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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hansard Global Plc | LSE:HSD | London | Ordinary Share | IM00B1H1XF89 | ORD 50P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 48.30 | 46.80 | 49.80 | 0.00 | 08:03:39 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Ins Agents,brokers & Service | 91.7M | 5.7M | 0.0414 | 11.67 | 66.44M |
From Apr 2019 to Apr 2024
TIDMHSD
RNS Number : 2563M
Hansard Global plc
27 July 2017
27 July 2017
Hansard Global plc
New business results for the year ended 30 June 2017
Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider, issues its new business results for the financial year ended 30 June 2017 ("FY 2017").
Summary
Hot Features
Premium
-- We have continued to deliver significantly increased
new business levels compared to the prior financial
year.
-- New business for Hansard International Limited
("Hansard International") for Q4 2017 was GBP34.5m
PVNBP ("Present Value of New Business Premiums"),
5.8% higher than Q4 2016.
-- New business for the full year to 30 June 2017
was GBP148.3m PVNBP, 24.3% higher than FY 2016.
-- We continue to see the benefits of our increased
marketing and investment in developing broker relationships.
In particular, in Q4 2017, our Rest of World and
Latin America regions grew substantially compared
to Q4 2016.
-- Assets under Administration of GBP1 billion have
increased marginally by GBP8m since the end of
the last quarter and by GBP126m since the start
of the financial year.
-- The Group traded profitably during the period and
remains strongly capitalized
Gordon Marr, Group Chief Executive Officer, commented:
"Our annual results show the continued delivery of strong levels of new business growth across all the regions in which we operate. We expect to see this continuing into the current financial year."
For further information:
Gordon Marr, Group Chief Executive Officer +44 (0) 1624 Tim Davies, Chief Financial Officer 688000 Bell Pottinger Daniel de Belder +44 (0) 20 Duncan Mayall 3772 2500
Hansard Global plc
NEW BUSINESS RESULTS FOR THE YEARED 30 JUNE 2017
OVERVIEW
The Group continues to focus on the distribution of regular and single premium products in a range of jurisdictions around the world, achieving well diversified new business growth.
In Present Value of New Business Premiums ("PVNBP") terms, levels of new business in Q4 2017 were 5.8% ahead of the equivalent prior year quarter (Q4 2016) and 24.3% ahead for the full year.
Q4 2017 and FY 2017 PVNBP figures are net of year-end persistency assumption changes applicable to regular premiums which reduced PVNBP by GBP6.1m. Excluding the assumption changes, Q4 2017 new business was up 24.5% on Q4 2016 and FY 2017 new business was up 29.4% on FY 2016.
Expatriate broker distribution continues to perform strongly and we have benefited from the groundwork we have done, revitalising old relationships and developing new ones. Latin America in particular has continued its strong growth as new relationships have developed.
Middle East & Africa experienced a dip in Q4 2017 as one of our larger broker's experienced financial difficulties and ceased writing new business and a number of other key brokers didn't repeat the large volumes achieved in Q4 2016. PVNBP for the region was also impacted by the persistency assumption change noted above. Growth on an annual basis remained up 10% and our outlook for that region remains positive. We are seeing significant levels of pipeline activity through our previously announced alliance with Union Insurance, with new terms of business signed with all the main locally-licensed insurance brokers.
Q4 2017 saw a significant upswing in single premiums driven primarily by the continued success of our Universal Personal Portfolio product, especially for pensions business in the Rest of World region. We also experienced success with a new sales campaign for our Capital Builder II product, particularly through our license in Labuan, Malaysia.
New Business Flows
New business flows for Hansard International for FY 2017 are summarised as follows:
Three months Year ended
ended
30 June 30 June
2017 2016 % 2017 2016 %
Basis GBPm GBPm change GBPm GBPm change
---------------------- ----- ----- ------- ------ ------ -------
Present Value of New 5.8 24.3
Business Premiums 34.5 32.6 % 148.3 119.3 %
Annualised Premium 1.8 24.1
Equivalent 5.7 5.6 % 23.2 18.7 %
---------------------- ----- ----- ------- ------ ------ -------
Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International on the basis of PVNBP are broken down as follows:
Three months Year ended
ended
30 June 30 June
2017 2016 % 2017 2016 %
PVNBP by product GBPm GBPm change GBPm GBPm change
type
------------------ ----- ----- -------- ------ -------- -------
14.8
Regular premium 12.4 20.5 (39.5)% 75.3 65.6 %
82.6 35.9
Single premium 22.1 12.1 % 73.0 53.7 %
------------------ ----- ----- -------- ------ -------- -------
5.8 24.3
Total 34.5 32.6 % 148.3 119.3 %
------------------ ----- ----- -------- ------ -------- -------
Three months Year ended
ended
30 June 30 June
2017 2016 % 2017 2016 %
change
--------
PVNBP by geographical GBPm GBPm GBPm GBPm change
area
------------------------ ----- ----- -------- ------ ------ -------
125.0 19.7
Rest of World 15.3 6.8 % 53.4 44.6 %
10.3
Middle East and Africa 5.7 15.5 (63.2)% 40.6 36.8 %
17.9 37.7
Far East 9.2 7.8 % 35.4 25.7 %
72.0 54.9
Latin America 4.3 2.5 % 18.9 12.2 %
5.8 24.3
Total 34.5 32.6 % 148.3 119.3 %
------------------------ ----- ----- -------- ------ ------ -------
The value of new business premiums is influenced, among 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. As has been the case in previous years, this adjustment is reflected in the final quarter's reporting.
