Key facts
- Chesnara reported a £61m pre-tax profit in H1 2026, a turnaround from a £5m loss in H1 2025.
- Revenue increased to £255.9m from £136m, boosted by the HSBC Life UK acquisition.
- The HSBC deal added £5bn in assets under administration and 440,000 policies.
- Chesnara's takeover of Lloyds' Scottish Widows Europe is expected to complete around the end of 2026.
- Chief executive Steve Murray stated the company is evaluating further acquisition opportunities.
London-based pension consolidator Chesnara has reported a significant return to profitability, with a pre-tax profit of £61 million in the first half of 2026, a substantial improvement from a £5 million loss in the same period last year. This turnaround was largely driven by the successful integration of HSBC Life UK, acquired last year, which saw revenue soar to £255.9 million from £136 million. The HSBC portfolio contributed £5 billion in assets under administration and 440,000 active policies.
Chesnara's total operating capital generation also saw a substantial increase of 79%, reaching £96 million. The company's performance has been strong enough to see it re-enter the FTSE 250 index in August 2025.
Looking ahead, Chesnara is set for another boost with its £100 million takeover of Lloyds' Scottish Widows Europe, which is anticipated to formally complete around the end of 2026. This deal is expected to add approximately €1.7 billion in assets under administration and about 46,000 in-force policies. The company estimates this acquisition will contribute around €250 million of cash over the lifetime of its policies.
Chief executive Steve Murray expressed optimism about future growth, stating that the company is actively seeking more potential takeovers and sees attractive opportunities in the M&A pipeline. Following the profit surge, Chesnara also increased its dividend by six percent to 8.16p per share, marking the 22nd consecutive year of dividend growth.