TIDMHSD
RNS Number : 0452G
Hansard Global plc
22 July 2021
22 July 2021
Hansard Global plc
New business results for the year ended 30 June 2021
Positive new business momentum
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider , issues its new business results for
the financial year ended 30 June 2021 ("FY 2021").
Summary
-- New business for the financial year ended 30 June 2021 was
GBP173.0m in PVNBP ("Present Value of New Business Premiums")
terms, up 8.3% from GBP159.8m in FY 2020.
-- New business for Q4 2021 was GBP49.4m, 19.6% higher than GBP41.3m in Q4 2020.
-- New business has continued to recover from the most severe
Covid-19 restrictions in place last year as pent up cash savings
are being invested.
-- Assets under administration continue to grow strongly and
totalled GBP1.228bn at 30 June 2021, up 4.0% from GBP1.181bn at 31
March 2021 and up 13.7% from GBP1.081bn at 30 June 2020.
Graham Sheward, Group Chief Executive Officer, commented:
"In an exceptionally challenging financial year, Hansard has
delivered a positive new business result, finishing 8.3% up on
financial year 2020, with signs that the outlook for savings and
investment products is continuing to improve. I would like to thank
all our employees and distribution partners for their hard work and
resilience in delivering this result.
Having been in the Group CEO role for the past two months, I
have been encouraged and enthused by the level of activity taking
place to ensure Hansard's long-term success. My initial focus is on
delivering the launch of our new proposition in Japan, something
that continues to be dependent on the Covid-19 position improving
in Japan. We continue to expect this initiative to deliver
significant growth in the coming financial year and I look forward
to updating our stakeholders in more detail on this and other
corporate objectives when we release our full financial year 2021
results in September."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Graham Sheward, 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 YEARED 30 JUNE 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 activities continue to be impacted by the
challenges of Covid-19 restrictions. We have seen improved new
business over the past two quarters however and we believe this
represents increasing economic confidence and the switching of cash
savings into investment products.
Present Value of New Business Premiums ("PVNBP") for Q4 2021 was
19.6% higher than Q4 2020 which was significantly impacted by the
initial Covid-19 lockdowns. For the 12 months to 30 June 2021,
PVNBP was 8.3% higher than the prior year comparative.
Our annual assessment of actuarial assumptions has improved the
value of new business premiums assigned to regular premium savings
plans in Q4 2021. This is outlined in more detail below.
New Business Flows
New business flows for FY 2021 are summarised as follows :
Three months Year ended
ended
30 June 30 June
2021 2020 % 2021 2020 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ----- ----- ------- ------ ------ -------
Present Value of New Business
Premiums 49.4 41.3 19.6% 173.0 159.8 8.3%
Annualised Premium Equivalent 5.5 5.0 10.0% 23.1 24.0 (3.7%)
------------------------------- ----- ----- ------- ------ ------ -------
The present value of new business premiums is influenced,
amongst other factors, by the Group's expectations of future
premium collections on regular premium contracts issued during the
year. Where these expectations at year end are different from the
assumptions used in the calculation in prior quarters, the
assumptions are amended in Q4 to better report the cumulative value
of new business. This adjustment is reflected in the Q4 reported
new business figures.
The most significant change in assumptions related to improved
experience with paid-up policies, which is when contract holders
cease paying further regular premiums into their policy. The total
impact of assumption changes has been to increase PVNBP for the
year by GBP10.3m compared with the assumptions used in the previous
year. Excluding those updated assumptions, cumulative new business
flows for FY 2021 would have been reported as GBP162.7m (an
increase of 1.8% from FY 2020) and new business in Q4 2021 would
have been reported as GBP39.1m (a decline of 5.3% from Q4
2020).
In Annual Premium Equivalent ("APE") terms, new business was up
10.0% for the quarter and down 3.7% for the year. APE figures are
unaffected by the updated assumptions above.
New business flows on the basis of PVNBP are broken down as
follows:
Three months ended Year ended
30 June 30 June
2021 2020 % 2021 2020 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ------ ------- ------ ------ -------
Regular premium 33.6 26.0 29.2% 109.6 102.0 7.5%
Single premium 15.8 15.3 3.3% 63.4 57.8 9.7%
----------------------- ------ ------ ------- ------ ------ -------
Total 49.4 41.3 19.6% 173.0 159.8 8.3%
----------------------- ------ ------ ------- ------ ------ -------
Three months ended Year ended
30 June 30 June
2021 2020 % 2021 2020 %
change
--------
PVNBP by geographical area GBPm GBPm GBPm GBPm change
---------------------------- ------ ------ -------- ------ ------ -------
Middle East and Africa 19.0 18.6 2.2% 68.3 63.3 7.9%
Rest of World 14.3 12.4 15.3% 50.7 48.5 4.5%
Latin America 11.7 7.6 53.9% 40.3 37.3 8.0%
Far East 4.4 2.7 63.0% 13.7 10.7 28.0%
Total 49.4 41.3 19.6% 173.0 159.8 8.3%
---------------------------- ------ ------ -------- ------ ------ -------
Our largest region, Middle East and Africa, rose 2.2% in the
quarter and 7.9% for the full financial year. 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 earlier in the year.
The level of new business from the Rest of World region was up
15.3% in the quarter as a number of higher value regular premium
policies were acquired, resulting in new business up 4.5% for the
full financial year.
New business in Latin America rose significantly in the quarter
by 53.9%, driven by high net worth single and regular premium
policies despite experiencing some of the most challenging global
Covid-19 conditions. Overall new business for the full financial
year ended up 8.0%.
New business in the Far East rebounded significantly from the
low levels seen in the earlier part of this financial year.
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 Q4 2021 AuA increased by GBP47.2m or 4.0%. For the 12
months ended 30 June 2021, AuA were up GBP147.8m or 13.7%,
reflecting positive global stock markets offset by a weaker US
Dollar versus Sterling.
Three months Year ended
ended
30 June 30 June
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- -------- --------
Deposits to investment contracts
- regular premiums 21.5 21.4 84.8 85.8
Deposits to investment contracts
- single premiums 16.1 14.7 63.8 57.2
Withdrawals from contracts and
charges (52.3) (28.6) (168.9) (142.3)
Effect of market and currency movements 61.9 119.5 168.1 0.1
----------------------------------------- -------- -------- -------- --------
Increase in period 47.2 127.0 147.8 0.8
Opening balance 1,181.1 953.5 1,080.5 1,079.7
----------------------------------------- -------- -------- -------- --------
Assets under Administration at
30 June 1,228.3 1,080.5 1,228.3 1,080.5
----------------------------------------- -------- -------- -------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Year ended
30 June
2021 2020
GBPm GBPm
----------------------- --- -------- --------
Hansard International 152.4 21.1
Hansard Europe (4.6) (20.3)
------------------------------ -------- --------
Increase in period 147.8 0.8
------------------------------ -------- --------
RESULTS FOR YEAR ENDED 30 JUNE 2021
Full trading results for the year are scheduled to be announced
on 23 September 2021.
Outlook
As noted in our Q3 update, 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. While the launch of our Japanese proposition
is contingent on an improvement in the Covid-19 environment in
Japan, we continue to expect this initiative to deliver significant
growth in the 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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