TIDMHSD
RNS Number : 3040H
Hansard Global plc
27 July 2023
27 July 2023
Hansard Global plc
New business results for the year ended 30 June 2023
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
quarter ended 30 June 2023 ("Q4 2023") . All figures refer to this
period, except where indicated. Financial year ("FY 2023") figures
refer to 1 July 2022 to 30 June 2023.
Summary
-- New business for the financial year ended 30 June 2023 was
GBP85.7m in PVNBP ("Present Value of New Business Premiums") terms,
down 28.9% from GBP120.5m in FY 2022.
-- New business for Q4 2023 was GBP16.9m, 31.9% lower than
GBP24.8m in Q4 2022 (incorporating the impact of annual changes in
actuarial assumptions to the calculation of PVNBP in Q4).
-- New business for the quarter and financial year was impacted
by a general hesitancy by clients to commit to long-term savings
products reflecting on-going economic uncertainty, geopolitical
developments, and the aftermath of Covid-19 restrictions around the
world.
-- Assets under administration were GBP1.1bn as at 30 June 2023,
in line with GBP1.1bn at 30 June 2022.
-- The Group continues to make positive progress with
distribution opportunities for our Japan proposition, and continues
work to make targeted refinements to our proposition in our current
core markets.
-- The Group remains on track to replace its policy
administration systems to support the next generation of products
whilst realising associated cost and efficiency gains.
Graham Sheward, Group Chief Executive Officer, commented:
"Consistent with our strategy, we continue to focus our efforts
proactively on distribution opportunities for our Japanese
proposition and good progress continues to be made.
More generally, we are working hard to improve new business
levels through a combination of new product development, new broker
relationships and the deployment of additional experienced sales
management executives into the business.
We are confident that our new product pipeline will lead to
increased sales and long term growth in the business."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Graham Sheward, Group Chief Executive Officer
Thomas Morfett, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco +44 (0) 7990 653 341
Ben Woodford, Hugo Liddy
Hansard Global plc
TRADING UPDATE for the PERIOD ended 30 June 2023
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium savings and investment products in a range of
jurisdictions around the world.
New business for the quarter and financial year continued to be
impacted by a general hesitancy by clients to commit to long-term
savings products , particularly those with contractual regular
premiums, reflecting ongoing global economic uncertainty,
geopolitical developments, and the aftermath of Covid-19
restrictions around the world. This was particularly acute in our
Rest of the World and Far East regions.
In Present Value of New Business Premiums ("PVNBP") terms, new
business for Q4 2023 was 31.9% lower than Q4 2022. For the year
ended 30 June 2023, new business was 28.9% lower compared to the
prior year comparative.
The comparisons for Q4 are impacted by our annual assessment of
actuarial assumptions which take place each year in Q4 and are
reflected in the Q4 results. The Q4 2022 review incorporated
positive adjustments which increased the value of new business
premiums assigned to regular premium savings plans, whereas the
review in Q4 2023 resulted in a negative adjustment. Further
analysis of this impact is outlined in more detail below.
New Business Flows
New business flows for the quarter and the year ended 30 June
are summarised as follows:
Three months Year ended
ended
30 June 30 June
2023 2022 % 2023 2022 %
Basis GBPm GBPm change GBPm GBPm change
--------------------------------- ------- ------- ---------- ------- -------- ----------
Present Value of New Business
Premiums 16.9 24.8 (31.9%) 85.7 120.5 (28.9%)
Present Value of New Business
Premiums excluding the impact
of annual assumption changes
made in Q4 of the relevant
year 17.9 22.3 (19.7%) 86.7 118.0 (26.5%)
Annualised Premium Equivalent 2.7 3.2 (15.6%) 12.7 16.4 (22.6%)
--------------------------------- ------- ------- ---------- ------- -------- ----------
The present value of new business premiums is influenced,
amongst other factors, by the Group's expectations of future
premium collections on regular premium contracts issued during the
year. Where these expectations at year end are different from the
assumptions used in the calculation in prior quarters, the
assumptions are amended in Q4 to better report the cumulative value
of new business. This adjustment is reflected in the Q4 reported
new business figures and can, where material, impact the underlying
Q4 result.
In the prior year, improved experience in the collection of
premiums over the lifetime of policy contracts resulted in an
increase to PVNBP for the year of GBP2.5m, reflected in Q4 2022.
For the 2023 financial year, the change in assumptions gave a
decrease of GBP1.0m, reflected in Q4 2023.
Excluding the impact of those adjustments, new business was down
19.7% for Q4 2023 versus Q4 2022, and down 26.5% for FY 2023 versus
FY 2022 (as shown in line 2 of the table above).
In Annualised Premium Equivalent ("APE") terms, new business was
down 15.6% for the quarter and down 22.6% for the year. APE figures
are unaffected by the updated assumptions above.
