REG - Hansard Global plc - Interim Results
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RNS Number : 3738V Hansard Global plc 05 March 2026
5 March 2026
Hansard Global plc
Results for the six months ended 31 December 2025
Enhanced proposition, distribution and operating platform support profit,
growth and a positive outlook
Hansard Global plc ("Hansard" or "the Group"), the specialist long-term
savings provider, issues its results for the six months ended 31 December
2025. All figures refer to the six months ended 31 December 2025 ("H1 2026"),
and all comparisons are with the six months ended 31 December 2024 ("H1
2025"), except where indicated.
SUMMARY OF RESULTS
H1 2026 H1 2025
New business sales (PVNBP(1)) £49.2m £49.1m
New business sales (APE(2)) £6.8m £7.3m
IFRS profit before tax £2.6m £0.5m
IFRS fees and commissions £22.2m £21.3m
IFRS administrative and other expenses £17.7m £18.4m
IFRS basic earnings per share 1.9p 0.3p
Interim dividend - to be paid on 23 April 2026 (3) 1.8p 1.8p
At 31 December 30 June
2025 2025
Assets under Administration £1.2b £1.1b
Value of In-Force £107.0m £103.1m
(1 ) Present Value of New Business Premiums
(2 ) Annual Premium Equivalent
(3 ) to shareholders on the register at 13 March 2026
Thomas Morfett, Group Chief Executive Officer, commented:
"Following several years of foundational investment in our product suite,
digital infrastructure and international footprint, it is encouraging to see
clear signs of momentum emerging across the business. While new business began
slowly in the first quarter, reflecting broader market conditions, sales
recovered strongly in Q2 as advisers responded to the product enhancements we
have made and this momentum has continued post period end.
We also successfully launched our Japan proposition shortly after the period
end - a significant strategic milestone following several years of
preparation. Alongside this, Group profitability increased meaningfully in H1,
supported by stronger operational performance and favourable market
conditions.
Our focus remains consistent: to evolve our proposition, broaden our
international reach and fully leverage our operating platform. The progress
delivered in H1, together with the foundations we have now put in place in key
markets, gives us growing confidence as we move into H2."
FINANCIAL HIGHLIGHTS
· New business grew modestly by 0.2% year-on-year to £49.2m in PVNBP
terms, whilst IFRS profit before tax increased 5-fold year-on-year to £2.6m
in H1 2026.
· Our single premium product continues to grow with an increase of 9%
against H1 2025.
· Regular premium sales experienced a 15% decline; however, we have seen
a 36% increase compared to H2 2025 as our new regular premium products gain
traction in the market since their launch at the end of 2024.
· IFRS profit before tax increased significantly, albeit from a low base
reflecting both underlying operational progress and several favourable
non-recurring factors.
· The Group's investment in strategic initiatives and new products
continues to generate sales momentum, although this will take time to
translate into sustainable higher profits given the long-term nature of our
products.
· Fees and commissions increased by 4% to £22.2m in H1 2026.
· Investment and other income remained stable at £2.4m in H1 2026
despite falling global interest rates due to active treasury management.
· Expenses decreased by 4% to £17.7m in H1 2026, primarily driven by
lower litigation defence costs and continued discipline across the Group's
cost base.
· Assets under administration have grown 8% since 30 June 2025 to £1.2
billion.
· The Group remains strongly capitalised and continues to operate well
above regulatory solvency requirements.
· The value of the in-force book increased by 4% to £107.0m between 30
June 2025 and 31 December 2025.
· The Board has declared an interim dividend of 1.8p per share,
consistent with previous years.
STRATEGIC & OPERATIONAL HIGHLIGHTS
· Product & fund enhancements drive improved sales. Expanded ETF
range, enhanced segmentation features, multi-beneficiary capability and
alternative charging structures delivered through H1 to improve adviser
flexibility and client outcomes, supported the Q2 sales rebound.
· Successfully launched our Japan opportunity. Completed the first
policyholder transactions shortly after the period end-marking operational
'go‑live' for the locally licensed proposition (with distribution partner
Guardian) and broadening our international reach. Initial volumes are modest
and did not contribute to H1 new business.
· Next wave of development coming in H2. Further fund range extensions
and targeted product refinements and launches are scheduled, positioning the
refreshed suite to sustain sales momentum through H2.
NEW BUSINESS
New business flows for the half-year are summarised as follows:
H1 2026 H1 2025 %
Basis £m £m Change
Present Value of New Business Premiums 49.2 49.1 0.2%
Annualised Premium Equivalent 6.8 7.3 (6.8%)
New business flows based on PVNBP are broken down as follows:
H1 H1 2025 %
2026
PVNBP by product type £m £m Change
Regular premium 14.6 17.2 (15.1%)
Single premium 34.6 31.9 8.5%
Total 49.2 49.1 0.2%
H1 H1 2025 %
2026
PVNBP by geographical area £m £m Change
Middle East & Africa 16.9 18.7 (9.6%)
Latin America 15.8 17.8 (11.2%)
Rest of World 10.1 10.0 1.0%
Far East 6.4 2.6 146.2%
Total 49.2 49.1 0.2%
New business of £49.2m on a PVNBP basis was broadly in line with the prior
year, but with a pronounced shift in momentum through the period. Q1 was
subdued, reflecting market conditions and the timing of distributor activity,
whereas Q2 delivered a sharp rebound - with sales 60% higher than Q1 - as
advisers responded positively to recent proposition enhancements. Single
premium business grew strongly, offsetting lower regular premium flows.
Growth was particularly evident in the Far East, where activity increased
materially across the Philippines, Malaysia and Thailand, supported by
improving distributor engagement and the appeal of our refreshed product
suite. Early traction in these markets contributed meaningfully to the Q2
uplift and provides a stronger platform as we enter H2.
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, most
premium contributions and 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.
The following analysis shows the components of the movement in AuA:
H1 H1
2026 2025
£m £m
Assets under Administration at 30 June 1,129.8 1,150.9
Regular Premiums 28.7 33.6
Single premiums 34.6 31.3
Withdrawals and charges (97.3) (90.5)
Market and currency movements 128.7 27.7
Change in period 94.7 2.1
Assets under Administration at 31 December 1,224.5 1,153.0
AuA is split as follows between Hansard International (incorporating business
reinsured from Hansard Worldwide) and Hansard Europe:
H1 H1
2026 2025
£m £m
Hansard International 1,172.2 1,097.5
Hansard Europe 52.3 55.5
Assets under Administration at 31 December 1,224.5 1,153.0
Outlook
We are encouraged by the positive trajectory of the business. While certain
contributors to H1 profitability, such as market‑driven gains and one‑off
items, may not recur at the same level in H2, underlying trends are
favourable. Sales momentum is improving, distributor sentiment is
strengthening, litigation‑related costs are easing, and our Japanese
proposition has moved from preparation into successful launch.
Against this backdrop, we expect the Group to achieve an uplift in full‑year
profitability this financial year. Hansard enters the second half of the year
with strengthened foundations, enhanced propositions, and growing
international opportunities. We remain confident in our ability to deliver
continued growth and create long‑term value for shareholders, distributors,
and policyholders.
PUBLICATION OF FULL-YEAR RESULTS
The financial statements for our financial year ending 30 June 2026 are
expected to be published on 24 September 2026.
For further information:
Hansard Global plc +44 (0) 1624
688 000
Thomas Morfett, Group Chief Executive Officer
Ollie Byrne, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco LLP +44 (0)
7990 653 341
Ben Woodford
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 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 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
Hansard Global plc
Interim Report and Accounts for the period ended 31 December 2025
CHAIRMAN'S STATEMENT
I am pleased to present Hansard Global plc's ("Hansard" or "Group") financial
results for the first six months of our 2026 financial year ("H1 2026").
The Group enters the second half of the year with a growing sense of momentum.
After a slow start, new business recovered sharply in Q2, supported by
enhancements to our product and fund ranges and strengthening distributor
engagement across our core markets. In parallel, we marked the successful
launch of our Japan opportunity, completing our first policyholder
transactions shortly after the period end. Although this did not contribute to
H1 new business, it represents an important milestone in a strategically
significant market. Profitability also improved meaningfully, reflecting both
operational progress and the benefit of certain one-off income items and
favourable investment markets. While some of these factors may not recur in
H2, the Group is on track to deliver an increase in full year profit.
Financial Performance
IFRS profit before tax increased to £2.6m, a substantial improvement over the
prior period (H1 2025: £0.5m). The result was underpinned by strong global
equity markets driving higher fee income, disciplined cost management, reduced
litigation related expenditure, increased insurance recoveries, and the
benefit of certain one-off income items.
New business on a PVNBP basis (Present Value of New Business Premiums) was
£49.2m, consistent with H1 2025 overall, though this conceals a marked
in‑period improvement-Q2 sales were 60% higher than Q1, reflecting renewed
distributor activity following recent proposition enhancements.
AuA (Assets under Administration) increased to £1.22bn, up 6% since the FY25
year‑end, reflecting favourable market movements and continued inflows into
our enhanced single premium proposition.
The Group's legacy litigation portfolio continues to be well managed. During
the period we received recoveries from our insurers in respect of defence
costs previously incurred, and we expect further recoveries to follow in due
course. We continue to engage constructively with our insurers, and we expect
our insurance arrangements to remain effective in supporting the Group's
future defence and, where appropriate, settlement costs.
Strategic Progress
We continue to execute against our clear strategic imperatives: Improve, Grow,
and Future‑proof.
Improving our Proposition
Over the past 18 months we have delivered a comprehensive refresh of our
product and fund suite. During H1 2026, further enhancements were introduced
to improve competitiveness and better meet distributor and client needs.
Feedback from advisers has been increasingly positive, and the uplift in Q2
sales indicates that these improvements are resonating in the market.
Additional enhancements are planned for the second half of the year.
Growing our Footprint
This period marks an important phase in the Group's international expansion.
In Japan, the completion of our first few policyholder transactions shortly
after the period end confirms the readiness of our locally licensed
proposition and supporting operational infrastructure. Early volumes will be
modest, but momentum is expected to build through H2 2026 and more materially
into 2027. We continue to work closely with our distribution partner,
Guardian, as it prepares for broader rollout.
Future‑Proofing our Business
Our new policy administration system continues to perform well, providing an
important foundation for enhanced automation, operational efficiency, and
long‑term scalability. We are progressing initiatives to streamline
processes, reduce manual effort, and reinforce our risk and governance
frameworks.
The Group remains well capitalised, conservatively invested, and financially
resilient, with a solvency position comfortably above its regulatory
requirement.
Dividend Declaration
The Board has declared an interim dividend of 1.8p per share, consistent with
previous years. This will be paid on 23 April 2026 with an ex-dividend date of
12 March 2026.
Outlook
The Board is encouraged by the positive trajectory of the business. While
certain contributors to H1 profitability, such as market‑driven gains and
one‑off items, may not recur at the same level in H2, underlying trends are
favourable. Sales momentum is improving, distributor sentiment is
strengthening, litigation‑related costs are easing, and our Japanese
proposition has moved from preparation into successful launch.
Against this backdrop, we expect the Group to achieve an uplift in full‑year
profitability this financial year. Hansard enters the second half of the year
with strengthened foundations, enhanced propositions, and growing
international opportunities. We remain confident in our ability to deliver
continued growth and create long‑term value for shareholders, distributors,
and policyholders.
Philip Kay
Chair
4 March 2026
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
1. the condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting';
2. the Interim Management Report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year);
3. the Interim Management Report includes a fair review of the information
required by DTR 4.2.8R (disclosure of material transactions with related
parties in the first six months of the year and changes to related parties'
transactions in the last Annual Report and Accounts); and
4. the Condensed set of financial statements, which has been prepared in
accordance with the applicable set of accounting standards, gives a true and
fair view of the assets, liabilities, financial position and profit of the
Company, and, where applicable, the undertakings included in the consolidation
as a whole as required by DTR 4.2.4R.
By order of the Board
Philip
Kay
Thomas Morfett
Chair
Chief Executive Officer
INTERIM MANAGEMENT REPORT
REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER
Thomas morfett
I am pleased to report that the Group has made encouraging progress during the
first half of our 2026 financial year. Following several years of foundational
investment in our product suite, digital infrastructure, and international
footprint, it is pleasing to see early signs of commercial momentum emerging
across the business.
While new business started slowly in the first quarter, reflecting broader
market conditions and the timing of distributor activity, sales recovered
strongly in Q2. This improvement was underpinned by the continued evolution of
our proposition, more active engagement across our distribution network, and
increasing confidence among advisers in the enhancements we have made over the
past 18 months.
Our focus remains unchanged: to evolve our proposition, expand our
international reach, and utilise our operating platform. H1 has delivered
meaningful progress across each of these strategic priorities.
Strategy
A key strength of Hansard is our ability to respond quickly to distributor and
client needs. During the period, we delivered a further wave of enhancements
across our product and fund range, including ETF additions, new segmentation
features, multiple‑beneficiary functionality, and alternative charging
structures. These improvements are a continuation of our commitment to making
proposition evolution a continuous discipline rather than a periodic exercise.
Feedback from advisers has been positive, and the acceleration in Q2 sales
demonstrates their increasing confidence. With another stream of developments
planned for H2, including further fund range expansion and specific product
refinements and launches, we expect our refreshed suite to continue
contributing to sales momentum.
International Expansion
Japan represents a strategically significant opportunity for the Group. After
several years of diligent preparation, including licensing, operational
build‑out, and partnership development, we completed our first policyholder
transactions shortly after the period end. This milestone marks the successful
launch of our long‑term entry into the market. We do not expect immediate
volume, but the foundations are now in place. Momentum is expected to build
gradually through H2 2026 and more materially into 2027, supported by our
distribution partner Guardian and our locally‑licensed product set.
We are reviewing our sales structure and distributor relationships in Latin
America to build on early traction in Mexico and support scalable growth.
Future‑Proofing Our Operations
Our new policy administration system-implemented last year-continues to
stabilise and bed in well. This platform provides the operational agility and
scalability we need to support long‑term growth.
Financial Performance
The Group delivered a strong improvement in financial performance during the
first half of the year. IFRS profit before tax increased to £2.6m (H1 2025:
£0.5m), reflecting both underlying operational progress and several
favourable nonrecurring factors. While the percentage increase is amplified by
the low base in the prior period, the result nonetheless demonstrates the
benefits of tight cost control, reduced litigation related spend, improved
operational efficiency, and one-off income arising from the clear-down of
policies with exhausted units.
Fees and commissions grew by 4% to £22.2m, supported by higher average AuA
during the period. Investment and other income remained stable at £2.4m,
despite lower interest rates in key markets following rate cuts by several
major central banks.
After 31 December 2025, Hansard International, the Group's principal
subsidiary, entered into a series of forward foreign exchange contracts to
hedge income volatility arising from forecast USD-denominated cash flows.
Further detail can be found in note 25.
Total expenses decreased by 4% to £17.7m (H1 2025: £18.4m), driven primarily
by lower litigation defence costs and continued discipline across the Group's
cost base. This reduction more than offset inflationary pressures and the
continued investment in our strategic initiatives.
Overall new business grew modestly by 0.2% to £49.2m in H1 2026 in PVNBP
terms compared to £49.1m in H1 2025. Single premium sales experienced an
increase of 9%, while regular premium sales declined 15%. This change in mix
of new business sales towards single premiums, resulted in a 7% reduction in
sales in APE terms ("Annual Premium Equivalent"). The sales mix is now 70%
single premium business and 30% regular premium business (December 2024: 65%
single premium and 35% regular premium business).
New business momentum strengthened meaningfully between Q1 and Q2, and we
expect the cumulative impact of our proposition enhancements, market expansion
initiatives, and operational improvements to support ongoing progress.
