Final Results 2024 Release

27 March 2025

LEI Number: 213800VFRMBRTSZ3SJ06

Chesnara plc (CSN.L)

("Chesnara" or "the Company")

CONTINUED STRATEGIC DELIVERY DRIVING GROWTH IN CASH GENERATION, FUTURE VALUE AND DIVIDENDS

Chesnara reports its 2024 full year results. Key highlights are:

• • Cash Generation1 of £60m (FY 20231: £52m) grew by 14%, providing strong coverage of 1.60x (FY 2023: 1.45x) against the full year dividend;

• • Solvency Coverage Ratio of 203% (FY 2023: 205%) remained significantly above the upper-end of the Group's operating range of 140% - 160%, providing significant flexibility to allocate capital to M&A and other investment opportunities;

• • Economic Value (EcV) Earnings of £69m (FY 2023: £59m) grew by 17% supporting growth in the Group's EcV per share to 352p (FY 2023: 348p) after dividend payments;

• • IFRS pre-tax profits increased to £21m (FY 20232 : £2m); with IFRS pre-tax Contractual Services Margin (CSM) growing to £176m (FY 20232: £157m), increasing the store of future value from the Group's insurance portfolio;

• • New Business Contribution was stable at £9m (FY 2023: £10m);

• • Ongoing M&A momentum with announcement of Canada Life portfolio transfer in December 2024, adding £11m of EcV which was £3m higher than previously announced;

• • The Board is recommending a 3% increase in the final dividend to 16.1p per share. Total dividend for FY 2024 of 24.7p per share.

Commenting on the results, Steve Murray, Group CEO, said:

"We have again delivered a strong set of financial results with increased Cash Generation, positive organic EcV Earnings and a robust solvency position. This financial performance has allowed us to extend our track record of uninterrupted full year dividend growth to 20 years, unrivalled across listed UK and European insurers. Our people have also continued to deliver on our major operational programmes and our second portfolio acquisition from Canada Life again demonstrates our ability to grow through M&A and deliver very attractive returns for shareholders. Our M&A pipeline remains positive, and we continue to have significant firepower to deploy on opportunities."

A full year results presentation is being held at 10:00am on 27 March 2025 - participants can registerhere.

Further details on the financial results are as follows:

2024 FULL YEAR FINANCIAL AND STRATEGIC HIGHLIGHTS

STRONG CASH GENERATION AND 20 YEARS OF FULL YEAR DIVIDEND GROWTH

• • Group Commercial Cash Generation(1) of £60m in FY 2024 (FY 2023: £52m), driven by favourable market conditions, cost efficiencies and other management actions undertaken during the year.

• • The Board has proposed a 2024 final dividend of 16.1p per share (2024 total dividend of 24.7p), a 3% increase compared to 2023, extending the period of uninterrupted dividend growth to 20 years.

• • The Group's 20-year full year dividend growth track record is unrivalled across UK and European Listed insurers with

  Chesnara's business model delivering sustainable returns to shareholders, with c£502m of cumulative dividends paid over the 20-year period.

FINANCIAL RESILIENCE AND FLEXIBILITY IN FINANCING FUTURE M&A

• • Solvency II Coverage Ratio of 203% at FY 2024 (FY 2023: 205%), materially above the upper end of the Group's operating range of between 140 - 160%.

• • Group Centre liquidity of £109m (FY 2023: £124m), with expected further divisional dividends of £57m during 2025. This combined with the Group's Revolving Credit Facility, provides £200m of immediately available resources to fund future acquisitions.

• • Leverage ratio3 of 31% at FY 2024, broadly in line with prior year (FY 20232: 30%).

DELIVERING LONG TERM VALUE

• • Acquisition of a portfolio of unit-linked bonds and legacy pensions from Canada Life announced in December 2024, increasing EcV by £11m in FY 2024, a £3m improvement on the expected day one gain and net of £2m consideration paid for the business. This was the second acquisition from Canada Life, with the Part VII transfer and migration of the Canada Life protection portfolio acquired in May 2023 onto our new strategic platform with SS&C completing in February 2025.

