H2 to date has seen a big rally in equities, corporate bond spread narrowing and higher risk free yields, albeit the latter has eased in recent days. Swedish market performance, the most important for Chesnara, has been particularly strong. We highlight the greater sensitivity to equity market movements for Chesnara than peers, due to the Swedish business being substantially a fee-based equity pensions business, with part of the UK business exposed through pensions. Unlike Phoenix, which also has substantial pensions and savings businesses, Chesnara does not hedge its equity exposure. Conversely, it has much lower spread sensitivity because it does not have a material annuity back book and does not write new annuity business (a growth market for peers due to bulk purchase annuity demand). While we are not updating Chesnara forecasts ahead of year-end, we note that H2 asset price movements should have been supportive for solvency and EcV, potentially increasing values to above those at the end of 2019, based on stated sensitivities. We estimate the uplift in solvency surplus at c.20% and the uplift in EcV at c.10% since H1 2020. Sector M&A has picked up in H2 as asset markets have stabilised. The most relevant news for Chesnara was Phoenix’s statement in mid-November that it was considering its options for its European (German, Irish and offshore bond businesses) operations, having received expressions of interest from third parties, while Aviva is to sell an Italian life jv for 1x Own Funds. We note that peer dividend yields have reduced materially since H1, while Chesnara’s is back close to historical highs at 8% in 2022E. With cash coverage likely further improved by market movements, we re-iterate our Buy.