A summary of the key financial metrics for H1 2026 is as follows:
H1 2026 H1 2025
IFRS profit before tax £2.6m £0.5m
IFRS basic earnings per share 1.9p 0.3p
Interim dividend 1.8p 1.8p
The Group's balance sheet remains robust. Assets under Administration
increased by 6% to £1.22bn as at 31 December 2025, reflecting positive market
movements and ongoing flows into our newer single premium product range. The
value of the in‑force book remained broadly stable at the period end at
£107.0m.
As at 31 December 2025 30 June 2025
Assets under Administration £1,224.5m £1,129.8m
Value of In-Force (regulatory basis) £107.0m £103.1m
Further detail on the Group's financial performance is provided in the
Business and Financial Review section of this report.
Litigation and Insurance Recoveries
We continue to manage our historic litigation cases proactively and
constructively. We are in active dialogue with our insurers and expect their
support to continue for future defence and settlement costs as cases progress.
Capitalisation and Solvency
The Group remains strongly capitalised and continues to operate well above
regulatory solvency requirements. On a risk‑based capital basis, total Group
Free Assets in excess of the Solvency Capital Requirement ("SCR") were £47.5m
(June 2025: £45.6m), representing a solvency coverage ratio of 171% (June
2025: 169%). This robust position reflects the Group's conservative balance
sheet, the low‑risk nature of its unit‑linked business model, and
disciplined capital management.
Shareholder assets continue to be held across a well diversified range of
deposit institutions, investment grade corporate bonds and high-quality money
market liquidity funds, ensuring strong liquidity, low credit risk, and
protection against market volatility. This prudent approach to treasury
management remains central to preserving capital, supporting new business
strain, and maintaining financial resilience in a period of global economic
uncertainty.
Awards
During the period, we were proud to receive multiple awards at the
International Investment Awards 2025, recognising the quality of our products,
the creativity of our marketing, and the dedication of our teams. These
included Best International Portfolio Bond for Global Select and double
recognition for Ascend, reflecting both the strength of our product design and
the collaborative effort of colleagues across product development, marketing,
sales, and operations. These accolades affirm our ability to innovate at pace.
Our People
Our people continue to demonstrate the professionalism and client‑centricity
that underpin our culture. As we expand into new markets such as Japan and
deepen our presence in Latin America, the contributions of colleagues across
the Group have been central to ensuring readiness, maintaining service
quality, and supporting distributors and policyholders around the world.
I would like to extend my sincere thanks to all our colleagues for their hard
work and commitment. Their energy, creativity, and teamwork are driving the
positive momentum we are seeing across the business, and they will continue to
play a crucial role as we pursue our long‑term growth ambitions.
Outlook
We begin the second half of the year with growing confidence. Our proposition
is stronger, our distribution relationships are deepening, and our
international opportunity in Japan has transitioned from preparation to
successful launch.
While external conditions remain unpredictable, the strategic investments we
have made over the past two years are now beginning to translate into
commercial momentum. With continued discipline, operational focus, and close
collaboration with our distribution partners, we believe the Group is well
placed to deliver further progress in H2 and to build a stronger platform for
sustainable, long‑term growth.
Thomas Morfett
Chief Executive Officer
4 March 2026
BUSINESS AND FINANCIAL REVIEW
1. STRATEGIC CONTEXT AND VISION
At Hansard, our mission is to empower clients to achieve lasting financial
success while cultivating trusted relationships with quality distributors.
Our vision is to deliver competitive and innovative financial solutions to
clients worldwide leveraging the expertise of high-quality distributors -
anchored in trust, integrity, respect, quality, and innovation.
We are at a pivotal point in our strategic journey. With new propositions
launched, international expansion underway, and continued investment in
digital infrastructure, we have laid the groundwork for sustainable growth.
Our strategy is clear: to improve our business, grow our footprint, and
future-proof our business model.
This strategy is underpinned by three imperatives:
· Improve: We are committed to enhancing client outcomes by
recruiting, training, and retaining quality people; delivering excellent
customer service; and strengthening our proposition through distributor
feedback and market insight.
· Grow: We are focused on organic expansion, including our re-entry
into the Japanese market and deepening distributor relationships. We continue
to develop bespoke distributor partnerships that support scalable, long-term
growth.
· Future-proof: We are committed to embracing innovation and
digital transformation to elevate client experiences, drive operational
efficiency, and ensure resilience in a dynamic regulatory and economic
environment.
These imperatives are not abstract ambitions. They are embedded in our
day-to-day operations and reflected in our strategic initiatives, including
enhancements to our product and fund range, and drive excellent customer
service standards.
Our people remain central to our success. By fostering a culture of
empowerment, accountability, and continuous improvement, we are building a
business that is not only fit for the future but also aligned with the values
that have defined Hansard for nearly four decades.
Our strategic commitment to sustainability is not only reflected in our ESG
initiatives but also embedded in our enterprise risk management and long-term
planning frameworks. Climate-related risks and opportunities are actively
assessed across our strategic pillars-Improve, Grow, and Future-proof-and are
integrated into our governance, investment, and operational decisions.
For a more detailed overview of how these considerations are embedded into our
risk management, scenario modelling, and strategic resilience planning, please
refer to our TCFD-aligned disclosures in the Sustainability and ESG
Integration section of the Group's Annual Report and Accounts. These
disclosures outline our approach to governance, strategy, risk management, and
metrics and targets in relation to climate-related financial risks and
opportunities.
2. OUR BUSINESS MODEL
Hansard is a specialist provider of long-term savings and investment
solutions, operating through a network of regulated entities across the Isle
of Man, The Bahamas, the Republic of Ireland, Malaysia, Japan, and the UAE.
Our business model is built on delivering secure, flexible, and transparent
life assurance wrappers to international clients, supported by a robust
digital infrastructure and a global distribution network of independent
financial advisers ("IFAs").
We serve a diverse client base of affluent international investors,
institutions, and wealth-management groups, administering assets in excess of
£1 billion across nearly 40,000 client accounts. Our products are exclusively
distributed through IFAs and the retail operations of financial institutions,
with local language support provided by our Regional Sales Managers and our
award-winning Hansard OnLine platform.
Our operations are structured to ensure regulatory compliance, operational
efficiency, and strategic agility. Each of our regulated entities plays a
distinct role:
· Hansard International (Isle of Man) supports business flows from
Japan, Malaysia, and the UAE through its branches and reinsurance
arrangements.
· Hansard Worldwide (The Bahamas) underwrites international and
expatriate business globally.
· Hansard Europe (Republic of Ireland) manages legacy business,
having ceased new business intake in 2013.
We do not offer investment advice, and our products carry no investment
guarantees, ensuring that contract holders bear the investment risk. This
model allows us to maintain a low-risk balance sheet and minimise capital
strain, while offering clients access to a wide range of investment assets
tailored to their needs.
Our business model is designed to scale efficiently, adapt to regulatory
change, and support strategic growth initiatives. This includes the launch of
our Japanese proposition, enhancements to our product and fund ranges, and the
raising of excellent customer service standards.
3. EXECUTING OUR STRATEGY
Our strategy is built around three imperatives-Improve, Grow,
and Future-proof-which guide our decision-making and operational priorities
across the Group. These pillars are not static; they evolve in response to
market dynamics, client expectations, and regulatory developments. We are
executing this strategy through a focused set of initiatives that reflect our
ambition to deliver sustainable growth and long-term value.
1. Improve
We are committed to enhancing client outcomes and operational excellence by:
· Delivering excellent customer service: A Group-wide initiative is
underway to raise service standards, supported by training, process
optimisation, and digital enhancements.
· Strengthening our proposition: We are continually refreshing our
back-book fund range and introducing new product features such as
segmentation, multiple beneficiaries, and alternative charging structures.
· Listening to distributors: Feedback loops are embedded into our
product development and service design processes, ensuring our offerings
remain relevant and competitive.
2. Grow
We are expanding our footprint and deepening relationships in key markets:
· Japan launch: Following regulatory approval and operational
readiness, we have successfully launched our locally licensed investment
products in Japan in partnership with Guardian.
· Latin America: We are reviewing our sales structure and
distributor relationships to build on early traction in Mexico and support
scalable growth.
· Product innovation: We are developing innovative new products
together with our distributors.
3. Future-proof
We are investing in technology, governance, and resilience to ensure long-term
sustainability:
· Digital transformation: We continue to enhance our policy
administration system and are completing the decommissioning of legacy
systems.
· Operational efficiency: Projects such as e-invoicing,
re-engineered reconciliations, and operational optimisation are designed to
streamline processes and reduce cost-to-serve.
· Risk and compliance: We are strengthening our regulatory
reporting capabilities, including FATCA/CRS reporting.
· Litigation management: We are proactively managing legacy
litigation with a focus on reducing exposure, securing insurance recoveries,
and protecting the Group's reputation and capital position.
Together, these initiatives reflect our ambition to deliver sustainable
growth, enhance client outcomes, and build a resilient, future-ready business.
Our strategy is supported by a disciplined approach to capital allocation, a
strong solvency position, and a culture that values innovation,
accountability, and client-centricity.
4. OUR PRODUCTS
Hansard's product suite is designed to meet the long-term savings and
investment needs of international clients through secure, flexible, and
transparent life assurance wrappers. Our contracts are unit-linked, offering
access to a broad range of investment assets, and are available on a regular,
single, or flexible premium basis.
We do not offer investment advice, and our products do not include financial
guarantees or options. This ensures that contract holders bear the investment
risk, while the Group minimises capital strain and maintains a low-risk
balance sheet.
Our products are distributed exclusively through IFAs and the retail
operations of financial institutions. We support these partners with
multilingual digital tools, including Hansard OnLine (for distributors) and
Online Accounts (for clients), which enable real-time policy management and
performance tracking.
Global Select, our single‑premium, open‑architecture product, has seen
strong demand since launch and has been further enhanced with new segmentation
and flexible charging options.
Ascend and Future Focus were designed to support regular and flexible premium
growth respectively and were further enhanced in H1 2026 with features such as
multiple beneficiary options and lower minimum premiums.
Each product is designed to meet specific client profiles-from Global Select's
appeal to large lump-sum investors, to Ascend and Future Focus supporting
regular and flexible premium savers.
We have launched two new regulated products in Japan:
· Global Access - a regular premium savings product tailored to
the Japanese domestic market.
· Upstream - a flexible premium investment bond designed to meet
the evolving needs of Japanese investors.
These launches mark a significant milestone in our international expansion
strategy and reflect our commitment to delivering competitive, relevant
solutions in high-potential markets.
We are also developing new innovative products and extending our fund range to
ensure continued relevance and competitiveness.
These enhancements are informed by distributor feedback and market analysis
and are aligned with our commitment to delivering a standout value
proposition.
Our commitment to product excellence has been recognised through multiple
industry awards, including recent accolades for Best International Savings
Plan for Ascend by International Adviser, and Best International Portfolio
Bond for Global Select from International Investment. These achievements
reflect our ongoing investment in product enhancement and client outcomes.
Our product strategy is focused on simplicity, transparency, and
adaptability-enabling clients to align investments with their goals through
secure, scalable structures and features like flexible contributions, clear
fees, and intuitive digital tools. Together, these ensure a compelling
offering that delivers strong value for money and stands out in a competitive
international market.
5. New business
PROPOSITION
The Group remains focused on distributing both regular and single premium
products across a broad range of international markets, achieving
well-diversified and resilient new business growth.
New business performance for H1 2026 is summarised in the table below:
Year
Six months ended ended
31 December 30 June
2025 2024 2025
£m £m £m
Present Value of New Business Premiums 49.2 49.1 82.4
Annualised Premium Equivalent 6.8 7.3 12.2
The following tables show the breakdown of new business calculated on a PVNBP
basis:
Year ended
Six months ended
31 December 30 June
2025 2024 2025
By type of contract £m £m £m
Regular premium 14.6 17.2 27.9
Single premium 34.6 31.9 54.5
49.2 49.1 82.4
Year ended
Six months ended
31 December 30 June
2025 2024 2025
By geographical area £m £m £m
Middle East and Africa 16.9 18.7 32.9
Latin America 15.8 17.8 28.1
Rest of World 10.1 10.0 16.2
Far East 6.4 2.6 5.2
Total 49.2 49.1 82.4
Overall new business grew modestly by 0.2% to £49.2m in H1 2026 in PVNBP
terms compared to £49.1m in H1 2025. New business performance has benefited
from increased activity in the Far East, particularly in the Philippines,
Malaysia, and Thailand, supported by our new products, Global Select and
Ascend.
Single premium sales experienced an increase of 9%, while regular premium
sales declined 15%. This change in mix of new business sales towards single
premiums, resulted in a 7% reduction in sales in APE terms ("Annual Premium
Equivalent"). The sales mix is now 70% single premium business and 30% regular
premium business (December 2024: 65% single premium and 35% regular premium
business).
New business momentum strengthened meaningfully between Q1 and Q2, and we
expect the cumulative impact of our proposition enhancements, market expansion
initiatives, and operational improvements to support ongoing progress.
Premium currencies remained relatively consistent year on year, with the
predominant currency being US Dollars.
6. IFRS RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
The Group administers, and earns fees from, a portfolio of unit-linked
investment contracts distributed to contract holders around the world.
The nature of the Group's products means that new business flows have a
limited immediate impact on current earnings reported under IFRS, as initial
fees and acquisition costs from the contracts sold are mostly deferred and
amortised over the life of the contract. The benefit of sales to fee income
levels are felt in future financial periods, noting also that our newer
products have a longer earning period than our older products.
The Group also continues to invest strategically for the future, particularly
in relation to new markets and new licensing opportunities.
Results under IFRS
Consolidated profit before taxation for the period was £2.6m (H1 2025:
£0.5m). The increase on the prior year period is driven by strong global
equity markets driving higher fee income, disciplined cost management, reduced
litigation‑related expenditure, increased insurance recoveries, and the
benefit of certain one‑off income items arising from the clear-down of
policies with exhausted units.
The following is a summary of key items to allow readers to better understand
the results of the period.
Abridged income STATEMENT
The condensed consolidated statement of comprehensive income which is
presented within these half-year results reflects the financial results of the
Group's activities during the period under IFRS. However, this statement, as a
result of its method of presentation, incorporates a number of features that
might affect a clearer understanding of the results of the Group's underlying
transactions. This relates principally to:
· Investment gains attributable to contract holder assets were
£126.5m (H1 2025: £27.3m). These assets are selected by the contract holder
or an authorised intermediary, and the contract holder bears the investment
risk; these gains are therefore also reflected within 'Change in provisions
for investment contract liabilities'.
· Third party fund management fees collected and paid onwards by
the Group to third parties having a relationship with the underlying contract.
In H1 2026 these were £2.8m (H1 2025: £2.5m). These are reflected on a gross
basis in both income and expenses under IFRS.
An abridged consolidated income statement is presented below, excluding the
items of income and expenditure indicated above.
Year
Six months ended ended
31 December 30 June
2025 2024 2025
£m £m £m
Fees and commissions 22.2 21.3 43.1
Investment and other income 2.4 2.4 5.3
24.6 23.7 48.4
Origination costs (7.1) (7.3) (15.0)
Administrative and other expenses attributable to the
Group (13.7) (14.0) (28.3)
Operating profit for the period before litigation and non-recurring expense 3.8 2.4 5.1
items
Net litigation and non-recurring expense items (1.2) (1.9) (3.3)
Profit for the period before taxation 2.6 0.5 1.8
Taxation - (0.1) -
Profit for the period after taxation 2.6 0.4 1.8
Fees and commissions
Fees and commissions attributable to Group operations for H1 2026 were £22.2m
(H1 2025: £21.3m). A summary of fees and commissions attributable to Group
activities is set out below:
Six months Year ended
Ended
31 December 30 June
2025 2024 2025
£m £m £m
Contract fee income 15.1 14.0 29.2
Fund management fees 4.7 4.7 8.8
Commissions receivable 2.4 2.6 5.1
22.2 21.3 43.1
Included in contract fee income is £7.9m (H1 2025: £7.8m) representing the
amounts prepaid in previous years and amortised to the income statement, as
can be seen in section 8 in the reconciliation of deferred income.