• • Increased EcV of £531m as at FY 2024 (FY 2023: £525m), with strong growth in EcV Earnings of £69m (FY 2023: £59m) partly offset by the payment of dividends and the negative impact of foreign exchange rates over the period.

• • Stable New Business Contribution4 of £9m over FY 2024 (FY 2023: £10m).

• • Increased IFRS pre-tax profits of £21m in FY 2024 (FY 20232: £2m), driven by higher CSM releases, favourable investment returns and lower Group Centre costs.

• • IFRS Capital Base2 of £449m at FY 2024 (FY 20232: £479m) with increased CSM and pre-tax Profits, offset by FX movements and the shareholder dividend.

• • Process to merge our Dutch divisions is underway, with actions already taken to generate pre-merger cost savings and potential for future synergies.

DIVIDEND DETAILS

• • The recommended final dividend of 16.1p per share is expected to be paid on 20 May 2025. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 3 April 2025. The record date for eligibility for payment will be 4 April 2025.

ANALYST AND INVESTOR PRESENTATION

• • A presentation for analysts and investors will be held at 10.00am on 27th March 2025 at the offices of RBC Capital Markets, 100 Bishopsgate, London, EC2N 4AA, which will be available to join online and subsequently be posted to the corporate website atwww.chesnara.co.uk.

• • To join the webcast, please register using the following linkhere.

Investor Enquiries

Sam Perowne

Head of Strategic Development & Investor Relations Chesnara plc

E -sam.perowne@chesnara.co.uk

Media Enquiries Roddy Watt

Director, Capital Markets FWD

T - 020 7280 0651 / 07714 770 493 E -roddy.watt@fwdconsulting.co.uk

Notes to Editors

Chesnara (CSN.L) is a European life and pensions consolidator listed on the London Stock Exchange. It administers just under one million policies and operates as Countrywide Assured in the UK, as The Waard Group and Scildon in the Netherlands, and as

Movestic in Sweden. Following a three-pillar strategy, Chesnara's primary responsibility is the efficient administration of its customers' life and savings policies, ensuring good customer outcomes and providing a secure and compliant environment to protect policyholder interests. It also adds value by writing focused, profitable new business in the UK, Sweden and the Netherlands and by undertaking value-adding acquisitions of either companies or portfolios. Consistent delivery of the Company strategy has enabled Chesnara to increase its dividend for 20 years in succession. Further details are available on the Company's website(www.chesnara.co.uk).

Notes

Note 1

Commercial Cash Generation (referred to as Cash Generation) represents the surplus cash that the group has generated in the period and is used as a measure of assessing how much dividend potential has been generated, subject to ensuring other constraints are managed. It is largely a function of the movement in the solvency position, excluding the impact of technical adjustments, representing the group's view of the commercial cash generated by the business. Note, the 2024 result includes the day one impact of the most recent Canada Life acquisition, and the 2023 comparator has also been restated to include the day one impact of the acquisitions completed in 2023.

Note 2

IFRS restatement The IFRS prior year comparatives have been restated following a change in the accounting methodology applied to the portfolio transfer into the UK from Canada Life Ltd. Further details are set out in Note A2 in the IFRS Financial Statements.

IFRS Capital Base is the sum of IFRS Net Equity and CSM (net of tax and reinsurance).

Note 3

The Leverage ratio is 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 'net equity plus debt plus net of tax and reinsurance CSM', as measured under IFRS. As per note 2, the FY 2023 IFRS results were restated which has also resulted in a restated Leverage ratio for FY 2023.

Note 4

New Business Contribution is 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.

The Board approved this statement on 26 March 2025.

