Chesnara, a London-listed pension consolidator, reported a significant turnaround in its financial performance for the first half of 2026, achieving a pre-tax profit of $61 million. This compares to a $5 million loss in the same period last year. The company's revenue soared by 88% to $255.9 million, up from $136 million, largely due to the integration of the HSBC Life UK portfolio, which added $5 billion in assets under administration (AUA) and 440,000 active policies. The acquisition of HSBC Life UK, rebranded as Chesnara Life UK, was completed in January 2026.
The firm's operating capital generation, a measure of cash generated from everyday operations, dramatically increased by 79% to $96 million in H1 2026, up from $54 million in H1 2025. Cash remittances also saw a substantial rise of 31% to $73 million. Following this robust performance, Chesnara announced a 6% increase in its interim dividend to 8.16p per share, marking its 22nd consecutive year of increased returns. The company's total assets grew by 14% to $976 million, and its AUA expanded by 38% to $21 billion.
Chesnara is actively pursuing further acquisitions, with CEO Steve Murray noting a healthy M&A pipeline. The company anticipates additional growth from its $100 million takeover of Lloyds' Scottish Widows Europe, expected to finalize around the end of 2026. This deal is projected to add approximately $1.7 billion in AUA and 46,000 policies, contributing around $250 million in lifetime cash generation. RBC Capital Markets has recognized Chesnara's strong performance, raising its price target to 400p from 360p and maintaining an 'outperform' rating, based on the significant increase in operating capital generation and the potential for future acquisitions. RBC also increased its full-year operating capital generation forecast by 76% to $168 million. Chesnara re-entered the FTSE 250 in August 2025 following the HSBC acquisition.
