TIDMHSD
RNS Number : 3419K
Hansard Global plc
05 May 2022
5 May 2022
Hansard Global plc
Trading update for the period ended 31 March 2022
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
quarter ended 31 March 2022 ("Q3 2022") . All figures refer to this
period, except where indicated. Year to date ("YTD") figures refer
to 1 July 2021 to 31 March 2022.
Summary
-- New business for the Group for Q3 2022 was GBP30.9m in PVNBP
("Present Value of New Business Premiums") terms (Q3 2021:
GBP47.3m, Q2 2022: GBP33.5m);
-- For the nine months to 31 March 2022, new business was GBP95.8m (Q3 YTD 2021: GBP123.6m);
-- Assets under administration were GBP1.17bn at 31 March 2022 (GBP1.23bn at 31 December 2021);
-- The Group continues to work with its prospective Japanese
distribution partner towards a suitable launch date, against the
current challenging background of Covid-19 in Japan .
Graham Sheward, Group Chief Executive Officer, commented:
"As our targeted region of Japan remains under Covid-19
restrictions with increased case counts, we continue to work with
our local distribution partner towards a suitable launch date.
We also continue to take vigorous action to improve new business
levels both with respect to our traditional business and by
progressing opportunities to deploy new products more widely in
Japan and other suitable territories around the world. In addition
to the new initiatives mentioned in our previous quarterly trading
update, we have recently recruited two experienced executives into
our sales and business development team in order to assist the
delivery of this growth."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Graham Sheward, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco +44 (0) 7990 653 341
Ben Woodford, Hugo Liddy
Hansard Global plc
TRADING UPDATE for the PERIOD ended 31 March 2022
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium savings and investment products in a range of
jurisdictions around the world.
New business for the quarter and financial year-to-date
continued to be impacted by the challenges of Covid-19 restrictions
and their aftermath around the world, economic uncertainty and a
general hesitancy by clients to commit to contractual long-term
savings products. The prior period comparative figures benefited
from a number of high net worth single premium policies which did
not repeat in Q3 2022.
In Present Value of New Business Premiums ("PVNBP") terms, new
business for Q3 2022 was 34.7% lower than Q3 2021. For the nine
months ended 31 March 2022, new business was 22.5% lower compared
to the prior period comparative.
New Business Flows
New business flows for the quarter and the nine months ended 31
March are summarised as follows:
Three months ended Nine months ended
31 March 31 March
2022 2021 % 2022 2021 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ----- -------- --------- --------- --------
Present Value of New Business
Premiums 30.9 47.3 (34.7%) 95.8 123.6 (22.5%)
Annualised Premium Equivalent 4.4 6.6 (33.3%) 13.2 17.5 (24.6%)
------------------------------- ------ ----- -------- --------- --------- --------
The split of regular and single new business premiums on the
PVNBP basis was as follows:
Three months ended Nine months ended
31 March 31 March
2022 2021 % 2022 2021 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ----- -------- --------- --------- --------
Regular premium 19.1 26.5 (27.9%) 59.7 76.0 (21.4%)
Single premium 11.8 20.8 (43.3%) 36.1 47.6 (24.2%)
----------------------- ------ ----- -------- --------- --------- --------
Total 30.9 47.3 (34.7%) 95.8 123.6 (22.5%)
----------------------- ------ ----- -------- --------- --------- --------
The regional split of new business premiums on the PVNBP basis
was follows:
Three months ended Nine months ended
31 March 31 March
2022 2021 % 2022 2021 %
PVNBP by geographical area GBPm GBPm change GBPm GBPm change
---------------------------- ------ ----- -------- --------- --------- --------
Middle East and Africa 12.5 20.6 (39.3%) 35.0 49.2 (28.9%)
Rest of World 7.9 12.1 (34.7%) 28.5 36.4 (21.7%)
Latin America 6.3 10.1 (37.6%) 20.7 28.7 (27.9%)
Far East 4.2 4.5 (6.7%) 11.6 9.3 24.7%
Total 30.9 47.3 (34.7%) 95.8 123.6 (22.5%)
---------------------------- ------ ----- -------- --------- --------- --------
The overall environment remained challenging for investment and
long-term savings plans, with new business down 34.7% from Q3 2021.
Regular premium new business fell 27.9%, with single premiums
falling 43.3%.
The general experience across each region saw a reduction both
in the number of cases sold and in the quantity of high-value cases
sold. New business in Latin America has been additionally impacted
this year by a tightening of our business acceptance criteria in
parts of the region to better control the quality of new business
submissions.
The exception to the above was our Far East region which has
continued to show recovery on a year-to-date basis from 2021.
In addition to the various initiatives mentioned in our previous
quarterly update, we have recently recruited two senior additions
to our sales team: a Head of Sales and a Head of New Business
Development, to help develop and grow future new business
levels.
The Head of Sales has taken oversight of our global
broker-channel sales team and is tasked to deliver a number of our
key distribution and relationship initiatives, enhancing our
overall broker proposition.
The Head of New Business Development is tasked with developing
business relationships with new distributors and further
invigorating relationships with current distributors.
The expanded sales team will continue with the initiatives
mentioned in our previous quarterly update and will drive a number
of new initiatives to increase new business in the coming year and
beyond. This includes the development and launch of new products
for key target markets, updates and improvements to existing
products and the recruitment of additional localised sales
colleagues into key growth regions.
