TIDMHSD
RNS Number : 7906E
Hansard Global plc
11 May 2017
11 May 2017
Hansard Global plc
Trading update for the period ended 31 March 2017
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its new business results for the
quarter ended 31 March 2017. All figures refer to this period ("Q3
2017"), except where indicated.
Summary
-- We have maintained our trend of increasing levels of new
business during the quarter, with the Far East and Latin America
now following the success achieved in the Middle East and Rest of
World regions;
-- New business for Hansard International Limited ("Hansard
International") for Q3 2017 was GBP38.9m in PVNBP ("Present Value
of New Business Premiums") terms, approximately 28% higher than Q3
2016;
-- As previously announced, our strategic alliance with Union
Insurance Company PSC in the UAE was launched during Q3 2017;
-- Assets under administration have increased since the last
quarter by GBP41m or 4% to GBP1.04 billion;
-- The Group traded profitably during the period and remains strongly capitalised.
Gordon Marr, Group Chief Executive Officer, commented:
"It is pleasing to see such strong rates of new business growth
and for it to extend across all the regions in which we operate. We
are delighted with the positive reception from our distribution
partners in the UAE around our alliance with Union Insurance and
look forward to achieving growth in that area in the coming
year."
For further information:
Hansard Global plc +44 (0) 1624 688000
Gordon Marr, Group Chief Executive
Officer
Tim Davies, Chief Financial Officer
Bell Pottinger +44 (0) 20 3772 2500
Daniel de Belder
Duncan Mayall
Hansard Global plc
New business results for the PERIOD ended 31 March 2017
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium products in a range of jurisdictions around the
world, achieving well diversified new business growth. Our main
sources of new business were well spread in Q3 2017 across the
Middle East & Africa, Far East and Rest of World regions.
In Present Value of New Business Premiums ("PVNBP") terms,
levels of new business in Q3 2017 were 28% ahead of the equivalent
prior year quarter (Q3 2016). They were 5% lower than Q2 2017 which
is in line with our seasonal expectations for the early part of the
calendar year.
The Group has traded profitably during the period and remains
strongly capitalised.
New Business Flows
New business flows for Hansard International for the quarter and
the nine months ended 31 March are summarised as follows:
Three months ended Nine months ended
31 March 31 March
2017 2016 % 2017 2016 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ------ ------- ---------- -------- -------
Present Value of New Business 28.0 31.1
Premiums 38.9 30.4 % 113.8 86.8 %
28.9 35.7
Annualised Premium Equivalent 5.8 4.5 % 17.5 12.9 %
------------------------------- ------ ------ ------- ---------- -------- -------
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 Nine months ended
31 March 31 March
2017 2016 % 2017 2016 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ ------- ------ ----- -------
39.2
Regular premium 20.3 15.2 33.6 % 62.9 45.2 %
22.4
Single premium 18.6 15.2 22.4 % 50.9 41.6 %
----------------------- ------ ------ ------- ------ ----- -------
31.1
Total 38.9 30.4 28.0 % 113.8 86.8 %
----------------------- ------ ------ ------- ------ ----- -------
Three months ended Nine months ended
31 March 31 March
2017 2016 % 2017 2016 %
PVNBP by geographical area GBPm GBPm change GBPm GBPm change
---------------------------- ------ ------ ------- ------ -------- -------
10.4
Rest of World 11.9 12.3 (3.3)% 38.1 34.5 %
41.9
Middle East and Africa 10.9 9.7 12.4 % 34.9 24.6 %
44.8
Far East 10.4 5.3 96.2 % 26.2 18.1 %
52.1
Latin America 5.7 3.1 83.9 % 14.6 9.6 %
31.1
Total 38.9 30.4 28.0 % 113.8 86.8 %
---------------------------- ------ ------ ------- ------ -------- -------
Note: Prior year geographical analysis has been reanalysed to be
consistent with 2017 classifications of policies written in trust.
This resulted in GBP3.4m being reanalysed from Rest of World to
Middle East & Africa (GBP3.2m) and Far East (GBP0.2m).
In Q3 2017, we continued to see strong growth of both regular
and single premium business. This business was well diversified
across the regions in which we operate with encouraging growth
levels also now seen in the Far East and Latin America.
Expatriate broker distribution has performed particularly
strongly and we have benefitted from the groundwork we have done,
revitalising old relationships and developing new ones.
Our strategic alliance with Union Insurance Company PSC in the
UAE was launched in Q3 2017. New terms of business have been signed
with a number of locally licensed insurance brokers and in line
with our expectations, we expect business will start being issued
onto our books in Q4 2017.
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.
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 Designated Activity Company ("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.
During Q3 2017, AuA grew by GBP41m, consolidating the position
at over GBP1 billion. The growth in AuA was driven primarily by
continued stock market gains, offset somewhat by foreign exchange
losses as the US dollar weakened against sterling in the
quarter.
Three months Nine months ended
ended
31 March 31 March
2017 2016 2017 2016
GBPm GBPm GBPm GBPm
----------------------------------------- -------- ------- --------- ---------
Deposits to investment contracts 37.2 32.6 110.3 93.5
Withdrawals from contracts and
charges (37.3) (34.2) (120.4) (130.4)
Effect of market and currency movements 41.0 22.0 128.5 6.4
----------------------------------------- -------- ------- --------- ---------
40.9 20.4 118.4 (30.5)
Opening balance 1,001.0 856.2 923.5 907.1
----------------------------------------- -------- ------- --------- ---------
Assets under Administration at
31 March 1,041.9 876.6 1,041.9 876.6
----------------------------------------- -------- ------- --------- ---------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Nine months ended
31 March
2017 2016
GBPm GBPm
--------------------------------- --- --------- ---------
Hansard International 121.4 0.2
Hansard Europe (3.0) (30.7)
---------------------------------------- --------- ---------
Increase / (decrease) in period 118.4 (30.5)
---------------------------------------- --------- ---------
FINANCIAL PERFORMANCE AND POSITION - NINE MONTHS TO 31 MARCH
2017
-- International Financial Reporting Standards ("IFRS")
The Group has traded profitably during the period and generated
positive net cash flows before dividends.
-- European Embedded Value ("EEV")
EEV at 31 March 2017 was marginally lower than the value at 31
December 2016, after paying out GBP4.9m in dividends. New business
margins have not altered significantly since 31 December 2016.
-- Capitalisation and Solvency
The Group continues to be strongly capitalised, enabling it to
satisfy operational, regulatory, contract holder and intermediary
expectations. There has been no material change in the level of
assets in excess of aggregate minimum regulatory capital
requirements. As at 31 December 2016 the Group had excess assets of
GBP38m.
-- Interim Dividend
An interim dividend of 3.6p per share (2016: 3.6p) was paid on
30 March 2017.
Litigation and policyholder complaints
The Group continues to carefully manage its litigation relating
to the legacy operations of Hansard Europe. Hansard Europe was
notified of 7 new writs in the period originating from Italy,
Belgium and Germany, totalling GBP0.6m. Total writs outstanding at
the end of the period were GBP13.8m.
Results for the year ENDing 30 JUNE 2017
New business results for the full-year are scheduled to be
announced on 27 July 2017. Trading results for the full-year are
expected to be announced on 28 September 2017.
Outlook
We look forward to a continuing upward trend in each of the
regions in which we operate and to seeing growth arising from our
alliance with our strategic partner in the UAE, Union
Insurance.
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 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 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 Regulation No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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