https://morningwire.eu/fr/chesnara-envisage-davantage-d-acquisitions-apres-une-hausse-de/
Chesnara eyes more acquisitions after profit surge from HSBC and Lloyds deals
The firm posted a £61m H1 profit and added billions in assets, prompting chief executive Steve Murray to hunt for further acquisitions.
Chesnara announced a £61m pre‑tax profit for the first half of 2026, a sharp turnaround from a £5m loss a year earlier. The rebound follows its purchase of HSBC Life UK, which more than doubled the group's revenue to £255.9m and added £5bn of assets under administration. A second deal, the £100m acquisition of Lloyds’s Scottish Widows Europe, is slated to close by the end of the year, bringing roughly €1.7bn in assets and 46,000 policies.
“We continue to see attractive opportunities to grow the business, underpinned by a healthy M&A pipeline,” said chief executive Steve Murray in a statement.
The profit surge matters because it restores confidence in a sector that has struggled with low returns and regulatory pressure. By expanding its asset base, Chesnara can generate more operating cash, up 79 per cent to £96m, and support a higher dividend, which it lifted by six per cent to 8.16p per share. The firm also re‑entered the FTSE 250 in August 2025, signalling broader market approval.
Growth drivers and financial performance
The HSBC acquisition added 440,000 active policies, while the upcoming Scottish Widows Europe deal is expected to contribute about €250m of cash over the life of its contracts. Revenue growth reflects the larger asset pool, and the firm’s operating capital generation now sits at £96m, a metric insurers watch closely.
What’s next for the consolidator
Management says the pipeline remains robust, with several targets under review. If the Lloyds transaction closes as planned, total assets under administration will exceed £10bn, giving Chesnara greater scale to negotiate with providers and to invest in technology.
Analysts will watch how the expanded portfolio affects the firm’s risk profile and whether the dividend can be sustained as the company pursues further deals. The broader investment climate in the UK could influence the pace of future acquisitions.
In short, Chesnara’s recent successes have positioned it as a leading consolidator in the UK pensions market, and its next moves will likely shape the sector’s trajectory over the coming years.