Net fund management fees, together with commissions receivable, totalling
£7.1m (H1 2025: £7.3m), are related to the value of contract holder Assets
under Administration ("AuA") but also have elements amortised from previous
periods.
Investment and other income
Six months Year ended
Ended
31 December 30 June
2025 2024 2025
£m £m £m
Bank interest, interest on bonds and other income receivable 2.4 2.8 5.0
Foreign exchange (losses) / gains on revaluation
of net operating assets - (0.4) 0.3
2.4 2.4 5.3
The Group's own liquid assets are held predominantly in sterling and invested
in highly rated money market funds and bank deposits.
Further information about the Group's foreign currency exposures is disclosed
in note 4.1 to these condensed consolidated financial statements.
Origination costs
Under IFRS, new business commissions paid, together with the directly
attributable incremental costs incurred on the issue of a contract, are
deferred, and amortised over the life of that contract to match the
longer-term income streams expected to accrue from it. Typical terms range
between 8 and 16 years, depending on the nature of the product. Other elements
of the Group's new business costs, which reflect investment in distribution
resources in line with our strategy, are expensed as incurred.
This accounting policy reflects that the Group will continue to earn income
over the long-term from contracts issued in a given financial year.
Origination costs in the period were:
Six months Year
Ended ended
31 December 30 June
2025 2024 2025
£m £m £m
Origination costs - deferred to match future
income streams 4.2 4.4 7.4
Origination costs - expensed as incurred 0.8 0.9 1.8
Investment in new business in period 5.0 5.3 9.2
Net amortisation of deferred origination costs 2.1 2.0 5.8
7.1 7.3 15.0
Reflecting the long-term nature of the Group's income streams, amounts
totaling £6.3m (H1 2025: £6.5m) have been expensed to match contract fee
income of £7.9m (H1 2025: £7.8m) earned in H1 2026 from contracts issued in
previous financial years. This reflects the profitability of the existing
book.
Summarised origination costs for the period were:
Six months Year ended
Ended
31 December 30 June
2025 2024 2025
£m £m £m
Amortisation of deferred origination costs 6.3 6.5 13.2
Other origination costs incurred during the period 0.8 0.8 1.8
7.1 7.3 15.0
Administrative and other expenses
We continue to manage our expense base robustly to control administrative
expenses while investing strategically in our Japanese proposition and other
product developments.
A summary of administrative and other expenses attributable to the Group is
set out below:
Six months Year
Ended Ended
31 December 30 June
2025 2024 2025
£m £m £m
Salaries and other employment costs 6.5 6.6 12.3
Other administrative expenses 4.7 5.0 9.8
Professional fees, including audit 1.6 1.8 3.6
Recurring administrative and other expenses 12.8 13.4 25.7
Investment in strategic initiatives 0.9 0.6 2.6
Administrative and other expenses, 13.7 14.0 28.3
excl. litigation and non-recurring expense items
Net litigation defence and settlement costs 0.8 1.5 2.8
Provision for doubtful debts 0.4 0.4 0.5
Total administrative and other expenses 14.9 15.9 31.6
Note that the previously reported figures for 31 December 2024 have been
adjusted to allow for a reclassification that took place in the second half of
the 2025 financial year. This moved £0.9m of expenses from other
administrative expenses to professional fees which were contractor and other
costs incurred as part of the final implementation of the new system and
deemed to be more appropriately classified as professional fees.
Salaries and other employment costs have seen a modest decrease of 1.5% to
£6.5m. Average Group headcount for H1 2026 was 181 compared to 180 for the
full 2025 financial year. Headcount at 31 December 2025 was 181 (2024: 173).
Other administrative expenses have decreased by £0.3m to £4.7m against the
comparative period. This is largely due to a £0.2m reduction in computer
costs and other smaller decreases.
Professional fees including audit (excluding litigation defence costs) have
decreased by £0.2m to £1.6m against the comparative period reflecting
tighter cost control.
Investment in strategic initiatives of £0.9m represents internal and external
costs to generate opportunities for growth. This includes the costs of our
head office strategy team, support costs for our new IT system and development
costs associated with our Japanese proposition.
Litigation defence and settlement costs represent those costs incurred in
defending claims against Hansard Europe of £0.8m for the period, compared
with £1.5m in H1 2025.
Provision for doubtful debts reflects the provision for balances considered
unlikely to be recoverable.
7. CASH FLOW ANALYSIS
The sale of the Group's products typically produces an initial cash strain as
a result of the commission and other costs incurred at inception of a
contract.
The following summarises the Group's own cash flows in the period:
Six months Year ended
Ended
31 December 30 June
2025 2024 2025
£m £m £m
Net cash surplus / (deficit) from operating activities 3.3 (0.8) 4.6
Interest received 2.4 2.5 4.7
Net cash inflow from operations 5.7 1.7 9.3
Net cash investment in new business (4.1) (4.3) (7.3)
Purchase of software, computer equipment and property (0.1) - (1.0)
Net cash investment in bond portfolio - (4.0) (3.8)
Corporation tax paid - - (0.1)
Net cash inflow / (outflow) before dividends 1.5 (6.6) (2.9)
Dividends paid (3.6) (3.7) (6.1)
Net cash outflow after dividends (2.1) (10.3) (9.0)
Initial new business cash strain is shown within "net cash investment in new
business" and varies depending on the level and type of new business written.
The Group continues to maintain significant cash reserves to cover short-term
outflows during this period of strategic investment.
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Net cash outflow after dividends (2.1) (10.3) (9.0)
(Decrease) / Increase in amounts due to contract holders (1.6) 6.8 9.2
Net Group cash movements (3.7) (3.5) 0.2
Group cash - opening position 66.2 65.0 65.0
Effect of exchange rate movements 0.4 (0.2) 1.0
Group cash - closing position 62.9 61.3 66.2
Bank deposits and money market funds
The Group holds its liquid assets in highly rated money market liquidity funds
and with a wide range of deposit institutions to diversify counterparty risk.
Deposits totalling £15.3m (2025: £15.0m) have original maturity dates
typically greater than 3 months and are therefore excluded from the definition
of "cash and cash equivalents" under IFRS and are instead included within
'Deposits and money market funds' in the consolidated balance sheet. The
following table summarises the total cash and deposits at the balance sheet
date.
The following table summarises the total shareholder cash and deposits at the
balance sheet date.
31 December 30 June
2025 2024 2025
£m £m £m
Money market funds 47.0 45.7 50.9
Short-term deposits with credit institutions 0.6 0.6 0.6
Cash and cash equivalents under IFRS 47.6 46.3 51.5
Longer-term deposits with credit institutions 15.3 15.0 14.7
Group cash and deposits 62.9 61.3 66.2
8. Abridged consolidated balance sheet
The condensed consolidated balance sheet presented under IFRS reflects the
financial position of the Group as at 31 December 2025. As a result of its
method of presentation, the consolidated balance sheet incorporates the
financial assets held to back the Group's liability to contract holders and
incorporates the net liability to those contract holders of £1,224.5m (31
December 2024: £1,153.0m). Additionally, that portion of the Group's capital
that is held in bank deposits is disclosed in "cash and cash equivalents"
based on original maturity terms, as noted above.
The abridged consolidated balance sheet presented below, adjusted for those
differences in disclosure, allows a better understanding of the Group's own
capital position.
As at 31 December 30 June
2025 2024 2025
£m £m £m
Assets
Deferred origination costs 104.2 110.0 106.3
Other assets 48.3 46.5 47.7
Bank deposits and money market funds 62.9 61.3 66.2
215.4 217.8 220.2
Liabilities
Deferred income 135.3 139.0 137.5
Other payables 64.7 61.2 66.2
200.0 200.2 203.7
Net assets 15.4 17.6 16.5
Shareholders' equity
Share capital and reserves 15.4 17.6 16.5
Deferred origination costs
The deferral of origination costs ("DOC") reflects that the Group will earn
fees over the long term from contracts issued in a given financial year. These
costs are recoverable out of future net income from the relevant contract and
are charged to the consolidated statement of comprehensive income on a
straight-line basis over the life of each contract.
The table below shows lower origination costs deferred during the period as a
result of lower levels of new business sold compared to last year.
31 December 30 June
2025 2024 2025
£m £m £m
At beginning of financial year 106.3 112.1 112.1
Origination costs deferred during the period 4.2 4.4 7.4
Origination costs amortised during the period (6.3) (6.5) (13.2)
104.2 110.0 106.3
Deferred income
The treatment of deferred income ensures that contract fees are taken to the
consolidated statement of comprehensive income in equal instalments over the
longer-term, reflecting the services to be provided over the period of the
contract. This is consistent with the treatment of deferred origination costs.
Deferred income at the balance sheet date is the unamortised balance of
accumulated initial amounts received on new business.
The proportion of income deferred in any one year is dependent upon the mix
and volume of new business flows in previous years. The Group's focus on
regular premium business means that these fees are received over the initial
period of the contract, rather than being received up front, as is often the
case with single premium contracts.
The majority of initial fees collected during the year relates to charges
taken from contracts issued in prior financial years demonstrating the cash
generative nature of the business. Regular premium contracts issued in this
financial year will generate the majority of their initial fees over the next
18 months on average.
The movement in value of deferred income over the financial year is summarised
below
31 December 30 June
2025 2024 2025
£m £m £m
At beginning of financial year 137.5 140.2 140.2
Initial fees collected in the period and deferred 5.7 6.6 13.1
Income amortised during the period to fee income (7.9) (7.8) (15.8)
135.3 139.0 137.5
9. Assets under administration ("AuA")
In the following paragraphs, "AuA" refers to net assets held to cover
financial liabilities as analysed in note 14 to the condensed consolidated
financial statements presented under IFRS. Such assets are selected by or on
behalf of contract holders to meet their investment needs.
The Group receives investment inflows to its AuA from single and regular
premium contracts which are offset by charges, withdrawals, premium holidays
affecting regular premium policies and by market valuation movements.
The majority of premium contributions and AuA are designated in currencies
other than sterling, reflecting the wide geographical spread of those contract
holders. The currency denomination of AuA at 31 December 2025 is similar to
that of 31 December 2024 and consists of approximately 75% denominated in US
dollars, 18% in sterling and 6% denominated in euro as reflected in note 4.1
to the condensed consolidated financial statements.
Certain collective investment schemes linked to customers' contracts can from
time to time become illiquid, suspended or be put into liquidation. In such
cases, the Directors are required to exercise their judgement in relation to
the fair value of these assets. The cumulative impact on the balance sheet
is not material.
The following table summarises Group AuA movements for H1 2026:
31 December 30 June
2025 2024 2025
£m £m £m
Deposits to investment contracts - regular premiums 28.7 33.6 64.4
Deposits to investment contracts - single premiums 34.6 31.3 54.5
Withdrawals from contracts and charges (97.3) (90.5) (167.2)
Effect of market and currency movements 128.7 27.7 27.1
Movement in period 94.7 2.1 (21.2)
Opening balance 1,129.8 1,150.9 1,150.9
Closing balance 1,224.5 1,153.0 1,129.8
Group AuA increased to £1,224.5m during H1 2026, an increase of £94.7m from
the position at 30 June 2025. Since 31 December 2024, AuA have increased
£71.5m (6%) mainly reflecting the move in global stock markets over the
period.
The analysis of AuA held by each Group subsidiary to cover financial
liabilities is as follows:
31 December 30 June
2025 2024 2025
£m £m £m
Hansard International 1,172.2 1,097.5 1075.7
Hansard Europe 52.3 55.5 54.1
1,224.5 1,153.0 1,129.8
Premiums acquired by Hansard Worldwide are reinsured to Hansard International
and therefore are included within Hansard International's total AuA.
Since it closed to new business in 2013, Hansard Europe's AuA has been
declining broadly in line with expectations as withdrawals are made or
contracts mature.
10. CAPITALISATION AND SOLVENCY
The Group's life insurance subsidiaries continue to be well capitalised with
free assets in excess of the regulatory requirements in each relevant
jurisdiction. There has been no material change in the Group's management of
capital during the period.
Solvency capital is a combination of future margins, where permitted by
regulation, and capital. Where future margins are denominated in non-sterling
currencies, it is vulnerable to the weakening of those currencies relative to
sterling. All of the Group's excess capital is invested in a wide range of
deposit institutions, highly rated money market liquidity funds, and
high-quality corporate bonds, predominantly in sterling. This approach
protects the Group's capital base from stock market falls.
The in-force portfolio has no material investment options or guarantees that
could cause capital strain and the Group retains very little of the mortality
risk that it has accepted (the balance being reinsured with premium
reinsurers). There is no longevity risk exposure.
Policy on capital maintenance
It is the Group's policy to maintain a strong capital base in order to:
· satisfy the requirements of its contract holders, creditors and
regulators;
· maintain financial strength to support new business growth and
create shareholder value;
· match the profile of its assets and liabilities, taking account
of the risks inherent in the business;
· generate operating cash flows; and
· fund dividend requirements.
Within the Group each subsidiary company manages its own capital. Capital
generated in excess of planned requirements is returned to the Company by way
of dividends. Group capital requirements are monitored by the Board. The
capital held within Hansard Europe is considered not to be available for
dividend to Hansard Global plc until such time as the legal cases referred to
in section 1212 below are substantially resolved.
11. DIVIDENDS
A final dividend of 2.8p per share in relation to the previous financial year
was paid in November 2025. This amounted to £3.6m. A portion of the dividend
is paid in US dollars which can give rise to an immaterial variance against
the prior year when translated to pounds sterling.
The Board has considered the results for H1 2026, the Group's continued cash
flow generation and its future expectations and has resolved to pay an interim
dividend of 1.8p per share (H1 2025: 1.8p). This dividend will be paid on 23
April 2026.
The Board has considered the impact of the dividend on the negative
consolidated retained earnings of £4.7m as at 31 December. Dividends are paid
from Hansard's parent company retained earnings, and not from consolidated
Group retained earnings. As at 31 December Hansard's parent company retained
earnings were £9.8m and as such the ability to pay dividends is not
constrained.
Hansard will no longer be paying ordinary share dividends in a paper form by
cheque and will pay these dividends by direct transfers to shareholders' bank
or building accounts. Dividend confirmations will only be available to
download from the Share Portal.
12. complaints and litigation
Financial services institutions may become involved in disputes where the
performance of assets selected by or on behalf of contract holders-typically
through their advisers-fails to meet expectations. This is particularly
relevant for complex products distributed across Europe prior to 2014.
Although the Group has never provided investment advice, as this
responsibility lies with the contract holder or their appointed adviser or
agent, it has nonetheless received complaints regarding the performance of
assets linked to certain contracts. Most cases have arisen in Italy, with a
smaller number in Belgium and Germany.
As at 31 December 2025, the outstanding writs served on the Group represent a
net cumulative exposure of €22.8m / £19.9m (30 June 2025: €23.8m /
£20.4m), relating to contract holder complaints and asset performance issues.
Between 31 December 2025 and the date of this report there have been no
material changes.
In line with Group policy, contingent liabilities are maintained even where
cases have been won at first instance, and if they are subject to appeal-this
includes the Group's largest single case in Belgium.
