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CHESNARA HALF YEAR RESULTS 2026 Strong Performance. Disciplined Execution. Accelerating Growth. 25 August 2026
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1 AGENDA Steve Murray Group Chief Executive Officer Tom Howard Group Chief Financial Officer Overview of strategic delivery01. Financial highlights02. Outlook & summary03.
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OVERVIEW OF STRATEGIC DELIVERY Steve Murray Group Chief Executive Officer
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3 ANOTHER PERIOD OF VERY STRONG PERFORMANCE Operating Capital Generation £96m Solvency Coverage Ratio 185% Adjusted Operating Profit £31m ↑ +79% ↓ -72ppts Own Funds £976m ↑ +14% New Business Contribution £12m ↑ +152%↑ +46%
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4 CONTINUED STRATEGIC DELIVERY 1 2 3 BECOMING A SUSTAINABLE CHESNARA DELIVER GOOD OUTCOMES FOR CUSTOMERS AND MAXIMISE VALUE FROM EXISTING BUSINESS ACQUIRE LIFE AND PENSION BUSINESSES ENHANCE VALUE THROUGH PROFITABLE NEW BUSINESS Strong early contribution from Chesnara Life UK UK integration progressing at pace and remains on track SWE acquisition progressing, expected to complete around the end of 2026 Material step up in New Business Contribution
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5 DELIVERING PLANNED ONE-OFF UPLIFT IN INTERIM 2026 DIVIDEND Announced today: 6% increase in the interim 2026 dividend in line with previous guidance Pence per share Unrivalled 21-year track record of dividend growth(1) in UK & European insurance 7.48 7.70 8.16 13.96 14.80 FY 2024 FY 2025 FY 2026 +6% Interim dividend +6% Final dividend
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FINANCIAL HIGHLIGHTS Tom Howard Group Chief Financial Officer
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7 ANOTHER PERIOD OF VERY STRONG FINANCIAL PERFORMANCE Half year dividend 8.16p per share, up 6% year on year CASH CAPITAL VALUE Solvency Coverage Ratio 185% FY25: 257% Own Funds £976m FY25: £859m Adjusted Operating Profit £31m HY25: £21m AUA(2) £21bn FY25: £15bn Operating Capital Generation £96m HY25: £54m Cash Remittances £73m HY25: £56m
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Surplus emergence Management actions Acquisition impacts³ HY 2026 HY 2025 8 OPERATING CAPITAL GENERATION: STRONG YEAR-ON-YEAR GROWTH ↑79% o Robust operating performance across the business units o Capital optimisation management actions o Acquisition impacts generated from Chesnara Life UK 33 12 51 96 54 Surplus emergence Management actions
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SOLVENCY COVERAGE RATIO: EXCEEDS PROFORMA ESTIMATES 9 Solvency Coverage Ratio FY 2025 Operating Capital Generation Non-operating Capital Generation⁴ Acquisition impacts³ Dividends Solvency Coverage Ratio HY 2026 FY 2025 Pro-forma Operating solvency range: 140% to 160% o Solvency Coverage Ratio above upper end of operating range & above proforma estimate of 180% disclosed at FY25 o Expected to remain above the upper end of our range post completion of SWE(5) o Preserving M&A headroom (147%) 185% (4%) 73% 5% 180% 257%
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32 25 79 (19) Own Funds at FY 2025 Operating Own Funds Generation Non-operating Own Funds Generation⁴ Acquisition impacts³ Dividends Own Funds at HY 2026 RTI: 140 RTI: 148 10 OWN FUNDS: APPROACHING £1BN POST ACQUISITION ↑14% o Robust operating performance o Positive markets o Acquisition impacts o Offset by integration & restructuring spend to deliver growth, and shareholder dividends UT1: 616 T2&T3: 212 859 976 UT1: 552 T2&T3: 167
