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Chesnara raises final dividend amid Covid-19 turmoil
30th Mar 2020 11:30
(Sharecast News) - Chesnara shares rose more than 10% after the life insurer said it would increase its final dividend in the midst of turmoil caused by the Covid-19 crisis.
The company said it was well capitalised with a capital surplus of ?193m and a cash balance of ?73.5m. Chesnara said this financial strength allowed it to propose a final dividend of ?20.8m or 13.87p a share.
Chesnara shares gained 11.9% to 291p at 13:04 BST as it bucked the trend for companies suspending dividends to conservee cash during the Covid-19 crisis.
"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," the company said.
Chesnara, which trades as Countrywide Assured in the UK, said market movements had reduced its economic value by about ?100m from the ?670m at the end of December. New business activity in Holland and Sweden has seen "some small impact". The impact will be greater in the rest of 2020 with a reduction in capital needed to support new business, it said.
The company said it was well capitalised with a capital surplus of ?193m and a cash balance of ?73.5m. Chesnara said this financial strength allowed it to propose a final dividend of ?20.8m or 13.87p a share.
Chesnara shares gained 11.9% to 291p at 13:04 BST as it bucked the trend for companies suspending dividends to conservee cash during the Covid-19 crisis.
"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," the company said.
Chesnara, which trades as Countrywide Assured in the UK, said market movements had reduced its economic value by about ?100m from the ?670m at the end of December. New business activity in Holland and Sweden has seen "some small impact". The impact will be greater in the rest of 2020 with a reduction in capital needed to support new business, it said.