Strong results from Chesnara see the dividend raised 2.5%

As Chesnara reports half year results, Sheridan Admans, investment research manager at The Share Centre, explains what they mean for investors.
 
"Interim results reported this morning showed Chesnara's pre-tax profit for the period up 134% to £21.8m, from £9.3m last year, due to its S&P operation and a reduction in costs.
 
"Chesnara's European Embedded Value (EEV), the standard calculation used to value insurance companies, rose 8.5% to £337.4m, from £311.1m in the same period last year. The valuation makes certain assumptions about life expectancy, persistency and investment conditions and was mainly improved due to rising UK and Swedish equity values.
 
"We continue to recommend Chesnara as a ‘buy' for investors looking for a long term niche play in the insurance sector. Cash generation and solvency continues to be healthy and the company continues to seek out acquisition opportunities. Chesnara remains committed to providing shareholders with an attractive dividend, with the forecast yield currently at 6.72% and the interim dividend increasing by 2.5% to 6.25p per share."