During the period to 31 December 2025, we recorded £1.0m (31 December 2024:
£0.5m) in insurance recoveries in relation to litigation expenses, and
further recoveries are anticipated as claims progress.
While the final outcome of these cases cannot be predicted with certainty,
based on legal advice and past experience the Group believes it has a strong
chance of success in defending the majority of claims and expects that a
number of the larger claims will be ultimately mitigated by insurance cover.
Except for smaller cases where (based on historical patterns) settlements may
be likely, all writs have been treated as contingent liabilities and disclosed
accordingly. Where an agreement for settlement exists for a group of claims, a
provision has been made for the remaining exposures and included in note 18
'Provisions', to the extent they can be reliably estimated.
13. Net asset value per shaRE
The net asset value per share on an IFRS basis at 31 December 2025 is 11.1p
(31 December 2024: 12.8p) based on the net assets in the consolidated balance
sheet divided by the number of shares in issue, being 137,557,079 ordinary
shares (31 December 2024: 137,557,079).
14. Risk Management and internal control
The Group continues to operate a comprehensive Enterprise Risk Management
Framework, reflective of the Board's focus on effective risk management as an
integral element of corporate success. The ERM Framework sets out the
governance arrangements, principles, guidelines, practices and standards for
risk management and internal control, which cumulatively ensure that the
business is robustly prepared to identify, understand, and navigate the
uncertainties and risks which it may encounter, and which can either pose
threats or offer opportunities. The ERM Framework ensures that all such
threats and opportunities, whether actual or emerging, are identified,
assessed, monitored, managed, and reported using structured, consistent, and
comprehensive methodologies. These arrangements seek to embed risk management
within strategic decision-making and business planning activities and to
continuously shape organisational values and culture. The maturity of the ERM
Framework and its capacity to respond quickly to emerging risks and adapt to
changes arising via the internal or external environment, ensure that risk
management and internal control remain central to the Board's oversight,
direction and control of the Group, and support informed decision making and
sound business practices.
Principal Risks
The principal risks and uncertainties which remain relevant for the remaining
six months of the year are consistent with the position set out in full in
reporting for the 2025 Financial Year. These are described in the following
table:
Distribution Risk:
The business environment in which the international insurance industry
operates remains subject to continuous change and development as new market
and competitor forces come into effect, regulatory landscapes evolve, and
technological advancements are realised.
Any failure by the Group to ensure that distribution strategy is well planned,
governed and executed, or to anticipate the emergence of events or conditions
which obstruct the achievement of business plan targets, can be expected to
result in a range of adverse outcomes, including: -
· Decreased revenues and reduced profitability.
· Loss of competitive advantage in commercially significant
jurisdictions, or market segments.
· Failure to build and sustain successful distribution
relationships.
· Failure to build necessary levels of scale to support long-term
sustainability.
· Loss of stakeholder confidence and reputational damage.
How we manage the risk: · Robust governance, risk management and internal control practices
underpin the development and formalisation of distribution strategy. Strategy
revisions are designed to add additional scale to the business, on a more
diversified basis, through organic growth at acceptable levels of risk and
profitability.
· Key Risk Indicators provide for continuous monitoring of
marketplaces, competitor activity and consumer sentiment by the Group Risk
Forum and the early identification of emerging risks or threats. Reporting
protocols enable the rapid escalation of any adverse trends to the Audit and
Risk Committee.
· Stress and scenario modelling considers the consequences of
production falling materially above or below forecast new business levels.
This allows the Board to ensure that forecasting and planning activities are
sufficiently robust and well targeted.
· Continuous investment in and development of technology. During
the reporting period we have continued to maintain close contact with our
distribution partners as new technological solutions were deployed.
· The Group closely monitors marketplace and competitor activity
for signs of threats to forecast new business levels. Strategy revisions are
designed to add additional scale to the business, on a more diversified basis
with investment in new markets and expansion of existing markets, developing
new key distributor relationships and new product development for specific
markets and globally.
Market Risk:
Market risks remain an inherent element of the Group's unit-linked business
and is regularly assessed and monitored via the quarterly ERM conventions.
Risk monitoring recognises the international nature of the Group's operations
and the challenges which might emerge from: -
· A significant adverse currency movement over a sustained period.
With the majority of premiums and incomes denominated in USD a sustained,
adverse currency movement remains a principal risk for the Group, with the
capacity for impacts to manifest via transaction exposures, economic
exposures, forecast exposures and translation exposures. The Board also
consider the impacts of sterling weakening in relation to other currency
denominated expense positions.
· The balance sheet and profit reduction impacts which have the
potential to emerge from a drop in equities, causing a reduction in AMC
income, and the contagion effects for aspects of the broader risk portfolio.
Such contagion might include deferred impacts to profit through reduced sales
activity, concentration risks on fund holdings/underlying assets in the event
of mass switching to more secure or more sustainable commodities, and reduced
incomes through increased lapse rates.
· Macro-economic challenges and geopolitical volatilities, which
undermine socioeconomic stability and curb consumer appetite for the selection
and purchase of financial services products and the period over which business
is retained.
How we manage the risk: · The Board recognises that market volatilities and currency
movements are unpredictable and driven by a diverse range of factors. These
risks are inherent in the provision of investment-linked products. KRIs are
established to monitor evolving and emerging indicators of adverse experience
to enable the triggering of management actions at the earliest opportunity.
· The currencies of assets and liabilities are matched within set
tolerances and certain expenses are invoiced in US Dollars to match against US
Dollar income streams.
· Business plans are modelled across a broad range of market and
economic scenarios and take account of alternative commercial outlooks within
overall business strategy. This promotes a greater understanding of market and
currency risk, the limits of the Group's resilience and the range of possible
mitigating options
· Stress testing performed during the year ending 30 June 2026 has
reassessed the impacts of reasonably plausible market risk events and
scenarios, including those resulting from macroeconomic challenges,
geopolitical instabilities, inflationary outlooks, uncertainties in commodity
price and currency volatilities. This has enabled the Board to reassess
respective risk management and mitigation techniques and reaffirm their
adequacy.
· The long-term nature of the Group's products serves to smooth
short term currency fluctuations. However, longer term trends are monitored
and considered in pricing models.
· Per note 25 of this report, subsequent to the date of this report
the Group has entered into foreign exchange forward contracts to partially
mitigate the volatility experienced in our USD derived income.
Credit Risk:
In dealing with third party financial institutions, including banking, money
market and settlement, custody, reinsurers and other counterparties, the Group
is exposed to the risk of financial loss and potential disruption of core
business functional and operational processes.
Financial loss can also arise when the funds in which contract holders are
invested become illiquid, resulting in past and future fee income not being
received. The failure of Independent Financial Advisors ("IFAs") can also
result in loss where unearned commissions can be due back to the Group.
How we manage the risk: · The Group limits exposure to loss or detriment via counterparty
failure through robust selection criteria, minimum rating agency limits,
pre-defined risk-based limits on concentrations of exposures and continuous
review of positions to identify, evaluate, restrict, and monitor various forms
of exposure on an individual and aggregate basis. These include selection
criteria and ongoing monitoring in respect of intermediaries with whom we
establish Terms of Business; key risk indicators and appetite tolerance limits
are assessed and analysed on a quarterly basis.
· During the reporting period we have continued to closely monitor
geopolitical developments and potential for disruptions to international
payment systems and capital markets.
Liquidity and Cashflow Risk:
If the Group does not have sufficient levels of liquid assets and cashflow to
support business activities or settle its obligations as they fall due, the
Group may be in default of its obligations and may incur significant sanction,
loss, or cost to rectify the position.
How we manage the risk: · Shareholder and policyholder cash assets are invested in a
prudent manner, in accordance with set criteria, designed to mitigate
liquidity and cashflow risk, including high quality Money Market Funds, Fixed
Deposits and Corporate Bonds.
· The Treasury Working Group, which reports to the Investment
Committee, oversees the day-to-day investment of balances. The Investment
Committee and Audit and Risk Committee are responsible for setting the
criteria used.
Legal, Regulatory and Compliance Risk:
Sensitivity to legal, regulatory and compliance risks remain heightened as
changes in political landscapes and the importance of demonstrating regulatory
effectiveness continue to gather momentum across all key jurisdictions. The
potential impacts associated with crystallisation of a significant legal or
compliance failing, including sanctions or judgments, financial penalties,
public disclosures, reputational damage, restrictions on activities and other
forms of intervention are material. The velocity of crystallisation and
breadth of activities in scope demands an increasingly holistic approach to
compliance with rigorous oversight and monitoring measures.
Simultaneously the interpretation or application of regulation over time may
impact market accessibility, broker relationships and / or competitive
viability. If the Group fails to monitor the legal and regulatory environment
or adequately integrate the management of associated obligations within
strategic, business model or business planning processes there may be material
risk to the achievement of strategic objectives both in the short and longer
term.
How we manage the risk: · Continuous application of rigorous anti-money laundering, counter
terrorist financing and anti-bribery and corruption measures plus effective
sanctions screening to prevent and detect illicit economic activity and
identify and respond to any emerging risks or threats.
· Implementation of comprehensive risk assessment technologies with
the capacity to provide scalable solutions.
· Ongoing investment in the capacity, competence, and capability of
resourcing across all business areas and efficient and effective ways to
evidence and demonstrate how legal and regulatory obligations are met.
Compliance analytics and high-quality data driven insights are of the highest
priority, having regard to the extent of risk interdependencies and the
embedding of personal accountability regimes.
· Robust strategic planning processes informed by analytical review
of the external environment and consideration of associated risk in the short
and longer term.
· Continuous monitoring and review of developments in international
law and regulation and proactive management of how such developments might
shape jurisdictional specific reactions.
· Active and transparent engagement with regulatory authorities and
industry bodies on a multi-jurisdictional basis, including active engagement
in and responding to regulatory consultation exercises.
· Robust scrutiny and oversight controls across all three lines of
defence to ensure governance layers proactively target both the design and
effective operation of the risk management and internal control frameworks.
Maintenance of robust governance, risk management and internal control
arrangements to ensure that legal and regulatory obligations are substantively
met on a continuing basis.
· Active engagement with professional advisors to address specific
risks and issues that arise.
Operational Resilience Risk:
The Board recognises operational resilience to encompass the Group's
capabilities to prevent, adapt and respond to, and recover and learn from
operational disruptions. Such disruptions include those originating via
internal triggers or via external events.
The ability to maintain critical services or operations during periods of
disruption is receiving increasing levels of regulatory scrutiny with
concurrent growth in the formalisation of regulatory expectation. 'Resilience
Principles' build on the real-world tests presented by the Covid-19 pandemic
and the near-term threat of disruption of key global infrastructure in the
context of geopolitical instabilities and conflict escalation. Resilience risk
and associated regulatory expectations directly extend to threats originating
via third parties, including external providers, supply chains networks and
outsourcing architectures intended to leverage economies of scale, gain access
to specialist expertise, or deliver advanced technologies supporting
innovative services.
Global supervisory attention is focussed on regulating for resilience by
ensuring that strategies such as grounding resilience analyses in key delivery
requirements, appreciating the potential for systemic vulnerabilities and
embracing a diversity of approaches, combine to strengthen the ability of
financial services firms to withstand operational risk related events.
How we manage the risk: · ERM conventions guide the identification and assessment of events
or scenarios presenting risk to operational resilience - typically pandemics,
cyber incidents, technology failures or natural disasters - as well as supply
chain disruption impacts to critical processes, business continuity and good
governance.
· Impact tolerances, together with mapping and testing allow the
identification of services which could cause harm, if disrupted and identify
any areas of vulnerability.
· Stress testing, continuity planning, and recovery and resolution
strategies provide for continuous review of the adequacy and effectiveness
with which the business can respond to and recover from disruptions.
Employee Engagement and Talent Risk:
'Talent risk' remains a key feature of the Group's operational risk agenda,
with observed evidence at industry level of the persistent challenges linked
to attracting and retaining employees across all financial services sectors.
The Group's strategy has core dependencies on attracting and retaining
experienced and high-performing management and employees and building a strong
and sustainable culture, driven by our purpose, our leadership, our
performance management regime and our governance principles and objectives.
The knowledge, skills, attitudes and behaviours of our employees, and the
success with which these attributes shape and define our culture, are central
to our success.
The Board regularly monitor the risks which would emerge in the event of a
failure to attract, develop, engage and retain key personnel.
How we manage the risk: · Significant investment in initiatives to address and support
cultural change and development, shape strategy and inform tactical solutions.
· Continuation of our Culture Change journey, with clearly defined
areas of focus under three core pillars, those being:
o High Performance Culture
o Learning Culture
o Environment & Wellbeing
· Employee Engagement Surveys are regularly conducted, which sense
check employee engagement, morale and commitment. Analysis of the Survey
results, at cumulative, divisional and team levels allows the Executive Team
to tailor actions to any specific issues or areas of concern and facilitates
constructive discussions at Board level via CRO reporting.
· A comprehensive Performance Review and Appraisal Framework
operates on a continuing basis, with annual benchmarking of remuneration and
reward schemes. This enables ongoing performance management of employees at
all levels, targeted succession planning - including 'key employees' - and
proactive mitigation of emerging 'flight risk'.
Corporate Sustainability Risk:
The Board recognise the inherent risks which would emerge in the event of
failure to integrate environmental, social and governance considerations into
the Group's strategic and business planning activities, or to proactively
review, understand and act on the challenges and opportunities presented.
ERM protocols and work to support climate-related financial disclosures
continue to assess the plausibility of climate-risk and broader sustainability
stresses emerging over short-, mid- and longer-term time horizons. Associated
analyses have focussed on the impact of the Group's business on the
environment as well as the capacity for future environmental disruption to the
Group's strategic and business plan objectives and targets, taking account of
both physical and transition risks.
How we manage the risk: · The Group's Sustainability Strategy seeks to integrate
sustainability issues into the Group's core strategies and business plans. The
strategy recognises the need for proportionate, value-driven and adaptive
practices, which continuously enhance the Group's corporate governance
arrangements, as sustainability related issues evolve.
· Consistent with the Sustainability Strategy actively building
sustainability considerations into future strategy development and business
planning processes through structured analysis, formal assessment mechanisms
and cross-functional collaboration.
· Factoring emerging sustainability risk issues into key
decision-making and understanding the impacts for the tools and methodologies
currently used to manage risk, including governance structures, risk
ownership, risk and control self-assessment principles, regulatory
developments, third party service provisions and effective reporting.
· Development of adaptation plans, which embrace forward-looking
analysis and support strategic decision-making, with consideration of relevant
business planning, operations, underwriting and investment activities to
contribute to a sustainable transition to net-zero targets and provide
effective mitigation of climate change related risks.
· Detailed analysis of climate and other ESG risks, which could
cause macroeconomic stresses in future, including impacts to markets, interest
rates, inflation and exchange rates.
· Developing and updating relevant components in relation to the
sustainability risk domain, including policies, procedures, risk indicators,
management data and stress testing.
· 'In flight' initiatives addressing cultural alignment and
structural resilience encompass core ESG considerations.
Cyber and Information Security Risk:
The nature and complexity of cyber threats and cyber risk continue to present
a material risk to the Group due to the mounting sophistication and
persistence of cyber criminals and the growing adoption of highly advanced,
nation-state type tools targeting both jurisdictional and institutional
infrastructures. The challenges in understanding and anticipating the nature
of cyber threats and cyber risks are continuously evolving. Risk analysis
during the reporting period has confirmed that, over the longer-term,
technological advances, including advances in generative AI, can be expected
to enable a wide range of state and non-state agents to access information
which will allow new tools of disruption to be conceptualised and developed.