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(247) 73 (34) (11) (24) Liquidity at FY 2025 Chesnara Life UK acquisition Liquidity at FY 2025 (net of Chesnara Life UK funding) Cash Remittances Dividends Debt servicing costs Integration, restructuring & central costs Liquidity at HY 2026 RCF: 150 11 CENTRAL LIQUIDITY: HEADROOM TO FUND FURTHER M&A £271m of available resources o Cash remittances of £73m are 31% higher than HY25 o Headroom to fund further M&A activity 271 Cash(6): 121 Cash(6): 364 514 RCF: 150 11 267
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31 29 (60) 196 (6) (34) FY 2025 Capital Base Adjusted Operating Profit Non-operating Profit Tax CSM movement (net of tax) RT1 Coupon Dividends HY 2026 Capital Base CSM: 131 CSM: 327 12 IFRS: 22% GROWTH IN CAPITAL BASE AND A SIGNIFICANT INCREASE IN STORE OF FUTURE PROFITS o CSM growth of £196m, with a higher than expected contribution from Chesnara Life o 22% growth in IFRS Capital Base to £850m o Leverage of 19%, expected to remain below 30% post completion of SWE Net Equity 563 Capital Base: £694m 12 Capital Base: £850m Net Equity 523 Profit Before Tax
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13 VERY STRONG FINANCIAL PERFORMANCE & CONFIDENT OUTLOOK Half year dividend 8.16p per share, up 6% year on year CASH CAPITAL VALUE Solvency Coverage Ratio 185% FY25: 257% Own Funds £976m FY25: £859m Adjusted Operating Profit £31m HY25: £21m AUA(2) £21bn FY25: £15bn Operating Capital Generation £96m HY25: £54m Cash Remittances £73m HY25: £56m
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OUTLOOK & SUMMARY Steve Murray Group Chief Executive Officer
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15 CLEAR AREAS OF FOCUS 1 3 5 2 4 6 Integration of Chesnara Life UK Further balance sheet optimisation including management actions Continue to grow profitable new business across the Group Completion of the acquisition of Scottish Widows Europe SA Evaluation and potential execution of M&A opportunities Deliver decarbonisation activities in line with our Climate Transition Plan
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CHESNARA LIFE UK Formerly known as HSBC Life (UK) SCOTTISH WIDOWS EUROPE SA 16 CHESNARA LIFE UK INTEGRATION AND SWE CHANGE IN CONTROL PROGRESSING WELL DEAL METRICS(7) £5bn AUA >440k Policies >£800m Lifetime Cash Generation >£140m Five-year Cash Generation ACTIONS COMPLETED ✓ £51m of OCG generated so far, with a Cash Remittance of £20m over the period ✓ Staff consultation processes have completed with combined UK leadership team confirmed ✓ First TUPE transfer of relevant staff to SS&C completed ✓ Expected migration remains on track for delivery in 2026 DEAL METRICS(7) €1.7bn AUA 46k Policies >€250m Lifetime Cash Generation >€100m Five-year Cash Generation ACTIONS COMPLETED ✓ Submitted Change in Control application and progressing through regulatory review ✓ Completion of readiness testing successfully completed ✓ Completion planning activities substantially progressed ✓ Change of control anticipated around FY26
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17 WE ARE WELL POSITIONED FOR FURTHER M&A Our financial considerations for M&A remain consistent Solvency Operating range of 140% to 160% Leverage Maintain our investment grade rating Liquidity Retain robust liquidity at group level Acquisition capacity Capacity to finance smaller transactions without external fundraising We continue to see a strong pipeline Management skills and capacity to enter new territories Scalable platforms that are capable of taking on portfolios and larger deals Strong record of customer service and positive relationships with regulators
