Chesnara Plc · LSE:CSN
Chesnara — FY2025 Earnings Presentation
36 slides from Chesnara's earnings presentation, Mar 24, 2026
Slide 1: Full Year Results 2025
CHESNARA FULL YEAR RESULTS 2025 Driving Strategic Change. Building Future Cashflows. 24 MARCH 2026
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: Transformational Strategic Delivery
TRANSFORMATIONAL STRATEGIC DELIVERY 1 2 3 DELIVER GOOD OUTCOMES ACQUIRE LIFE ENHANCE VALUE FOR CUSTOMERS AND AND PENSION THROUGH PROFITABLE MAXIMISE VALUE FROM BUSINESSES NEW BUSINESS EXISTING BUSINESS BECOMING A SUSTAINABLE CHESNARA 3
Slide 5: Major Strategic Milestones Achieved
MAJOR STRATEGIC MILESTONES ACHIEVED 2025 2026 JULY JULY AUG JAN FEB Completion Announced £150m RT1 Completion of Announced of the Dutch acquisition of bond raise HSBC Life (UK), acquisition of Merger HSBC Life (UK) and admission rebranded as Scottish Widows and £140m to the FTSE 250 Chesnara Life Eu
Slide 6: Strong Financial Delivery
STRONG FINANCIAL DELIVERY Operating Adjusted Capital Solvency Operating New Business Generation Coverage Ratio Own Funds Profit Contribution £94m 257% £859m £56m £12m ↑ +19% ↑ +54ppts ↑ +34% ↑ +42% ↑ +29% 5
Slide 7: Continuing to Deliver for Our Investors
CONTINUING TO DELIVER FOR OUR INVESTORS Final Total 2025 Interim Shareholder Pence per share(3) Return(1) of 43% 22.50 6% increase in Unrivalled 21- the final dividend, year track record 10.29 with an expected of dividend 6% increase to the growth(2) in UK & interim 2026 European dividend insurance
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Tom Howard Group Chief Financial Officer
Slide 9: Strong Financial Delivery
STRONG FINANCIAL DELIVERY CASH CAPITAL VALUE Operating Capital Generation Solvency Coverage Ratio AuA(4) £94m 257% £15bn FY 2024: £79m FY 2024: 203% FY 2024: £14bn Cash Remittances Own Funds Adjusted Operating Profit £58m £859m £56m FY 2024: £45m FY 2024: £643m FY 2024: £39m Final dividend 14.80p pe
Slide 10: Operating Capital Generation
OPERATING CAPITAL GENERATION 3 94 36 ↑19% 79 14 year on year, driven by: o Organic capital 41 generation; o Capital optimisation actions; and o Dutch merger synergies. UK Sweden Netherlands Group OCG OCG Centre FY 2025 FY 2024 9
Slide 11: Solvency Coverage Ratio
SOLVENCY COVERAGE RATIO 54% (6%) 257% 47% (16%) ↑54ppts (25%) 203% year on year, driven by: o Capital raises; Operating solvency range: 140% to 160% o Strong operational performance; and o Capital optimisation actions. Solvency Operating Non-operating Capital Raises Tiering Dividends Solvency Covera
Slide 12: Own Funds
OWN FUNDS 208 859 (19) ↑34% (52) T2&T3: 22 167 58 643 RT1: 140 T2&T3: year on year, driven by: 158 o Step change in scale from capital raises & UT1: strong operational UT1: 552 performance; and 485 o Over £200m increase in Tier 1 capital. Own Funds Operating Non-operating Capital Raises Tiering Divi
Slide 13: Central Liquidity
CENTRAL LIQUIDITY 12 50 280 £266m 209 58 (42) (10) (247) 266 RCF: of available resources post RCF: (32) 150 100 completion of Chesnara Life with headroom to Cash(6): Cash(6): fund further M&A activity. 109 116 Liquidity at Cash Remittances Dividends Debt Other Centre Capital Raises RCF Chesnara Life
Slide 14: IFRS AOP
