New Business Results
Hansard Global plc
01 May 2007
HANSARD GLOBAL plc
New business results for the nine months ended 31 March 2007
Hansard Global plc ('Hansard' or 'the Group'), the specialist long-term savings
provider, today announces its new business results for the nine-month period
ended 31 March 2007.
New business premiums on an APE basis(1) in sterling terms(1) during the first
nine months of the financial year totalled £26.0 million. This represents an
increase of 14.0% over the £22.8 million APE of the first nine months of the
previous financial year, calculated on a constant currency basis(2). This
reflects continued strong new business flows, particularly in the Far East,
Scandinavia and Latin America.
Policy contracts issued continue to earn new business margins consistent with
previous periods.
The majority of new business premium flows continue to be received in currencies
other than sterling. As a result of the strengthening of sterling against those
currencies over the period, the growth in new business, on the basis of actual
exchange rates experienced in the corresponding period of the previous financial
year, is 8.8%.
The value of Assets under Administration as at 31 March 2007, £1,074 million,
has risen by 13.4% since 30 June 2006. The main drivers for this increase have
been new business single premium flows and movements in capital markets.
The investment choices of policyholders and their agents generally reflect the
currency of the territories in which they are resident. The accumulated asset
values are therefore subject to currency rate fluctuations.
Leonard Polonsky, Chief Executive of Hansard Global, commented:
'We are pleased to report continued growth in new business and in assets under
administration arising from increased intermediary activity, particularly in the
Far East, Scandinavia and Latin America.'
'The continued strengthening of sterling against the US Dollar and other major
currencies has the effect of depressing new business figures reported in
sterling. The presentation of these figures on a constant currency basis
provides an appropriate representation of the activities of the intermediaries
who introduce business to us.'
'However, in terms of volume, during the nine-month period to 31 March 2007, the
Group issued 19% more policy contracts than in the corresponding period of the
previous financial year, which is an indication of new business activity levels
that is masked by currency movements.'
'I am pleased to report that the value of Hansard's assets under administration
is approximately £1.1bn (US$ 2.2bn) as at 31 March 2007.The value of assets
under administration continues to increase, despite the volatility in global
capital markets experienced in February and March, demonstrating the benefit of
the large number of regular premium contracts that we administer on behalf of
policyholders around the world. We attribute some delay in the issue of very
large single premium cases to this recent volatility.'
For further information
Hansard
Leonard Polonsky, Chief Executive 01624 688000
Gordon Marr, Director 01624 688000
Bell Pottinger 020 7861 3232
Ben Woodford 020 7861 3917
Daniel de Belder 020 7861 3881
HANSARD GLOBAL PLC
NEW BUSINESS RESULTS FOR THE NINE MONTHS ENDED 31 MARCH 2007
1. APE On a Constant Currency Basis
Unaudited
Nine months ended 31 March 2007
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)(2)
Single 12.7 10.9 16.5%
Regular 13.3 11.9 11.8%
---------- ----------- ----------
26.0 22.8 14.0%
---------- ----------- ----------
New Business Premiums (APE)(1)(2)(3)
EU and EEA 10.3 10.6 -2.8%
Rest of World 15.7 12.2 28.7%
---------- ----------- ----------
26.0 22.8 14.0%
---------- ----------- ----------
Unaudited
Three months ended 31 March 2007
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)(2)
Single 4.1 3.4 20.6%
Regular 4.6 4.2 9.5%
---------- ----------- ----------
8.7 7.6 14.5%
---------- ----------- ----------
New Business Premiums (APE)(1)(2)(3)
EU and EEA 3.3 3.3 0%
Rest of World 5.4 4.3 25.6%
---------- ----------- ----------
8.7 7.6 14.5%
---------- ----------- ----------
2. APE On an Actual Exchange Rate basis
Unaudited
Nine months ended 31 March 2007
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)
Single 12.7 11.2 13.4%
Regular 13.3 12.7 4.7%
---------- ----------- ----------
26.0 23.9 8.8%
---------- ----------- ----------
New Business Premiums (APE)(1)(3)
EU and EEA 10.3 10.8 -4.6%
Rest of World 15.7 13.1 19.8%
---------- ----------- ----------
26.0 23.9 8.8%
---------- ----------- ----------
Unaudited
Three months ended 31 March 2007
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)
Single 4.1 3.5 17.1%
Regular 4.6 4.5 4.4%
---------- ----------- ----------
8.7 8.0 8.8%
---------- ----------- ----------
New Business Premiums (APE)(1)(3)
EU and EEA 3.3 3.4 -2.9%
Rest of World 5.4 4.6 17.4%
---------- ----------- ----------
8.7 8.0 8.8%
---------- ----------- ----------
3. Assets under Administration
--------- ------- -------- ---------
Unaudited Audited As Change Unaudited
As at at 30 June % As at
31 March 2006 31 March
2007 £m 2006
£m £m
--------- ------- -------- ---------
Assets under Administration (4) 1,074 947 13.4% 970
--------- ------- -------- ---------
(1) New business from long-term savings is calculated on an APE basis in
accordance with the life assurance industry convention by adding new regular
premiums and one tenth of single premiums. Premiums arising in foreign
currencies are translated to sterling at the rates of exchange ruling at the
transaction date.
(2) APE in the nine-month period ended 31 March 2006 is presented in section 1
above on a constant currency basis. Premiums arising in foreign currencies in
that period are translated to sterling at the average rates of exchange
applicable to the nine- month period ended 31 March 2007. The principal exchange
rates applied are: £1 = $1.92 and £1 = €1.48.
(3) The geographical split of APE is based on the country of residence of the
policyholder.
(4) Assets under Administration are valued at market values at the relevant
date, using closing exchange rates against sterling. The principal exchange
rates applied at 31 March 2007 are: £1 = $1.97 and £1 = €1.47 (31 March 2006: £1
= $1.74 and £1 = €1.43).
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 on 18
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 low-cost distribution model by selling policies
exclusively through a network of financial services intermediaries,
independent financial advisers and the retail operations of certain
financial institutions (collectively 'Intermediaries'), who provide access
to their clients in more than 170 countries. The Group's distribution model
is supported by an award-winning, multi-language internet platform, and is
scaleable.
• The principal geographic markets in which the Group currently services
Intermediaries and policyholders are the Far East, the Middle East, and
South America in the case of Hansard International Limited, and Western
Europe in the case of Hansard Europe Limited, the Group's two life assurance
companies.
• The Group's objective is to grow its business 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.
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.
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