Chesnara Share Discussion Threads

[cassini] 09/3/2022 17:24

...and here are those cultural problems in a 1 minute scene from the HBO series, 'John Adams'.



I don't think the Dutch have changed much...

[1knocker] 09/3/2022 12:21

I don't like to see UK companies making take overs in the Netherlands. A very experienced merchant banker friend has told me many times over the years that Dutch outfits are always more difficult to assimilate than anyone expects. Surprising really, as they all speak excellent English, but there seem to be cultural differences which cause unexpected problems, and for no very obvious reasons.

[thamestrader] 09/3/2022 07:31

Yes, I made a little sum on M&G overnight, and put some of it here at the close. Here's hoping. Now have a decent holding in both. Both pay >8% at their current prices.

[gary1966] 08/3/2022 19:06

The thing is you know at some point you will be able to sell the share for between 310-330p as that is what CSN always does. May visit 230p first but just a waiting game and dividends reward in the meantime.

[cassini] 08/3/2022 18:37

I topped up too. Took me a bit over my (general) 5% portfolio limit for a single stock, but chesnara's divi record gives me some reassurance.

[gary1966] 08/3/2022 16:47

Put my very small pension pot in here towards the end of the day and children's money as the fall seems overdone. Patience just required now.

[aleman] 08/3/2022 12:33

Topped up.

[wllmherk] 08/3/2022 11:57

Bought a few today, some of these financial companies appear to be at low valuations with all the market turmoil. Looking for steady income so took profits on BP and MCLS. The yield is the main attraction but, I do wonder if these might be a takeover target at some point, PHNX perhaps?

wllm :)

[tole] 23/2/2022 17:42

https://masterinvestor.co.uk/equities/fight-back-against-inflation-with-high-yielding-small-caps/ChesnaraConsistent and regularly rising dividends are what most income investors are looking for. This next company fits that bill perfectly, with one of its stated aims being "to provide shareholders with their least troublesome source of sustainable, attractive dividend yield."Chesnara (CSN) is a life-and-pensions company which listed on the LSE in May 2004 in order to acquire UK life-assurance business Countrywide Assured. It also had plans to act as a consolidator in the fragmented life-insurance industry. Since that date it has built up a business making almost £300m of annual insurance premiums, which add to other income, including commissions and investment returns. Chesnara administers approximately 900,000 policies, had funds under management of £8.7bn at the end of June 2021 and operates in three countries across Europe.The UK division mainly consists of the insurance company Countrywide Assured which manages around 240,000 policies and is in run-off, meaning that it no longer accepts new business. The business follows an outsourcer-based operating model, outsourcing functions such as customer services, investment management and accounting and actuarial services. In Sweden, Movestic is a life-and-pensions company which is open to new business. It offers personalised, unit-linked, pension-and-savings solutions through brokers. Finally, the Dutch businesses, The Waard Group and Scildon, aim to deliver growth and earnings through a dual closed and open book approach and through acquisitions.The growth strategy focuses on three elements. Its main aim is to maximise value from the existing business by efficiently administering customers' life and savings policies, generally making sure that they are happy and well served. The second aim is to acquire life and pensions portfolios or businesses ? the company has developed a reputation as a reliable acquirer of portfolios no longer seen as core by vendors. Finally, Chesnara also adds value by writing profitable new business in Sweden and the Netherlands.Top payerChesnara's financial results are a bit difficult to read given that insurance companies report their numbers somewhat differently and use a lot of industry jargon. Profit figures can also be erratic given the effect of market movements on investment results and the effect of forex changes.To provide some easier to understand figures, in the last fully reported financial year (2020) insurance premiums grew by 9% to £293.4m. However, the main income movement was within the net investment-returns section, which fell from £1.09bn to £254.6m following the market crash that year. Overall, net profits fell from £96.1m to £24.6m.After a difficult year, the first half of 2021 saw a recovery after premiums continued to grow and net investment returns hit £621m. Net profits for the period were £17.9m compared to a £6.8 m loss in H1 2020. In the results Chesnara noted that it was actively looking for acquisition opportunities. To that effect, in February this year the company further boosted its spending power by issuing £200m of loan notes to fund such deals.Chesnara has been an income investor's dream in recent times having increased its dividend payment 17 years in a row. From 2004 to 2020 the dividend went from 11.85p per share to 21.94p. That's a compound annual growth rate of only 3.92% but shows consistency and the financial soundness of the business, even through economic downturns. The annual rise was also higher than the average annual inflation over the period of 2.9%. What's more, the half-year payment for June 2021 was increased by 3% to 7.88p.Source: CompanyA share for lifeChesnara may not be an exciting company in operational terms. But its track record of strong shareholder returns is far from boring. The company has delivered capital gains of 167% since close on the first day of dealings, with the 301.17p per share worth of consistently growing dividends taking the total gain to 436%.Chesnara's core valuation measure is economic value, which is based on the estimated and discounted value of future cash flows, using core economic assumptions determined by the market. For much of its history, Chesnara traded at a premium to its economic value. But in recent years that has reversed, with the shares now trading at a substantial discount. The closing economic value stood at 419p per share as at 30 June 2021. So, at the current share price of 298p, investors can currently buy the shares at a 29% discount and also enjoy a dividend yield which should be at least 7.6% for FY2021.

