Chesnara Share Discussion Threads

[wizard2020] 12/5/2020 08:47

I am a fan of this stock and therefore a holder but why does the MM always open with such a wide spread? Anyone who deals early is giving the MM more than necessary it seems

[farnesbarnes] 01/5/2020 08:26

Just as there's a shooting star, gap down, and negative divergence on RSI and MACD. And overall market rolling over.

Could have been better timed.

[jonwig] 01/5/2020 07:39

NED buys shares - Price: 335.935p. Volume: 20,000.

And so does SLA, from 15.14% to 16.12% (1.5m shs).

[edmundshaw] 24/4/2020 10:01

Good share price action given the XD yesterday.

[speedsgh] 23/4/2020 19:36

XD final dividend 13.87p today. Payable 2/6.

[speedsgh] 20/4/2020 13:45

Chesnara looks insulated -

Chesnara (CSN) has three principal strategic goals: to boost the value of the life insurance and pension policy books it owns, find new ones to acquire, and write new business in select markets.

In other words, it is at a remove from the activities the Prudential Regulation Authority had in mind when it recently warned UK insurers to balance profit distributions with commitments to existing policyholders. This – together with a belief in the prudence of its own financial management – explains why Chesnara saw fit to raise its final dividend for 2019.

That maintains an unbroken track record of increases dating back to its 2004 IPO. With the group’s various divisions forecast to generate £50.1m in dividend income in 2020 – equal to 157 per cent of last year’s total pay-out – there’s little reason to doubt distributions will climb this year.

It will be from a slightly weaker base, however. While positive investment movements pushed up Chesnara’s economic value by 7 per cent rise in 2019, the months since have seen a drop from £670m to £579m. Capital buffers nonetheless look robust; despite a small decline in surplus, the cover ratio currently sits at 163 per cent – a figure which includes payment of the 13.87p per share final dividend.

Panmure Gordon expects economic value to contract to 380p per share this year, and 370p at the end of 2021.

IC VIEW
Given the demographic profile of its policy holders, Chesnara does not expect Covid-19 to have much impact on its actuarial tables. The current environment could also create back-book deal opportunities. This remains a low-fi, high-yield stock (386p, 26 Jul 2018). Buy.

[speedsgh] 15/4/2020 15:54

Thanks, Jeff. Here is another link direct to that interview. Well worth a listen. CEO John Deane discusses the results, impact of COVID-19, future dividend payments & further possible acquisitions…

[jeff h] 15/4/2020 13:52

Interview with John Deane at www.proactiveinvestors.co.uk

/companies/news/917301/chesnara-plc-to-continue-to-pay-dividends-despite-pandemic-disruption-917301.html

[jonwig] 15/4/2020 08:06

Final results:

"PAST PRUDENCE PAYS DIVIDENDS"



These, and the dividend were flagged a couple of weeks ago, so no surprises.
Investment returns in 2019 were pretty good:

The financial results for 2019 reflect rising equity markets and narrowing bond spreads which have supported significant investment returns and economic earnings. The economic conditions, including further downward pressure on interest rates, have been less beneficial for cash generation and in particular the rising equity markets driving a negative symmetric adjustment. A strengthening of sterling against the euro and Swedish krona has led to foreign exchange translation losses.

[thamestrader] 07/4/2020 13:30

(Shhhh! Don't spoil it!)

[contrarian joe] 31/3/2020 17:51

Taken my profits today, building up cash reserves for better opportunities down the line.

[johnroger] 30/3/2020 17:40

Very reassuring update, dividend looks safe for the moment

"The corresponding value of surplus above our solvency capital requirement is estimated at approximately GBP193m (Note 2) (31 December 2019: GBP210.8m) and the estimated Chesnara parent company cash balance as at 20 March 2020 is GBP73.5m. Solvency estimates within our divisions show that all remain above their local requirements and hence we continue to expect material dividend payments to be paid to Chesnara during the second quarter of the year, further supporting the group's longstanding dividend strategy."

[thamestrader] 30/3/2020 09:20

Good enough for me!

[speedsgh] 30/3/2020 08:33

Trading Statement -

KEY POINTS

· Chesnara well capitalised; 20 March 2020 estimated solvency cover ratio of 164% (31 December 2019: 155%) after 2019 final dividend.

· Proposed 3% increase in 2019 final dividend to 13.87 pence per share.

· Formal publication of 2019 results to take place on 15 April 2020.

· Operationally resilient; continue to focus on supporting our customers and colleagues...

... Chesnara remains well capitalised. Based on the closing market position on 20 March 2020, our solvency cover ratio is estimated (Note 1) at approximately 164% (31 December 2019: 155%)(Note 2), after allowing for the payment of a proposed dividend of £20.8m (13.87 pence per share) which represents a 3% uplift on the 2018 final dividend. Subject to approval at the AGM, this dividend will be paid on 2 June 2020 to shareholders on the register on 24 April 2020.

[edmundshaw] 26/3/2020 09:14

Financials are by and large continuing dividend payouts. Manufacturing and retail, not. Other stuff, I am not so sure, but as it should all be temporary I am not too bothered, as long as the management reasoning is sound...

[tole] 26/3/2020 08:54

This is all over the place. Ended yesterday circa 290. Opened today at 250 and now back above 280.

[jonwig] 26/3/2020 08:26

Maybe results have leaked? But dividend cancellation seems to be all the fashion (BLND this morning).

[phillis] 25/3/2020 18:14

Prelims are not audited
The delay is to enable fully audited accounts to be tabled which will include Auditors' opinion/risk analysis etc

[tole] 25/3/2020 16:30

Strong finish.. that's quite a rebound

[jonwig] 23/3/2020 14:37

edmund - I think it matters more for trading companies, retail, etc. With such as CSN (and PHNX) I'd want to know how their models allow for big falls in equities, corporate bonds, longevity, etc.

[edmundshaw] 23/3/2020 14:24

Does it matter an awful lot? I mean 12.5% of a lot?!

[jonwig] 23/3/2020 09:38

Or maybe not ...

The Financial Conduct Authority doesn't want companies reporting results amid chaos. Over the weekend, it wrote to those that were planning to publish their preliminary full-year results over the next few days to ask them not to. It has "strongly requested" (which OQ understands as "do it or else") all listed companies observe a two week moratorium on the publication of full-year results - because the "unprecedented events" of the last few weeks

[FT]

[pugugly] 19/3/2020 11:33

Re 1607 - Many thanks - Was looking at getting back in but now avoid - avoid - The passing of the rich crumblies before their expected time has moved this into the COVID risk screen -

Virus to left of us
Virus to right of us
Virus behind us
Advancing at speed
No retreat –
The sea in front of us –
Boris behind us
Investments falling
Markets in panic
Hospitals full
Doctors and nurses collapse around us
Virus masks at the ready
Food and medicines stored
Cemeteries filling fast
Investments falling
Markets in panic
From what we are about to receive
May luck deliver us

With apologies to Lord Tennyson
©The agnostic cynic this 19th of March in the 2020th year of our Lord.


A revised adaptation of the Charge of the Light Brigade for current times