CAUTIONARY STATEMENT

This document may contain forward-looking statements with respect to certain plans and current expectations relating to the future financial condition, business performance and results of Chesnara plc. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of Chesnara plc including, amongst other things, UK domestic, Swedish domestic, Dutch domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates, currency exchange rates, inflation, deflation, the impact of competition, changes in customer preferences, delays in implementing proposals, the timing, impact and other uncertainties of future acquisitions or other combinations within relevant industries, the policies and actions of regulatory authorities, the impact of tax or other legislation and other regulations in the jurisdictions in which Chesnara plc and its subsidiaries operate. As a result, Chesnara plc's actual future condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements.

2024 FINANCIAL HIGHLIGHTS

COMMERCIAL CASH GENERATION 1 £60M 2023: £52M

SOLVENCY COVERAGE RATIO 6* 203%

31 DECEMBER 2023: 205%

ASSETS UNDER ADMINISTRATION (AuA) 2 £14BN Δ

31 DECEMBER 2023: £11BN

Δ Includes impact of Canada Life portfolio acquisition, expected to Part VII and migrate during 2025

ECONOMIC VALUE 3 £531M

31 DECEMBER 2023 £525M

ECONOMIC VALUE EARNINGS 4 £69M 2023: £59M

NEW BUSINESS CONTRIBUTION 5 £9M 2023: £10M

IFRS £21M - IFRS PRE-TAX PROFIT 2023: £2M **

£449M - IFRS CAPITAL BASE 2023: £479M

These financial highlights include the use of Alternative Performance Measures (APMs) that are not required to be reported under International Financial Reporting Standards.

• 1 - 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 prudent Capital Management Policy, which has Solvency II rules at its heart. Commercial Cash Generation is used as a measure of assessing how much dividend potential has been generated, subject to ensuring other constraints are managed. It excludes the impact of technical adjustments and modelling changes; representing the Group's view of the commercial cash generated by the business. The 2023 comparator is shown as inclusive of day one acquisition impacts.

• 2 - Assets Under Administration (AuA) represents the sum of all financial assets on the IFRS balance sheet. Note - this measure was previously referred to as 'Funds under Management' (FuM). There has been no change to the basis of calculation.

• 3 - Economic Value (EcV) is a financial metric derived from Solvency II. 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.

• 4 - Economic Value earnings are a measure of the value generated in the period, recognising the longer-term nature of the

  Group's insurance and investment contracts.

• 5 - New Business Contribution represents the best estimate of cash flows expected to emerge from new business written in the period. It is deemed to be a more commercially relevant and market consistent measurement of the value generated through the writing of new business, in comparison to the restrictions imposed under the Solvency II regime Note - this measure was previously referred to as 'commercial new business'. There has been no change to the basis of calculation.

• 6 - 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.

* On 31 December 2024 the PRA's restatement of Solvency II assimilated law came into force. Throughout the document we refer to the new regime as Solvency II, in line with the name of the prudential regime in PRA policy material.

**The IFRS prior year comparatives have been restated following a change in the accounting methodology applied to the portfolio transfer into the UK from Canada Life Ltd. Further details are set out in the Note A3 in the 'IFRS Financial Statements.

CHAIR'S STATEMENT

"The Group has delivered strong Commercial Cash Generation and value growth, including through a further UK acquisition, supporting a proposed 3% increase in our full year dividend, our 20th year of consecutive dividend increases."

LUKE SAVAGE, CHAIR

Increase in the full year dividend by 3%

I am pleased to report that we are proposing that our shareholders will receive a total dividend of 24.69p per share, an increase of 3% on the prior year, and the 20th consecutive year that we have increased the full year dividend.

Cash generation and financial strength

Our proposed dividend is underpinned by strong levels of cash generation and financial stability again in 2024, despite a continued backdrop of volatile geopolitical and macro-economic factors.

Each of our operating divisions contributed to the Group's Commercial Cash Generation of £60m, an increase of 14% compared to the same period in 2023 and against a total dividend cost of £37m.

