Equity markets lift Chesnara

19th Nov 2010 08:09

Stronger equity markets boosted closed end life group Chesnara's over the last three months, with embedded assets climbing by 7.7% over this time last year to £278.5m."The third quarter result has been significantly impacted by favourable experience in investment markets. Leading UK equity market indices improved by some 13% over the quarter and leading Swedish market indices improved by 8-10%. While rates on fixed interest investments continued to drift down during the quarter in the UK they have, by contrast, strengthened in Sweden," Chesnara said."The underlying emergence of surplus in the UK Business, and hence the capacity of the group to continue to pursue its dividend policy, remains strong," Chesnara added. The regulatory surplus at end September was 329% compared with 330% at end June."We continue to review a flow of potential acquisition opportunities and will readily progress these where we see value and a clear strategic fit," chief executive Graham Kettleborough added.