ↑ +3% ↓ -3% ↑ +3% 4
Slide 6: HSBC Life (UK): Accelerating Our Strategy
HSBC LIFE (UK): ACCELERATING OUR STRATEGY INCREASED CASH GENERATION o Expected incremental lifetime cash generation of >£800m(3), >3x consideration of £260m(3) SIGNIFICANT VALUE CREATION o Acquired at an attractive multiple of 83% of Eligible Own Funds(3) FOR INVESTORS o Anticipated step-up in divid
Slide 7: Continuing to Deliver for Our Investors
CONTINUING TO DELIVER FOR OUR INVESTORS Announced today: Unrivalled track Final FY 2025 and 3% increase in record of dividend Interim FY 2026 the interim 2025 growth(4) in UK and expected to dividend European insurance increase by 6% 6
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Tom Howard Group Chief Financial Officer
Slide 9: Continued Financial Delivery
CONTINUED FINANCIAL DELIVERY CASH RESULT CAPITAL POSITION FUTURE VALUE Cash Generation(1) Solvency Coverage Ratio Eligible Own Funds AuA(7) £37m 207% £632m £14bn HY 2024: £29m FY 2024: 203% FY 2024: £643m FY 2024: £14bn Dividend Cover(5) IFRS Leverage(6) IFRS Capital Base 1.42x 31% £441m HY 2024: 1.
Slide 10: Higher Cash Generation: A Foundation for Growth
HIGHER CASH GENERATION: A FOUNDATION FOR GROWTH 55 1 ↑ 26% (7) UK 37 (12) vs HY 2024, driven by: o Organic capital generation Sweden o Management actions o Offset in part by Netherlands central one-off activity Divisional FX Project Central Items Group Cash Generation Expenses & Adjustments Cash Gen
Slide 11: Robust Balance Sheet: Capital Allocation Framework Supports Growth Momentum
ROBUST BALANCE SHEET: CAPITAL ALLOCATION FRAMEWORK SUPPORTS GROWTH MOMENTUM 4% 8% (4%) 207% (4%) 203% ↑ 4ppts vs FY 2024, driven by: Operating solvency range: 140% to 160% o Organic capital generation o Management actions Solvency Coverage Capital Management Technical Dividends Solvency Coverage Rat
Slide 12: Resilient Balance Sheet: Organic Own Funds Growth
RESILIENT BALANCE SHEET: ORGANIC OWN FUNDS GROWTH 23 12 654 (25) 643 (8) Organic growth, 632 (13) driven by positive divisional operating experience and economics Eligible Operating Economic Other central Sub total Tax Dividends Eligible Own Funds earnings earnings: and one off Pre tax and Own Funds
Slide 13: IFRS: Continued Growth in CSM
IFRS: CONTINUED GROWTH IN CSM 17 o CSM growth: bigger store of future value from insurance 11 (9) 2 457 o Solid investment result, 449 (5) down v HY24 driven by markets and FX hedge (24) 441 o Operating expenses have remained HY25 HY24 consistent Insurance service result 2 (3) Net investment result
Slide 14: Post H1 Balance Sheet: Three Major Updates
POST H1 BALANCE SHEET: THREE MAJOR UPDATES On 3 July, we announced the proposed acquisition of HSBC Life (UK) and a £140m rights issue as part of the financing package. On 30 July, we announced the issuance of a £150m RT1 bond. SOLVENCY LEVERAGE Coverage ratio: 203% Coverage ratio: 198% Leverage rat
Slide 15: Future Cash Generation: Visibility Extended by HSBC Life
FUTURE CASH GENERATION: VISIBILITY EXTENDED BY HSBC LIFE Reliable sources of organic future Cash Generation, expected to cover long-term debt cost and dividends; further upside from future M&A 4 New business, acquisitions, HSBC Life (UK) and synergies (9) 3 Management actions 2 Real-world investment
Slide 16: Confident Outlook
CONFIDENT OUTLOOK Continued delivery M&A strategy, along Robust balance of our strategy with our successful sheet with leading to another equity and debt significant levels of period of strong issuances will capital resources financial transform the and liquidity to performance financial flexibility
Slide 17: Outlook & Summary
OUTLOOK & SUMMARY Steve Murray Group Chief Executive Officer
Slide 18: Focused Actions for Sustained Strategic Progress
FOCUSED ACTIONS FOR SUSTAINED STRATEGIC PROGRESS Following strong progress already in 2025, we remain active across all three strategic objectives STRATEGIC OBJECTIVES 1 2 3 MAXIMISE THE VALUE ACQUIRE LIFE AND ENHANCE VALUE THROUGH FROM EXISTING BUSINESS PENSION BUSINESSES PROFITABLE NEW BUSINESS BE
Slide 19: Strongly Positioned for Further M&A
STRONGLY POSITIONED FOR FURTHER M&A KEY VENDOR DRIVERS FOR DISPOSALS: 1 Operational simplification and expense pressure 2 Disposals of non-core products to release capital 3 Focus on specific geographies CURRENT COMPETITIVE ENVIRONMENT: Chesnara is well positioned for transactions, given both increa
Slide 20: M&A Ready: Cash, Credit & Capital in Hand
M&A READY: CASH, CREDIT & CAPITAL IN HAND Our financial This was demonstrated considerations for M&A through the HSBC Life RECENT CAPITAL ISSUANCE remain consistent (UK) deal Solvency Operating range of 140% to 160% Tier 2 notes February 2022 £200m Leverage Maintain our investment grade Equity Right