Our Solvency II coverage ratio of 203% remained stable throughout 2024 and remains significantly above our normal operating range of 140% - 160%. The Group's diversified business model and our risk-based approach to financial management is fundamental to providing financial security to our customers. Our strong and resilient balance sheet continues to provide us with considerable strategic flexibility to invest in our businesses and pursue further M&A opportunities as they arise.

Operational delivery

Across the Group, our operating divisions continue to perform strongly in support of the Group's key strategic priorities.

In the UK, we announced our second portfolio acquisition from Canada Life UK - a closed portfolio of onshore bond and pensions products. We are pleased to continue our relationship with Canada Life following our acquisition of their UK life insurance policies and this latest transaction illustrates our ability to add scale and provide attractive returns to our UK business.

The transfer of the earlier Canada Life UK Life insurance portfolio acquisition to our new outsource partner, SS&C, completed successfully in February 2025, marking a significant milestone for this programme.

The operational activities to transfer existing UK insurance portfolios to SS&C are also progressing, with plans to migrate the remaining in scope books within its portfolio over the next 18 to 24 months, including the recently announced deal with Canada Life.

In the Netherlands, we announced our intention to merge our Scildon and Waard businesses (subject to approval by De Nederlandsche Bank). The proposed legal merger is expected to take place in mid-2025 with further integration significantly simplifying our operating model in the Netherlands, alongside ongoing initiatives to upgrade the IT estate and improve customer and broker experiences.

In Sweden, we have seen strong growth in our custodian business as we continue to build new partnerships and further-diversify our distribution model. Overall new business sales momentum remains strong, benefiting from ongoing enhancements to our product offerings and the digitisation of our service offerings.

It has been another year of significant delivery across the Group and as ever, I want to thank staff for their continued efforts and dedication.

Our people

Over 2024, we maintained our focus on ensuring that the Group benefits from a broad range of skills and expertise on our Boards.

In April, we appointed Tom Howard as our Group CFO and Executive Director on the Chesnara Board and at the same time, we announced that Mark Hesketh was stepping off the Chesnara Board to allow his appointment as Chair of our UK life company, Countrywide Assured plc.

We also confirmed that as Jane Dale will have served her third successive three-year term, she will not be seeking re-election at our Annual General Meeting in May 2025, in line with UK Corporate Governance Code for listed companies. Jane, who has also been Chair of the Audit & Risk Committee, will have served 9 years as a non-executive director of the Group and has made an immense contribution to Chesnara's success over this period. On behalf of the board, I want to thank Jane for her dedication to

Chesnara and she leaves with our best wishes for the future.

At the same time, I am delighted to announce that we have appointed Gail Tucker to the Chesnara Board. Gail brings a wealth of experience to Chesnara, particularly in the UK and European listed life insurance sector and I want to welcome her to Chesnara and very much look forward to working with her. Gail will chair the Chesnara Audit and Risk Committee and, subject to regulatory approval, will also join the CA Board where she will also chair their Audit and Risk Committee.

Purpose

At Chesnara, we help to protect customers and their dependants by providing life, health, and disability cover or savings and pensions solutions to meet future financial needs. These are very often customers that have come to us through acquisition, and we are committed to ensuring that they remain positively supported by us.

We have always managed our business in a responsible way and have a strong sense of acting in a fair manner, giving full regard to the relative interests of all stakeholders.

Maintaining our strong capital position and delivering strong and sustainable financial returns will always remain of key importance.

It underpins our desire to offer compelling returns to our shareholders, to meet our debt investor coupon payments and importantly, to ensure our customers can be confident in the ongoing financial strength of our business.

As a purpose-driven organisation, we continue to balance our responsibilities across the 3Ps - Profit, People and Planet.

Sustainability is a key part of the strategy of the Group, and we are progressing well against our objectives. Sustainability is a key input into decision-making across the Group and all of our people completed mandatory sustainability training in 2024. Ongoing delivery of this training is now a key part of our people's broader learning journeys and professional development.

