TIDMHSD
RNS Number : 2599R
Hansard Global plc
04 November 2021
4 November 2021
Hansard Global plc
Trading update for the quarter ended 30 September 2021
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the first
quarter of its financial year ended 30 June 2022 (Q1 2022), being
the period from 1 July 2021 to 30 September 2021.
Summary
-- New business for the quarter ended 30 September 2021 was
GBP31.4m in PVNBP ("Present Value of New Business Premiums") terms,
8.2% lower than Q1 of the prior financial year;
-- Assets under administration were GBP1.22 billion as at 30
September 2021, unchanged from 30 June 2021;
-- Covid-19 restrictions in Japan are gradually improving with
our chosen distribution partner engaging positively around
replanning their backlog of product launch activities.
Graham Sheward, Group Chief Executive Officer, commented:
" While the first quarter of our financial year typically sees a
seasonal decline due to the summer holiday period, this year the
impact was greater as distributors and clients took the opportunity
to take extended summer breaks as global travel restrictions eased.
As a result, the first quarter of our 2022 financial year saw lower
levels of new business. However, we are working hard to
reinvigorate sales levels for Q2 which traditionally sees volumes
increase.
The operating environment in Japan is gradually improving as
Covid-19 restrictions are relaxed, although it may still be a while
before we return to more normalised conditions. Notwithstanding
this, we are working hard to agree a detailed timeline to launch
with our first distribution partner and continue to expect this
initiative to deliver positive new business growth for Hansard
.
I was delighted to accept industry awards recently from
International Investment on behalf of my colleagues for technology
and customer service excellence. These are key areas in which
Hansard seeks to maintain its competitive advantage and are
important to our future success."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Graham Sheward, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco +44 (0) 7990 653 341
Ben Woodford, Hugo Liddy
Hansard Global plc
NEW BUSINESS RESULTS FOR THE quarterED 30 SEPTEMBER 2021
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium savings and investment products in a range of
jurisdictions around the world.
In Present Value of New Business Premiums ("PVNBP") terms,
levels of new business in Q1 2022 were 8.2% lower than Q1 2021.
New Business Flows
New business flows for Q1 2022 on our key metrics were as
follows:
Quarter ended
30 September
2021 2020 %
Basis GBPm GBPm change
------------------------------- ----- ----- --------
Present Value of New Business
Premiums 31.4 34.2 (8.2%)
Annualised Premium Equivalent 4.1 5.0 (18.0%)
-------------------------------------- ----- ----- --------
Present Value of New Business Premiums ("PVNBP")
New business flows for Q1 2022 on the basis of PVNBP are
analysed in the following two tables as follows:
Quarter ended
30 September
2021 2020 %
PVNBP by product type GBPm GBPm change
----------------------- ----- ----- --------
Regular premium 18.9 23.1 (18.2%)
Single premium 12.5 11.1 12.6%
------------------------------ ----- ----- --------
Total 31.4 34.2 (8.2%)
------------------------------ ----- ----- --------
Quarter ended
30 September
2021 2020 %
PVNBP by geographical area GBPm GBPm change
---------------------------- ----- ----- --------
Middle East and Africa 10.7 13.9 (23.0%)
Rest of World 9.4 10.5 (10.5%)
Latin America 6.8 7.4 (8.1%)
Far East 4.5 2.4 87.5%
Total 31.4 34.2 (8.2%)
-------------------------------- ----- ----- --------
While Q1 typically sees a seasonal decline compared to other
quarters due to the summer holiday period, this appeared to be more
pronounced this year as both distributors and clients took the
opportunity to take extended summer breaks as global travel
restrictions eased for the first time in over a year.
We also saw a trend away from the long-term financial commitment
of regular premium savings contracts towards alternative
assets.
As a result, regular premium new business fell 18.2% from Q1
2020. Single premiums were more popular due to their greater
flexibility, growing 12.6% from Q1 2020.
In our largest region, Middle East and Africa, new business was
down 23.0%. We experienced lower regular premium volumes with
average case size for both regular and single premiums also being
lower. Of all our regions, the Middle East & Africa was most
affected by distributors taking extended breaks as travel
restrictions eased.
The Rest of World region was down 10.5% where we also
experienced lower regular premium volumes and lower average case
size for both regular and single premiums. Many of the key
countries within this region experienced quite severe Covid-19
effects which was the major contributing factor to the reduction in
sales.
New business in Latin America was down 8.1%. This was driven by
smaller average case sizes although it was encouraging to see
higher numbers of cases being written, pointing towards an
improving environment as Covid-19 restrictions gradually relax.
The l arge increase in new business of 87.5% in the Far East
region came off a low base in Q1 2021 and is more reflective of
business levels written in the latter part of FY 2021.
A wide-ranging sales improvement plan is being implemented
across all regions in Q2 to drive up new business volumes during
what is usually a strong quarter.
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, charges and the
effect of investment market and currency movements. These factors
ultimately affect the level of fund-based income earned by the
Group. Net withdrawals are typically experienced in Hansard Europe
dac ("Hansard Europe"), which closed to new business in 2013.
During Q1 2022, AuA decreased marginally by GBP4.8m to remain at
GBP1.22 billion. Global investment markets were relatively flat,
with withdrawals GBP8.0m higher than premiums received. The
following analysis shows the components of the movement in AuA
during the quarter:
Quarter ended
30 September
2021 2020
GBPm GBPm
----------------------------------------- ---------- ----------
Deposits to investment contracts
- regular premiums 20.9 22.5
Deposits to investment contracts
- single premiums 12.6 11.1
Withdrawals from contracts and charges (41.5) (38.3)
Effect of market and currency movements 3.2 23.8
----------------------------------------------- ---------- ----------
Increase in period (4.8) 19.1
Opening balance 1,224.2 1,080.5
----------------------------------------------- ---------- ----------
Assets under Administration at 30
September 1,219.4 1,099.6
----------------------------------------------- ---------- ----------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Quarter ended
30 September
2021 2020
GBPm GBPm
------------------------------- ---------- ---------
Hansard International (3.0) 21.7
Hansard Europe (1.8) (2.6)
------------------------------------- ---------- ---------
(Decrease)/increase in period (4.8) 19.1
------------------------------------- ---------- ---------
AWARDS
We were delighted to win industry awards during the period at
the 2021 International Investment awards for "Excellence in
Fintech" and "Excellence in Client Service - Asia". These are two
areas in which Hansard strives to differentiate itself and we
believe are more important than ever during the challenges of the
Covid-19 environment.
Results for the HALF-year ENDing 31 DECEMBER 2021
New business results for the half year ending 31 December 2021
are expected to be announced on 27 January 2022. Trading results
for the half year are expected to be announced on 3 March 2022.
Outlook
The external global environment and the ability for our
IFA-distribution to grow new business continues to be challenging
as Covid-19 related restrictions and economic confidence
fluctuates.
We expect t he launch of our Japanese proposition with our first
distribution partner to deliver positive new business growth
following its launch.
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 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 scalable.
-- 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. These markets
are served by Hansard International Limited and Hansard Worldwide
Limited.
-- Hansard Europe dac previously operated in Western Europe but
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 scalability and flexibility of the Group's
operations allow it to enter or develop new geographic markets and
exploit growth opportunities within existing markets often 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.
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regime.
Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
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END
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