Assets under Administration ("AUA")
The composition and value of AuA is based upon the assets
selected by or on behalf of contract holders to meet their savings
and investment needs. Reflecting the wide geographical spread of
the Group's customer base, the majority of premium contributions
and of AuA are designated in currencies other than sterling. Over
60% of Group AuA are denominated in US dollars.
The total of such assets is affected by the level of new premium
contributions received from new and existing policy contracts, the
amount of assets withdrawn by contract holders, charges and the
effect of investment market and currency movements. These factors
ultimately affect the level of fund-based income earned by the
Group. Net withdrawals are typically experienced in Hansard Europe
dac ("Hansard Europe"), which closed to new business in 2013.
During Q3 2022 AuA decreased by GBP59.1m or 4.8%, reflecting a
pull-back in global stock markets and significantly lower single
premium inflows. For the 9 months ended 31 March 2022, AuA
decreased GBP52.5m or 4.3%.
The following analysis shows the components of the movement in
AuA during the quarter:
Three months Nine months
ended ended
31 March 31 March
2022 2021 2022 2021
GBPm GBPm GBPm GBPm
----------------------------------------- -------- ----------- -------- ------------
Deposits to investment contracts
- regular premiums 21.6 21.0 64.9 63.3
Deposits to investment contracts
- single premiums 11.6 21.0 36.2 47.7
Withdrawals from contracts and
charges (38.3) (38.4) (122.0) (116.6)
Effect of market and currency movements (54.0) 10.5 (31.6) 106.2
----------------------------------------- -------- ----------- -------- ------------
(Decrease) / increase in period (59.1) 14.1 (52.5) 100.6
Opening balance 1,230.8 1,167.0 1,224.2 1,080.5
----------------------------------------- -------- ----------- -------- ------------
Assets under Administration at
31 December 1,171.7 1,181.1 1,171.7 1,181.1
----------------------------------------- -------- ----------- -------- ------------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Nine months
ended
31 March
2022 2021
GBPm GBPm
--------------------------------- --- -------- ------
Hansard International (40.2) 104.3
Hansard Europe (12.3) (3.7)
---------------------------------------- -------- ------
(Decrease) / increase in period (52.5) 100.6
---------------------------------------- -------- ------
Results for the year ENDing 30 JUNE 2022
New business results for the full year are scheduled to be
announced on 21 July 2022. Trading results for the full year are
expected to be announced on 22 September 2022.
OUTLOOK
The external global environment and the ability for our
Independent Financial Advisor ("IFA") distribution network to grow
new long-term savings business continues to be challenging as
Covid-19 related restrictions and their aftermath and economic
confidence fluctuate. We therefore expect IFA sales for FY 2022 to
be lower than FY 2021 but note that will not have a material impact
to our profit under International Financial Reporting Standards
("IFRS") in the short term. This is because initial income and
origination costs are deferred at point of sale and recognised over
the lifetime of contracts sold.
We remain confident that our Japanese product will produce
long-term business growth for the Group. We continue to work with
our local distribution partner towards a suitable launch date ,
although the timing remains subject to factors not within our
control, notably an improvement in the Covid-19 restrictions
currently in place in Japan.
Notes to editors:
-- Hansard Global plc is the holding company of the Hansard
Group of companies. The Company was listed on the London Stock
Exchange in December 2006. The Group is a specialist long-term
savings provider, based in the Isle of Man.
-- The Group offers a range of flexible and tax-efficient
investment products within a life assurance policy wrapper,
designed to appeal to affluent, international investors.
-- The Group utilises a controlled cost distribution model via a
network of independent financial advisors and the retail operations
of certain financial institutions who provide access to their
clients in more than 170 countries. The Group's distribution model
is supported by Hansard OnLine, a multi-language internet platform,
and is scalable.
-- The principal geographic markets in which the Group currently
services contract holders and financial advisors are the Middle
East & Africa, the Far East and Latin America. These markets
are served by Hansard International Limited and Hansard Worldwide
Limited.
-- Hansard Europe dac previously operated in Western Europe but
closed to new business with effect from 30 June 2013.
-- The Group's objective is to grow by attracting new business
and positioning itself to adapt rapidly to market trends and
conditions. The scalability and flexibility of the Group's
operations allow it to enter or develop new geographic markets and
exploit growth opportunities within existing markets without the
need for significant further investment.
Forward-looking statements:
This announcement may contain certain forward-looking statements
with respect to certain of Hansard Global plc's plans and its
current goals and expectations relating to future financial
condition, performance and results. By their nature forward-looking
statements involve risk and uncertainties because they relate to
future events and circumstances which are beyond Hansard Global
plc's control. As a result, Hansard Global plc's actual future
condition, performance and results may differ materially from the
plans, goals and expectations set out in Hansard Global plc's
forward-looking statements. Hansard Global plc does not undertake
to update forward-looking statements contained in this announcement
or any other forward-looking statement it may make. No statement in
this announcement is intended to be a profit forecast or be relied
upon as a guide for future performance.
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regime.
Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUPUPAAUPPGCC
(END) Dow Jones Newswires
May 05, 2022 02:00 ET (06:00 GMT)
Hansard Global (LSE:HSD)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Hansard Global (LSE:HSD)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024