Closed-book Business ModelChesnara's focus on buying and running closed-book life and pension portfolios creates durable operational scale and cost advantages. Closed books produce predictable liability and cashflow profiles, enabling lower ongoing distribution costs and higher operating leverage over the medium term.
Improved Cash GenerationA return to positive free cash flow (£37.8m in 2024) indicates structurally improved cash generation. Strong operating cash coverage increases financial flexibility to meet claims, maintain regulatory capital, support dividends and pursue selective acquisitions without relying heavily on external financing.
Disciplined LeverageStable debt-to-equity and a moderate equity ratio point to consistent leverage management. For a life insurer with long-duration liabilities, disciplined leverage reduces refinancing risk, helps maintain solvency buffers and preserves capacity to manage policyholder obligations through economic cycles.