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18 STRONG PERFORMANCE. DISCIPLINED EXECUTION. ACCELERATING GROWTH. Very strong financial results, growing dividend Chesnara Life UK integration on track Balance sheet optimisation continues Acquisition of Scottish Widows Europe SA announced
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QUESTIONS
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APPENDICES
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21 CHESNARA BACKGROUND DELIVER GOOD OUTCOMES FOR CUSTOMERS AND MAXIMISE VALUE FROM EXISTING BUSINESS The efficient management of life assurance, investment and pension policies, whilst ensuring good outcomes for customers and policyholders ACQUIRE LIFE AND PENSION BUSINESSES Disciplined M&A Framework identifies opportunities that enhance value over the long term ENHANCE VALUE THROUGH PROFITABLE NEW BUSINESS New business franchises in Sweden and the Netherlands and the sale of the Onshore Bond in the UK. Focused on delivering long-term cash flow accretion for the Group Chesnara plc is a FTSE 250 European life, pensions and investment company with specialist expertise in consolidation. We now administer c1.3m policies across the Group’s business units of Countrywide Assured and Chesnara Life UK (formerly HSBC Life (UK) Ltd) in the UK, Scildon in the Netherlands and Movestic in Sweden. Our new business franchises across the Group complement the Group’s long-term Operating Capital Generation. We are committed to becoming a sustainable Chesnara, including decarbonising our operational and financed emissions in line with our published Climate Transition Plan. WHO WE ARE KEY FINANCIAL METRICS OUR STRATEGIC PILLARS 30 June 2026 Group Solvency II Ratio: 185% AUA(9): £21bn Own Funds(9): £976m 1 2 3 SWEDEN NETHERLANDSUK
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ESTIMATES: H1 PERFORMANCE AHEAD OF FY 2025 ESTIMATES 22 FY25 PROFORMA HY26 DELIVERED? Solvency Coverage Ratio c180% 185% Own Funds c£1bn £976m CSM c£200m £327m IFRS Capital Base c£800m £850m Leverage c20% 19% Assets under Administration >£20bn £21bn Dividend increase 6% increase (2025 final & 2026 interim) 6% increase (2025 final & 2026 interim)
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23 MACRO ENVIRONMENT EQUITY MARKETS 30 June 2026 INTEREST RATES (10 YEARS) FX RATES CREDIT SPREADS FTSE all share 5,635 5% 31 Dec 2025 5,350 Swedish OMX all share 1,102 5% 31 Dec 2025: 1,046 FTSE all world 737 10% 31 Dec 2025: 670 Netherlands AEX all share 1,526 19% 31 Dec 2025: 1,279 Reference is for the end of the quarter, therefore, Q2 2026 is the rate at 30 June 2026 etc. Reference is for the end of the quarter. Metrics relate to UK corporate bond yields and European credit spreads against the EIOPA swap curve. 4.48% 4.80% 2.22% 2.67% 2.81% 2.98% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 UK Sweden Dutch 1.17 1.16 13.06 12.85 9.44 9.72 8.00 9.00 10.00 11.00 12.00 13.00 14.00 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 EUR/GBP SEK/GBP USD/SEK 0.50% 0.46% 0.85% 0.78% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 AA (UK) AA (European) € SEK Reference is for the end of the quarter, therefore, Q2 2026 is the rate at 30 June 2026 etc.