A key pillar of our commitments is to deliver a just transition to become a net zero group. During 2024, we announced our initial interim 2030 emission reduction target. By 2030, our target is to reduce the scope 1 and 2 emissions of the in-scope assets by 50% from a baseline of 2023. In-scope assets are corporate bonds and listed equity, which we can control or influence. All assets, alongside our operational activities, remain in scope of our 2050 net zero target. During 2024, we have seen a reduction of 13% in the calculated normalised emissions for our full portfolio against our 2023 baseline, together with a 25% reduction in our operational emissions, meaning we are on track to achieve our target. Absolute scope 3 emissions from our investments have increased during the year and so we also continued to engage with our key asset managers and partners in our value chain to be able to understand their own net zero journeys and identify areas of focus.

As a recent signatory to the Principles for Responsible Investment, and as a member of bodies such as the United Nations Global Compact, UK Sustainable Investment and Finance Association and the Institutional Investors Group on Climate Change, we continue to engage on initiatives that create solid foundations for longer term change together with shorter-term actions that will begin to make a real-world positive impact.

Our Annual Sustainability Report (available on the Chesnara plc website) provides further details of our sustainability commitments, long-term targets and the activities underpinning our sustainability strategy.

Outlook

Our financial results in 2024 demonstrate that our diversified business model continues to deliver strong levels of Cash Generation, value growth and positive shareholder returns.

Our outlook for M&A remains positive and we have a strong capital base and ambition to support further acquisitions.

Luke Savage,

Chair

26 March 2025

CHIEF EXECUTIVE OFFICER'S REPORT

"Our strong financial performance and additional UK acquisition in 2024 underpin our positive outlook for 2025 and beyond."

STEVE MURRAY, CEO

We have again remained disciplined in driving delivery against our three areas of strategic focus namely:

• 1. Running our in-force insurance and pensions books efficiently and effectively;

• 2. Seeking out and delivering value enhancing M&A opportunities; and

• 3. Writing focused, profitable new business where we are satisfied an appropriate return can be made.

We have just under 1 million policies across the Group and our people take pride in the responsibility that comes with delivering for our policyholders every single day.

This focus helped us deliver a strong financial result for the year with Commercial Cash Generation of £60m, continued strong solvency of 203% and incremental EcV of £69m. And as Luke highlighted, this has supported us proposing an increase in the full year dividend of 3% to 24.69 pence per share.

Operational delivery has continued

We have continued to make positive progress delivering the ambitious change agenda we set ourselves and that will help ensure we have modern and sustainable operating platforms right across the Group.

In the UK, work on our transition and transformation (T&T) programme, which will lead to the transfer of our various UK books of business to SS&C's more modern policy administration system, continues to progress well. Our first migration was successfully completed in February 2025. And we successfully met the UK Consumer Duty deadline for closed books in July 2024 and are making positive progress implementing our fully funded plan. As part of this activity, we have made further positive changes for a number of our UK customers and there has been no material financial impact on the Group from any of the changes we are making here. It was also pleasing to secure our second transaction with Canada Life UK in December 2024. The Part VII transfer of policies from our first deal with Canada Life completed in Q1 2025.

In the Netherlands, our teams have been working hard on the new DORA (Digital Operational Resilience Act) regulation and associated work required to meet this new standard. We have also begun the preparation work to bring our two Dutch businesses together to create bigger scale and more sustainable business. This merger, which is planned for July 2025 and remains subject to local regulatory approvals, should also enable us to drive further synergies above and beyond some of the local restructuring work that was completed in December 2024. Regulatory submissions have now been completed and we have consolidated our teams based in Hilversum into one single location in December 2024.

And in Sweden, our teams also worked hard on implementing the new DORA regulations, in advance of the January 2025 deadline. Further work has been completed to enable us to more effectively promote and sell our risk product offerings as well as enabling better integration with broker firms. The leadership team has also been strengthened in the year with joiners in our custodian business, operations and IT.

