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(Alliance News) - Chesnara PLC on Thursday said it swung to a loss in 2022 due to "adverse investment conditions" which saw a fall in asset values.
The Preston, England-based life insurance and pensions consolidator said it swung to a pretax loss of GBP146.9 million from a profit of GBP28.8 million in 2021.
This was driven by a net investment loss of GBP1.49 billion in 2022, swung from a gain of GBP1.17 billion in 2021. This was partly offset by positive net insurance contract claims and benefits of GBP70.1 million last year from a loss of GBP469.9 million in 2021 and a swing to positive net change in investment contract liabilities of GBP1.00 billion from a negative GBP898.5 million.
Net insurance premium revenue rose by 39% to GBP272.6 million from GBP196.2 million.
Chesnara declared a final dividend of 15.6 pence per share for a total dividend of 23.28p per share, up 3.0% from 22.60 pence the year before.
Looking ahead, Chesnara said its outlook remains positive as it expects recovery in economic value in the first quarter of 2023 as a result of its completion of the Conservatrix acquisition in January.
Conservatrix is a Dutch insurance firm based in Utrecht that filed for bankruptcy in 2020.
Chesnara Chief Executive Officer Steve Murray said: "The wider business has performed robustly despite the high level of market volatility reducing the group's economic value. We retain a strong and resilient solvency position with substantial cash balances at the holding company level, supporting our continued track record of growing our dividend."
Shares were up 2.6% at 286.80 pence in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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