TIDMHSD
RNS Number : 8727N
Hansard Global plc
26 January 2023
26 January 2023
Hansard Global plc
New business results for the six months ended 31 December
2022
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its new business results for the
six months ended 31 December 2022. The three months ended 31
December 2022 are referred to as "Q2 2023" where applicable.
Summary
-- New business for the Group for the three months ended 31
December 2022 was GBP18.6m in PVNBP ("Present Value of New Business
Premiums") terms (three months ended 31 December 2021:
GBP33.5m);
-- New business for the six months ended 31 December 2022 was
GBP43.4m (six months ended 31 December 2021: GBP64.9m);
-- Assets under administration were GBP1.10 billion at 31
December 2022 (30 June 2022: GBP1.10 billion);
-- We continue to make good progress towards launching a new
proposition in the Middle East to assist growing our business in
that market and have also made encouraging progress with
distribution opportunities for our Japanese proposition.
Graham Sheward, Group Chief Executive Officer, commented:
"The overall environment has remained challenging for investment
and long-term savings plans. However, we continue to make good
progress developing new product and distribution opportunities.
In our largest region, Middle East and Africa, new business was
down 13.7% for the six months ended 31 December 2022. Having
recruited additional sales management for this region, we have been
working closely with both new and existing distribution partners to
expand our proposition, targeting for example pensions and higher
net worth clients. In addition, we continue to make good progress
towards launching a set of products for the Middle East that will
leverage our new administration system and incorporate a new best
in breed fund range.
New business in Latin America was down 4.9%. 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 64.1% due to a decline in
single premium business and business acceptance restrictions
arising out of the Russia-Ukraine conflict.
The 61.6% 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 addition to our new proposition developed for the Middle
East, we also continue to make encouraging progress with
distribution opportunities for our Japanese proposition and remain
optimistic for future new business in that jurisdiction.
The Group also remains on track for replacing its policy
administration systems to support its next generation of products
whilst realising associated cost and efficiency gains. "
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 LLP +44 (0) 7990 653 341
Ben Woodford, Hugo Liddy
Hansard Global plc
New business results for the six months ended 31 December
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 ongoing uncertainty in global economic conditions continues
to adversely impact our new business levels. In Present Value of
New Business Premiums ("PVNBP") terms, new business for the quarter
ended 31 December 2022 was 44.5% lower than the prior year
equivalent and 33.1% lower for the six months to 31 December
2022.
Annualised Premium Equivalent ("APE") for the quarter ended 31
December 2022 was 40.4% lower than the prior year equivalent and
27.3% lower for the six months to 31 December 2022 .
The 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 for the quarter and the half-year are
summarised as follows:
Three months Six months ended
ended
31 December 31 December
2022 2021 % 2022 2021 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ----- ----- -------- --------- -------- --------
Present Value of New Business
Premiums 18.6 33.5 (44.5%) 43.4 64.9 (33.1%)
Annualised Premium Equivalent 2.8 4.7 (40.4%) 6.4 8.8 (27.3%)
------------------------------- ----- ----- -------- --------- -------- --------
Present Value of New Business Premiums ("PVNBP")
New business flows on the basis of PVNBP are broken down as
follows:
Three months ended Six months ended
31 December 31 December
2022 2021 % 2022 2021 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ --------- ----- ----- --------
Regular premium 13.8 21.7 (36.4%) 30.8 40.6 (24.1%)
Single premium 4.8 11.8 (59.3%) 12.6 24.3 (48.1%)
----------------------- ------ ------ --------- ----- ----- --------
Total 18.6 33.5 (44.5%) 43.4 64.9 (33.1%)
----------------------- ------ ------ --------- ----- ----- --------
Three months ended Six months ended
31 December 31 December
2022 2021 % 2022 2021 %
PVNBP by geographical GBPm GBPm change GBPm GBPm change
area
----------------------- ------ ----- -------- ----- ----- --------
Middle East & Africa 8.5 11.9 (28.6%) 19.5 22.6 (13.7%)
Latin America 5.7 7.6 (25.0%) 13.7 14.4 (4.9%)
Rest of World 3.6 11.2 (67.9%) 7.4 20.6 (64.1%)
Far East 0.8 2.8 (71.4%) 2.8 7.3 (61.6%)
Total 18.6 33.5 (44.5%) 43.4 64.9 (33.1%)
----------------------- ------ ----- -------- ----- ----- --------
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") as it closed to new business in 2013.
AuA saw an increase of GBP1.9m to GBP1.10 billion during the
three months ended 31 December 2022. For the six months ended 31
December 2022 AuA increased by GBP8.0m.
The following analysis shows the components of the movement in
AuA during the quarter:
Three months Six months
ended ended
31 December 31 December
2022 2021 2022 2021
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- -------- --------
Deposits to investment contracts
- regular premiums 22.6 22.4 44.2 43.3
Deposits to investment contracts
- single premiums 4.9 12.0 12.7 24.6
Withdrawals from contracts and
charges (32.7) (42.2) (71.9) (83.7)
Effect of market and currency movements 7.1 19.2 23.0 22.4
----------------------------------------- -------- -------- -------- --------
Increase / (decrease) in period 1.9 11.4 8.0 6.6
Opening balance 1,098.4 1,219.4 1,092.3 1,224.2
----------------------------------------- -------- -------- -------- --------
Assets under Administration at
31 December 1,100.3 1,230.8 1,100.3 1,230.8
----------------------------------------- -------- -------- -------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Six months ended
31 December
2022 2021
GBPm GBPm
--------------------------------- --- --------------- ------
Hansard International 9.4 11.7
Hansard Europe (1.4) (5.1)
---------------------------------------- --------------- ------
Increase / (decrease) in period 8.0 6.6
---------------------------------------- --------------- ------
FINANCIAL Results for the half-year ENDED 31 December 2022
Financial results for the half-year are expected to be announced
on 9 March 2023.
Outlook
We expect sales of long-term savings products through
Independent Financial Advisors to continue to be impacted by global
economic headwinds. Looking forward however we are confident that
our new product pipeline will lead to increased sales and long term
growth in the business.
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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