TIDMHSD
RNS Number : 7554Z
Hansard Global plc
27 January 2022
27 January 2022
Hansard Global plc
New business results for the six months ended 31 December
2021
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 2021 ("H1 2022"). The three months
ended 31 December 2021 are referred to as "Q2 2022" throughout this
document.
Summary
-- New business for the Group for Q2 2022 was GBP33.5m in PVNBP
("Present Value of New Business Premiums") terms (Q2 2021:
GBP42.1m, Q1 2022: GBP31.4m);
-- New business for H1 2022 was GBP64.9m (H1 2021: GBP76.3m);
-- Assets under administration were GBP1.23 billion at 31
December 2021 (30 June 2021: GBP1.22 billion);
-- We continue to make good progress towards the successful
launch of Hansard's new product with our chosen distribution
partner in Japan, against the background of current pandemic
restrictions in that country.
Graham Sheward, Group Chief Executive Officer, commented:
"Covid-19 continues to provide a challenging backdrop for our
business and in particular for launching our new product in Japan,
where new States of Emergency have been declared in several regions
recently. We continue to work with our prospective distribution
partner towards a suitable launch date in a positive and engaged
manner.
We are also taking a number of actions to improve new business
levels both with respect to our traditional business and by
progressing opportunities to deploy new products more widely in
Japan and in other suitable territories around the world."
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 LLP +44 (0) 7990 653 341
Ben Woodford, Hugo Liddy
Hansard Global plc
New business results for the six months ended 31 December
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.
New business for the quarter and financial year-to-date
continued to be impacted by the challenges of Covid-19 restrictions
around the world and a hesitancy by clients to commit to long-term
savings products. In Present Value of New Business Premiums
("PVNBP") terms, new business for Q2 2022 was 20.4% lower than Q2
2021 and H1 2022 was 14.9% lower than H1 2021.
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
2021 2020 % 2021 2020 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ----- -------- ----- ----- ----------
Present Value of New Business
Premiums 33.5 42.1 (20.4%) 64.9 76.3 (14.9%)
Annualised Premium Equivalent 4.7 5.9 (20.3%) 8.8 10.9 (19.3%)
------------------------------- ------ ----- -------- ----- ----- ----------
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
2021 2020 % 2021 2020 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ --------- ----- ----- --------
Regular premium 21.7 26.5 (18.1%) 40.6 49.6 (18.1%)
Single premium 11.8 15.6 (24.4%) 24.3 26.7 (9.0%)
----------------------- ------ ------ --------- ----- ----- --------
Total 33.5 42.1 (20.4%) 64.9 76.3 (14.9%)
----------------------- ------ ------ --------- ----- ----- --------
Three months ended Six months ended
31 December 31 December
2021 2020 % 2021 2020 %
PVNBP by geographical GBPm GBPm change GBPm GBPm change
area
----------------------- ------ ----- -------- ----- ----- --------
Middle East & Africa 11.9 14.7 (19.0%) 22.6 28.6 (21.0%)
Rest of World 11.2 13.8 (18.8%) 20.6 24.3 (15.2%)
Latin America 7.6 11.1 (31.5%) 14.4 18.5 (22.2%)
Far East 2.8 2.5 12.0% 7.3 4.9 49.0%
Total 33.5 42.1 (20.4%) 64.9 76.3 (14.9%)
----------------------- ------ ----- -------- ----- ----- --------
While Q2 2022 saw an increase in new business of 6.7% from Q1
2022, the overall environment remained challenging for investment
and long-term savings plans, with new business down 20.4% from Q2
2021. Regular premium new business fell 18.1%, with single premiums
falling 24.4%.
The general experience across each region saw a reduction both
in the number of cases sold and in the quantity of high-value cases
sold. New business in Latin America was additionally impacted by a
tightening of our business acceptance criteria in parts of the
region to better control the quality of new business
submissions.
The exception to the above was our Far East region which
continued to show recovery from a low base in 2021. As outlined in
previous reports, our main strategic focus in the Far East is to
bring our new Japanese proposition to market.
In light of the above experience, a number of actions are being
taken to improve new business levels, including a product campaign
initiated with a number of key brokers in December, the approval of
a number of new brokers to add to our distribution coverage,
re-commencement of international travel to a number of our key
brokers by our relationship managers and further leveraging of
fin-tech and automation initiatives.
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") as it closed to new business in 2013.
AuA increased GBP11.4m to GBP1.23 billion during the three
months ended 31 December 2021, reflecting positive global stock
markets. For the six months ended 31 December 2021, AuA increased
GBP6.6m.
The following analysis shows the components of the movement in
AuA during the quarter:
Three months Six months ended
ended
31 December 31 December
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- --------- --------
Deposits to investment contracts
- regular premiums 22.4 19.8 43.3 42.3
Deposits to investment contracts
- single premiums 12.0 15.6 24.6 26.7
Withdrawals from contracts and
charges (42.2) (39.9) (83.7) (78.2)
Effect of market and currency movements 19.2 71.9 22.4 95.7
----------------------------------------- -------- -------- --------- --------
Increase / (decrease) in period 11.4 67.4 6.6 86.5
Opening balance 1,219.4 1,099.6 1,224.2 1,080.5
----------------------------------------- -------- -------- --------- --------
Assets under Administration at
31 December 1,230.8 1,167.0 1,230.8 1,167.0
----------------------------------------- -------- -------- --------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Six months ended
31 December
2021 2020
GBPm GBPm
--------------------------------- ----------- ----------
Hansard International 11.7 87.7
Hansard Europe (5.1) (1.2)
--------------------------------------- ----------- ----------
Increase / (decrease) in period 6.6 86.5
--------------------------------------- ----------- ----------
Results for the half-yearED 31 December 2021
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
Independent Financial Advisor ("IFA") distribution network to grow
new long-term savings business continues to be challenging as
Covid-19 related restrictions and economic confidence fluctuate. We
therefore expect IFA sales for FY 2022 to be lower than FY 2021 but
note that will not have a material impact to our profit under
International Financial Reporting Standards ("IFRS"). This is
because initial income and origination costs are deferred at point
of sale and recognised over the lifetime of contracts sold.
We remain confident that our Japanese product will successfully
launch when the environment improves in Japan and that it will
produce long-term business growth for the Group.
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 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 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
IR PPURWGUPPGQQ
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January 27, 2022 01:59 ET (06:59 GMT)
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