Chesnara's strategy centres on the delivery of a reliable dividend stream to its shareholders which will be funded from the underlying emergence of surplus from its life assurance subsidiaries.

Chesnara will pursue a policy of opportunistically acquiring further life assurance assets in the UK and Western Europe. Key criteria for assessing such opportunities are that they:

• do not dilute value
• offer an acceptable level of risk; and
• improve or have the potential to improve the quality and longevity of earnings.

In the absence of any suitable acquisition opportunities, the principal focus is to maximise the earnings and distribution potential of the subsidiaries without compromising regulatory capital requirements or introducing inappropriate risk.