TIDMHSD
RNS Number : 5407S
Hansard Global plc
07 November 2019
7 November 2019
Hansard Global plc
Trading update for the quarter ended 30 September 2019
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
period from 1 July 2019 to 30 September 2019 (Q1 2020), except
where indicated.
Summary
-- New business for the quarter to 30 September 2019 was
GBP35.8m in PVNBP ("Present Value of New Business Premiums") terms,
9.8% higher than Q1 2019;
-- Primary area of growth continues to come from our locally
licensed business relationship in the UAE;
-- Assets under administration up marginally on previous quarter to GBP1.09 billion.
Gordon Marr, Group Chief Executive Officer, commented:
"We are pleased to have started our financial year successfully
with our new business from the UAE continuing to perform strongly.
Following the recent acquisition of our Investment Manager licence
in Japan, our primary objective for this financial year is to
finalise our new proposition and operational model with a number of
potential distribution partners and to launch to new business."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Gordon Marr, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco +44 (0) 203 757 4980
Ben Woodford, Kimberley Taylor, Rebecca Noonan
Hansard Global plc
NEW BUSINESS RESULTS FOR THE quarterED 30 SEPTEMBER 2019
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 2020 were 9.8% higher than Q1 2019.
The primary area of growth continues to come from regular premium
savings in the UAE.
New Business Flows
New business flows for Q1 2020 on our key internal metrics are
summarised as follows:
Quarter ended
30 September
2019 2018 %
Basis GBPm GBPm change
------------------------------- --- ----- ----- -------
Present Value of New Business
Premiums 35.8 32.6 9.8%
Annualised Premium Equivalent 5.5 5.0 10.0%
--------------------------------------- ----- ----- -------
-- Present Value of New Business Premiums ("PVNBP")
New business flows for Q1 2020 on the basis of PVNBP are
analysed in the following two tables as follows:
Quarter ended
30 September
2019 2018 %
PVNBP by product type GBPm GBPm change
----------------------- --- ----- ----- --------
Regular premium 22.6 15.5 45.8%
Single premium 13.2 17.1 (22.8%)
------------------------------- ----- ----- --------
Total 35.8 32.6 9.8%
------------------------------- ----- ----- --------
Quarter ended
30 September
2019 2018 %
PVNBP by geographical area GBPm GBPm change
---------------------------- ----- ----- --------
Middle East and Africa 15.3 8.8 79.5%
Rest of World 9.6 12.3 (22.0%)
Latin America 8.7 7.0 24.3%
Far East 2.2 4.5 (51.1%)
Total 35.8 32.6 9.8%
-------------------------------- ----- ----- --------
Overall, it was pleasing to see a 9.8% growth in our new
business for the first quarter of the financial year. We have
directed additional key account management activities towards our
top distributors in the Middle East and Africa and in Latin America
and this has produced very positive results.
In terms of business mix, we continued to focus on regular
premium savings rather than pursue increasingly competitive single
premium business. This resulted in our regular premiums rising
45.8% and single premiums falling 22.8% in Q1 2020 compared to Q1
2019.
Our Middle East and Africa region continued to do well, driven
primarily by our strategic relationship in the UAE. New business
was up 79.5% for the quarter and 6% up on our annual run rate for
2019.
The Rest of World region was 22.0% lower than Q1 2019 primarily
due to lower single premium business.
In Latin America, new business was up 24.3% as we continued to
drive relationships in that region, supported by our Hansard
Worldwide subsidiary in The Bahamas.
As communicated in previous announcements, our current focus in
the Far East region is to launch our new Japanese proposition.
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 Q1 2020 AuA increased by GBP12.7m (1%) to GBP1,092.4m,
reflecting relatively stable global stock markets and further
weakening of sterling against the US dollar.
Quarter ended
30 September
2019 2018
GBPm GBPm
----------------------------------------- --- ---------- ----------
Deposits to investment contracts
- regular premiums 21.3 19.6
Deposits to investment contracts
- single premiums 13.1 17.1
Withdrawals from contracts and charges (38.8) (41.4)
Effect of market and currency movements 17.1 11.5
------------------------------------------------ ---------- ----------
Increase / (decrease) in period 12.7 6.8
Opening balance 1,079.7 1,036.0
------------------------------------------------ ---------- ----------
Assets under Administration at 30
September 1,092.4 1,042.8
------------------------------------------------ ---------- ----------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Quarter ended
30 September
2019 2018
GBPm GBPm
--------------------------------- --- ---------- ----------
Hansard International 15.2 8.4
Hansard Europe (2.5) (1.6)
---------------------------------------- ---------- ----------
Increase / (decrease) in period 12.7 6.8
---------------------------------------- ---------- ----------
Results for the HALF-yearing 31 DECEMBER 2019
New business results for the half year ending 31 December 2019
are expected to be announced on 24 January 2020. Trading results
for the half year are expected to be announced on 5 March 2020.
Outlook
Our second quarter to date has maintained our positive momentum
and we expect to see similar growth continue throughout the course
of our financial year. We continue to work hard at progressing our
new Japanese proposition and will update the market when we achieve
additional key milestones such as the signing of formal
distribution agreements.
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 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 often 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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