... of Chesnara plc's capital position is driven by the insurer's strong Solvency II (S2) ratio. Its S2 coverage ratio remained strong at 205% at end- 2023 (end-2022: 197%). This is above Chesnara's target operating range of 140% to 160%, and increased following the Tier 2 subordinated debt raised in 2022. We expect Chesnara to maintain an `Extremely Strong' score on its Prism Global Model at end-2023, unchanged from end-2022. High Financial Leverage: Chesnara-calculated financial leverage ratio (FLR) strengthened to 29% at end-2023 from 38% at end-2022, driven by accounting changes. The move to IFRS 17 reporting has removed the asset-and-liability accounting mismatches in the group's Dutch business; this mismatch was contributing to the high financial leverage in 2022. This and allowance for the contractual service margin (CSM) net of tax and insurance in the denominator of the calculation leads to the lower leverage ratio in 2023. Company Profile...