ERM protocols recognise the threats presented by organised crime exploiting
weaknesses in cyber defences, whilst new technological capabilities and use of
third-party platforms add to the complexity of understanding the extent of
cyber exposures, which may originate outside the traditional control
perimeter. Cybercrime linked to geopolitical instabilities and malevolent
actors continue to present significant hazards, with escalated risk of IT
disruption and the potential for outages beyond corporate control.
Simultaneously changes in technology and the rapid growth of high-speed,
internet-enabled mobile devices presents a further dimension to this source of
risk, providing cyber criminals with ever more options for ingress.
Building resilience to continuously evolving cyber risk remains a priority for
all stakeholders focussed on three core areas - cyber risk identification,
cyber risk governance and cyber risk resilience In the event of any material
failure in core business systems, or business processes, or if the Group fails
to take adequate and appropriate measures to protect its systems and data from
the inherent risk of attack, disruption and/or unauthorised access by internal
or external parties, this could result in confidential data being exposed
and/or systems interruption. A significant cybercrime event could result in
reputational damage, regulatory censure, and financial loss.
How we manage the risk: · Continuous focus on the maintenance of a robust, secure, and
resilient IT environment that protects customer and corporate data as a core
element of our operational resilience mapping.
· Control techniques deployed to evaluate the security of systems
and proactively address emerging threats both internally within the
organisation and externally, through regular engagement with internet and
technology providers and through industry forums.
· Maintenance of detailed and robust Business Continuity and
Disaster Recovery Plans, including full data replication at an independent
recovery centre, which can be invoked when required.
· Frequent and robust testing of business continuity and disaster
recovery arrangements.
· Periodic independent third-party systems penetration testing and
review of controls.
· Horizon scanning to identify and assess supervisory initiatives
advocating and promoting good practice in cyber resilience and associated
industry developments.
Culture and Conduct Risk:
Organisational culture remains under scrutiny by the Board on the basis that
it is recognised as a fundamental driver of corporate success, prudential
soundness, and compliant conduct. Failure by the Board to emphasise and drive
the right corporate culture, to provide appropriate incentive schemes, or to
implement, monitor and manage strong governance, risk management and internal
control frameworks in respect of conduct can be expected to result in material
detriment to the Group, a subsidiary and/or individual officers or employees.
Risk impacts have the potential to crystallise in the form of disruption to
the achievement of strategic and commercial objectives, regulatory censure,
financial sanction, reputational damage and/or criminal proceedings, in
extremis. Clear and heightened regulatory expectations of individual and
corporate accountability continue to connect governance, risk, and compliance
obligations directly to cultural imperatives and the responsibilities assigned
to individual Senior Managers.
How we manage the risk: · Programme level initiatives to address and support cultural
change and development have remained in active progress during the reporting
period with the results of investment in culture diagnostics informing
business decision-making and tactical solutions to drive cultural change,
where needed.
· Iterative enhancements to the Group's ERM Framework continue to
drive and deliver the integration of conduct risk management at both a
cultural and practical level.
· Business activities designed to manage the volume and velocity of
regulatory change include a core focus on ensuring compliance with conduct
risk obligations, managing conflicts of interest, preventing market abuse, and
building robust governance arrangements around new product development and
product suitability processes.
· Forward looking risk indicators and executive leadership in
respect of understanding and addressing the drivers of conduct risk focus on
all core areas with assessment at strategic, functional, and operational
levels.
By order of the Board
Thomas Morfett Ollie Byrne
Chief Executive Officer Chief Financial Officer
4 March 2026
Condensed Consolidated Statement of Comprehensive Income
Year
Six months ended ended
31 December 31 December 30 June
2025 2024 2025
Notes £m £m £m
Fees and commissions 6 25.0 23.7 48.2
Investment and other operating income 7 128.9 29.8 32.4
153.9 53.5 80.6
Change in provisions for investment contract liabilities (126.5) (27.3) (27.1)
Origination costs (7.1) (7.3) (15.0)
Administrative and other expenses 8 (17.7) (18.4) (36.7)
(151.3) (53.0) (78.8)
Profit on ordinary activities before taxation 2.6 0.5 1.8
Taxation on profit on ordinary activities 9 - (0.1) -
Profit and total comprehensive income for
the period after taxation 2.6 0.4 1.8
Earnings Per Share
Year
Six months ended ended
31 December 31 December 30 June
2025 2024 2025
Note (p) (p) (p)
Basic 10 1.9 0.3 1.3
Diluted 10 1.9 0.3 1.3
The notes on pages 30 to 50 form an integral part of these condensed
consolidated financial statements.
Condensed Consolidated Statement of Changes in Equity
Share Other Retained
Capital reserves earnings Total
Note £m £m £m £m
Shareholders' equity at 1 July 2024 68.8 (48.6) 0.6 20.8
Profit and total comprehensive income
for the period after taxation - - 0.4 0.4
Transactions with owners
Dividends 11 - - (3.7) (3.7)
Reserve for own shares within EBT - 0.1 - 0.1
Shareholders' equity at 31 December 2024 68.8 (48.5) (2.7) 17.6
Share Other Retained
Capital reserves earnings Total
Note £m £m £m £m
Shareholders' equity at 1 July 2025 68.8 (48.6) (3.7) 16.5
Profit and total comprehensive income
for the period after taxation - - 2.6 2.6
Transactions with owners
Dividends 11 - - (3.6) (3.6)
Reserve for own shares within EBT - (0.1) - (0.1)
Shareholders' equity at 31 December 2025 68.8 (48.7) (4.7) 15.4
The notes on pages 30 to 50 form an integral part of these condensed
consolidated financial statements.
Condensed Consolidated Balance Sheet
31 December 31 December 30 June
2025 2024 2025
Notes £m £m £m
Assets
Intangible assets 12 21.3 22.4 22.1
Property, plant and equipment 12 2.5 2.8 2.8
Deferred origination costs 13 104.2 110.0 106.3
Financial investments
Measured at fair value:
Equity securities 85.4 72.4 76.8
Collective investment schemes 975.4 941.4 907.7
Fixed income securities 91.5 84.2 84.4
1,152.3 1,098.0 1,068.9
Measured at amortised cost:
Deposits and money market funds 98.2 81.2 87.2
Other receivables 14 13.8 10.1 11.1
Cash and cash equivalents 47.6 46.3 51.5
Total assets 1,439.9 1,370.8 1,349.9
Liabilities
Financial liabilities under investment contracts 15 1,224.5 1,153.0 1,129.8
Deferred income 16 135.3 139.0 137.5
Amounts due to investment contract holders 47.0 46.1 48.4
Other payables 17 17.3 14.5 17.0
Provisions 18 0.4 0.6 0.7
Total liabilities 1,424.5 1,353.2 1,333.4
Net assets 15.4 17.6 16.5
Shareholders' equity
Called up share capital 19 68.8 68.8 68.8
Other reserves 20 (48.7) (48.5) (48.6)
Retained earnings (4.7) (2.7) (3.7)
Total shareholders' equity 15.4 17.6 16.5
The notes on pages 30 to 50 form an integral part of these condensed
consolidated financial statements.
The condensed consolidated financial statements on pages 26 to 29 were
approved by the Board on 4 March 2026 and signed on its behalf by:
Thomas Morfett Ollie Byrne
Chief Executive Officer Chief Financial Officer
Condensed Consolidated Cash Flow Statement
Year ended
Six months ended
31 December 31 December 30 June
2025 2024 2025
£m £m £m
Cash flow from operating activities
Profit before tax for the period 2.6 0.5 1.8
Adjustments for:
Depreciation and amortisation 1.1 1.0 1.9
Dividends receivable (4.1) (2.8) (6.1)
Dividends received 4.1 2.8 6.1
Interest receivable (2.3) (2.7) (4.9)
Interest received 2.4 2.4 4.7
Movement in Share Based Payment reserve (0.1) (0.1) -
Foreign exchange (gains) / losses (0.4) 0.1 (0.9)
Changes in operating assets and liabilities
Increase in debtors (2.6) (3.4) (4.1)
Decrease in deferred origination costs 2.1 2.1 5.8
Decrease in deferred income (2.1) (1.2) (2.8)
(Decrease) / increase in creditors (1.4) 5.8 10.8
(Increase) / decrease in financial investments (94.2) 1.9 22.8
Increase / (decrease) in financial liabilities 94.7 0.2 (21.1)
Cash flow (used in)/from operations (0.2) 6.6 14.0
Corporation tax paid - - (0.1)
Net cash (used in)/from operations after taxation (0.2) 6.6 13.9
Cash flows from investing activities
Investment in intangible assets, and property, plant & equipment (0.1) - (1.0)
Purchase of investments - (4.0) (3.8)
Purchase of own shares (0.3) (0.2) (0.1)
Cash flows used in investing activities (0.4) (4.2) (4.9)
Cash flows from financing activities
Dividends paid (3.6) (3.7) (6.1)
Principal elements of lease liabilities (0.1) (0.1) (0.1)
Interest on lease liabilities (0.1) - (0.1)
Cash flows used in financing activities (3.8) (3.8) (6.3)
Net (decrease)/increase in cash and cash
Equivalents (4.4) (1.4) 2.7
Cash and cash equivalents at beginning of period 51.5 47.9 47.9
Effect of exchange rate changes 0.5 (0.2) 0.9
Cash and cash equivalents at end of period 47.6 46.3 51.5
The notes on pages 30 to 50 form an integral part of these condensed
consolidated financial statements.
Notes to the Condensed Consolidated Financial Statements
1 General information
Hansard Global plc ("the Company") is a limited liability company,
incorporated in the Isle of Man under the Isle of Man Companies Act 1931 -
2004, whose shares are publicly traded. The principal activity of the Company
is to act as the holding company of the Hansard Group ("the Group") of
companies. The activities of the principal operating wholly owned subsidiaries
include the transaction of life assurance business and related activities.
Hansard Europe was closed to new business with effect from 30 June 2013. The
principal subsidiaries of the company are as follows:
Company name Incorporated Activity
Hansard International Limited Isle of Man Life Assurance
Hansard Worldwide Limited The Bahamas Life Assurance
Hansard Europe Designated Activity Company Ireland Life Assurance
Hansard Administration Services Limited Isle of Man Administration Services
Hansard Development Services Limited Isle of Man Marketing and Development Services
The registered office of the Company is 55 Athol Street, Douglas, Isle of Man,
IM99 1QL.
The Company has its primary listing on the London Stock Exchange.
These condensed consolidated interim financial statements are unaudited and do
not include all of the information required for a complete set of financial
statements prepared in accordance with IFRS Standards and the Isle of Man
Companies Acts 1931 - 2004. Selected explanatory notes are included to explain
events and transactions that are significant to an understanding of the
changes in the Group's financial position and performance since the last
annual financial statements. The condensed consolidated interim financial
statements were approved by the Board of Directors on 4 March 2026.
The Board of Directors approved the Group's statutory financial statements for
the year ended 30 June 2025 on 24 September 2025. The report of the
independent auditor on those financial statements was unmodified and did not
contain an emphasis of matter paragraph.
2 Basis of presentation
The consolidated financial statements have been prepared in accordance with
with the Disclosure and Transparency Rules of the Financial Conduct Authority
("DTR") and with IAS 34 "Interim Financial Reporting" as adopted by the United
Kingdom ("UK"). The financial statements have been prepared under the
historical cost convention as modified by the revaluation of financial
investments and financial liabilities at fair value through profit or loss.
The Group has applied all International Financial Reporting Standards adopted
by the United Kingdom and effective at 31 December 2025.
The Group underwrites an immaterial amount of insurance business. Management
has undertaken an assessment of the impact of accounting for this business as
investment business rather than insurance business and concluded that this
would not have a material impact on the financial statements. This assessment
has been refreshed to consider the impact of IFRS 17 in conjunction with new
products that have been brought to market, and management have not changed
their conclusion that accounting for the business as investment business would
not have a material impact on the financial statements. Management will keep
this assessment under review and should the outcome change in future the Group
accounting treatment will be reassessed. As a result, IFRS 17 has not been
applied to these financial statements.
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenue and
expenses during the reporting year. The estimates and associated assumptions
are based on historical experience and various other factors that are believed
to be reasonable under the circumstances. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the year in which the
estimate is revised if the revision affects only that year or in the year of
the revision and future years if the revision affects both current and future
years.
Except where otherwise stated, the financial statements are presented in
pounds sterling, the functional currency of the Company, rounded to the
nearest one hundred thousand pounds.
The following new standards, amendments and interpretations are in issue but
not yet effective and have not been early adopted by the Group and are not
expected to have a significant impact;
· Amendments to the classification and measurement of financial
instruments (amendments to IFRS 7 and IFRS 9) - effective from 1 January 2026
· Presentation and disclosure in financial statements (IFRS18) -
effective from 1 January 2027
· Subsidiaries without public accountability (IFRS 19) -
effective from 1 January 2027
IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies
for annual reporting periods beginning on or after 1 January 2027 and
introduces a number of new reporting requirements. The Group is still in the
process of assessing the impact of the new standard, particularly with respect
to the structure of the Group's statement of comprehensive income, the
statement of cash flows and the additional disclosures required for management
defined performance measures. The Group is also assessing the impact on how
information is grouped in the financial statements, including for items
currently labelled as 'other".
There are no other standards, amendments or interpretations to existing
standards that are not yet effective, that would have a material impact on the
Group's reported results.
Going Concern
On a Risk Based Solvency Capital basis, the Group's capital position is strong
and well in excess of regulatory requirements. The long-term nature of the
Group's business results in considerable recurring cash inflows arising from
existing business. The Directors believe that the Group is well placed to
manage its business risks successfully.
The Directors are satisfied that the Company and the Group have adequate
resources to continue to operate as a going concern for the foreseeable future
and have prepared the consolidated financial statements on that basis.
In making this statement, the Directors have reviewed financial forecasts that
include plausible downside scenarios because of the ongoing geopolitical
position and global economic conditions. This shows the Group continuing to
generate profit over the next 12 months and that the Group has sufficient cash
reserves to enable it to meet its obligations as they fall due.
The Directors have confidence in the acquisition of new business with Global
Select delivering strong sales and Ascend and Future Focus supporting regular
and flexible premium growth. In Japan, two products tailored to the domestic
market are available for our distribution partner to commence sales. The Group
has also strengthened its distribution relationships in Latin America,
reflecting the commitment to scalable market diversification. The impact of
this on the Group's profit and cash flow is not immediate, which allows for
longer-term adjustments to operations and the cost base. Long periods of
lower new business, or indeed lower AuA, would be addressed by reducing the
cost base and, where necessary, the dividend paid.
The following factors are considered as supportive to the Group's resilience
to external market and economic challenges:
· The Group's business model focuses on long term savings
products, both single premium, and regular premium paying products which
continue to receive cash inflows regardless of the amount of new business
sold.
· The Group earns almost a third of its revenues from asset-based
income which is not immediately dependent on sourcing new business. Initial
fees in respect of new business are broadly offset by initial commissions,
limiting the impact of any reduction in new business.
· New business channels are geographically dispersed and
therefore less exposed to specific regional challenges.
· The largest expense associated with new business is commission
expenditure which reduces directly in line with reduced sales.
· The Group has, and continues to the date of this report to
have, a strong capital position with significant levels of liquidity and cash.
· The business has demonstrated operational resilience in being
able to operate remotely from its offices without any material impact to
processing and servicing levels. Its control environment continued to
operate effectively during this time.
· The Group places the majority of its shareholder assets into
conservative, highly-liquid, highly rated bank deposits and money market
funds. These are typically not subject to price fluctuation and protect the
Group's assets against potential market volatility; and
· The Group has no borrowings.
