TIDMHSD
RNS Number : 2894E
Hansard Global plc
05 November 2020
5 November 2020
Hansard Global plc
Trading update for the quarter ended 30 September 2020
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 2021 (Q1 2021), being
the period from 1 July 2020 to 30 September 2020.
Summary
-- New business for the quarter ended 30 September 2020 was
GBP34.2m in PVNBP ("Present Value of New Business Premiums") terms,
4.5% lower than Q1 of the prior financial year;
-- Business remains resilient and well diversified in the face
of the continued challenges of Covid-19 ;
-- Assets under administration were GBP1.1 billion, up 1.8% from 30 June 2020;
-- Launch of our Japanese proposition with our first
distribution partner targeted for Spring 2021.
Gordon Marr, Group Chief Executive Officer, commented:
"The first quarter of our 2021 financial year has been in-line
with our general experience to-date of the Covid-19 environment.
Sales activity remains challenging, but we continue to deploy and
utilise our technology and customer service strengths in ways to
assist our brokers and clients wherever possible. It was
particularly pleasing to receive outside recognition for this by
winning recent industry awards for both our technology and customer
service in the International Investment magazine 2020 Awards.
While we are confident our new business will continue to be
resilient in the face of Covid-19 challenges, we expect it to
continue to lag behind the levels achieved last year. We continue
to invest for the future through the on-going development of our
Japanese proposition and the upgrade of our systems environment.
The launch of our Japanese proposition with our first distribution
partner is targeted for Spring 2021."
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, Rebecca Noonan
Hansard Global plc
NEW BUSINESS RESULTS FOR THE quarterED 30 SEPTEMBER 2020
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.
In Present Value of New Business Premiums ("PVNBP") terms,
levels of new business in Q1 2021 were 4.5% lower than Q1 2020,
reflecting the challenges presented by Covid-19 across each of the
regions in which we operate.
New Business Flows
New business flows for Q1 2021 on our key internal metrics were
as follows:
Quarter ended
30 September
2020 2019 %
Basis GBPm GBPm change
------------------------------- --- ----- ----- -------
Present Value of New Business
Premiums 34.2 35.8 (4.5%)
Annualised Premium Equivalent 5.0 5.5 (9.1%)
--------------------------------------- ----- ----- -------
-- Present Value of New Business Premiums ("PVNBP")
New business flows for Q1 2021 on the basis of PVNBP are
analysed in the following two tables as follows:
Quarter ended
30 September
2020 2019 %
PVNBP by product type GBPm GBPm change
----------------------- --- ----- ----- --------
Regular premium 23.1 22.6 2.2%
Single premium 11.1 13.2 (15.9%)
------------------------------- ----- ----- --------
Total 34.2 35.8 (4.5%)
------------------------------- ----- ----- --------
Quarter ended
30 September
2020 2019 %
PVNBP by geographical area GBPm GBPm change
---------------------------- ----- ----- --------
Middle East and Africa 13.9 15.3 (9.2%)
Rest of World 10.5 9.6 9.4%
Latin America 7.4 8.7 (14.9%)
Far East 2.4 2.2 9.1%
Total 34.2 35.8 (4.5%)
-------------------------------- ----- ----- --------
Our current focus in terms of business mix continues to be
directed towards higher margin regular premium savings while
selectively pursuing single premiums where the margin is
acceptable. This resulted in our regular premiums rising 2.2% for
Q1 2021 compared to Q1 2020, while single premiums fell 15.9%.
In our largest region, Middle East and Africa, new business was
down 9.2% as Covid-19 restrictions reduced sales activity and
brokers had to direct resources into putting in place new operating
models to account for regulatory changes in the UAE which came into
force in October 2020.
As a result of those regulatory changes, Hansard's strategic
alliance partner in the UAE has elected to stop writing new savings
business (which they reinsure to Hansard) while they assess the
resultant impact of the new regulations on the market. They will
continue to encourage increments to existing policyholders. Hansard
has put in place alternative distribution structures in order to
continue to source new business in the region.
The Rest of World region was up 9.4% primarily due to the
successful development of a Key Account brokerage and the result of
focused work with other brokers in the region.
Having grown rapidly last year, new business in Latin America
was down 14.9% as the region was hit particularly hard by Covid-19.
Underlying broker relationships in this region are very strong and
we expect improvements in new business levels as and when the
Covid-19 environment improves.
We saw an increase in new business in the Far East region of
9.1% as our continuing work to develop additional new business via
our licence in Labuan, Malaysia starts to show some early promise.
As outlined in previous reports, our main strategic focus in the
Far East is to develop and bring our new Japanese proposition to
market and we are targeting our launch for Spring 2021.
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 2021 AuA increased by GBP19.1m (1.8%) to GBP1.1
billion, reflecting positive global stock markets offset by gains
in sterling against the US dollar. The following analysis shows the
components of the movement in AuA during the quarter:
Quarter ended
30 September
2020 2019
GBPm GBPm
----------------------------------------- --- ---------- ----------
Deposits to investment contracts
- regular premiums 22.5 21.3
Deposits to investment contracts
- single premiums 11.1 13.1
Withdrawals from contracts and charges (38.3) (38.8)
Effect of market and currency movements 23.8 17.1
------------------------------------------------ ---------- ----------
Increase in period 19.1 12.7
Opening balance 1,080.5 1,079.7
------------------------------------------------ ---------- ----------
Assets under Administration at 30
September 1,099.6 1,092.4
------------------------------------------------ ---------- ----------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Quarter ended
30 September
2020 2019
GBPm GBPm
----------------------- --- ------ ---------------
Hansard International 21.7 15.2
Hansard Europe (2.6) (2.5)
------------------------------ ------ ---------------
Increase in period 19.1 12.7
------------------------------ ------ ---------------
AWARDS
We were delighted to win industry awards during the period in
the International Investment magazine 2020 Awards for "Excellence
in Client Service" and "Excellence in Fintech". These are two areas
in which Hansard strives to differentiate itself and we believe are
more important than ever during the challenges of the Covid-19
environment.
Results for the HALF-yearing 31 DECEMBER 2020
New business results for the half year ending 31 December 2020
are expected to be announced on 28 January 2021. Trading results
for the half year are expected to be announced on 4 March 2021.
Outlook
Our expectation is that the external global environment will
continue to be challenging throughout the course of our financial
year and that further regional lockdowns and travel restrictions
can be expected over the winter months. While we are confident our
new business will continue to be resilient in the face of these
challenges, we expect it to continue to lag behind the levels
achieved last year.
We continue to invest for the future through the on-going
development of our Japanese proposition and the upgrade of our
systems environment. The launch of our Japanese proposition with
our first distribution partner is targeted for Spring 2021.
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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