Chesnara's results benefit from equity market growth

17th May 2013 15:14

Insurance company Chesnara said the global investment market performance had a positive influence on its results in the first quarter. Equity markets improved, with the leading UK and Swedish indices increasing by 8.7%.The company's European Embedded Value (EEV) has increased by £33.7m to £344.8m at the end of the first quarter compared with end of December, driven by net of tax profit of £27.1m. EEV was also boosted by a foreign exchange gain of £7.2m, arising from the effect of translating the SEK-denominated EEV of the Swedish Business into Sterling, which depreciated against the Swedish Krona.However, first quarter pre-tax profit fell to £8.7m from the prior year's £13.0m, reflecting weak bond yields. Net cash generation, representing the net change in funds to service debt and equity, came to 12.2m at the end of the period compared with £41m at December 31st 2012.Shares rose 1.33% to 267.25p at 15:38 Friday.RD