TIDMHSD
RNS Number : 6799G
Hansard Global plc
08 November 2018
8 November 2018
Hansard Global plc
Trading update for the quarter ended 30 September 2018
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
period from 1 July 2018 to 30 September 2018 (Q1 FY 2019), except
where indicated.
Summary
-- New business for Hansard International Limited ("Hansard
International") for the quarter to 30 September 2018 was GBP32.6m
in PVNBP ("Present Value of New Business Premiums"), 15.5% lower
than Q1 of the prior year;
-- Primary driver of reduced new business is the Far East where
we are in the process of re-positioning to locally licenced
business;
-- Continued positive growth of our locally licensed business relationship in the UAE;
-- Assets under administration marginally up on previous quarter to GBP1.04 billion;
-- New subsidiary in the Bahamas to commence trading on 1 January 2019.
Gordon Marr, Group Chief Executive Officer, commented:
"We have continued to make good progress on our strategic
re-positioning activities during the past quarter. While our
actions to exit certain distribution channels have led to lower
sales in the short term, we expect that the development of further
licenses across our markets will deliver growth in the near, medium
and long terms. We expect to be in a position to further outline
our strategic opportunities and progress at an investor day which
we plan to hold in the new year."
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 2018
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 2019 were 15.5% below Q1 FY 2018
and 11.4% below Q4 FY 2018. As outlined within our full year
results released in September, business is significantly lower in
our Far East region while we re-position towards locally licensed
business in that region. We expect to be in a position to announce
further progress on this process in the near term.
New Business Flows
New business flows for Hansard International for Q1 FY 2019 on
our key internal metrics are summarised as follows.
Quarter ended
30 September
2018 2017 %
Basis GBPm GBPm change
------------------------------- --- ----- ----- --------
Present Value of New Business
Premiums 32.6 38.6 (15.5%)
Annualised Premium Equivalent 5.0 6.1 (18.0%)
--------------------------------------- ----- ----- --------
-- Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International for Q1 FY 2019 on
the basis of PVNBP are analysed in the following two tables as
follows:
Quarter ended
30 September
2018 2017 %
PVNBP by product type GBPm GBPm change
----------------------- --- ----- ----- --------
Regular premium 15.5 19.3 (19.7%)
Single premium 17.1 19.3 (11.4%)
------------------------------- ----- ----- --------
Total 32.6 38.6 (15.5%)
------------------------------- ----- ----- --------
Quarter ended
30 September
2018 2017 %
PVNBP by geographical area GBPm GBPm change
---------------------------- ----- ----- --------
Rest of World 12.3 13.7 (10.2%)
Middle East and Africa 8.8 8.5 3.5%
Latin America 7.0 7.7 (9.1%)
Far East 4.5 8.7 (48.3%)
Total 32.6 38.6 (15.5%)
-------------------------------- ----- ----- --------
Overall business levels for Q1 FY 2019 saw reductions to both
regular and single premiums compared to Q1 FY 2018.
Notwithstanding that, we did see pleasing on-going growth from
our licensed business relationship in the UAE. This is now a
substantive part of the Middle East and Africa region's sales
demonstrating how our strategy of repositioning towards locally
licensed business is delivering.
In Latin America, despite the PVNBP measure of volume being down
9%, the numbers of policies sold were up by over 20% and business
activity levels continued to be strong. Q1 FY 2018 contained a
large single premium contribution of GBP1.4m which distorts a more
like-for-like comparison. Q1 FY 2019 new business was 13% higher
than the final quarter of last year, Q4 FY 2018.
As outlined in our 2018 financial year results released in
September, new business has declined in our Far East region while
we exit certain distribution channels and re-position towards
locally licensed business in a similar way to what we have done in
the Middle East. We expect to see that re-positioning to restore
growth later in 2019.
The Rest of World and Middle East & Africa regions were
affected in the period by two of our larger brokers focusing on a
change in ownership and the retention of key sales staff
respectively.
More generally in the market place, we have observed greater
product competition. There is a trend for Independent Financial
Advisors ("IFAs") to focus increasingly on lump sum new business
which has increased price competition and affected our single
premium sales for the period.
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.
AuA levels are affected by the level of new premium
contributions received from new and existing policy contracts, the
amount of assets withdrawn by contract holders (including those
withdrawn from Hansard Europe, which closed to new business in
2013), charges and the effect of investment market and currency
movements. These factors ultimately affect the level of fund-based
income earned by the Group.
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 2019 from the
opening position as at 30 June 2018. This was driven by modest
investment market gains.
Quarter ended
30 September
2018 2017
GBPm GBPm
----------------------------------------- --- ------------ --------
Deposits to investment contracts
- regular premiums 19.6 21.0
Deposits to investment contracts
- single premiums 17.1 17.3
Withdrawals from contracts and charges (41.4) (52.8)
Effect of market and currency movements 11.5 15.3
------------------------------------------------ ------------ --------
Increase / (decrease) in period 6.8 0.8
Opening balance 1,036.0 1,049.7
------------------------------------------------ ------------ --------
Assets under Administration at 30
September 1,042.8 1,050.5
------------------------------------------------ ------------ --------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Quarter ended
30 September
2018 2017
GBPm GBPm
--------------------------------- --- ----------- -------
Hansard International 8.4 8.5
Hansard Europe (1.6) (7.7)
---------------------------------------- ----------- -------
Increase / (decrease) in period 6.8 0.8
---------------------------------------- ----------- -------
Results for the HALF-yearing 31 DECEMBER 2018
New business results for the half year ending 31 December 2018
are expected to be announced on 24 January 2019. Trading results
for the half year are expected to be announced on 7 March 2019.
Outlook
As mentioned in our full year results released in September, we
expect business to be lower in our Far East region while we
re-position towards locally licensed business in that region.
Notwithstanding this, we remain confident that continued progress
with our strategic initiatives this year will result in attractive
future growth. We are currently seeing our current year Q2 new
business levels running higher than Q2 of last year. We expect our
new subsidiary in the Bahamas to commence trading on 1 January
2019, helping to support the on-going development of our Latin
American and global expatriate 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 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGMMGMKNNGRZM
(END) Dow Jones Newswires
November 08, 2018 02:00 ET (07:00 GMT)
Hansard Global (LSE:HSD)
Historical Stock Chart
From Apr 2024 to May 2024
Hansard Global (LSE:HSD)
Historical Stock Chart
From May 2023 to May 2024