The Chesnara financial results support the continued growth of the interim dividend to 7.65p per share (2019 interim: 7.43p per share)
Other financial highlights include:
GROUP CASH GENERATION OF £12.9M (six months ended 30 June 2019: £13.4M)
DIVISIONAL CASH GENERATION OF £9.6M (six months ended 30 June 2019: £2.4M)
The result for the period includes a positive impact from the symmetric adjustment of c£26m. Falling yields over the period have had a negative effect on cash generation.
GROUP SOLVENCY RATIO OF 162% (31 December 2019: 155%)
We are well capitalised at both group and subsidiary level under Solvency II, with group solvency increasing in the first six months of 2020.
ECONOMIC VALUE (ECV) OF £604.2M (31 December 2019: £670.0M)
Movement in the year is stated after dividend distributions of £20.8m and includes a foreign exchange gain of £29.1m.
ECV EARNINGS NET OF TAX OF £(74.1)M (six months ended 30 June 2019: £47.1M)
The result includes £53.6m of economic losses resulting from investment market movements (six months ended 30 Jun 2019: investment market gain of £85.3m).
COMMERCIAL NEW BUSINESS PROFIT OF £6.7M (six months ended 30 June 2019: £7.6M)
Scildon has reported a 37% improvement in commercial new business profit over the corresponding period in 2019, increasing market share in both term and individual life markets. Pricing pressures and changes to fee income and rebates continue to suppress Movestic's new business value, with more modest returns of £1.7m.
IFRS PRE-TAX LOSS OF £(9.1)M (six months ended 30 June 2019: pre-tax profit £66.6M)
The result includes £25.0m of losses relating to economic market conditions, created by the Covid-19 pandemic, including an impairment of £11.6m to the Scildon AVIF intangible asset. By contrast, economic market conditions created a £43.2m gain during the first half of 2019.
IFRS TOTAL COMPREHENSIVE INCOME OF £15.1M (six months ended 30 June 2019: £51.0M)
The 2020 result includes a foreign exchange gain of £21.9m (2019: loss of £3.5m).