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SII BEL(8) BY PRODUCT UK SWEDEN NETHERLANDS 24 PRODUCTS 92% 3%2% 4% Unit-linked Products with guarantees Non-linked savings Other 96% 2%2% Unit-linked Products with guarantees Other 100% 0% Unit-linked Other 54% 16% 12% 4% 9% 6% Unit-linked Products with guarantees Non-linked savings With profits Annuities Other We have an asset risk lite portfolio with limited guarantee exposure
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59% 41% Unit-linked Non-linked 25 ASSETS UNDER ADMINISTRATION GROUP AUA BY PRODUCT TYPE £19bn (90%) £2bn (10%) Unit-Linked Non-linked 92% 8% Unit-linked Non-linked 99% 1% Unit-linked Non-linked UK AUA(9)(10): £11bn SWEDEN AUA: £7bn NETHERLANDS AUA: £3bn Predominantly asset risk lite: 90% unit-linked investment business
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26 SOVEREIGN DEBT BY LOCATION 26% 15% 15% 11% 3% 30% Great Britain France Netherlands Germany Spain Other CORPORATE BONDS BY INDUSTRY 46% 26% 8% 8% 3% 3% 6% Financial and insurance Manufacturing Electricity, gas, steam and air conditioning supply Information and communication Wholesale and retail trade Real estate Other BOND PORTFOLIO BY RATING 24% 23%38% 14% 1% AAA AA A BBB Non rated PORTFOLIO BREAKDOWN 0.5 0.6 0.4 0.2 0.1 0.3 Government bonds Corporate bonds Debt funds Money Market Funds Cash & cash equivalents Other NON-LINKED ASSETS £2.1bn Total non-linked assets at the end of June 2026 £1.1bn Total value of bonds (government & corporate issued) £0.6bn Total value of corporate issued bonds £0.5bn Total value of government issued bonds % of total% of total% of total£bn High-quality shareholder asset portfolio; 99% bonds externally-rated at investment grade
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27 SOLVENCY II UT1: £485m T2 & T3: £158m SCR: £316m Surplus: £327m FY24 FY25 HY26 RT1: £140m UTI: £552m T2 & T3: £167m SCR: £334m Surplus: £525m 203% 257% Solvency Coverage Ratio down 72ppts to 185% at the end of June 2026 driven by the acquisition of Chesnara Life UK, ahead of FY25 proforma and above upper end of target operating range UTI: £616m RT1: £148m T2 & T3: £212m SCR: £527m Surplus: £449m 185%
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Impact on Solvency Coverage Ratio % 185% +8ppts -9ppts +16ppts -1ppts +9ppts -1ppts +4ppts -5ppts -2ppts -2ppts +1ppts -8ppts -5ppts -3ppts 28 Market risks Demographic risks Expense risks Impact on Solvency II surplus(11) THERE HAS BEEN NO MATERIAL CHANGE IN THE GROUP’S SENSITIVITIES POST CHESNARA LIFE UK ACQUISITION 449 (18) (1) (68) 40 (19) 17 12 (10) (14) (8) (20) (13) (40) (25) HY26 Base Position 20% sterling appreciation 20% sterling depreciation 25% equity fall 25% equity rise 10% equity fall 10% equity rise 1% interest rate rise 1% interest rate fall 50bps credit spread rise 25bps swap rate fall 10% mass lapse 5% mortality and morbidity increase 10% expense rise 1% inflation rise
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29 OPERATING CAPITAL GENERATION ↑79% o Incremental OCG from Chesnara Life UK of £51m supported by capital optimisation actions o Robust operating performance across the Group Recurring: 70 Recurring: 44 UK Sweden Netherlands Group Centre HY26 HY25 64 3 7 22 96 54 CA Chesnara Life UK
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30 ADJUSTED OPERATING PROFIT Recurring: 70 Recurring: 44 UK Sweden Netherlands Group Centre HY26 HY25 20 3 10 (1) 31 21 CA Chesnara Life UK ↑46% o Incremental AOP from Chesnara Life UK of £13m o Robust operating performance across the Group
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31 IFRS BALANCE SHEET - CSM 131 237 10 3 (1) (30) (23) 327 CSM (net of tax) FY25 Acquisition impacts³ New Business CSM Interest accreted Experience & assumption changes FX & tax impact CSM release CSM (net of tax) HY26 Pre-tax, CSM decreased by £6m Due to non- economic assumption changes ↑£196m Of CSM growth Significant increase in the future store of profits generated from the acquisition of Chesnara Life UK