IFRS AOP ↑42% 3 56 23 o Robust operating 39 performance in the UK and Netherlands. 11 o IFRS Capital Base of £694m (FY 2024: 19 £449m). o Leverage reduced to 22% (FY 2024: 31%). UK Sweden Netherlands Group Adjusted Operating Adjusted Operating Centre Profit (AOP) Profit (AOP) FY 2025 FY 2024 13
Slide 15: Proforma Financials: Post Chesnara Life
PROFORMA FINANCIALS: POST CHESNARA LIFE SOLVENCY IFRS Coverage ratio: 257% Coverage ratio: c180% Leverage ratio: 22% Leverage ratio: c20% c£1bn o Solvency Ratio above £859m T2&T3: upper-end of operating T2&T3: c£200m c£800m range. £167m RT1: £694m CSM: c£150m c£200m RT1: o Leverage below Group's £14
Slide 16: Outlook & Summary
OUTLOOK & SUMMARY Steve Murray Group Chief Executive Officer
Slide 17: Significant Progress Over the Last Years
SIGNIFICANT PROGRESS OVER THE LAST 5 YEARS 8 acquisitions for New UK New Capital operating c£440m platform leadership in place across Group optimisation of consideration actions delivered with 4 migrations and Business Units already completed £490m Restructure First net zero New Swedish distribution
Slide 18: Chesnara: A ~£700m Market Cap FTSE 250 Company
CHESNARA: A ~£700M MARKET CAP FTSE 250 COMPANY AUA and number of policies(8) New Business Contribution(8) Total Shareholder Return(1) AuA >£20bn Chesnara >£20m 75% Number of Policies FTSE 250 59% 1.4m £11m 43% £8.5bn 0.9m 32% 27% 13% 2020 2025 pro forma 2020 2025 pro forma Last 1 year Last 3 years L
Slide 19: Clear Areas of Focus for 2026
CLEAR AREAS OF FOCUS FOR 2026 1 Chesnara Life 2 Scottish Widows Europe SA Integration of Change of control for 3 Further optimisation of the balance sheet including execution of management actions 4 M&A opportunities Evaluation and potential execution of 5 Implement next phase of Dutch restructure 6
Slide 20: Update on Recent M&A Deals; Positioned for Future M&A
AN UPDATE ON OUR RECENT M&A DEALS; STRONGLY POSITIONED FOR FUTURE M&A CHESNARA LIFE SCOTTISH WIDOWS EUROPE SA Formerly known as HSBC Life (UK) DEAL METRICS(10) DEAL METRICS(10) £5bn >450k >£800m >£140m €1.7bn 46k >€250m >€100m AUA Policies Lifetime Cash Five-year Cash AUA Policies Lifetime Cash Five
Slide 21: Driving Strategic Change. Building Future Cashflows.
DRIVING STRATEGIC CHANGE. BUILDING FUTURE CASHFLOWS. Strong financial Transformational Internal Announcement results, with acquisition restructuring of acquisition growing capital completed and capital of Scottish and dividend management Widows Europe activities SA, with a good underway to pipeline
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 is a FTSE 250 European life, pensions and investment company with specialist expertise in consolidation. 31 December 2025 Group Solvency II Ratio: 257% 1 MAXIMISE THE VALUE FROM EXISTING BUSINESS The efficient ma
Slide 25: Macro Environment
MACRO ENVIRONMENT EQUITY MARKETS 31 December 2025 FTSE all share Swedish OMX all share FTSE all world Netherlands AEX all share 5,350 20% 1,046 10% 670 21% 1,279 11% 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%
Slide 26: Products
PRODUCTS We have an asset risk lite portfolio with limited guarantee exposure SII BEL(12) BY PRODUCT 4% UK SWEDEN NETHERLANDS 2%2% 4% 4%4% 0% 6% 9% 4% 12% 52% 88% 17% 92% 100% Unit-linked Unit-linked Unit-linked Other Products with guarantees Unit-linked Products with guarantees Products with guaran
