Chesnara Share Discussion Threads

[bernardhy] 31/8/2012 16:28

Thanks for the helpful replies. I am using this as I would a retirement annuity. I'm minded to buy a few more

[dozey1] 31/8/2012 16:14

Bernardhy, I wouldn't worry about Movestic, CSN picked it up for a song and it could well turn out to be a nice little earner long after the closed books are fully paid off. I've been a holder since the days of 109p back in 2008, and added a few today to catch the interim. Many people purchasing annuities in the past couple of years might have done better with CSN IMO. I'm with Hieronymous1, insofar that the board have performed exceptionally... so far ...

[hieronymous1] 31/8/2012 15:46

Bernardhy

Closed books in run off eventually do run off to nothing as policies mature, so need constantly replacing with a new set of closed books. This business has been so profitable for Chesnara that competition for new closed books drove up the price. So Chesnara had to either settle for winding itself down or diversification.

The Chairman is an actuary and the other directors are experienced in the insurance industry so I think we are as secure in that department as we are likely to get.

[bernardhy] 31/8/2012 13:48

Recently bought into these after 6 months of equivocation. 10% return seemed too good to be true. Well pleased with this. My one concern is Movestic. It seems a departure from CSNs area of expertise.

[retsius] 31/8/2012 08:20

Ah, at last some action.

[flashheart] 31/8/2012 08:18

Because it's already risen in anticipation of good results and already priced in.

[retsius] 31/8/2012 08:16

underwhelmed by market reaction to results. Any comments?

[cestnous] 31/8/2012 07:46

Excellent. Must admit, better than I expected in the present circumstances, especially as they have increased the divi and see it as safe looking forward.

[retsius] 31/8/2012 07:44

vosene
Imagine spotting that! Is that how it got its name??

[retsius] 31/8/2012 07:43

Chairman 20
Spot on with idea of results.`These are very good indeed` as a headteacher might say.
I had a feeling they might be good as the share price has been rising steadily over the past couple of weeks. The fact that Standard Life has a bundle of these seemed to calm my nerves.Mr Bearbull pulled his stake far too soon.
Excellent divvy.Good report with all bases covered.I,especially like `our exposure to the Eurozone is negligible`

[vosene] 31/8/2012 07:26

Chesnara is an anagram of earncash!
Dividend up yet again, sails through one financial crisis after another and still increases the payout.

[solarno lopez] 31/8/2012 07:16

Excellent results under the circumstances

[cwa1] 31/8/2012 07:06

Morning

Chesnara plc - Interim Results for the six months ended 30 June 2012



2.5% increase continues dividend growth at Chesnara



31 August 2012



Chesnara today reported interim results for the half-year ended 30 June 2012. The Group remains committed to offering shareholders an attractive long-term income stream arising from the profits of its life assurance businesses.



· IFRS profit before tax, excluding exceptional item, for the six months ended 30 June 2012 increased by 145% to £9.3m, (2011: £3.8m)

· Earnings per share (on IFRS basis) of 6.19p, (2011: 2.79p)

· On EEV basis pre-tax profit for the half-year of £20.3m (2011: £0.4m)

· Shareholder equity on EEV basis (pre dividend payment) of £296.3m - £2.58p per share (31 December 2011: £294.5m - £2.56p per share)

· Net cash generation of £12.4m compares favourably to first half of 2011 (£6.7m)

· Capital release of £7m, arising post 30 June, following successful de-authorisation of Save & Prosper companies.

· Group solvency ratio remains, post dividend, stable at 198% (30 June 2011: 198%)

· Countrywide Assured's solvency ratio remains healthy at 213% (30 June 2011: 254%). Movestic's solvency ratio of 277% (30 June 2011: 189%) also remains above target

· 6.1p interim dividend per share declared (2011: 5.95p), an increase of 2.5%

· Board remains confident about future dividend flows

· Search for value adding acquisition opportunities continues





Commenting on the results, Graham Kettleborough, Chief Executive said:



"Bearing in mind the market uncertainty and volatility in this period I am pleased that the resilience of our underlying business has again enabled us to deliver a strong set of results. Consequently, we are able to continue our dividend growth and declare a 2.5% increase in the interim dividend to 6.1p per share."

[chairman20] 30/8/2012 09:29

Its (relatively) simple economics

with interest rates so low the unwind
of the discount in the maturing policies
is feeding into profits at a higher
than anticipated rate.

I expect above forecast results - imho
and dyor

[solarno lopez] 30/8/2012 06:59

someone is pulling it me thinks...the price is rising in anticipation of th results and dividend. But remember the markets have been poor and will have some effect on the results

[harmonics] 29/8/2012 20:04

Something's afoot

[speedsgh] 24/8/2012 14:46

Share price seems perky for CSN. Has there been a leak on next week's results?

[jonwig] 17/8/2012 11:31

JoA - yes, the point has been made often enough by me and others over the 495 posts here to date.

I worked out the IRR allowing for the wasting assets at about 4% over 15 years. That's the "true" dividend

Thanks - that's an exercise I haven't looked at.

Of course, performance of equity markets isn't as significant to CSN as performance of bond markets, since closed policies carry a larger proportion of assets in bonds.
So the recent rise in equities doesn't particularly rub off onto CSN - as we can see.

[joan of arc] 17/8/2012 11:03

Jonwig, people often miss your point. I worked out the IRR allowing for the wasting assets at about 4% over 15 years. That's the "true" dividend . As you rightly observe the rest is just a return of capital. Although I am still here, having bought at a lower price and hoping for more business gains in the future, I feel it will be a while before this heads north of 200p and even at today's price is not a fabulous bargain.

[jonwig] 17/8/2012 10:40

What makes you think the dividend is sustainable?

It comes out of cashflow from maturing policies, and about 70% of EEV is embedded in these. Only 30% of the business is open - ie. the Swedish.

Not only do assets deplete, but CSN will need to carry more capital as the proportion of open business increases. Solvency II will probably aggravate that.

The positives are (a) they could sell Movestic for a lot more than they paid but not yet, (b) even the wasting dividends will total a lot more than today's share price.

[soi] 17/8/2012 10:18

Bought today, on similar thoughts to CWA1.

All the Best

[cwa1] 15/8/2012 14:52

Just had a little nibble ahead of what are hopefully steady results(not looking for anything more than that). A commitment to maintained or slightly improved dividends over the medium term should be enough to make this worth holding.

Brokers forecasting 17.3p and 17.8p for '12 & '13 respectively for dividends. If we can get a sustainable 10% yield at the current 170p alongside steady results then something has to give in terms of share price performance at some point.

Good luck to all holders.

[retsius] 13/8/2012 16:54

very honest answer.