Creating a more sustainable Chesnara

We continue to make progress against our three sustainability commitments on our journey to transition to become a sustainable Chesnara. We strongly believe we have a responsibility to consider the needs of all our stakeholders, balancing people, planet and profit over the long term. We actively review our sustainability strategy and priorities to ensure that we are working to address the needs of our stakeholders and managing the risks and opportunities presented by a changing world.

Our targets and key aspects of progress are:

-

Net zero emissions by 2050 - in 2024, we published our initial interim 2030 decarbonisation target for a 50% intensity reduction from our 2023 baseline figures in the scope 1 and 2 emissions for our listed equity and corporate fixed income investments which we are able to influence or control. During 2024, we saw a 13% reduction in the calculated normalised scope 1 and 2 emissions from our investments and a 25% reduction in our absolute operational emissions, which are very positive movements. Absolute emissions from our investments did increase, however, driven by an increase in scope 3 emissions, which is partly due to increased assets under administration. Visibility of the causes of these movements is still limited but we are taking positive actions to reduce emissions and further detail on these is provided in our Annual Sustainability Report.

-

Investments in nature and social impact solutions - during the year, we increased our investments in positive solutions and held £135m at the end of 2024, representing an increase of approximately 65% compared to 2023.

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A business where everyone feels welcome - we have continued to commit time and resource to ensuring the Group is an inclusive organisation. Activities including volunteering, internships, enhancing customer care, and focusing on employee wellbeing have been supplemented by delivering sustainability related training to all employees in the Group.

M&A continues alongside other management actions

We have proactively and diligently assessed a number of M&A opportunities across 2024. This has included our participation in multiple due diligence processes, primarily on a bilateral basis, as well as work on legal documentation. We announced another UK acquisition on 23 December and our second portfolio deal with Canada Life. Our latest deal involves the acquisition of a portfolio of c17k onshore bond and personal pensions. We expect an uplift in economic value of around £11m from the deal against the £2m of consideration paid. The first step of the deal has been executed by way of a reinsurance agreement between both parties.

We retain significant fire power for future acquisitions and can immediately deploy around £200m in support of deals. We have additional financing options available, should we have the opportunity to execute a larger value enhancing opportunity.

Alongside the extensive activity this year on M&A, we have continued to seek out other management actions to enhance Cash

Generation and / or value. We extended the Group's FX hedge during the year and also extended the mass lapse reinsurance arrangements we have in the UK, both of which have reduced SCR and enhanced Cash Generation.

Positive sales momentum in Sweden and the UK with discipline maintained in the Netherlands

Overall, New Business Contribution remained broadly flat this year at £9m vs £10m in 2023.

Movestic has continued to see strong sales in both our group pension and custodian business where total sales are at their highest level for 5 years. We have continued to see transfers out at a higher level than our longer-term assumption (albeit in line with the short-term provision we made in the balance sheet in 2024). Overall, it has been a stronger year than 2023, being the first full year under Sara Lindberg's leadership, and we see further opportunities to expand our partnerships in 2025.

It was a tougher market in the Netherlands for our main term life product with overall new business materially lower compared to the same period in 2023. However, it has been pleasing to see the team maintain their disciplined approach to pricing against this more challenging market backdrop.

In the UK, we have continued to see positive flows into our intermediated onshore bond proposition and we have been engaging positively with other platforms in the market with a view to potentially expanding our distribution of this product.

Continued work to strengthen our team

Luke highlighted the additional talent that has joined the Chesnara Board including Tom Howard who joined us from Aviva in April. As a reminder, Tom has held a variety of senior roles within Aviva plc, including Director of Mergers & Acquisitions for Aviva Group and CFO for Aviva's Life and General Insurance business in Ireland. Tom brings with him an extensive European actuarial and financial reporting background. He has made a positive start to life at Chesnara and is focussed on improving our capital allocation discipline as well as helping to drive further M&A momentum.