Slide 27: Assets Under Administration
ASSETS UNDER ADMINISTRATION Predominantly asset risk lite: 87% unit-linked investment business GROUP AUA BY PRODUCT TYPE UK SWEDEN NETHERLANDS AuA(11): £6.1bn AuA: £6.7bn AuA: £2.6bn £2bn (13%) 13% 1% 43% 57% £13bn (87%) 87% 99% Unit-Linked Non-linked Unit-linked Non-linked Unit-linked Non-linked Un
Slide 28: Non-Linked Assets
NON-LINKED ASSETS High quality shareholder asset portfolio; 99% bonds externally-rated at investment grade. PORTFOLIO BOND PORTFOLIO CORPORATE BONDS SOVEREIGN DEBT BREAKDOWN BY RATING BY INDUSTRY BY LOCATION 0.1 1% 5% 0.1 2% 0.4 17% 17% 3% 24% 27% 8% 0.4 £2.0bn £1.0bn 9% £0.6bn 46% £0.4bn Total non-
Slide 29: Solvency II
SOLVENCY II 257% T2 & T3: £167m 205% 203% RT1: T2 & T3: Surplus: T2 & T3: £140m £166m £525m £158m Solvency Coverage Ratio Surplus: £351m Surplus: ↑54ppts £327m UT1: UTI: UT1: £552m £518m £485m to 257% at the end SCR: £333m SCR: £316m SCR: £334m of December 2025 FY 2023 FY 2024 FY 2025 28
Slide 30: Solvency II Sensitivities
SOLVENCY II SENSITIVITIES Market risks Demographic risks Expense risks 55 25 25 525 8 (20) (7) (15) (13) (12) (9) (21) (25) (36) Impact on Solvency II surplus(13) (50) FY 2025 20% 20% 25% 25% 10% 10% 1% interest 1% interest 50bps credit 25bps swap 10% 5% 10% 1% Base sterling sterling equity equity e
Slide 31: IFRS Capital Base
IFRS CAPITAL BASE Profit Before Tax 56 Significant increase 280 (37) 23 (4) following the Capital (29) 694 (42) Raises completed (2) in July Adjusted Operating Profit from the positive insurance result 449 Leverage reduced to 22% (FY 2024: 31%) FY 2024 Capital Adjusted Non Net of Tax OCI Dividends O
Slide 32: CSM Movement
CSM MOVEMENT 7 176 4 9 8 170 Pre-tax, CSM (13) (20) decreased by £6m Pre-tax, CSM decreased by £6m Due to non- economic assumption changes CSM Experience & New Interest Acquisition CSM FX CSM (gross of tax) assumption business accreted release Impact (gross of tax) FY 2024 changes FY 2025 31
Slide 33: Sustainability Commitments and 2025 Delivery
SUSTAINABILITY COMMITMENTS AND 2025 DELIVERY Our sustainability strategy underpins our three strategic objectives. We are actively prioritising the management of sustainability-related risks and opportunities. 1 2 3 MAXIMISE THE VALUE ACQUIRE LIFE AND PENSION ENHANCE VALUE THROUGH FROM EXISTING BUSI
Slide 34: Definitions
DEFINITIONS CASH Metric Definition Alignment to Simplified Investment Story • Core metric used to assess the ongoing level of the Group’s surplus generation Operating Capital • OCG measures the amount of Solvency II capital that the • Looks through short-term investment volatility and other one-off
Slide 35: Footnotes
FOOTNOTES SUMMARY OF FOOTNOTES USED THROUGHOUT THE PRESENTATION (1) Total Shareholder Return (TSR) is derived from Bloomberg. (2) Verified by RBC research. Dividend pence per share has been rebased to reflect the Rights Issue bonus factor of 1.1514x applied to historic dividend per share metrics. Th
Slide 36: Cautionary Statement
Cautionary Statement This document and accompanying verbal presentation (together, the “Presentation”) have been prepared by, and are the sole responsibility of, Chesnara plc (the “Company”). The Presentation is confidential and provided solely for your information. You may not copy, distribute, pub