TIDMHSD
RNS Number : 9361N
Hansard Global plc
24 January 2019
24 January 2019
Hansard Global plc
New business results for the six months ended 31 December
2018
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 2018, the first half of its 2019
financial year ("H1 2019"). The three months ended 31 December 2018
are referred to as "Q2 2019" throughout this document.
Summary
-- New business for Hansard International Limited ("Hansard
International") for Q2 2019 was GBP41.5m in PVNBP ("Present Value
of New Business Premiums") terms. This represents an increase of 8%
on Q2 2018 and 27% on Q1 2019;
-- New business for H1 2019 was GBP74.1m, 4% lower than H1 2018;
-- Our locally licensed venture in the UAE has delivered
impressive growth. Together with broader growth across the Middle
East & Africa region, new business in Q2 2019 more than doubled
compared to Q2 2018;
-- New business in the Far East continues to be lower than last
year as we seek to re-position our business in that region towards
locally licensed opportunities;
-- Assets under administration were GBP975.5 million at 31
December 2018, a decrease of GBP67m (6%) over the quarter as
investment markets fell significantly across the globe;
-- New subsidiary in the Bahamas launched as planned on 1 January 2019.
Gordon Marr, Group Chief Executive Officer, commented:
"It was pleasing to see our licenced business in the UAE
producing significant growth and new business levels. This has
helped us recover from our first quarter position and we look
forward to continuing this momentum over the remainder of the
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 LLP +44 (0) 203 757 4980
Ben Woodford, Kimberley Taylor, Rebecca
Noonan
Hansard Global plc
New business results for the six months ended 31 December
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, new
business for Q2 2019 recovered significantly from the dip
experienced in Q1 2019 and was 7.8% higher than Q2 2018. The
primary driver of this growth came from our strategic relationship
in the UAE where new business more than doubled from Q2 2018 to Q2
2019. New business for the six months to 31 December 2018 was
GBP74.1m, 3.8% down on H1 2018.
New Business Flows
New business flows for Hansard International for the quarter and
the half-year are summarised as follows:
Three months ended Six months ended
31 December 31 December
2018 2017 % 2018 2017 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ------ ------- --------- -------- --------
Present Value of New Business
Premiums 41.5 38.5 7.8% 74.1 77.0 (3.8%)
Annualised Premium Equivalent 6.8 6.0 13.3% 11.8 12.1 (2.5%)
------------------------------- ------ ------ ------- --------- -------- --------
Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International on the basis of
PVNBP are broken down as follows:
Three months ended Six months ended
31 December 31 December
2018 2017 % 2018 2017 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ ------- ----- ----- -------
Regular premium 21.8 18.6 17.2% 37.4 37.9 (1.3%)
Single premium 19.7 19.9 (1.0%) 36.7 39.1 (6.1%)
----------------------- ------ ------ ------- ----- ----- -------
Total 41.5 38.5 7.8% 74.1 77.0 (3.8%)
----------------------- ------ ------ ------- ----- ----- -------
Three months ended Six months ended
31 December 31 December
2018 2017 % 2018 2017 %
PVNBP by geographical area GBPm GBPm change GBPm GBPm change
---------------------------- ------ ----- -------- ----- ----- --------
Middle East and Africa 15.8 7.8 102.6% 24.7 16.3 51.5%
Rest of World 13.9 17.4 (20.1%) 26.1 31.0 (15.8%)
Latin America 6.1 6.3 (3.2%) 13.1 14.0 (6.4%)
Far East 5.7 7.0 (18.6%) 10.2 15.7 (35.0%)
Total 41.5 38.5 7.8% 74.1 77.0 (3.8%)
---------------------------- ------ ----- -------- ----- ----- --------
The highlight in new business for the period has been the growth
of our strategic relationship in the UAE (part of our Middle East
& Africa region). In PVNBP terms, new business in Q2 2019 has
more than doubled compared to Q2 2018 and more than tripled in
terms of numbers of policies sold. Our UAE business is exclusively
regular premium and has therefore been the driving force behind the
17% increase in regular premium business in Q2 2019 compared to Q2
2018.
The Rest of World region sold slightly more policies in Q2 2019
compared to Q2 2018, but at a lower average value as lump sum
single premiums can fluctuate period to period.
While Latin America is down modestly in Q2 2019 from Q2 2018,
levels of new business continue to represent significant growth
from the position two years ago. We have invested in an additional
account executive for the region to help drive the next stage of
its growth.
As communicated in our Q1 2019 results, new business in our Far
East region is down while we re-position towards locally licensed
business in a similar manner to that successfully implemented in
the Middle East.
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 (including those
withdrawn from Hansard Europe dac ("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.
During Q2 2019, AuA fell approximately 6% to GBP975.5 million as
investment markets suffered declines globally.
Three months Six months ended
ended
31 December 31 December
2018 2017 2018 2017
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- --------- --------
Deposits to investment contracts
- regular premiums 20.1 21.5 39.7 42.5
Deposits to investment contracts
- single premiums 19.9 17.8 37.0 35.1
Withdrawals from contracts and
charges (36.3) (45.0) (77.7) (97.8)
Effect of market and currency movements (71.0) 42.7 (59.5) 58.0
----------------------------------------- -------- -------- --------- --------
(67.3) 37.0 (60.5) 37.8
Opening balance 1,042.8 1,050.5 1,036.0 1,049.7
----------------------------------------- -------- -------- --------- --------
Assets under Administration at
31 December 975.5 1,087.5 975.5 1,087.5
----------------------------------------- -------- -------- --------- --------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Six months ended
31 December
2018 2017
GBPm GBPm
--------------------------------- --- ---------- ---------
Hansard International (47.8) 48.7
Hansard Europe (12.7) (10.9)
---------------------------------------- ---------- ---------
Increase / (decrease) in period (60.5) 37.8
---------------------------------------- ---------- ---------
Results for the half-yearED 31 December 2018
Trading results for the half-year are expected to be announced
on 7 March 2019.
Outlook
We continue to pursue opportunities for growth in line with our
previously stated strategic objectives. Our new subsidiary in the
Bahamas launched on schedule on 1 January 2019. We are in the
process of transitioning a number of existing and new brokers to
this channel with positive feedback received to date. We expect
this channel to produce incremental new business in the latter part
of this financial year and beyond. We plan to share further detail
on this and other strategic opportunities and progress when we
release our half-year financial results on 7 March 2019.
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 scaleable.
-- 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, 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
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 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 policies 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
TSTKMGZMNFFGLZM
(END) Dow Jones Newswires
January 24, 2019 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