TIDMHSD
RNS Number : 1103F
Hansard Global plc
03 November 2022
3 November 2022
Hansard Global plc
Trading update for the quarter ended 30 September 2022
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the first
quarter of its financial year ended 30 June 2023 (Q1 FY 2023),
being the period from 1 July 2022 to 30 September 2022.
Summary
-- New business for the quarter ended 30 September 2022 was
GBP24.8m in PVNBP ("Present Value of New Business Premiums") terms,
in line with new business of GBP24.8m in the quarter ended 30 June
2022 and down from GBP31.4m in the quarter ended 30 September
2021;
-- Assets under administration were GBP1.1 billion as at 30
September 2022, up GBP6.1m from that last reported as at 30 June
2022.
Graham Sheward, Group Chief Executive Officer, commented:
The overall environment has remained challenging for investment
and long-term savings plans. However, we are making good progress
developing new distribution opportunities.
In our largest region, Middle East and Africa, new business was
up 2.8%. We are beginning to see some of the fruits of our
investment in this region where we have recruited additional
regional sales management. We are working closely with a number of
new distribution partners on new customer segments and product
initiatives.
New business in Latin America was up 17.6% as the improving
trend in that region continued. Similar to the Middle East and
Africa region, we are working on building business with new
distribution partners to supplement our existing distribution.
The Rest of World region was down 59.6% due to a decline in
single premium business and business acceptance restrictions
arising out of the Russia-Ukraine conflict.
The 55.6% reduction in Far East business reflects a fluctuating
smaller base of new business which experienced a spike in the prior
year comparative. We have recently relocated a regional sales
manager to our branch in Malaysia to drive business growth in this
region.
In order to counteract this challenging environment, we have
been expanding our distribution relationships, adding additional
regional sales managers to our team and developing new product
propositions across our product range. We expect to launch a new
proposition in the Middle East on our new administration system in
2023 to assist growing our business in that market.
We also continue to make encouraging progress with various
distribution opportunities for our Japanese proposition and remain
optimistic for the significant potential in that jurisdiction.
Lastly, we were delighted to win four industry awards at the
2022 International Investment awards in October. These were in the
areas of customer service and technology, where Hansard strives to
differentiate itself. The awards won were for "Excellence in
Fintech", "Excellence in Client Service - Asia", "Excellence in
Client Service - Africa" and "Excellence in Client Service -
Overall".
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 quarterED 30 SEPTEMBER 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.
The external global environment and the ability for our
IFA-distribution to sell long-term savings products continues to be
challenging as economic confidence fluctuates.
In Present Value of New Business Premiums ("PVNBP") terms, new
business for the quarter ended 30 September 2022 was in line with
new business in the quarter ended 30 June 2022 of GBP24.8m and down
from GBP31.4m (or 21.0%) in the quarter ended 30 September
2021.
In Annualised Premium Equivalent ("APE") terms, the decline from
the quarter ended 30 September 2021 was 12.2%.
The PVNBP result was negatively impacted by our annual update of
the applicable discount rate to be applied to future premium
inflows. A higher discount rate as a result of the current
tightening global interest rate environment resulted in a lower
present value of future regular premiums. Without this change in
assumption, PVNBP would have been GBP26.5m or 15.6% lower than the
prior year comparative.
In addition, a significantly lower proportion of single premiums
written has a greater impact to the PVNBP metric compared to the
APE metric.
New Business Flows
New business flows on our key reported metrics were as
follows:
Quarter ended
30 September
2022 2021 %
Basis GBPm GBPm change
------------------------------- --- ----- ----- --------
Present Value of New Business
Premiums 24.8 31.4 (21.0%)
Annualised Premium Equivalent 3.6 4.1 (12.2%)
--------------------------------------- ----- ----- --------
Present Value of New Business Premiums ("PVNBP")
New business flows on the basis of PVNBP are analysed in the
following two tables as follows:
Quarter ended
30 September
2022 2021 %
PVNBP by product type GBPm GBPm change
----------------------- --- ----- ----- --------
Regular premium 17.1 18.9 (9.5%)
Single premium 7.7 12.5 (38.4%)
------------------------------- ----- ----- --------
Total 24.8 31.4 (21.0%)
------------------------------- ----- ----- --------
Quarter ended
30 September
2022 2021 %
PVNBP by geographical GBPm GBPm change
area
------------------------ ----- ----- --------
Middle East and Africa 11.0 10.7 2.8%
Latin America 8.0 6.8 17.6%
Rest of World 3.8 9.4 (59.6%)
Far East 2.0 4.5 (55.6%)
Total 24.8 31.4 (21.0%)
---------------------------- ----- ----- --------
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 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 the quarter ended 30 September 2022, AuA increased
marginally by GBP6.1m to GBP1.1 billion. Lower single premium
contributions and stock market declines were more than offset by
positive US Dollar movements against Sterling during the period.
The following analysis shows the components of the movement in AuA
during the quarter:
Quarter ended
30 September
2022 2021
GBPm GBPm
----------------------------------------- --- -------- --------
Deposits to investment contracts
- regular premiums 21.7 20.9
Deposits to investment contracts
- single premiums 7.8 12.6
Withdrawals from contracts and charges (39.2) (41.5)
Effect of market and currency movements 15.8 3.2
------------------------------------------------ -------- --------
Increase in period 6.1 (4.8)
Opening balance 1,092.3 1,224.2
------------------------------------------------ -------- --------
Assets under Administration at 30
September 1,098.4 1,219.4
------------------------------------------------ -------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Quarter ended
30 September
2022 2021
GBPm GBPm
------------------------------- --- -------- -------
Hansard International 7.7 (3.0)
Hansard Europe (1.6) (1.8)
-------------------------------------- -------- -------
Increase/(decrease) in period 6.1 (4.8)
-------------------------------------- -------- -------
Results for the HALF-yearing 31 DECEMBER 2022
New business results for the half year ending 31 December 2022
are expected to be announced on 26 January 2023. Trading results
for the half year are expected to be announced on 9 March 2023.
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
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END
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