3 Principal accounting policies
As required by the Disclosure and Transparency Rules of the Financial Conduct
Authority and IAS 34, this condensed set of consolidated financial statements
has been prepared applying the accounting policies and standards that were
applied, and the critical accounting estimates and judgements in applying
them, in the preparation of the Group's published consolidated financial
statements for the year ended 30 June 2025. The published consolidated
financial statements for the year ended 30 June 2025 can be accessed on the
Company's website: www.hansard.com (http://www.hansard.com) .
4 Financial risk management
Risk management objectives and risk policies
The Group's objective in the management of financial risk is to minimise,
where practicable, its exposure to such risk, except when necessary to support
other objectives. The Group seeks to manage risk through the operation of
unit-linked business whereby the contract holder bears the financial risk. In
addition, shareholder assets are invested in highly rated investments.
Overall responsibility for the management of the Group's exposure to risk is
vested in the Board. To support it in this role, an Enterprise Risk Management
("ERM") framework is in place comprising risk identification, risk assessment,
control and reporting processes. Information concerning the operation of the
ERM framework to manage financial and other risks is contained within the
Report and Accounts for the year ended 30 June 2025, and particularly in note
3 thereto, "Financial Risk Management".
The main significant financial risks to which the Group is exposed are set out
below. For each category of risk, the Group determines its risk appetite and
sets its investment, treasury, and associated policies accordingly.
4.1 Market risk
This is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices, analysed
between price, interest rate and currency risk. The Group adopts a risk averse
approach to market risk, with a stated policy of not actively pursuing or
accepting market risk except where necessary to support other objectives.
However, the Group accepts the risk that the fall in equity or other asset
values, whether as a result of price falls or strengthening of sterling
against the currencies in which contract holder assets are denominated, will
reduce the level of annual management charge income derived from such contract
holder assets and the risk of lower future profits.
Sensitivity analysis to market risk
The Group's business is unit-linked and the direct associated market risk is
therefore borne by contract holders (although there is a secondary impact as
shareholder income is dependent upon the fair value of contract holder
assets). Other financial assets and liabilities held outside of contract
holder unitised funds primarily consist of units in money market funds, cash
and cash equivalents, and other assets and liabilities. Cash held in unitised
money market funds and at bank is valued at par and is unaffected by movements
in interest rates. Other assets and liabilities are similarly unaffected by
market movements.
As a result of these combined factors, the Group's financial assets and
liabilities held outside unitised funds are not materially subject to market
risk, and movements at the reporting date in interest rates and equity values
have an immaterial impact on the Group's profit after tax and equity. Future
revenues from annual management charges may be affected by movements in
interest rates, foreign currencies and equity values. The Group does not
control the asset selection strategy as assets are chosen by the contract
holders.
(a) Price risk
Unit linked funds are exposed to securities price risk as the investments held
are subject to prices in the future which are uncertain. The fair value of
financial assets (designated at fair value through profit or loss) exposed to
price risk as at 31 December 2025 was £1,152.3m (31 December 2024:
£1,098.0m). In the event that investment income is affected by price risk
then there will be an equal and opposite impact on the value of the changes in
provisions for investment contract liabilities in the same accounting period.
The impact on the profit or loss before taxation in a given financial year is
negligible.
An overall change in the market value of the unit-linked funds would affect
the annual management charges accruing to the Group since these charges, which
are typically 1% per annum, are based on the market value of contract holder
assets under administration. The approximate annual impact on the Group's
profits and equity of a 10% change in fund values, as a result of price,
interest rate or currency fluctuations, is £1.6m (H1 2025: £1.5m).
(b) Interest rate risk
Interest rate risk is the risk that the Group is exposed to lower returns or
loss as a direct or indirect result of fluctuations in the value of, or income
from, specific assets arising from changes in underlying interest rates.
The Group is primarily exposed to interest rate risk on the balances that it
holds with credit institutions, its investment grade bond portfolio, and in
money market funds.
Considering the proportion of Group funds held on longer-term, fixed-rate
deposits, a change of 1% p.a. in interest rates will result in an increase or
decrease of approximately £0.6m (H1 2025: £0.6m) in the Group's annual
investment income and equity.
A summary of the Group's liquid assets at the balance sheet date is set out in
note 4.2.
(c) Currency risk
Currency risk is the risk that the Group is exposed to higher or lower returns
as a direct or indirect result of fluctuations in the value of, or income
from, specific assets and liabilities arising from changes in underlying
exchange rates.
(c) (i) Group foreign currency exposures
The Group is exposed to currency risk on the foreign currency denominated bank
balances, contract fees receivable and other liquid assets that it holds to
the extent that they do not match liabilities in those currencies. The impact
of currency risk is minimised by frequent repatriation of excess foreign
currency funds to sterling.
At the balance sheet date, the Group had exposures in the following
currencies:
31 December
2025 2025 2025 2024 2024 2024
US$m €m ¥m US$m €m ¥m
Gross assets 27.8 17.6 395.5 28.4 14.7 438.4
Matching currency liabilities (33.2) (17.6) (742.7) (25.2) (15.4) (571.9)
Uncovered currency exposures (5.4) - (347.2) 3.2 (0.7) (133.5)
Sterling equivalent of
exposures (£m) (4.0) - (1.6) 2.5 (0.6) (0.7)
The approximate effect of a 5% change in the value of US dollars to sterling
is £0.2m (H1 2025: £0.1m); in the value of the euro to sterling is nil (H1
2025: less than £0.1m); and in the value of the yen to sterling is £0.1m (H1
2025: less than £0.1m).
(c) (ii) Financial investments by currency
Certain fees and commissions are earned in currencies other than sterling,
based on the value of financial investments held in those currencies from time
to time. After 31 December 2025, Hansard International, the Group's principal
subsidiary, entered into a series of forward foreign exchange contracts to
hedge income volatility arising from forecast USD-denominated cash flows.
Further disclosure is set out in note 25. The sensitivity of the Group to the
currency risk inherent in investments held to cover financial liabilities
under investment contracts is incorporated within the analysis set out in (a)
above.
At the balance sheet date, the analysis of financial investments by currency
denomination is as follows; US dollars: 75.1% (31 December 2024: 74%);
sterling: 17.5% (31 December 2024: 19%); euro: 6.1% (31 December 2024: 6%);
other: 1.3% (31 December 2023: 2%).
4.2 Credit risk
Credit risk is the risk that the Group is exposed to lower returns or loss if
another party fails to perform its financial obligations to the Group. The
Group has adopted a risk averse approach to such risk and has a stated policy
of not actively pursuing or accepting credit risk except when necessary to
support other objectives.
The clearing and custody operations for the Group's security transactions are
mainly concentrated with one broker, namely Capital International Limited, a
member of the London Stock Exchange. At the balance sheet date, substantially
all contract holder cash and cash equivalents, balances due from broker and
financial investments are placed in custody with Capital International
Limited. These operations are detailed in a formal contract that incorporates
notice periods and a full exit management plan. Delivery of services under the
contract is monitored by a dedicated relationship manager against a documented
Service Level Agreement and Key Performance Indicators.
The Group has an exposure to credit risk in relation to its deposits with
credit institutions and its investments in unitised money market funds. To
manage these risks; deposits are made, in accordance with established policy,
with credit institutions having a short-term rating of at least F1 or P1 from
Fitch IBCA and Moody's respectively and a long-term rating of at least A or A3
respectively. Investments in unitised money market funds are made only where
such fund is AAA rated. Additionally maximum counterparty exposure limits are
set both at an individual subsidiary company level and on a Group-wide basis.
These assets are considered to have a high degree of credit worthiness, and no
assets of a lower credit worthiness are held. The following table sets out
information about the credit quality of the Group's deposits with credit
institutions and its investments in unitised money market funds.
31 December 30 June
2025 2024 2025
£m £m £m
Deposits with credit institutions and investments in unitised money market
funds
(Based on Standards & Poor's ratings)
A- to A+ 16.1 28.6 20.8
AA- to AA+ - 1.6 -
AAA- to AAA+ 24.3 14.0 21.9
Total deposits 40.4 44.2 42.7
AA- to AA+ 0.4 0.3 0.3
A- To A+ 22.1 16.8 23.2
Cash at bank 22.5 17.1 23.5
Group cash and deposits 62.9 61.3 66.2
Credit risk for financial assets held at amortised cost is recognised using an
expected credit loss model. The model splits financial assets into those which
are performing, underperforming and non-performing based on changes in credit
quality since initial recognition. At initial recognition financial assets are
considered to be performing. They become underperforming where there has been
a significant increase in credit risk since initial recognition, and
non-performing when there is objective evidence of impairment. Twelve months
of expected credit losses are recognised in the statement of comprehensive
income and netted against the financial asset in the statement of financial
position for all performing financial assets, with lifetime expected credit
losses recognised for underperforming and non-performing financial assets.
Trade receivables are designated as having no significant financing component.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses for trade receivables by using a lifetime expected loss allowance.
Expected credit losses are based on the historic levels of loss experienced
for the relevant financial assets, with due consideration given to forward
looking information. The group expected credit loss charged in the period is
£0.4m (H1 2025: less than £0.1m).
There have been no changes in the assets in the period ended 31 December 2025
attributable to changes in credit risk (31 December 2024: nil).
At the balance sheet date, an analysis of the Group's shareholder cash
balances was as follows:
31 December 30 June
2025 2024 2025
£m £m £m
Longer term deposits with credit institutions 15.3 15.0 14.7
Cash and cash equivalents under IFRS 47.6 46.3 51.5
62.9 61.3 66.2
4.3 Liquidity risk
Liquidity risk is the risk that the Group, though solvent, does not have
sufficient financial resources to enable it to meet its obligations as they
fall due, or can only secure them at excessive cost.
The Group's objective is to ensure that it has sufficient liquidity over short
(up to one year) and medium-term time horizons to meet the needs of the
business. This includes liquidity to cover, amongst other things, new business
costs, planned strategic activities, servicing of equity capital as well as
working capital to fund day-to-day cash flow requirements.
Liquidity risk is principally managed in the following ways:
· Assets of a suitable marketability are held to meet contract
holder liabilities as they fall due.
· Forecasts are prepared regularly to predict required liquidity
levels over both the short and medium term.
The Group's exposure to liquidity risk is considered to be low since it
maintains a high level of liquid assets to meet its liabilities.
4.4 Insurance risk
Insurance risk is the risk of loss arising from actual experience being
different than that assumed when an insurance product was designed and priced.
For the Group, the key insurance risks are lapse risk, expense risk and
mortality risk. However, the size of insurance risk is not deemed to be
materially significant. From an accounting perspective all contracts have been
classified as investment contracts.
4.4.1 Lapse risk
A key risk for investment contracts is policyholder behaviour risk - in
particular the risk that contracts are surrendered, or significant cash
withdrawals are made before sufficient fees have been collected to cover
up-front commissions paid by the Group. The risk is mitigated by charging
penalties on the early surrender of contracts.
4.5 Fair value of financial assets and liabilities
The Group closely monitors the valuation of assets in markets that have become
less liquid. Determining whether a market is active requires the exercise of
judgement and is determined based upon the facts and circumstances of the
market for the instrument being measured. Where the Directors determine that
there is no active market for a particular financial instrument, for example
where a particular collective investment scheme is suspended from trading,
fair value is assessed using valuation techniques based on available, relevant
information and an appraisal of all associated risks. When a collective
investment scheme recommences regular trading, the value would be transferred
back to Level 1. This process requires the exercise of significant judgement
on the part of the Directors.
Due to the linked nature of the contracts administered by the Group's
undertakings, any change in the value of financial assets held to cover
financial liabilities under those contracts will result in an equal and
opposite change in the value of contract liabilities. The separate effect on
financial assets and financial liabilities is included in investment income
and investment contract benefits, respectively, in the condensed consolidated
statement of comprehensive income.
IFRS 13 requires the Group to classify fair value measurements into a fair
value hierarchy by reference to the observability and significance of the
inputs used in measuring that fair value. The hierarchy is as follows:
· Level 1: fair value is determined using quoted prices
(unadjusted) in active markets for identical assets.
· Level 2: fair value is determined using inputs other than quoted
prices included within Level 1 that are observable for the asset either
directly (i.e., as prices) or indirectly (i.e., derived from prices).
· Level 3: fair value is determined using inputs for the asset that
are not based on observable market data (unobservable inputs).
The following tables analyse the Group's financial assets and liabilities at
fair value through profit or loss, at 31 December 2025:
Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss £m £m £m £m
Equity securities 85.1 0.3 - 85.4
Collective investment schemes 968.4 6.0 1.0 975.4
Fixed income securities, bonds and structured notes
4.3 9.2 78.0 91.5
Total financial assets at fair value through profit and loss 1,057.8 15.5 79.0 1,152.3
All other financial assets and liabilities are designated as held at amortised
cost which approximates to fair value.
Level 1 Level 2 Level 3 Total
£m £m £m £m
Deposits and money market funds 98.2 - - 98.2
Total financial assets at fair value through
profit or loss 1,156.0 15.5 79.0 1,250.5
Financial liabilities at fair value
through profit or loss 1,224.5 - 1,224.5
Financial liabilities at fair value through profit or loss are classified as
level 2 on the basis that they relate to policies investing in financial
assets at fair value through profit or loss.
The following tables analyse the Group's financial assets and liabilities at
fair value through profit or loss, at 30 June 2025:
Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss £m £m £m £m
Equity securities 75.0 1.8 - 76.8
Collective investment schemes 901.2 5.6 0.9 907.7
Fixed income securities, bonds and structured notes 2.9 10.5 71.0 84.4
Total financial assets at fair value through profit and loss 979.1 17.9 71.9 1,068.9
All other financial assets and liabilities are designated as held at amortised
cost which approximates to fair value.
Level 1 Level 2 Level 3 Total
£m £m £m £m
Deposit and money market funds 87.2 - - 87.2
Total financial assets at fair value through profit or loss 1,066.3 17.9 71.9 1,156.1
Financial liabilities at fair value through profit or loss - 1,129.8 - 1,129.8
Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2
and Level 3 fair values for financial instruments in the statement of
financial position, as well as the significant unobservable inputs used.
Significant unobservable input Sensitivity to changes in unobservable inputs
Type Valuation technique
Suspended assets £2.3m (30 June 2025: £2.9m) Discounted net asset value. Discount factor (0-100%) and NAV. If the NAV was higher/lower, the fair value would be higher/lower.
If the discount factor was higher/lower, the fair value would be lower/higher.
Bonds and structured notes Market comparison / discounted cash flow: The fair value is estimated Level 2: Not applicable. Level 2: Not applicable.
considering:
Level 2: £9.1m (30 June 2025: £10.5)
Level 3: £77.3m (30 June 2025: £71.0m) (i) current or recent quoted prices for identical securities in markets that
are not active; and Level 3: Level 3:
(ii) third party pricing sourced via Bloomberg. Not applicable. Not applicable
Level 3 sensitivity to changes in unobservable measurements
For financial assets assessed as Level 3, based on its review of the prices
used, the Company believes that any reasonable change to the unobservable
inputs used to measure fair value would not result in a significantly higher
or lower fair value measurement at year end, and therefore would not have a
material impact on its reported results.
A reconciliation between opening and closing balances of Level 3 assets is
presented in the table below:
31 December 30 June
2025 2024 2025
£m £m £m
Opening balance 71.9 61.8 61.8
Unrealised gains / (losses) 9.5 3.5 (1.1)
Transfers into level 3 - 1.5 2.5
Transfers out of level 3 - (0.9) -
Purchases, sales, issues, and settlements (2.4) 6.5 8.7
Closing balance 79.0 72.4 71.9
During the period under review, there were no assets transferred into Level 3
or transferred from Level 3 to Level 1 or Level 2. Unrealised losses include
additional fair value impairments to a range of assets in liquidation which
have resulted in £nil of bad debt provisions being made to fees and other
receivables as shown in note 6.
