TIDMHSD
RNS Number : 6750X
Hansard Global plc
06 May 2021
6 May 2021
Hansard Global plc
Trading update for the period ended 31 March 2021
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider , issues its trading update for the
quarter ended 31 March 2021 ("Q3 2021") . All figures refer to this
period, except where indicated. Year to date figures refer to 1
July 2020 to 31 March 2021.
Summary
-- Hansard's new business was up strongly in Q3 2021 with
increased volumes and a number of large single premium
policies;
-- New business for Q3 2021 was GBP47.3m in PVNBP ("Present
Value of New Business Premiums") terms, compared to GBP38.4m in Q3
2020 (up 23.2%) and GBP42.1m in Q2 2021 (up 12.4%);
-- For the nine months to 31 March 2021, new business was
GBP123.6m, an increase of 4.3% on the comparative prior year
period;
-- Assets under administration increased to GBP1.181bn at 31
March 2021, up from GBP1.167bn at 31 December 2020;
-- Japanese proposition operationally ready. Launch now expected
in summer 2021 when Covid-19 restrictions have eased.
Gordon Marr, CEO, commented:
"Our new business performance for our third quarter was very
positive. It is encouraging to see an improving environment for the
distribution of our products as restrictions are gradually relaxed
and investment confidence returns.
We continue to invest for the future through the on-going
development of our Japanese proposition and the upgrade of our
systems environment. Our proposition is now operationally ready and
we are working with our distribution partner to schedule a launch
date when Covid restrictions in Japan are more favourable. It
remains on track to deliver significant growth in our coming
financial year. "
For further information:
Hansard Global plc +44 (0) 1624 688 000
Tim Davies, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco +44 (0) 203 757 4981
Ben Woodford, Rebecca Noonan
Hansard Global plc
TRADING UPDATE for the PERIOD ended 31 March 2021
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium products in a range of jurisdictions around the
world .
New business activities continue to be impacted by the
challenges of Covid-19 restrictions around the world. However, we
have seen a strong improvement in new business in Q3 2021,
particularly in high net worth single premium policies. We believe
this represents increased economic confidence and the switching of
cash savings into investment products, although it remains early to
draw any firm conclusions around longer term trends.
In Present Value of New Business Premiums ("PVNBP") terms, new
business for Q3 2021 was 23.2% higher than Q3 2020 and for the 9
months to 31 March 2021 was 4.3% higher than the prior period
comparative. Single premiums were up 48.6% for Q3 2021 compared to
Q3 2020.
New business measured under the Annualised Premium Equivalent
("APE") basis shows a lower growth rate for the quarter and
financial year-to-date than under the PVNBP basis primarily because
significantly higher single premium sales have a greater impact to
total PVNBP than to total APE. Tables showing the split of single
and regular premiums under both metrics are shown below.
New Business Flows
New business flows for the quarter and the nine months ended 31
March are summarised as follows :
Three months ended Nine months ended
31 March 31 March
2021 2020 % 2021 2020 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ------ ------- --------- --------- -------
Present Value of New Business
Premiums 47.3 38.4 23.2% 123.6 118.5 4.3%
Annualised Premium Equivalent 6.6 6.2 6.5% 17.5 19.0 (7.9%)
------------------------------- ------ ------ ------- --------- --------- -------
The split of regular and single new business premiums on the
PVNBP basis was follows:
Three months ended Nine months ended
31 March 31 March
2021 2020 % 2021 2020 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ ------- --------- --------- -------
Regular premium 26.5 24.4 8.6% 76.0 76.0 -
Single premium 20.8 14.0 48.6% 47.6 42.5 12.0%
----------------------- ------ ------ ------- --------- --------- -------
Total 47.3 38.4 23.2% 123.6 118.5 4.3%
----------------------- ------ ------ ------- --------- --------- -------
The split of regular and single new business premiums on the APE
basis was follows:
Three months ended Nine months ended
31 March 31 March
2021 2020 % 2021 2020 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ ------- --------- --------- --------