The impact of assumption changes (predominantly related to persistency, where certain retention initiatives can no longer be demonstrated to yield expected improvements) in the current year has been to decrease PVNBP for the year by GBP6.1m or 4%, compared with the assumptions used in the previous year. Before that adjustment, cumulative new business flows for FY 2017 would have been reported as GBP154.4m and new business in Q4 2017 would have been reported as GBP40.6m. The effect of assumption changes in FY 2016 was not material.
-- New business margins
New business margins (calculated on a PVNBP basis) are sensitive to sales levels and product mix (regular premium products typically having a higher margin). During FY 2017, we experienced higher new business levels than FY 2016 which is positive for our margin because much of our cost base is fixed. However this has been offset by an increasing percentage of single premium business as a proportion of PVNBP and increased volumes of our Vantage Platinum product which has a lower margin than its predecessor. The margin has also reduced slightly due to the assumption change referenced in the section above. Overall we expect our new business margin to be slightly below the 1.3% margin from our half year results when we release our full year results on 28 September 2017.
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.
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 (including those withdrawn from Hansard Europe, which closed to new business in 2013), charges and the effect of investment market and currency movements. These factors ultimately affect the level of fund-based income earned by the Group.
During Q4 2017, AuA grew marginally by GBP8m as market and currency effects were largely neutral. Over the course of the full financial year, GBP126m of AuA was added, driven primarily by significant stock market and currency gains earlier in the year.
Three months Year ended
ended
30 June 30 June
2017 2016 2017 2016
GBPm GBPm GBPm GBPm
------------------------------- -------- ------- -------- --------
Deposits to investment
contracts - regular premiums 22.6 18.3 84.5 71.8
Deposits to investment
contracts - single premiums 18.0 12.1 66.4 52.0
Withdrawals from contracts
and charges (38.8) (37.9) (159.2) (168.2)
Effect of market and currency
movements 6.0 54.4 134.5 60.8
------------------------------- -------- ------- -------- --------
Increase in period 7.8 46.9 126.2 16.4
Opening balance 1,041.9 876.6 923.5 907.1
------------------------------- -------- ------- -------- --------
Assets under Administration
at 30 June 1,049.7 923.5 1,049.7 923.5
------------------------------- -------- ------- -------- --------
The movement in AuA is split as follows between Hansard International and Hansard Europe:
Three months Year ended
ended
30 June 30 June
2017 2016 2017 2016
GBPm GBPm GBPm GBPm
------------------------ ------- ------ -------- --------
Hansard International 8.0 48.6 129.4 48.8
Hansard Europe (0.2) (1.7) (3.2) (32.4)
------------------------ ------- ------ -------- --------
Increase (decrease) in
period 7.8 46.9 126.2 16.4
------------------------ ------- ------ -------- --------
RESULTS FOR YEAR ENDED 30 JUNE 2017
The Group has traded profitably during the period and generated positive net cash flows before dividends. Full trading results for the year are scheduled to be announced on 28 September 2017. The results for the year will take account of the following significant items:
i) Further adverse development on the provision for
bad debts reported in our financial results for
the six months ended 31 December 2016. The provision
relates to amounts receivable from a broker in
our Middle East & Africa region which has found
itself in financial difficulty. We currently estimate
that we will need to strengthen this provision
by a further GBP0.4m to GBP1.1m. This represents
approximately 80% of all balances due from this
broker. We have agreed what we believe is an appropriate
monthly repayment plan with the broker, but due
to the length of that repayment period and the
current level of liquid net assets available to
the broker, we have taken a prudent view of aggregate
ultimate recovery.
ii) Increased litigation defense activity relating
to Hansard Europe, resulting in increased legal
and associated fees of GBP0.4m.
iii) Brexit-driven foreign exchange gains earned in
Q4 of FY 2016 have not been repeated in FY 2017
which we estimate will result in investment income
for FY 2017 being GBP1.1m lower than FY 2016.
Litigation
The Group continues to carefully manage its litigation relating to the legacy operations of Hansard Europe. There has been no significant change to our exposure other than for movements in foreign exchange rates.
Outlook
We look forward to a continuing positive trend in each of the regions in which we operate. Our previously announced alliance with Union Insurance is driving significant levels of activity in the UAE. New terms of business have been signed with all the main locally-licensed insurance brokers and we expect to see pipeline activity translate into issued business in the coming period.
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 by selling policies exclusively through
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, the Far
East and Latin America, in the case of Hansard
International Limited, and Western Europe in the
case of Hansard Europe Designated Activity Company,
the Group's two life assurance companies. Hansard
Europe Designated Activity Company 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.
-- Following the closure of Hansard Europe Designated
Activity Company to new business with effect from
30 June 2013, the Group continues to report new
business performance of Hansard International
Limited alone within this document. Reporting
of Assets under Administration incorporates cash
flows relating to insurance policies issued by
both Hansard International Limited and Hansard
Europe Designated Activity Company.
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 Regulation No 596/2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR MMGZNVNDGNZG
(END) Dow Jones Newswires
July 27, 2017 02:18 ET (06:18 GMT)
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