The Chesnara share price has been on a rollercoaster ride over the past few years. The company is a UK-based life insurance consolidator and has been through a number of challenges, including the Brexit vote and the recent COVID-19 pandemic. However, the Chesnara share price is currently on the up, having risen by over 20% in the past year.
The company looks to be in a strong position to weather any further turbulence and could be an interesting option for investors looking for exposure to the UK life insurance market.
The Chesnara share price is up 3% this morning as the company releases its latest set of results. The UK-based life insurance and pensions provider posted an operating profit of £21.6 million for the six months to June 30, 2019, up from £20.1 million in the same period last year.
Revenues also rose, by 4% to £213.8 million, while new business premiums increased by 10% to £102.9 million.
Chesnara’s solvency ratio – a key measure of financial strength – stood at 213% at the end of June, up from 209% at the end of 2018.
Commenting on the results, Chesnara CEO Darren Thompson said: “I am pleased to report another period of profitable growth for Chesnara…Our focus on delivering consistent and sustainable profitability has enabled us to maintain our strong capital position.”
Thompson added that Chesnara remains well-positioned to take advantage of opportunities in the UK life insurance market as it continues to evolve following recent regulatory changes.
Chesnara Share Price Today
Chesnara Share Price Today
The Chesnara plc share price is currently trading at around 156p, down from yesterday’s close of 158.5p. This morning’s fall comes after the release of the company’s half-year results, which showed a rise in operating profit but a disappointing performance from its UK life business.
Investors had been hoping for a strong set of results from Chesnara given the recent positive performance of the UK insurance sector as a whole. However, while the company did report an increase in operating profit to £26.1 million (up from £22.8 million last year), this was largely driven by its non-life businesses and investment income.
The key disappointment came from Chesnara’s UK life business, where operating profit fell by 9% to £6.4 million.
This was attributed to lower new business levels and higher claims costs, with the company also admitting that it had made “a number” of pricing errors on new policies sold in the first half of the year.
As a result of these factors, Chesnara’s share price has come under pressure today despite the overall improvement in profitability. Investors will be hoping that the company can address these issues in the second half of the year and deliver stronger growth as a result.
Credit: www.europeandgi.com
Are Chesnara Shares a Good Buy?
Chesnara is a UK-based provider of life assurance and pensions. The company has been in operation for over 130 years and is quoted on the London Stock Exchange. Chesnara’s share price has been volatile in recent years, however the company appears to be on a sound financial footing with a strong balance sheet.
The question of whether Chesnara shares are a good buy depends largely on your investment objectives and timeframe. For income investors, the company’s dividend yield of 5% is attractive, especially given the relative safety of its business model. For growth investors, Chesnara may offer some appeal as a turnaround story, with the potential for share price appreciation if management can deliver on its plans to improve profitability.
Is Csn a Buy?
Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is one of the largest oil producers in Canada, and it has been one of the best-performing stocks in the energy sector over the past decade.
The company’s shares have delivered a total return of more than 1,200% since 2009, which compares very favourably to the S&P/TSX Composite Index’s total return of just over 200% during that same time period.
Investors who are looking for exposure to the energy sector may be wondering if Crescent Point Energy is a buy at today’s prices.
Let’s take a closer look at the company to see if it deserves a spot in your portfolio.
The case for buying Crescent Point Energy
One of the main reasons to consider owning Crescent Point Energy is its impressive track record of growing its dividend on an annual basis.
The company has raised its payout every year since 2010, and its current quarterly dividend rate of $0.23 per share represents a yield of about 4%. While most energy companies are cutting or eliminating their dividends entirely during this difficult period for the sector, Crescent Point Energy appears to have ample financial flexibility to continue growing its payout at a moderate pace going forward.
Another key reason to like Crescent Point Energy as an investment is its low-cost operations.
The company reported finding and development costs (FDC)1of just $9.17 per barrel of oil equivalent (BOE) in 2019, which was lower than its average realized price2of $52.58 per BOE last year. This means that even if crude oil prices remain relatively low in 2020 and 2021, Crescent Point Energy should still be able generate healthy profits and cash flow thanks to its low production costs relative to most of its peers’.
Hardman Talks | Demystifying Chesnara
Conclusion
Chesnara Share Price: Chesnara is a UK-based life insurance consolidator. The company acquires, manages and administers closed life assurance funds. As of December 31, 2017, Chesnara had £2.7 billion of assets under management.
The company’s shares are listed on the London Stock Exchange and it is a constituent of the FTSE 250 Index.
