Chesnara Share Discussion Threads

[topvest] 13/9/2021 20:48

Looks a great deal to bolster the UK side of the business.

[bluemango] 13/9/2021 09:07

5m incremental cash generation would represent a 18% increase on the 2020 total of 27.7m.

[bluemango] 13/9/2021 08:33

Looking back over the last few weeks it looks like knowledge of this by some, could explain some of the recent rise; rather than just anticipation of the interims.

[bluemango] 13/9/2021 08:29

The key paragraph:

"Enhanced dividend support: Incremental cash generation of cGBP5m per annum under steady state conditions, supporting Chesnara's progressive dividend strategy"

[phillis] 13/9/2021 08:17

Just the ticket!

[jonwig] 13/9/2021 07:28

These "IFRS losses" might not be all that significant: PHNX made a loss, too, because it hedged its Solvency 2 capital surplus

[fenners66] 13/9/2021 07:25

It made an IFRS loss of £2.4m after tax , but no mention of expected cost savings.

[jonwig] 13/9/2021 07:17

Acquisition of Sanlam UK's pensions division:



Not a closed book proposition!
This is a subsidiary of Sanlam Pty, the largest life assurer in S Africa. It has been up for sale since end-July according to Citywire.

Numbers look good for CSN, according to CSN!

[igoe104] 13/9/2021 07:14

Looks s decent acquisition, acquired at a decent discount. 👍

[thamestrader] 09/9/2021 07:55

You may not have a rationale, 1knocker, but at least you have a system. CSN has served me very well over the years, but more by luck (and very generous divis) than design. I sold out a couple of days ago.

[luderitz] 09/9/2021 07:42

Good post 1N, trading in a way that feels comfortable to one's self can make this game very satisfying.

[1knocker] 09/9/2021 00:48

I have held Chesnara for many years, gradually increasing my holding without increasing capital committed to my core holding by buying additional shares under 280 and selling enough of such purchases over 305 to cover the cost of the last purchase, retaining a few 'free' shares on each buy/sell cycle. I always have either a buy or a sell limit order in, and the dividends on the gradually increasing holding have more than paid off the cost of the retained core holding.

My most recent buy was at 279, and the subsequent sale a couple of weeks ago at 317 (I was lucky, my sell limit order at 310 caught an intraday brief spike). I can't give any rationale for my 280/305 buy and sell limits, save that they have served me well for a long time, generally leading to a couple of buys and sells each year, while the gradually increasing core holding throws off excellent dividends, with a bonus if I happen to hold the trading shares at an ex div date.

Since there is no valuation rationale to my 280/305 figures, just observation of price movements over a number of years, it is rather reassuring to hear that others too are perplexed by when and by how much Chesnara rises and falls. I am new to this board. I should have found it long ago.

[igoe104] 31/8/2021 15:38

What a strange day. Started the day 5% up and now nearly 2% down...

[williamcooper104] 31/8/2021 08:19

LGEN and PHNX plus the Aviva prefs No plans on selling :)

[tole] 31/8/2021 06:35

https://citywire.co.uk/funds-insider/news/expert-view-flutter-british-land-hays-craneware-and-chesnara/Chesnara dividend is well covered, says Peel HuntLife insurance group Chesnara (CSN) reported 'relatively stable' half-year results and has enough cash to cover two years of dividend increases, says Peel Hunt.Analyst Andreas van Embden retained his 'hold' recommendation and target price of 280p on the stock, which climbed 5%, or 14.5p, to 306p on Friday.He said the company has 'sufficient cash at the holding company level to fund an increase in the dividend per share for the next two years'.'Cash support comes mainly from the UK back book, with European results mixed,' said van Embden.'Financial flexibility to do deals has however improved and, while so far has been mainly focused on European, Chesnara also sees opportunities in the UK.'He said the shares are 'fairly valued' as the challenge remains to 'extract more from the back book through management actions, while at the same time delivering new business growth and value in Scandinavia and the Netherlands, and seeking out other attractive acquisition opportunit

[tomleafs] 27/8/2021 09:57

William, could you sell LGEN and IMB next, if you have them? Much obliged.

[igoe104] 27/8/2021 09:44

Breaking out now. Since William cooper had sold up its done nothing but go up. He's a jinx...

[tole] 27/8/2021 06:25

Thetimes Tempus - BuyChesnaraCompanies don't come much drier than Chesnara. Nevertheless, the buyer and manager of life insurance and pension policies should be on the radar of income-seeking investors. It has become synonymous with paying a generous and steadily rising dividend, which has resulted in a yield up there with the best of its insurance sector peers.In classic form, the interim dividend was raised by 3 per cent to 7.88p, the 17th consecutive annual rise in the payment. Analysts have pencilled in a payment of 22.6p for this year, which at yesterday's price of 291p leaves the shares offering a potential yield of about 7.8 per cent.How does the group make its money? In Britain and the Netherlands, it buys up books of life insurance and pension policies that are closed to new entrants, benefiting from the investment returns and additional contributions made by existing customers. It also writes new policies in Sweden and the Netherlands.The core challenge for Chesnara is grinding cash out of its back books and funding new business via writing new policies and making acquisitions. In the first half of the year the rise in the dividend was supported largely by the UK closed book of policies. At a group level, there is £59 million of cash available, which should be enough to fund two consecutive annual dividend increases, by Peel Hunt's estimates.Yet the importance of the back book in funding the dividend might give you an idea about why the market is punishing the shares. The stock trades at an almost 30 per cent discount to the economic value - roughly the net asset value of the company, plus future expected cashflows from policies - forecast by Panmure Gordon at the end of 2021. It's not completed a large deal in almost five years, instead buying smaller books of business.Steve Murray, the incoming chief executive, is thinking of acquisitions. The group has just agreed a new £100 million revolving credit facility and gearing stands at 6 per cent. The Solvency II ratio is also healthy enough at 153 per cent, too. We'd trust in the record of rising dividends holding firm. ADVICE BuyWHY There's a good dividend yield on offer at an attractive share price

[deadly] 26/8/2021 17:08

A much better reaction to results than PHNX recently, yet difficult to understand the reason for such a difference as PHNX's were good.

[luderitz] 26/8/2021 13:09

Calm down calm down dears, CSN has been a reliable money giver to investors for many many years and I don’t see that changing any time yet.

[speedsgh] 26/8/2021 12:50

Brief Proactive interview with CEO John Deane covering the Interim Results released this morning...

[speedsgh] 26/8/2021 12:46

2021 INTERIM RESULTS: INVESTOR PRESENTATION -

[jonwig] 26/8/2021 12:34

Boystown - the divi is covered on an earnings/cashflow basis, but just as important is maintining or improving the Solvency 2 surplus of 153%. This is spare cash which can't realistically be paid out.

There's also the interesting statement that "I welcome the strong equity market growth we have seen during the first half of the year, despite the short-term impact it has had on Solvency II capital requirements,..." which is repeated a few times.

Put simply, £1 of cash or AAA bonds is £1 of Solvency 2 capital, but £1 of equities counts as only between 30% and 50% of S2 capital!

This explains why Phoenix made an accounting loss: it hedged against its equity gains to presenve s2 capital.

(UK insurers don't like S2, and it may be altered.)

[phillis] 26/8/2021 12:01

Bit of a strategic roadblock
Acquisition dependent