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32 CHESNARA LIFE PROVIDES MATERIAL NEW BUSINESS SCALE POTENTIAL UK MOVESTIC SCILDON Core focus Onshore investment bond Occupational pensions, wealth/custodian solutions and life & health insurance Protection (term life), annuities and investment-linked savings Actions taken ✓ Platform customer journey enhancements ✓ Onshore Bond distribution synergies ✓ New partnership with Norwegian pension provider ✓ Launch of new occupational pension product ✓ Campaigns and distribution initiatives ✓ Targeted commercial actions and partnerships Value 1 1 7 HY24 HY25 HY26 New Business Contribution (£m) 2 1 2 HY24 HY25 HY26 New Business Contribution (£m) 2 3 3 HY24 HY25 HY26 New Business Contribution (£m)
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33 SUSTAINABILITY COMMITMENTS AND 2026 DELIVERY Our sustainability strategy underpins our three strategic objectives. We are actively prioritising the management of sustainability-related risks and opportunities DELIVER GOOD OUTCOMES FOR CUSTOMERS AND MAXIMISE VALUE FROM EXISTING BUSINESS 1 2 3 ACQUIRE LIFE AND PENSION BUSINESSES ENHANCE VALUE THROUGH PROFITABLE NEW BUSINESS BECOMING A SUSTAINABLE CHESNARA DO NO HARM. DO GOOD. ACT NOW FOR LATER. SUPPORT A SUSTAINABLE FUTURE HELP TO CREATE A FAIRER WORLD BUILD A SUSTAINABLE CHESNARA OUR 2026 DELIVERY Enhancing our management of climate-related risks, in line with the PRA's Supervisory Statement 5/25 Deepening our social value impact across the group, including through charity partnerships, internships and volunteering Taking action in line with our Climate Transition Plan including reducing our operational footprint by closing our Wognum office Continuing to identify opportunities to direct capital into positive solutions Continuing to embed sustainability into our governance processes, decision making and key partner engagement Increasing disclosure and reporting of actions we’re taking
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4.13 4.26 4.39 4.56 4.78 4.91 5.04 5.17 5.30 5.43 5.58 5.74 5.91 6.08 6.26 6.45 6.64 6.84 7.05 7.26 7.48 7.70 8.16 6.17 6.56 6.99 8.55 8.73 8.95 9.21 9.47 9.77 10.10 10.40 10.71 11.02 11.35 11.69 12.05 12.41 12.78 13.17 13.56 13.96 14.80 10.29 10.81 11.38 13.11 13.51 13.85 14.24 14.63 15.07 15.53 15.98 16.45 16.93 17.43 17.95 18.50 19.06 19.63 20.22 20.82 21.44 22.50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Interim Final 34 DIVIDEND HISTORY Interim Final Pence per share
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35 FOOTNOTES SUMMARY OF FOOTNOTES USED THROUGHOUT THE PRESENTATION (1) Verified by RBC research. (2) Assets under Administration (AUA) includes the pro forma impact of the second Canada Life portfolio acquisition following completion of the Part VII transfer and subsequent migration by early August 2026. (3) For OCG, this Includes mass lapse reinsurance and the introduction of Loss Absorbing Capacity of Deferred Taxes (LACDT) in Chesnara Life UK, and the central diversification benefits of the acquired SCR. For Own Funds and Solvency Coverage Ratio charts, this refers to the day one Own Funds and SCR impact of acquiring the Chesnara Life UK business. On the CSM chart, this represents the day one acquisition CSM of the Chesnara Life UK business. (4) Non-operating includes investment variances, FX translation movements, integration & restructuring spend and movements in the solvency II tiering restrictions, plus some other smaller impacts. (5) SWE completion is subject to regulatory approval. (6) Defined as ‘Cash & Cash equivalents’. (7) Deal metrics taken from the respective regulatory announcement, unless newer information is available. (8) Based on Group Solvency II Best estimate of Liabilities (BEL) as at 30 June 2026. (9) Own Funds and AUA UK results include Countrywide Assured, Chesnara Life and Group Centre. (10) FY 2025 data has been used for Chesnara Life UK due to current data availability. (11) SII sensitivities have been calculated based on the balance sheet at 30 June 2026 which includes the impacts from Chesnara Life UK. Scottish Widows Europe SA has not been included.
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