[tole] 18/2/2022 12:22

https://www.fool.co.uk/2022/02/18/5-yields-2-of-the-best-dividend-shares-id-snap-up-today/Little-known dividend sharesSome of the shares that I find are relatively unknown. But that's ok. As long as they display the characteristics that I'm looking for, I really don't mind if they aren't household names. After all, as an investor, I just want to grow my investments. One little known dividend share that I'd buy right now is Chesnara (LSE:CSN). This mid-cap firm is in the business of managing life and pension policies. It stood out to me for three main reasons: it has an attractive dividend yield of 7.5%; it has 17 years of dividend history with consistent growth in cash payouts; and it has a proven successful track record of buying life and pensions businesses.Risks and benefitsAt a time when I'd expect the Bank of England to raise interest rates to tackle persistently high inflation, it's great to find shares that could actually benefit. Higher interest rates should generally be positive for Chesnara. That said, there are still risks on the horizon. Sharp moves in currency and financial markets can raise its risk exposure. A large spike in the level of claims could also do the same.Overall though, I like what I see and would happily buy. Dividend shares that consistently pay over 7% for so many years are rare. So when I find them, I'm inclined to snap them up pretty quickly.

[makinbuks] 14/2/2022 10:37

Almost certainly I would say. Very strong pointers

[killing_time] 14/2/2022 08:11

More experience in the Netherlands. I wonder with the money raised if we are looking at Dutch companies for a bolt on.

[speedsgh] 14/2/2022 08:06

Interesting to see that Chesnara are taking on a NED "with a proven track record in M&A and (digital) transformation"...

[al101uk] 07/2/2022 12:53

All Motley Fools articles just seem to be glorified adverts trying to capture your email address now-a-days, presumably so that thay can sell to you direct. The articles are little more than surface level fluf pieces.

I remember when MF was good, offered good basic investment advice and had great forums. I bought a book that they published back in the day and it was really solid. Wouldn't dream of buying anything from them now.

[bluemango] 07/2/2022 12:25

I agree; it's surprising how shallow and under-researched these articles can be. They're probably best regarded just as prompts; if someone reads it and likes the sound of the tip then it's up to them to look into it more closely.

[makinbuks] 07/2/2022 12:04

Bit of a lazy piece that just looking up the highest yielders without any discussion of what risks lie around them.

Surprised there hasn't been more press comment about the bond issue. They must have plans for those funds which will be transformational for the business

[bluemango] 07/2/2022 11:20

Little piece in Motley Fool yesterday:

[al101uk] 03/2/2022 16:45

I held Chesnara for it's boring qualities, a low risk income generator that made occasional earnings enhancing purchases. That made it a very easy hold.

It's riskier now, that's not really better or worse than it was before, just different. That risk could generate outperformance or underperformance over the next few years.

As a result my attitude to the company has changed. I'll keep a closer eye on it and make sure it's not too overweight in my portfolio but I'm by no means rushing for the exit.

I don't think this board has done much except reflect the change in the risk from the perspective of a bunch of people who would typically invest in a Chesnara-like company.

[petewy] 03/2/2022 16:29

No makinbuks. It's not OTT.
Cheers Jonwig. I'm 81 and my mind needs a good kicking to wake up. Hoping the board would supply it. If you are older then forget it.(NHF)

CSG Forte Adds Tens of Thousands of Merchants and New Partners in 2021

[makinbuks] 03/2/2022 14:51

Petewy, is your ISA large enough to diversify? I wouldn't replace a cash ISA with a single share whether it was CSN or not.

[jonwig] 03/2/2022 14:33

petewy - no, make up your own mind.

I'm probably the oldest person here, I've seen good companies brought down by inept management (as Buffett says, above), and turnarounds - the company Next was about 4p before its rehab to today's rating.

I'm keen to see what they do with their £200mn, surely they have plans. Maybe wait on that.

[panshanger1] 03/2/2022 14:20

Of course if the management is sufficiently inept Buffet said buy companies that a fool can run because sooner or later ..Weinstock must have been turning in his grave

[petewy] 03/2/2022 13:09

Read the board so, Do I sell or what? Used CSN to replace an low interest ISA

[williamcooper104] 03/2/2022 09:56

GEC was one do the very very few AAA rated companies Always citied as the example that anything can go bust

[williamcooper104] 03/2/2022 09:53

Yep - way to think of it is if you're senior debt is say £90 and your junior is £10 then your junior debt is actually leveraged at 10 to 1 when things go wrong Eg if the whole debt stack is £100 and recovery falls 10 percent from £100 to £90 then you've lost 100 percent of your loan Whereas if you had a whole loan of £100 then you would have just taken a 10 percent loss Hence why need much higher returns for junior debt A BBB- rating/350bps is pretty or actually very good