Within Investment and other operating income, the Group has recognised gains
of £9.5m attributable to Level 3 assets noted above. These assets are classed
as financial investments held to cover liabilities under investment contracts
(note 15).
5 Segmental information
Disclosure of operating segments in these condensed consolidated financial
statements is consistent with reports provided to the Chief Operating Decision
Maker ("CODM") which, in the case of the Group, has been identified as the
Executive Committee of Hansard Global plc.
In the opinion of the CODM, the Group operates in a single reportable segment,
that of the distribution and servicing of long-term investment products. New
business development, distribution and associated activities in relation to
the Republic of Ireland ceased with effect from 30 June 2013. All other
activities of the Group are continuing.
The Group's Executive Committee uses two principal measures when appraising
the performance of the business: net issued compensation credit ("NICC")
(weighted where appropriate by product line) and expenses. NICC is a measure
of the value of new in-force business and top-ups on existing single premium
contracts. NICC is the total amount of basic initial commission payable to
intermediaries for business sold in a period and is calculated on each piece
of new business. It excludes override commission paid to intermediaries over
and above the basic level of commission.
The following table analyses NICC geographically and reconciles NICC to direct
origination costs during the period as set out in section 5 of the Business
and Financial Review.
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Middle East and Africa 0.5 1.9 1.8
Latin America 1.4 1.3 2.2
Rest of World 1.4 - 1.6
Far East 0.3 0.2 0.2
Net issued compensation credit 3.6 3.4 5.8
Other commission costs paid to third parties 1.1 1.5 2.5
Enhanced unit allocations - 0.2 0.3
Direct origination costs during the period 4.7 5.1 8.6
Revenues and expenses allocated to geographical locations contained in
sections 5.1 to 5.4 below reflect the revenues and expenses generated in or
incurred by the legal entities in those locations.
5.1 Geographical analysis of fees and commissions by origin
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Isle of Man 23.8 22.4 45.6
Republic of Ireland 0.8 1.0 2.0
The Bahamas * 0.4 0.3 0.6
25.0 23.7 48.2
* Hansard Worldwide, which is based in The Bahamas, fully reinsures its
business to Hansard International. All external fees and commissions for
Hansard Worldwide are therefore presented within the Isle of Man category.
Fees shown in respect of Hansard Worldwide represent fees received from
Hansard International.
5.2 Geographical analysis of profit / (loss) before taxation
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Isle of Man 2.3 1.1 2.9
Republic of Ireland (0.1) (0.8) (1.6)
The Bahamas 0.4 0.2 0.5
2.6 0.5 1.8
5.3 Geographical analysis of gross assets
31 December 30 June
2025 2024 2025
£m £m £m
Isle of Man * 1,358.2 1,290.4 1,268.4
Republic of Ireland 76.6 78.4 77.5
The Bahamas 5.1 2.0 4.0
1,439.9 1,370.8 1,349.9
* Includes assets held in the Isle of Man in connection with policies
written in The Bahamas. As at 31 December 2025 these amounted to £348.7m (31
December 2024: £278.2m).
5.4 Geographical analysis of gross liabilities
31 December 30 June
2025 2024 2025
£m £m £m
Isle of Man 1,004.8 1,007.0 964.4
Republic of Ireland 65.5 67.1 67.0
The Bahamas 354.2 279.1 302.0
1,424.5 1,353.2 1,333.4
6 Fees and commissions
Fees are charged to the contract holders of investment contracts for contract
administration services, investment management services, payment of benefits
and other services related to the administration of investment contracts. Fees
may be chargeable on either a fixed fee basis, a fee per transaction or as a
percentage of assets under administration. Fees are recognised as revenue as
the services are provided. Initial fees that exceed the level of recurring
fees and relate to the future provision of services are deferred in the
balance sheet and amortised on a straight-line basis over the life of the
relevant contract. These fees are accounted for on the issue of a contract and
on receipt of incremental premiums on existing single premium contracts.
Regular fees charged to contracts are recognised on a straight-line basis over
the period in which the service is provided. Transactional fees are recorded
when the required action is complete.
Commissions receivable arise principally from fund houses with which
investments are held. Commissions are recognised on an accruals basis in
accordance with the relevant agreement.
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Contract fee income 15.1 14.0 29.2
Fund management fees 7.5 7.2 13.9
Commission receivable 2.4 2.5 5.1
25.0 23.7 48.2
7 Investment Income
Investment Income comprises dividends, interest and realised and unrealised
gains and losses on investments.
Movements are recognised in the consolidated statement of comprehensive income
in the period in which they arise. Dividends are accrued on the date notified.
Interest is accounted for on a time proportion basis using the effective
interest method.
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Interest income 2.1 2.6 4.7
Dividend income 4.1 2.8 6.2
Gains on realisation of 32.0 19.1 35.8
investments
Movement in unrealised gains/(losses) 90.7 5.3 (14.2)
128.9 29.8 32.4
8 Administrative and other expenses
Included in Administrative and other expenses are the following:
Six months ended Year ended
31 December 30 June
2025 2024 2025
£m £m £m
Auditors' remuneration
- Fees payable to the Company's auditor for the audit of the Company's 0.2 0.1
annual accounts
0.3
- Fees payable for the audit of the Company's subsidiaries pursuant to 0.2 0.2
legislation
0.4
- Other services provided to the Group - - 0.1
Employee costs 6.5 6.6 12.0
Directors' fees 0.2 0.2 0.4
Fund management fees 2.8 2.5 5.1
Renewal and other commission 0.4 0.4 0.8
Professional and other fees 1.4 1.7 3.4
Litigation defence and settlement costs 0.8 1.5 2.8
Credit loss allowance 0.4 (0.1) 0.6
Licences and maintenance fees 2.1 2.7 5.1
Insurance costs 0.4 0.4 0.8
Depreciation of property, plant and equipment 0.2 0.2 0.3
Amortisation of intangible assets 0.9 0.8 1.6
Communications 0.1 0.1 0.1
9 Taxation
Taxation is based on profit and income for the period as determined with
reference to the relevant tax legislation in the countries in which the
Company and its subsidiaries operate. Tax payable is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet
date. Tax is recognised in the consolidated statement of comprehensive income
except to the extent that it relates to items recognised in equity. Tax on
items relating to equity is recognised in equity.
The corporation tax expense for the Group for H1 2026 was less than £0.1m on
a rounded basis (H1 2025: £0.1m). Corporation tax is charged on any profits
arising at the following rates depending on location of the company or branch:
Isle of Man 0% (2024: 0%)
Republic of Ireland 12.5% (2024: 12.5%)
Japan 23.2% (2024: 23.2%)
Labuan 24% (2024: 24%)
The Bahamas 0% (2024: 0%)
No deferred tax asset is currently being recorded in relation to losses
arising in Hansard Europe.
There is no material difference between the current tax charge in the
consolidated statement of comprehensive income and the current tax charge that
would result from applying standard rates of tax to the profit before tax.
The OECD's Pillar II global minimum tax, based on the Global Anti-Base Erosion
(GloBE) Model Rules, will not be expected to have an impact on the Group, as
the Group's total revenue is less than €750m.
10 Earnings per share
Six months ended Year ended
31 December 30 June
2025 2024 2025
Profit after tax (£m) 2.6 0.4 1.8
Weighted average number of shares in issue (millions) 137.6 137.6 137.6
Earnings per share in pence 1.9p 0.3p 1.3
The Directors believe that there is no material difference between the
weighted average number of shares in issue for the purposes of calculating
either basic or diluted earnings per share. Earnings under either measure are
1.9 pence per share (H1 2025: 0.3p).
11 Dividends
Interim dividends payable to shareholders are recognised in the year in which
the dividends are paid. Final dividends payable are recognised as liabilities
when approved by the shareholders at the annual general meeting.
The following dividends have been paid by the Group during the period:
Year ended
Six months ended 31 December 30 June
2025 2024 2025
Per share Total Per share Total Per share Total
p £m p £m p £m
Final dividend paid 2.65 3.6 2.65 3.7 2.65 3.7
Interim dividend paid 1.8 2.5 - - 1.80 2.4
4.45 6.1 2.65 3.7 4.45 6.1
The Board have resolved to pay an interim dividend of 1.8p per share. This
amounts to £2.5m and will be paid on 23 April 2026 to shareholders on the
register at 13 March 2026.
12 Intangible assets and property, plant and equipment
Intangible assets
The historical cost of computer software is the purchase cost and the direct
cost of internal development. Computer software is recognised as an intangible
asset.
31 December 30 June
2025 2024 2025
£m £m £m
Intangible assets 21.3 22.4 22.1
The intangible asset relates to capitalised costs associated with the
development of a replacement policy administration system. The system went
live in early March 2024, at which point amortisation has commenced over its
estimated Useful Economic Life.
Property, plant and equipment
Property, plant and equipment includes both tangible fixed assets and 'right
of use assets' recognised in accordance with IFRS 16.
31 December 30 June
2025 2024 2025
£m £m £m
Property, plant and equipment 0.6 0.7 0.7
Right of use assets 1.9 2.1 2.1
2.5 2.8 2.8
IFRS 16 - Leases
During the period to 31 December 2025, there were no changes to lease terms
for any of the Group's Leases recognised under IFRS 16 and the Group did not
enter into any new leases or lease extensions. The weighted average borrowing
rate applied to the lease liabilities at 31 December 2025 was 7% (31 December
2024: 7%).
The recognition of the right-of-use asset represents an increase in the
property, plant and equipment figure of £1.9m (31 December 2024: £2.1m).
Lease liabilities relating to the right-of-use asset are included within other
payables. The interest recognised on the lease liabilities in respect of the
right of use asset was £0.1m (31 December 2024: £0.1m).
During the period to 31 December 2025, the Group entered into a sub-lease for
part of a building that is reported as a right-of-use asset. The group has
classified the sub-lease as an operating lease, as it does not transfer
substantially all of the risks and rewards incidental to the ownership of the
sub-let asset. During the period ending 31 December 2025, the Group recognised
rental income of less than £0.1m (31 Dec 2024: less than £0.1m).
31 December 30 June
2025 2024 2025
£m £m £m
Right of use asset recognised b/f 2.1 2.1 2.1
Additions during the period - 0.1 0.2
Depreciation (0.2) (0.1) (0.2)
Net book value of right of use asset c/f 1.9 2.1 2.1
Lease liability recognised b/f 2.7 2.7 2.7
Additions during the period - 0.1 0.2
Lease payments made during the period (0.2) (0.2) (0.4)
Interest on leases 0.1 0.1 0.2
Lease liability recognised c/f 2.6 2.7 2.7
Of which are:
Current lease liabilities 0.3 0.2 0.3
Non-current lease liabilities 2.3 2.5 2.4
13 Deferred origination costs
Amortisation of deferred origination costs is charged within the origination
costs line in the consolidated statement of comprehensive income.
Formal reviews to assess the recoverability of deferred origination costs on
investment contracts are carried out at each balance sheet date to determine
whether there is any indication of impairment. If there is any indication of
irrecoverability or impairment, the asset's recoverable amount is estimated.
Impairment losses are reversed through the consolidated statement of
comprehensive income if there is a change in the estimates used to determine
the recoverable amount. Such losses are reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that would have
been determined, net of amortisation where applicable, if no impairment loss
had been recognised.
The movement in value over the period under review is summarised below.
31 December 30 June
2025 2024 2025
£m £m £m
At beginning of financial year 106.3 112.1 112.1
Origination costs incurred during the period 4.2 4.4 7.4
Origination costs amortised during the period (6.3) (6.5) (13.2)
104.2 110.0 106.3
31 December 30 June
2025 2024 2025
Carrying value £m £m £m
Expected to be amortised within one year 11.8 11.6 11.7
Expected to be amortised after one year 92.4 98.4 94.6
104.2 110.0 106.3
14 Other Receivables
Other receivables are initially recognised at fair value and subsequently
measured at amortised cost, less any provision for impairment.
31 December 30 June
2025 2024 2025
£m £m £m
Commission receivable 2.0 1.4 1.4
Other debtors 11.7 7.7 8.5
Prepayments 0.1 1.0 1.2
13.8 10.1 11.1
31 December 30 June
2025 2024 2025
Carrying value £m £m £m
Estimated to be settled within 12 months 9.0 8.1 8.0
Estimated to be settled after 12 months 4.8 2.0 3.1
13.8 10.1 11.1
Due to the short-term nature of these assets the carrying value is considered
to reflect fair value.
15 Financial investments held to cover liabilities under
investment contracts
The Group classifies its financial assets into the following categories:
financial investments and trade receivables. Financial investments consist of
units in collective investment schemes, equity securities, fixed income
securities and deposits with credit institutions. Collective investment
schemes, equity securities and fixed income securities are designated at fair
value through profit or loss. Deposits with credit institutions are designated
at amortised cost.
The decision by the Group to designate its financial investments at fair value
through profit or loss reflects the fact that the investment portfolio is
managed, and its performance evaluated, on a fair value basis.
The Group recognises purchases and sales of investments on trade date.
Investment transaction costs are written off in administration expenses as
incurred.
All gains and losses derived from financial investments, realised or
unrealised, are recognised within investment income in the consolidated
statement of comprehensive income in the period in which they arise.
The value of financial assets at fair value through profit or loss that are
traded in active markets (such as trading securities) is based on quoted
market prices at the balance sheet date. The quoted market price for financial
assets held by the Group is the current bid price. Investments in funds are
valued at the latest available net asset valuation provided by the
administrators or managers of the funds and companies, unless the Directors
are aware of good reasons why such valuations would not be the most
appropriate or indicative of fair value. Where necessary, the Group uses other
valuation methods to arrive at the stated fair value of its financial assets,
such as recent arms' length transactions or reference to similar listed
investments.
Loans and receivables are financial assets with fixed or determinable payments
that are not quoted on an active market. Loans and receivables consist,
primarily, of contract fees receivable, long-term cash deposits (i.e., with an
original maturity duration greater than three months) and cash and cash
equivalents.
The following investments, other assets and liabilities are held to cover
financial liabilities under investment contracts. They are included within the
relevant headings on the condensed consolidated balance sheet.
31 December 30 June
2025 2024 2025
£m £m £m
Equity securities 85.4 72.4 76.8
Investment in collective investment schemes 975.4 941.4 907.7
Fixed income securities, bonds and structured notes 82.0 78.8 74.8
Deposits and money market funds 82.0 64.4 73.0
Total assets 1,224.8 1,157.0 1,132.3
Other payables (0.3) (4.0) (2.5)
Financial investments held to cover liabilities 1,224.5 1,153.0 1,129.8
The other receivables and other payables' fair value approximates amortised
cost.
16 Deferred income
Fees charged for services related to the management of investment contracts
are recognised as revenue as the services are provided. Initial fees which
exceed the level of recurring fees and relate to the future provision of
services are deferred. These are amortised over the anticipated period in
which services will be provided. The recognition of balances in the deferred
income reserve is based on actuarial assumptions around future income over the
life of each policy. These actuarial assumptions are complex in nature and are
subject to estimation uncertainty. The actuarial assumptions are reviewed
regularly by the Appointed Actuary.
The movement in value of deferred income over the period is summarised below:
31 December 30 June
2025 2024 2025
£m £m £m
At beginning of financial year 137.5 140.2 140.2
Income received and deferred during the year 5.7 6.6 13.1
Income amortised and recognised in contract fees during the year (7.9) (7.8) (15.8)
135.3 139.0 137.5
31 December 30 June
2025 2024 2025
Carrying value £m £m £m
Expected to be amortised within one year 15.9 15.4 15.7
Expected to be amortised after one year 119.4 123.6 121.8
135.3 139.0 137.5
17 Other payables
Other payables are initially recognised at fair value and subsequently
measured at amortised cost. They are recognised at the point where service is
received but payment is due after the balance sheet date.
