The shares, which had almost doubled over a period of five years, have come off the top this month but were up 3.18% at 365p this afternoon after what house broker, Shore Capital, described as a “highly effective and very worthwhile Capital Markets Day”.
Shore said it was very evident from the presentations of the bosses of the respective operating entities in the UK, Sweden and Netherlands that all units are singing from the same hymn sheet.
All are focused on the delivery of economic value (EcV) through either acquisitions, selling new business and/or maximising the value of the total value of life assurance policies that the company manages; this translates to the conversion of EcV to cash, which can then be returned to shareholders, as appropriate.
“Chesnara is in a terrific place in respect of the potential to deliver value and dividends for shareholders. Management across the group are highly focused, ‘best in class’ in their respective areas, in our view, and well positioned to drive synergies across the company,” Shore said.
The broker pointed to the near 10% fall in the share price in recent weeks, saying it represented a buying opportunity for income-focused investors; Chesnara is projected to offer a yield of around 5.7% based on Shore's forecasts for the current year.
Shore thinks the share price slide was caused by the stock ceasing to be a constituent of a stock market index.