Slide 21: Continuing to Deliver: Unlocking Sustainable Cash and Dividend Growth
CONTINUING TO DELIVER: UNLOCKING SUSTAINABLE CASH AND DIVIDEND GROWTH Strong financial Transformational Internal Increased results, with M&A deal restructuring finance growing cash announced and capital capacity for and dividend management future M&A activities underway activity to realise further s
Slide 22: Questions
QUESTIONS
Slide 23: Appendices
APPENDICES
Slide 24: Chesnara Background
CHESNARA BACKGROUND WHO WE ARE KEY FINANCIAL METRICS OUR STRATEGIC PILLARS Chesnara plc was formed in 2004 and 30 June 2025 1 MAXIMISE THE VALUE is listed on the London Stock Exchange. Group Solvency II Ratio: 207% FROM EXISTING BUSINESS Efficient management of existing customers and The Group is a
Slide 25: Chesnara Recent History
CHESNARA RECENT HISTORY APRIL 2022 JAN 2023 DEC 2024 JUL 2025 6 ACQUISITIONS CASLP Conservatrix Canada Life HSBC SINCE 2022 Robein Leven onshore Life (UK) bond and pension MAY 2023 portfolio Canada Life protection portfolio 2021 2022 2023 2024 2025 Sustained TIMELINE o Senior hires to bolster M&A ex
Slide 26: Products
PRODUCTS We have a capital-lite portfolio with limited guarantee exposure SII BEL(11) by product 4% UK Sweden Netherlands 2%2% 5% 5% 4% 0% 5% 8% 4% 11% 56% 87% 16% 91% 100% Unit-linked Unit-linked Products with guarantees Unit-linked Unit-linked Other Products with guarantees Products with guarantee
Slide 27: Assets Under Administration
ASSETS UNDER ADMINISTRATION Predominantly capital-lite: 86% unit-linked investment business Group AuA(12) by product type UK Sweden Netherlands AuA: £4.1bn AuA: £5.9bn AuA: £2.8bn £1.8bn (14%) 13% 1% 41% 59% £11.1bn (86%) 87% 99% Unit-Linked Non-linked Unit-linked Non-linked Unit-linked Non-linked U
Slide 28: Non-Linked Assets
NON-LINKED ASSETS High quality shareholder asset portfolio; 97% bonds externally-rated at investment grade Portfolio Bond portfolio by Corporate bonds by Sovereign debt by breakdown rating industry location 5% 0.1 0.0 3% 2% 17% 3% 0.4 18% 24% 7% 26% Total non-linked Total value of 9% Total value of
Slide 29: Solvency II
SOLVENCY II 205% 203% 207% T2 & T3: £166m T2 & T3: T2 & T3: Surplus: £158m Surplus: £152m Solvency £351m £327m Surplus: £326m Coverage Ratio increased UT1: UT1: £485m UTI: £480m by 4ppts to £518m SCR: SCR: SCR: £316m £306m £333m 207% at the end of June 2025 FY 2023 FY 2024 HY 2025 28
Slide 30: Central Liquidity
CENTRAL LIQUIDITY 56 (24) (5) 126 (10) 109 Divisional cash remittances of Liquidity risk appetite £56m in H1 2025 Cash at Divisional Shareholder Debt Other centre Cash at FY 2024 remittances dividend servicing costs HY 2025 payment costs (pre RT1 & Rights issue receipt) 29
Slide 31: Economic Value Movement
ECONOMIC VALUE MOVEMENT 16 13 10 (8) (19) 531 Organic growth 517 (24) pre-dividend, driven by: o Positive economics and Business Unit operating experience EcV at Economic Operating Other central FX Tax Shareholder EcV at FY 2024 earnings: earnings and one off dividends HY 2025 real world items retur
Slide 32: CSM Movement
CSM MOVEMENT 7 2 5 192 3 10 (11) 176 Pre-tax, CSM increased by £16m CSM Experience & New Interest Acquisition CSM FX CSM (gross of tax) assumption business accreted release Impact (gross of tax) FY24 changes HY25 31
Slide 33: Solvency II Sensitivities
SOLVENCY II SENSITIVITIES Solvency surplus Solvency Explanatory notes immediate impact % impact¹³ £m impact¹³ 1 20% sterling appreciation +34pp -10 Foreign Exchange: Appreciation of sterling relative to our overseas currencies reduces the value of overseas surplus with partial mitigation from the Gr
Slide 34: Macro Environment
MACRO ENVIRONMENT EQUITY MARKETS FTSE all share Swedish OMX all share FTSE all world Netherlands AEX all share 4,779 %7 953 0% 604 9% 1,210 5% 31 Dec 2024: 4,468 31 Dec 2024: 955 31 Dec 2024: 554 31 Dec 2024: 1,152 INTEREST RATES (10 YEARS) FX RATES CREDIT SPREADS € SEK 5.00% 1.22 14.00 0.80% 4.50%
Slide 35: Sustainability Commitments and 2025 Delivery
SUSTAINABILITY COMMITMENTS AND 2025 DELIVERY We are committed to becoming a sustainable Group and will publish our first Climate Transition Plan in September. OUR SUSTAINABILITY COMMITMENTS 1 Support a sustainable future 2 Help to create a fairer world 3 Build a sustainable Chesnara OUR GOALS INVEST
Slide 36: Footnotes
FOOTNOTES SUMMARY OF FOOTNOTES USED THROUGHOUT THE PRESENTATION (1) Cash Generation refers to the defined APM Commercial Cash Generation, please refer to the 2025 Interim Report & Accounts for more information regarding the definition (2) Dividend pence per share has been rebased to reflect the Righ
Slide 37: Thank You
hesnara THANK YOU