TIDMHSD
RNS Number : 9619V
Hansard Global plc
09 November 2017
9 November 2017
Hansard Global plc
Trading update for the quarter ended 30 September 2017
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
period from 1 July 2017 to 30 September 2017 (Q1 FY 2018), except
where indicated.
Summary
-- We continue to deliver strong increases in new business levels in line with our strategy;
-- New business for Hansard International Limited ("Hansard
International") for the quarter to 30 September 2017 was GBP38.6m
in PVNBP ("Present Value of New Business Premiums"), approximately
14% higher than Q1 of the prior year and 12% higher than the final
quarter of FY 2017;
-- On-going improvements to our single premium product offering
and the development globally of our offshore pensions business have
been the primary areas of growth;
-- New relationships established in Latin America have continued
to mature and have resulted in a more than doubling of new business
in that region since Q1 FY 2017;
-- Assets under administration remain in line with the previous quarter at GBP1.05 billion.
Gordon Marr, Group Chief Executive Officer, commented:
"We are pleased to announce the continued growth in our new
business and in particular the well diversified spread across each
of the regions in which we operate. We remain confident that we can
continue to execute upon our strategy and deliver further growth
for the future."
For further information:
Hansard Global plc
Gordon Marr, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Phone: +44 (0)1624 688000
Email: investor-relations@hansard.com
Hansard Global plc
NEW BUSINESS RESULTS FOR THE quarterED 30 SEPTEMBER 2017
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium products in a range of jurisdictions around the
world.
In Present Value of New Business Premiums ("PVNBP") terms,
levels of new business in Q1 FY 2018 were 14% ahead of Q1 FY 2017
and 12% ahead of Q4 FY 2017.
The key driver of this growth was an increase in single premium
business as a result of the improvements we have made in our lump
sum proposition and the continued development globally of our
offshore pensions business.
New relationships established in Latin America and the Rest of
the World over the past two years continue to mature and provide
rapidly growing levels of new business. New business more than
doubled in Latin America since Q1 FY 2017 and increased by 28% in
the Rest of the World.
Our regular premium business was down slightly by 6% on Q1 FY
2017 as a result of the exit from the market of one of our
distributors in the Middle East and Africa. Otherwise, the
underlying growth in regular premiums around the world has
continued.
Business flows through our local partnership in the UAE have
started to build in the quarter and we expect this to increase
quarter on quarter as we proceed through the year.
The Group has traded profitably during the period and remains
strongly capitalised.
New Business Flows
New business flows for Hansard International for Q1 FY 2018 on
our key internal metrics are summarised as follows.
Quarter ended
30 September
2017 2016 %
Basis GBPm GBPm change
---------------------- ----- ----- -------
Present Value of New 13.9
Business Premiums 38.6 33.9 %
Annualised Premium 15.1
Equivalent 6.1 5.3 %
----------------------------- ----- ----- -------
-- Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International for Q1 FY 2018 on
the basis of PVNBP are analysed in the following two tables as
follows:
Quarter ended
30 September
2017 2016 %
PVNBP by product GBPm GBPm change
type
------------------ ----- ----- -------
(5.9)
Regular premium 19.3 20.5 %
44.0
Single premium 19.3 13.4 %
------------------------- ----- ----- -------
13.9
Total 38.6 33.9 %
------------------------- ----- ----- -------
Quarter ended
30 September
2017 2016 %
PVNBP by geographical GBPm GBPm change
area
------------------------ ----- ----- -------
28.0
Rest of World 13.7 10.7 %
17.6
Far East 8.7 7.4 %
(29.2)
Middle East and Africa 8.5 12.0 %
102.6
Latin America 7.7 3.8 %
13.9
Total 38.6 33.9 %
---------------------------- ----- ----- -------
Assets under Administration ("AUA")
The value of AuA is based upon the assets selected by or on
behalf of contract holders to meet their needs from time to time.
Reflecting the wide geographical spread of the Group's contract
holders, the majority of premium contributions and of AuA are
designated in currencies other than sterling.
The value of AuA is underpinned by a steady flow of regular
contributions from new and existing contract holders around the
world. Net withdrawals are typically experienced in Hansard Europe,
which closed to new business in 2013.
In aggregate, AuA increased marginally in Q1 FY 2018 to GBP1.05
billion as at 30 September 2017. Investment market gains continued
their positive momentum, offset by an increased level of
withdrawals on personal portfolio bond business.
Quarter ended
30 September
2017 2016
GBPm GBPm
------------------------------- ----------- ---------
Deposits to investment
contracts - regular premiums 21.0 19.3
Deposits to investment
contracts - single premiums 17.3 14.0
Withdrawals from contracts
and charges (52.8) (39.8)
Effect of market and currency
movements 15.3 64.8
------------------------------------- ----------- ---------
Increase / (decrease) in
period 0.8 58.3
Opening balance 1,049.7 923.5
------------------------------------- ----------- ---------
Assets under Administration
at 30 September 1,050.5 981.8
------------------------------------- ----------- ---------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Quarter ended
30 September
2017 2016
GBPm GBPm
-------------------------- ----------- --------
Hansard International 8.5 53.0
Hansard Europe (7.7) 5.3
-------------------------------- ----------- --------
Increase / (decrease) in
period 0.8 58.3
-------------------------------- ----------- --------
Results for the HALF-yearing 31 DECEMBER 2017
New business results for the half year ending 31 December 2017
are expected to be announced on 25 January 2018. Trading results
for the half year are expected to be announced on 22 February
2018.
Outlook
We maintain our confidence for stable, well diversified growth
during the remainder of the financial year.
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 contract wrapper,
designed to appeal to affluent, international investors.
-- The Group utilises a controlled cost distribution model by
selling policies exclusively through 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 scaleable.
-- The principal geographic markets in which the Group currently
services contract holders and financial advisors are the Middle
East, the Far East and Latin America, in the case of Hansard
International Limited, and Western Europe in the case of Hansard
Europe Designated Activity Company, the Group's two life assurance
companies. Hansard Europe Designated Activity Company ceased
accepting 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 scaleability 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.
-- Following the closure of Hansard Europe Designated Activity
Company to new business with effect from 30 June 2013, the Group
continues to report new business performance of Hansard
International Limited alone within this document. Reporting of
Assets under Administration incorporates cash flows relating to
insurance contracts issued by both Hansard International Limited
and Hansard Europe Designated Activity Company.
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 company news service from the London Stock Exchange
END
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