The split of regular and single new business premiums on the
PVNBP basis was as follows:
Three months ended Year ended
30 June 30 June
2023 2022 % 2023 2022 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------ ----- -------- ----- ------ --------
Regular premium 11.4 17.2 (33.7%) 55.7 76.9 (27.6%)
Single premium 5.5 7.6 (27.6%) 30.0 43.6 (31.2%)
----------------------- ------ ----- -------- ----- ------ --------
Total 16.9 24.8 (31.9%) 85.7 120.5 (28.9%)
----------------------- ------ ----- -------- ----- ------ --------
The regional split of new business premiums on the PVNBP basis
was follows:
Three months ended Year ended
30 June 30 June
2023 2022 % 2023 2022 %
PVNBP by geographical GBPm GBPm change GBPm GBPm change
area
------------------------ ------ ----- -------- ----- ------ --------
Middle East and Africa 7.7 9.3 (17.2%) 42.4 44.3 (4.3%)
Latin America 6.4 7.5 (14.7%) 25.7 28.2 (8.9%)
Rest of World 0.8 5.5 (85.5%) 12.1 33.9 (64.3%)
Far East 2.0 2.5 (20.0%) 5.5 14.1 (61.0%)
Total 16.9 24.8 (31.9%) 85.7 120.5 (28.9%)
------------------------ ------ ----- -------- ----- ------ --------
Assets under Administration ("AUA")
The composition and value of AuA is based upon the assets
selected by or on behalf of contract holders to meet their savings
and investment needs. Reflecting the wide geographical spread of
the Group's customer base, the majority of premium contributions
and of AuA are designated in currencies other than sterling. Over
70% of Group AuA are denominated in US dollars.
The total of such assets is affected by the level of new premium
contributions received from new and existing policy contracts, the
amount of assets withdrawn by contract holders, charges and the
effect of investment market and currency movements. These factors
ultimately affect the level of fund-based income earned by the
Group. Net withdrawals are typically experienced in Hansard Europe
dac ("Hansard Europe"), which closed to new business in 2013.
During Q4 2023, AuA decreased by GBP15.4m or 1.4%. For the year
ended 30 June 2023, AuA increased GBP8.1m or 0.7%.
The following analysis shows the components of the movement in
AuA during the period:
Three months Year ended
ended
30 June 30 June
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- -------- --------
Deposits to investment contracts
- regular premiums 20.4 21.3 86.1 86.2
Deposits to investment contracts
- single premiums 5.7 7.6 30.2 43.8
Withdrawals from contracts and
charges (39.7) (37.9) (148.3) (158.4)
Effect of market and currency movements (1.8) (70.4) 40.1 (103.5)
----------------------------------------- -------- -------- -------- --------
(Decrease) / increase in period (15.4) (79.4) 8.1 (131.9)
Opening balance 1,115.8 1,171.7 1,092.3 1,224.2
----------------------------------------- -------- -------- -------- --------
Assets under Administration at
30 June 1,100.4 1,092.3 1,100.4 1,092.3
----------------------------------------- -------- -------- -------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Three months Year ended
ended
30 June 30 June
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
--------------------------------- ------- ------- ------ --------
Hansard International (13.1) (70.0) 12.2 (110.2)
Hansard Europe (2.4) (9.4) (4.1) (21.7)
--------------------------------- ------- ------- ------ --------
(Decrease) / increase in period (15.4) (79.4) 8.1 (131.9)
--------------------------------- ------- ------- ------ --------
Results for the year ENDing 30 JUNE 2023
Full trading results for the year are scheduled to be announced
on 28 September 2023.
OUTLOOK
We continue to expect sales of long-term savings products
through Independent Financial Advisors will be impacted by global
economic headwinds in the near term. Looking further forward
however we are confident that our new product pipeline will lead to
increased sales and long term growth in the business.
Notes to editors:
-- Hansard Global plc is the holding company of the Hansard
Group of companies. The Company was listed on the London Stock
Exchange in December 2006. The Group is a specialist long-term
savings provider, based in the Isle of Man.
-- The Group offers a range of flexible and tax-efficient
investment products within a life assurance policy wrapper,
designed to appeal to affluent, international investors.
-- The Group utilises a controlled cost distribution model via a
network of independent financial advisors and the retail operations
of certain financial institutions who provide access to their
clients in more than 170 countries. The Group's distribution model
is supported by Hansard OnLine, a multi-language internet platform,
and is scalable.
-- The principal geographic markets in which the Group currently
services contract holders and financial advisors are the Middle
East & Africa, the Far East and Latin America. These markets
are served by Hansard International Limited and Hansard Worldwide
Limited.
-- Hansard Europe dac previously operated in Western Europe but
closed to new business with effect from 30 June 2013.
-- The Group's objective is to grow by attracting new business
and positioning itself to adapt rapidly to market trends and
conditions. The scalability and flexibility of the Group's
operations allow it to enter or develop new geographic markets and
exploit growth opportunities within existing markets without the
need for significant further investment.
Forward-looking statements:
This announcement may contain certain forward-looking statements
with respect to certain of Hansard Global plc's plans and its
current goals and expectations relating to future financial
condition, performance and results. By their nature forward-looking
statements involve risk and uncertainties because they relate to
future events and circumstances which are beyond Hansard Global
plc's control. As a result, Hansard Global plc's actual future
condition, performance and results may differ materially from the
plans, goals and expectations set out in Hansard Global plc's
forward-looking statements. Hansard Global plc does not undertake
to update forward-looking statements contained in this announcement
or any other forward-looking statement it may make. No statement in
this announcement is intended to be a profit forecast or be relied
upon as a guide for future performance.
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regime.
Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
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END
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Hansard Global (LSE:HSD)
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