Regular premium 4.5 4.8 (6.3%) 12.7 14.7 (13.6%)
Single premium 2.1 1.4 50.0% 4.8 4.3 11.6%
----------------------- ------ ------ ------- --------- --------- --------
Total 6.6 6.2 6.5% 17.5 19.0 (7.9%)
----------------------- ------ ------ ------- --------- --------- --------
The regional split of new business premiums on the PVNBP basis
was follows:
Three months ended Nine months ended
31 March 31 March
2021 2020 % 2021 2020 %
PVNBP by geographical area GBPm GBPm change GBPm GBPm change
---------------------------- ------ ------ ------- --------- --------- -------
Middle East and Africa 20.6 13.8 49.3% 49.2 44.6 10.3%
Rest of World 12.1 12.0 0.8% 36.4 36.2 0.6%
Latin America 10.1 10.0 1.0% 28.7 29.7 (3.4%)
Far East 4.5 2.6 73.1% 9.3 8.0 16.3%
Total 47.3 38.4 23.2% 123.6 118.5 4.3%
---------------------------- ------ ------ ------- --------- --------- -------
Our largest region, Middle East and Africa, rose significantly
in the quarter to GBP20.6m, up 49.3% over Q3 2020. This is
reflective of the Middle East emerging comparatively well from
Covid-19 and the successful acquisition of a number of high net
worth single premium policies. For the nine months ended 31 March
2021, new business was up 10.3% to GBP49.2m.
The level of new business from the Rest of World region was
broadly in line with the prior year on both a quarterly (GBP12.1m)
and year-to-date (GBP36.4m) basis.
New business in Latin America continued to be resilient for the
quarter (GBP10.1m) and year-to-date (GBP28.7m) despite experiencing
some of the most challenging global Covid-19 conditions on the
ground.
New business in the Far East rebounded significantly this
quarter to GBP4.5m from the lower levels seen in previous quarters,
boosted by higher value regular premium policies. This resulted in
overall year-to-date new business being up 16.3% to GBP9.3m. As
outlined in previous reports, our main strategic focus in the Far
East is to develop and bring our new Japanese proposition to
market.
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 Q3 2021 AuA increased by GBP14.1m or 1.2%. For the 9
months ended 31 March 2021, AuA were up GBP100.6m (9.3%),
reflecting positive global stock markets offset by a weaker US
dollar versus sterling.
Three months Nine months ended
ended
31 March 31 March
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
----------------------------------------- ---------------- ----------- ------------ -------------
Deposits to investment contracts
- regular premiums 21.0 22.4 63.3 64.4
Deposits to investment contracts
- single premiums 21.0 12.9 47.7 42.5
Withdrawals from contracts and
charges (38.4) (35.8) (116.6) (113.7)
Effect of market and currency movements 10.5 (131.4) 106.2 (119.4)
----------------------------------------- ---------------- ----------- ------------ -------------
14.1 (131.9) 100.6 (126.2)
Opening balance 1,167.0 1,085.4 1,080.5 1,079.7
----------------------------------------- ---------------- ----------- ------------ -------------
Assets under Administration at
31 March 1,181.1 953.5 1,181.1 953.5
----------------------------------------- ---------------- ----------- ------------ -------------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Nine months ended
31 March
2021 2020
GBPm GBPm
------------------------------- --- -------- ----------
Hansard International 104.3 (102.9)
Hansard Europe (3.7) (23.3)
-------------------------------------- -------- ----------
Increase/(decrease) in period 100.6 (126.2)
-------------------------------------- -------- ----------
Results for the year ENDing 30 JUNE 2021
New business results for the full year are scheduled to be
announced on 22 July 2021. Trading results for the full year are
expected to be announced on 23 September 2021.
OUTLOOK
The outlook for savings and investment products appears to be
improving as the global economy begins to emerge from Covid-19
lock-downs and economic challenges. We continue to invest for the
future through the on-going development of our Japanese proposition
and the upgrade of our systems environment. T he launch of our
Japanese proposition with our first distribution partner remains on
track to deliver significant growth in our coming 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 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
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