REG - Hansard Global plc - Trading Statement

Hansard GlobalAnnouncement

04/05/2023 07:00

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RNS Number : 3341Y  Hansard Global plc  04 May 2023

 

 

 

 

 

 

 

4 May 2023

 

 

Hansard Global plc

Trading update for Q3 2023

 

 

Hansard Global plc ("Hansard" or "the Group"), the specialist long-term
savings provider, issues its trading update for the third quarter ended 31
March 2023 ("Q3 2023").  All figures refer to this period, except where
indicated.  Year to date ("YTD") figures refer to 1 July 2022 to 31 March
2023.

 

Summary

·   New business for the quarter ended 31 March 2023 was £25.4m in PVNBP
("Present Value of New Business Premiums") terms, ahead of new business of
£18.6m in the quarter ended 31 December 2022 and down from £31.4m in the
quarter ended 31 March 2022.

·   For the nine months to 31 March 2023, new business was £68.8m (Q3 YTD
2022: £95.8m).

·   Assets under administration were £1.12 billion as at 31 March 2023, up
£15.6m from that last reported as at 31 December 2022.

·   We continue to make encouraging progress with distribution
opportunities for our Japanese proposition.

·   We remain on track to replace our policy administration systems to
support our next generation of products and to realise future cost and
efficiency gains.

 

Graham Sheward, Group Chief Executive Officer, commented:

"While the overall environment has remained challenging for investment and
long-term savings plans, it was pleasing to see a 36.5% improvement from our
Q2 new business level.

 

In our largest region, Middle East and Africa, new business was up 20.8% for
the quarter ended 31 March 2023 compared to 31 March 2022. Recently recruited
sales managers in this region have generated improved results  via both new
and existing distribution partners.  The business continues to target new
opportunities via asset managers' high net worth clients.

 

New business in Latin America was down 9.5% for the quarter.  Similar to the
Middle East and Africa region, we are working on building business with new
distribution partners to supplement our existing distribution.

The Rest of World and Far East business remain below previous financial years
as a result of a decline in single premium business and business acceptance
restrictions arising out of the Russia-Ukraine conflict.

 

We continue to make encouraging progress with distribution opportunities for
our Japanese proposition to be launched on our new policy administration
system."

 

For further information:

Hansard Global
plc
+44 (0) 1624 688 000

Graham Sheward, Group Chief Executive Officer

Thomas Morfett, Chief Financial Officer

 

Email: investor-relations@hansard.com

 

Camarco
 
+44 (0) 7990 653 341

Ben Woodford, Hugo Liddy

Hansard Global plc

TRADING UPDATE for the PERIOD ended 31 March 2023

 

 

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.

The ongoing uncertainty in global economic conditions continues to provide
challenges to our new business levels.  In Present Value of New Business
Premiums ("PVNBP") terms, new business for the quarter ended 31 March 2023 was
17.8% lower than the prior year equivalent but up 36.5% from the quarter ended
31 December 2022.

Annualised Premium Equivalent ("APE") for the quarter ended 31 March 2023 was
20.5% lower than the prior year equivalent.

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
                                         2023     2022     %            2023    2022    %
 Basis                                   £m       £m       change       £m      £m      change
 Present Value of New Business Premiums  25.4     30.9     (17.8%)      68.8    95.8    (28.2%)
 Annualised Premium Equivalent           3.5      4.4      (20.5%)      9.9     13.2    (25.0%)

 

 

The split of regular and single new business premiums on the PVNBP basis was
as follows:

                        Three months ended             Nine months ended
                        31 March                       31 March
                        2023     2022     %            2023    2022    %
 PVNBP by product type  £m       £m       change       £m      £m      change
 Regular premium        13.5     19.1     (29.5%)      44.3    59.7    (25.8%)
 Single premium         11.9     11.8     0.9%         24.5    36.1    (32.1%)
 Total                  25.4     30.9     (17.8%)      68.8    95.8    (28.2%)

 

The regional split of new business premiums on the PVNBP basis was follows:

                             Three months ended             Nine months ended
                             31 March                       31 March
                             2023     2022     %            2023    2022    %
 PVNBP by geographical area  £m       £m       change       £m      £m      change
 Middle East and Africa      15.1     12.5     20.8%        34.7    35.0    (0.8%)
 Latin America               5.7      6.3      (9.5%)       19.4    20.7    (6.3%)
 Rest of World               3.9      7.9      (50.6%)      11.2    28.5    (60.4%)
 Far East                    0.7      4.2      (83.3%)      3.5     11.6    (69.8%)
 Total                       25.4     30.9     (17.8%)      68.8    95.8    (28.2%)

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 70% 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 2022 AuA increased by £15.6m or 1.4%, reflecting a small increase
in global stock markets. For the 9 months ended 31 March 2023, AuA increased
£23.6m or 2.2%.

 

The following analysis shows the components of the movement in AuA during the
quarter:

 

                                                      Three months ended                    Nine months ended
                                                                 31 March                              31 March
                                                      2023             2022                 2023             2022
                                                      £m               £m                   £m               £m
 Deposits to investment contracts - regular premiums  21.4             21.6                 65.7             64.9
 Deposits to investment contracts - single premiums   11.9             11.6                 24.5             36.2
 Withdrawals from contracts and charges               (36.7)           (38.3)               (108.6)          (122.0)
 Effect of market and currency movements              19.0             (54.0)               42.0             (31.6)
 Increase / (decrease) in period                      15.6             (59.1)               23.6             (52.5)
 Opening balance                                      1,100.3          1,230.8              1,092.3          1,224.2
 Assets under Administration at 31 December           1,115.9          1,171.7              1,115.9          1,171.7

 

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
                                              2023          2022
                                              £m            £m
 Hansard International                        25.3          (40.2)
 Hansard Europe                               (1.7)         (12.3)
 Increase / (decrease) in period              23.6          (52.5)

 

 

Results for the year ENDing 30 JUNE 2023

New business results for the full year are scheduled to be announced on 27
July 2023. The Company's full year results announcement for the year ending 30
June 2023 is expected to be released on 28 September 2023.

OUTLOOK

We expect sales of long-term savings products through Independent Financial
Advisors to continue to be impacted by global economic headwinds. Looking
forward however we are confident that our new product pipeline will lead to
increased sales and long term growth in the business.

 

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.

 

 

Legal Entity Identifier: 213800ZJ9F2EA3Q24K05

 

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