We also announced Edwin Bekkering's appointment to the position of CFRO (Chief Financial & Risk Officer) in Scildon, following the appointment of Pauline Derkman as our new CEO 18 months ago. Edwin has extensive experience in senior finance roles in major financial institutions including at Athora, Vivat, SNS Reaal and ABN AMRO. Pauline and Edwin are also proposed as the CEO and CFRO of the planned merged business in the Netherlands.

Outlook

It has been pleasing to see continued strong cash and economic earnings generation in 2025. Whilst the volatile geopolitical and macro-economic backdrop persists, and will continue to be a material factor in all our markets, we remain confident that the Chesnara business model will continue to generate cash across a wide variety of market conditions, as it has done this year and over its history.

We also remain positive on the outlook for further M&A where we remain very active and continue to see a positive pipeline of opportunities. We believe we are well placed to execute further value accretive deals for shareholders.

Our people have continued to deliver across a number of material operational programmes and for our customers in the period. I thank them again for their efforts.

As I highlighted in the interim results, we celebrated our 20th anniversary as a listed company in May 2024. Chesnara has delivered 20 years of positive returns for shareholders and I look forward to continuing to deliver for our investors going forward. And the excellent work of our teams again this year further supports my belief that there is a lot to look forward to here at Chesnara.

Steve Murray,

Chief Executive Officer 26 March 2025

CHIEF FINANCIAL OFFICER'S REPORT

"2024 has been another year of growth for Chesnara. Our diversified business model continues to deliver strong and resilient financial performance, supporting increased returns to our shareholders"

TOM HOWARD, CFO

Overview

IFRS Leverage

IFRS Capital Base

1.60x (2023: 1.45x)

31% (2023: 30%)

£449m (2023: £479m)

Full Year Dividend 24.69p per share, up 3% YoY

I am delighted to have joined Chesnara at this exciting stage of the company's development. I have been incredibly impressed by the drive and commitment of the team and want to express my thanks to colleagues for the warm welcome they have given me since joining the Group in April 2024.

I am pleased to say that 2024 was another year of strong and resilient Cash Generation for the Group, with £60m of Commercial Cash generated, an increase of 14% compared to 2023. Each of our operating divisions contributed positively to this result, supporting strong coverage of the dividend and our debt servicing costs.

The Solvency Coverage Ratio of 203% remains comfortably above our operating range of 140% to 160% and continues to be resilient to a wide range of financial scenarios and provides the Group with significant scope to pursue M&A and other investment opportunities as they arise.

The Group continues to grow, with AuA increasing to £14bn (2023: £11bn), benefiting from positive investment returns on existing business, the addition of the Canada Life portfolio acquisition and value generated from new business written.

The Economic Value of the Group grew from £525m to £531m with positive contributions from operating activities, acquisitions and market conditions, partially offset by stronger expense and demographic assumptions.

This strong set of financial results underpin the Board's recommendation to increase the full year dividend by 3% to 24.69p per share.

Business performance

United Kingdom

Own Funds increased by £29m (2023: £51m) and SCR reduced by £5m (2023: increase of £2m), resulting in a pre-dividend solvency coverage ratio of 182% (2023: 179%). The growth in Own Funds arose primarily from the impact of positive economic conditions on the in-force book, the second acquisition from Canada Life and the writing of profitable new business over the period. The extension of existing mass-lapse reinsurance arrangements alongside existing book run off supported the reduction in SCR. The UK division held a Solvency II surplus (before foreseeable dividends) of £60m above its Boards risk appetite level (2023: £60m) and made remittances of £35m to Group Centre over 2024. IFRS Pre-Tax Profit of £28m (2023: £3m) arose from strong investment returns albeit lower than prior year and a much-improved positive insurance result in the year, with the combined effect of these broadly netting off. The prior year pre-tax profits were suppressed by a £21m impairment of AVIF (Acquired Value of In Force) related to the CASLP book.

