Low yields knock Chesnara

The headline numbers were affected by the steady decline in bond yields, which had an adverse impact on the group's S&P business, acquired in 2010. The products sold by S&P provide guaranteed returns, so with lower investment income it was necessary to increase reserves by £17.8m to cover the cost of guarantees - a sharp reverse from the £24.4m surplus generated the previous year.

Meanwhile, profits from the Swedish Movestic operation were suppressed by currency moves. Yet the division still performed well, increasing new business by nearly a quarter to £8.9m thanks to higher volumes of new policies and better margins. Chesnara also raised £34.5m through an equity placing to help pay for the acquisition of Dutch closed life business Waard.

Analysts at Canaccord Genuity are forecasting net income of £29.8m for the current year, and embedded value of 349p at year end (from £25.6m and 330p in 2014).