Trading Update

RNS Number : 9619V

Hansard Global plc

09 November 2017

 

9 November 2017

Hansard Global plc

Trading update for the quarter ended 30 September 2017

Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider, issues its trading update for the period from 1 July 2017 to 30 September 2017 (Q1 FY 2018), except where indicated.

Summary

·     We continue to deliver strong increases in new business levels in line with our strategy;

·     New business for Hansard International Limited ("Hansard International") for the quarter to 30 September 2017 was £38.6m in PVNBP ("Present Value of New Business Premiums"), approximately 14% higher than Q1 of the prior year and 12% higher than the final quarter of FY 2017;

·     On-going improvements to our single premium product offering and the development globally of our offshore pensions business have been the primary areas of growth;

·     New relationships established in Latin America have continued to mature and have resulted in a more than doubling of new business in that region since Q1 FY 2017;

·     Assets under administration remain in line with the previous quarter at £1.05 billion.

Gordon Marr, Group Chief Executive Officer, commented:

"We are pleased to announce the continued growth in our new business and in particular the well diversified spread across each of the regions in which we operate.  We remain confident that we can continue to execute upon our strategy and deliver further growth for the future."

For further information:

Hansard Global plc

Gordon Marr, Group Chief Executive Officer

Tim Davies, Chief Financial Officer

Phone:             [phone]

Email:              [e-mail]

Hansard Global plc

NEW BUSINESS RESULTS FOR THE quarter ENDED 30 SEPTEMBER 2017

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 2018 were 14% ahead of Q1 FY 2017 and 12% ahead of Q4 FY 2017.

The key driver of this growth was an increase in single premium business as a result of the improvements we have made in our lump sum proposition and the continued development globally of our offshore pensions business.

New relationships established in Latin America and the Rest of the World over the past two years continue to mature and provide rapidly growing levels of new business.  New business more than doubled in Latin America since Q1 FY 2017 and increased by 28% in the Rest of the World.

Our regular premium business was down slightly by 6% on Q1 FY 2017 as a result of the exit from the market of one of our distributors in the Middle East and Africa.  Otherwise, the underlying growth in regular premiums around the world has continued.  

Business flows through our local partnership in the UAE have started to build in the quarter and we expect this to increase quarter on quarter as we proceed through the year.

The Group has traded profitably during the period and remains strongly capitalised.

New Business Flows

New business flows for Hansard International for Q1 FY 2018 on our key internal metrics are summarised as follows.

					Quarter ended
					30 September
					2017	2016	%
Basis					£m	£m	change
Present Value of New Business Premiums					38.6	33.9	13.9 %
Annualised Premium Equivalent					6.1	5.3	15.1 %

·    Present Value of New Business Premiums ("PVNBP")

New business flows for Hansard International for Q1 FY 2018 on the basis of PVNBP are analysed in the following two tables as follows:

					Quarter ended
					30 September
					2017	2016	%
PVNBP by product type					£m	£m	change
Regular premium					19.3	20.5	(5.9) %
Single premium					19.3	13.4	44.0 %
Total					38.6	33.9	13.9 %

					Quarter ended
					30 September
					2017	2016	%
PVNBP by geographical area					£m	£m	change
Rest of World					13.7	10.7	28.0 %
Far East					8.7	7.4	17.6 %
Middle East and Africa					8.5	12.0	(29.2) %
Latin America					7.7	3.8	102.6 %
Total					38.6	33.9	13.9 %

Assets under Administration ("AUA")

The value of AuA is based upon the assets selected by or on behalf of contract holders to meet their needs from time to time. Reflecting the wide geographical spread of the Group's contract holders, the majority of premium contributions and of AuA are designated in currencies other than sterling.

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 2018 to £1.05 billion as at 30 September 2017.  Investment market gains continued their positive momentum, offset by an increased level of withdrawals on personal portfolio bond business. 

				Quarter ended
				30 September
				2017	2016
				£m	£m
Deposits to investment contracts - regular premiums				21.0	19.3
Deposits to investment contracts - single premiums				17.3	14.0
Withdrawals from contracts and charges				(52.8)	(39.8)
Effect of market and currency movements				15.3	64.8
Increase / (decrease) in period				0.8	58.3
Opening balance				1,049.7	923.5
Assets under Administration at 30 September				1,050.5	981.8

The movement in AuA is split as follows between Hansard International and Hansard Europe:

				Quarter ended
				30 September
				2017	2016
				£m	£m
Hansard International				8.5	53.0
Hansard Europe				(7.7)	5.3
Increase / (decrease) in period				0.8	58.3

Results for the HALF-year ENDing 31 DECEMBER 2017

New business results for the half year ending 31 December 2017 are expected to be announced on 25 January 2018.  Trading results for the half year are expected to be announced on 22 February 2018.

Outlook

We maintain our confidence for stable, well diversified growth during the remainder of the financial year. 

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

 

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