Sweden

Solvency surplus generation of £10m arose from an increase in Own Funds of £15m (2023: £10m) offsetting an increase in SCR of £5m (2023: £13m), with a closing solvency coverage ratio (before foreseeable dividends) of 153% (2023: 153%). The increase in Own Funds and SCR were both largely driven by positive market movements, alongside an adverse consolidation impact on surplus due to depreciation of SEK against the pound and elevated levels of short-term persistency experience. The business unit held a pre dividend Solvency II surplus of £40m above its Board's risk appetite level (2023: £39m) and made remittances of £3m to

Group Centre. IFRS Pre-Tax Profit of £10m (2023: £5m) arose from higher AUA generating higher fee income and fund rebates. A positive contribution from the risk business also meant that the insurance result was much improved compared to the prior year.

Netherlands

Solvency surplus generation of £3m arose from a reduction in Own Funds of £4m (2023: £32m) and a reduction in SCR of £7m (2023: £19m), with a closing solvency coverage ratio (before foreseeable dividends) of 237% (2023: 230%) noting the 2023 comparators included the day one impact of the Conservatrix acquisition. Own Funds benefited from the impact of cost management actions in Scildon, but were more than offset by the impact of foreign exchange movements on consolidation. The reduction in SCR was driven primarily by lower expense risk with partial offset from higher market risk due to a lower interest rate environment. The Group's Dutch entities held a Solvency II surplus of £68m above its Board's risk appetite levels and made remittances of £7m to Group Centre (2023: £4m). IFRS Pre-Tax Profit of £5m (2023: £23m) with the reduction primarily being driven by a positive but less favourable investment return in the year compared to 2023, whilst the 2023 result also included a £7m day one gain from the Conservatrix acquisition.

Capital & cash management

Solvency II Capital Position

SII ratio FY 2023 205%

Capital generation 16%

Management actions 4%

Acquisitions (3)%

SII adjustments (7)%

Dividend payments (12%)

SII ratio FY 2024

203%

At 31 December 2024, Group Solvency II surplus was £327m and the Group's Solvency II Coverage Ratio was 203% (2022: £351m and 205% respectively). The change in surplus since 31 December 2023 is driven by the positive impacts of capital generation from the Group's operating activities and market conditions in addition to management actions taken in the year offset by dividend payments, the application of Tier 2/3 valuation restrictions and foreign exchange impacts. The solvency capital requirement of £316m includes a £93m benefit from Group diversification and the benefits of the Group's foreign exchange hedging arrangements.

Cash Generation

Commercial cash generation by territory:

£m

UK 39.6

Sweden 10.6

Netherlands 16.2

Total

66.4

Commercial Cash Generation of £60m (2023: £52m) comprised contributions of £66m from the operating divisions, partially offset by net surplus usage at Group Centre to fund M&A activities, debt financing costs and central overheads.

The contribution from the operating divisions of £66m (2023: £73m) benefited from favourable market conditions across our operating territories, robust new business performance and stronger operating performance relative to 2023. Group Centre surplus usage reflected Group Centre and debt servicing costs, partially offset by capital benefits from Group diversification and foreign exchange hedging facilities.

Commercial Cash Generation represents 1.60x coverage of the total 2024 dividend, demonstrating that the Group has ample resources to finance ongoing debt and dividend commitments whist maintaining a strong solvency coverage ratio.

Centre Liquidity

Group Centre held liquid resources of £109m at FY 2024, and this is expected to increase to £130m by half year 2025 following the receipt of planned Dividend Remittances from our operating divisions, net of Group Centre costs over the same period. This illustrates that we are continuing to generate sufficient cash from our operating divisions to fund our dividends, debt and Group Centre costs without impacting the Solvency Coverage Ratio.

Sensitivities

Solvency Coverage Ratio

Solvency Surplus