31 December 30 June
2025 2024 2025
£m £m £m
Commission payable 1.2 1.3 1.3
Other creditors and accruals 13.5 10.5 13.0
Lease liabilities of which:
Current lease liabilities 0.3 0.2 0.3
Non-current lease liabilities 2.3 2.5 2.4
17.3 14.5 17.0
18 Provisions
Provisions represent amounts to settle a number of the claims referred to in
Note 23 'Contingent Liabilities' where it is economically beneficial to do so.
Such provisions are calculated where there is an agreement for settlement for
that grouping of claims. Also included are amounts relating to litigation that
has been lost with all appeal options exhausted. All amounts released from
the provision to 31 December 2025 relate to payments made to claimants. The
following table reflects the movement in the provision during the period under
review.
31 December 30 June
2025 2024 2025
£m £m £m
Settlement provision at beginning of financial year 0.7 0.5 0.5
Additional provisions made in the period 0.2 0.2 0.3
Released from the provision for settlement (0.5) (0.1) (0.1)
0.4 0.6 0.7
Further information outlined within IAS 37.85 is not disclosed on the basis
that it may prejudice the Company's position.
With the exception of the lease liabilities shown in note 12, and the
provisions referred to above, all other payable balances, including amounts
due to contract holders, are deemed to be current. Due to the short-term
nature of these payables the carrying value is considered to reflect fair
value.
19 Called up share capital
31 December 30 June
2025 2024 2025
£m £m £m
Authorised:
200,000,000 ordinary shares of 50p 100.0 100.0 100.0
Issued and fully paid:
137,557,079 ordinary shares of 50p
(30 June 2025: 137,557,079 ordinary shares) 68.8 68.8 68.8
20 Other Reserves
Other reserves comprise the merger reserve arising on the acquisition by the
Company of its subsidiary companies on 1 July 2005, the share premium account
and the share save reserve. The merger reserve represents the difference
between the par value of shares issued by the Company for the acquisition of
those companies, compared to the par value of the share capital and the share
premium of those companies at the date of acquisition.
31 December 30 June
2025 2024 2025
£m £m £m
Merger Reserve (48.5) (48.5) (48.5)
Share premium 0.1 0.1 0.1
Share Save Reserve 0.1 0.1 0.1
Reserve for own shares held within EBT (note 21) (0.4) (0.2) (0.3)
(48.7) (48.5) (48.6)
Included within other reserves is an amount representing 1,012,015 (H1 2025:
863,700) ordinary shares held by the Group's employee benefit trust ('EBT')
which were acquired at a cost of £0.5m (see note 21). The ordinary shares
held by the trustee of the Group's employee benefit trust are treated as
treasury shares in the consolidated balance sheet in accordance with IAS 32
''Financial Instruments: Presentation''.
This reserve arose when the Group acquired equity share capital under its EBT,
which is held in trust by the trustee of the EBT. Treasury shares cease to be
accounted for as such when they are sold outside the Group, or the interest is
transferred in full to the employee pursuant to the terms of the incentive
plan.
21 Equity settled share-based payments
The Company has established a number of equity-based payment programmes for
eligible employees. The fair value of expected equity-settled share-based
payments under these programmes is calculated at date of grant using the
market value of the shares at the date granted and is amortised over the
vesting period on a straight-line basis through the consolidated statement of
comprehensive income. A corresponding amount is credited to equity over the
same period.
At each balance sheet date, the Group reviews its estimate of the number of
shares granted that are expected to be exercised. The impact of any revision
in the number of shares granted is recognised in the consolidated statement of
comprehensive income so that the charge to the consolidated statement of
comprehensive income is based on the number shares that vest A corresponding
adjustment is made to equity.
21.1 Incentive Plan Employee Benefit Trust
An Employee Benefit Trust was established in February 2018 to hold shares
awarded to employees as an incentive on a deferred basis. Shares awarded under
the scheme are purchased by the Trust in the open market and held until
vesting. Awards made under the scheme would normally vest after three years.
31 December 30 June
2025 2024 2025
Share Awards No. of Shares No. of Shares No. of Shares
Outstanding at start of period 829,429 926,000 926,000
Granted 472,512 296,729 296,729
Vested (264,881) (393,300) (393,300)
Outstanding at end of period 1,037,060 829,429 829,429
The Trust has been funded by way of a loan, and as at 31 December 2025 the
outstanding balance on the loan was £624,000 (2024: £554,000).
31 December 30 June
2025 2024 2025
Shares Held by the Trust No. of Shares No. of Shares No. of Shares
Outstanding at start of period 1,086,914 1,257,000 1,257,000
Purchased 264,881 - 223,214
Transferred following vesting (339,780) (393,300) (393,300)
Outstanding at end of period 1,012,015 863,700 1,086,914
During the period the expense arising from share-based payment transactions
was £86,000 (2024: £148,000).
22 Related party transactions
Intra-group transactions are eliminated on consolidation and are not disclosed
separately here.
There have been no significant related party transactions in the period, nor
changes to related parties. Related party transactions affecting the results
of previous periods and an understanding of the Group's financial position at
previous balance sheet dates are as disclosed in the Annual Report &
Accounts for the year ended 30 June 2025.
Details of any share-based transactions with employees during the period are
set out in note 21.
23 Contingent liabilities
23.1 Litigation
Financial services institutions may become involved in disputes where the
performance of assets selected by or on behalf of contract holders-typically
through their advisers-fails to meet expectations. This is particularly
relevant for complex products distributed across Europe prior to 2014.
Although the Group has never provided investment advice, as this
responsibility lies with the contract holder or their appointed adviser or
agent, it has nonetheless received complaints regarding the performance of
assets linked to certain contracts. Most cases have arisen in Italy, with a
smaller number in Belgium and Germany.
As at 31 December 2025, the outstanding writs served on the Group represent a
net cumulative exposure of €22.8m / £19.9m (30 June 2025: €23.8m /
£20.4m), relating to contract holder complaints and asset performance issues.
Between 31 December 2025 and the date of this report there have been no
material changes.
In line with Group policy, contingent liabilities are maintained even where
cases have been won at first instance, and if they are subject to appeal-this
includes the Group's largest single case in Belgium.
During the period to 31 December 2025, we recorded £1.0m in insurance
recoveries in relation to litigation expenses, and further recoveries are
anticipated as claims progress.
While the final outcome of these cases cannot be predicted with certainty,
based on legal advice and past experience the Group believes it has a strong
chance of success in defending the majority of claims and expects that a
number of the larger claims will be ultimately mitigated by insurance cover.
Except for smaller cases where (based on historical patterns) settlements may
be likely, all writs have been treated as contingent liabilities and disclosed
accordingly. Where an agreement for settlement exists for a group of claims, a
provision has been made for the remaining exposures and included in note 18
'Provisions', to the extent they can be reliably estimated.
23.2 Isle of Man Policyholders Compensation Scheme
The Group's principal subsidiary, Hansard International, is a member of the
Isle of Man Policyholders' Compensation Scheme governed by the Life Assurance
(Compensation of Policyholders) Regulations 1991. The objective of the Scheme
is to provide compensation for policyholders should an authorised insurer be
unable to meet its liabilities to policyholders. In the event of a levy being
charged by the Scheme members, Hansard International would be obliged to meet
the liability arising at the time. The maximum levy payable in accordance with
the regulations of the Scheme in respect of the insolvency of the insurer is
2% of long-term business liabilities. Hansard International's products include
a clause in their terms and conditions permitting it to recover any monies
paid out under the Scheme from contract holders.
24 Foreign exchange rates
The closing exchange rates used by the Group for the translation of balance
sheet items to sterling were as follows:
31 December 30 June
2025 2024 2025
US Dollar 1.35 1.25 1.37
Japanese Yen 211 197 198
Euro 1.15 1.20 1.17
25 Events after the reporting period
This report for the period ended 31 December 2025 was approved for issue on 5
March 2026.
Subsequent to 31 December 2025 the Group's principal subsidiary, Hansard
International, entered into a series of forward foreign exchange contracts to
hedge the volatility of income arising from forecast USD-denominated cash
flows over the next 18 months. In accordance with IAS 10 Events after the
reporting period, entering into these contracts represents a non-adjusting
event as the related transactions occur and reflect conditions that arose
after the reporting date. Changes in the USD/GBP exchange rate between the
reporting date and the date of signing this report have not been significant.
(The unrealised gain arising from the contracts at the date of signing of this
report is less than £0.1m.) Accordingly, as no hedge relationship was in
place at the period end, no hedge reserve has been recognised and there is no
impact on the income statement for the period ended 31 December 2025. The
Group intends to apply hedge accounting prospectively while the hedge
instruments are in place and continue to meet the effectiveness requirements
of IFRS9.
No other material events have occurred between the reporting date and the
issue date that require disclosure under IAS 10.
Independent Review Report to Hansard Global Plc
Conclusion
We have been engaged by Hansard Global Plc (the "Company") to review the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 31 December 2025 of the Company and its subsidiaries (together, the "Group"), which comprises the Condensed Consolidated Balance Sheet, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of changes in Equity, the Condensed Consolidated Cash Flow Statement and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 31 December 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (UK) 2410") issued by the Financial Reporting Council for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of consolidated financial statements.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
· Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the scope of review section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However future events or conditions may cause the Group to cease to continue as a going concern, and the above conclusions are not a guarantee that the Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the DTR of the UK FCA.
As disclosed in note 2, the annual consolidated financial statements of the Group are prepared in accordance with UK-adopted international accounting standards. The directors are responsible for preparing the condensed set of consolidated financial statements included in the half-yearly financial report in accordance with IAS 34 Interim Financial Reporting.
In preparing the half-yearly financial report, the directors are responsible for assessing the Group and the 'Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of consolidated financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the scope of review paragraph of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our engagement letter to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.
KPMG Audit LLC
Chartered Accountants
Isle of Man
4 March 2026
Risk Based Solvency Capital
A) Risk Based Solvency capital position at 31 December 2025
The Group is subject to the Isle of Man (Insurance Group) Supervision
Regulations 2019.
It has adopted the default consolidated accounts method ("Method 1") to
calculate the Group Solvency Capital Requirement ("SCR") and Own Funds as
required by these regulations.
The Group shareholder Risk Based Solvency surplus at 31 December 2025 was
£47.5m (30 June 2025: £45.6m), before allowing for payment of the 2026
interim dividend. All Risk Based Solvency and related data presented in this
section is subject to change prior to submission to regulatory authorities.
31 Dec 31 Dec 30 June
Group Risk Based Solvency capital position 2025 2024 2025
Total Total Total
£m £m £m
Own Funds 114.4 114.4 111.4
Solvency Capital Requirement 66.8 80.1 65.8
Surplus 47.5 34.3 45.6
Solvency ratio (%) 171% 143% 169%
Totals may differ due to rounding.
All Own Funds are considered Tier 1 capital.
The following table analyses the components of Own Funds:
31 Dec 31 Dec 30 June
2025 2024 2025
Own Funds Own Funds Own Funds
£m £m £m
Value of In-Force 107.0 108.3 103.1
Risk Margin (8.9) (12.3) (8.7)
Net Worth 16.3 18.4 17.0
Total 114.4 114.4 111.4
Own Funds increased since the previous year end driven by favourable
investment markets somewhat offset by dividend payments and expenses incurred.
B) Analysis of movement in Group capital position
A summary of the movement in Group Risk Based Solvency surplus from £45.6m at
30 June 2025 to £47.5m at 31 December 2025 is set out in the table below.
Analysis of movement in Group shareholder surplus £m
Risk Based Solvency surplus at 30 June 2025 45.6
Operating experience (0.3)
Investment performance 6.3
Changes in assumptions (1.3)
Dividends paid (3.2)
Foreign exchange 0.4
Risk Based Solvency surplus at 31 December 2025 47.5
The movement in Group Risk Based Solvency surplus in the first half of the
2025 financial year was the result of positive investment performance offset
by dividends paid and changes in assumptions.
New business written had a negative £1.0m impact on Own Funds for the period.
C) Analysis of Group Solvency Capital Requirements
The analysis of the Group's Solvency Capital Requirement by risk type is as
follows:
Split of the Group's Solvency Capital Requirement* 31 Dec 31 Dec 30 June
2025 2024 2025
Risks % of SCR % of SCR % of SCR
Market
Equity 47% 45% 46%
Currency 16% 11% 17%
Insurance
Lapse 36% 47% 35%
Expense 19% 18% 19%
Default 2% 2% 2%
Operational 27% 21% 29%
* Figures are the capital requirements prior to diversification benefits
expressed as a percentage of the final diversified SCR.
D) Reconciliation of IFRS equity to Group Risk Based Solvency
Shareholder Own
Funds
31 Dec 31 Dec 30 June
2025 2024 2025
£m £m £m
IFRS shareholders' equity 15.4 17.6 16.5
Elimination of DOC (104.2) (110.0) (106.3)
Elimination of DIR 135.3 139.0 136.8
Value of In-Force 107.0 108.3 103.1
Liability valuation differences* (3.1) (3.3) (3.6)
Impact of risk margin (8.9) (12.3) (8.7)
Other** (27.1) (24.9) (26.4)
Risk Based Solvency Shareholder Own Funds 114.4 114.4 111.4
* Liability valuation differences relate to additional provisions made for
risk-based capital purposes, notably for contingent liabilities.
** Other is related to Intangible Assets not recognised on the solvency
balance sheet.
E) Sensitivity analysis
The sensitivity of the Own Funds to significant changes in market conditions
is as follows:
Impact of market sensitivities 31 Dec 31 Dec 30 June
2025 2024 2025
Group Group Group
£m £m £m
Own Funds 114.4 114.4 111.4
Impact of:
10% instantaneous fall in equity markets (8.7) (8.0) (8.5)
100 basis points decrease in interest rates (0.5) (0.2) (0.5)
10% increase in expenses (6.6) (6.8) (6.8)
1% increase in expense inflation (4.8) (4.7) (4.6)
10% strengthening of sterling (9.9) (9.2) (9.2)
Contacts and Advisors
Registered Office Media Enquiries
55 Athol Street Camarco
40 Strand
Douglas
London
Isle of Man
WC2N 5RW
IM99 1QL
Tel: +44 (0)20 3757 4980
Tel: +44 (0)1624 688000
Fax: +44 (0)1624 688008
www.hansard.com
Non-executive Chair Broker
Philip Kay Panmure Liberum Limited
Philip.Kay@hansard.com Ropemaker Place, Level 12
25 Ropemaker Street
London
EC2Y 9LY
Tel. +44 (0)20 7886 2500
Financial Advisor Registrar
Rothschild & Co MUFG Corporate Markets (Guernsey) Limited,
New Court Central Square,
St Swithin's Lane 29 Wellington Street,
London Leeds, LS1 4D
EC4N 8AL
Tel: +44 (0)20 780 1966 Tel (UK): +44 (0) 371 664 0300*
Independent Auditor
KPMG Audit LLC
Heritage Court
41 Athol Street
Douglas
Isle of Man
IM1 1LA
Tel: +44 (0)1624 681000
*NB: 0371 Number - calls cost 12p per minute plus network extras. If you are UK Transfer Agent
outside the United Kingdom, please call +44 371 664 0300. Calls outside the
United Kingdom will be charged at the applicable international rate. The MUFG Corporate Markets (Guernsey Limited)
helpline is open between 9.00 am - 5.30 pm, Monday to Friday excluding public
holidays in England and Wales. Central Square,
29 Wellington St,
Leeds LS1 4DL
Tel (UK): +44 (0) 371 664 0300*
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