UK administrator of closed life insurance funds Chesnara has reported a profit before tax of GBP12.4 million for the six months ended June 30, 2007, up 17% compared to the same period in 2006.
On a European embedded value (EEV) basis, pre-tax result for the half-year increased by 63% to GBP11.1 million from GBP6.8 million in the same period of 2006. Persistency and mortality improvements added GBP4.8 million to the embedded value, while shareholder equity on an EEV basis increased from GBP175.7 million in June 2006 to GBP188.4 million this year.
Graham Kettleborough, CEO at Chesnara, said: This has been another strong first half performance resulting from improvement in fundamental areas – lower endowment complaints, better persistency and improved mortality, supported by positive economic factors. The business is in good shape from all the key perspectives – operational, regulatory and financial.
We continue to search for value-enhancing acquisitions in our target range and if no suitable opportunities are identified the possibility of, and preferred methodology for, a return of surplus capital will be considered.