New Business Results

Hansard Global plc 01 May 2007 HANSARD GLOBAL plc New business results for the nine months ended 31 March 2007 Hansard Global plc ('Hansard' or 'the Group'), the specialist long-term savings provider, today announces its new business results for the nine-month period ended 31 March 2007. New business premiums on an APE basis(1) in sterling terms(1) during the first nine months of the financial year totalled £26.0 million. This represents an increase of 14.0% over the £22.8 million APE of the first nine months of the previous financial year, calculated on a constant currency basis(2). This reflects continued strong new business flows, particularly in the Far East, Scandinavia and Latin America. Policy contracts issued continue to earn new business margins consistent with previous periods. The majority of new business premium flows continue to be received in currencies other than sterling. As a result of the strengthening of sterling against those currencies over the period, the growth in new business, on the basis of actual exchange rates experienced in the corresponding period of the previous financial year, is 8.8%. The value of Assets under Administration as at 31 March 2007, £1,074 million, has risen by 13.4% since 30 June 2006. The main drivers for this increase have been new business single premium flows and movements in capital markets. The investment choices of policyholders and their agents generally reflect the currency of the territories in which they are resident. The accumulated asset values are therefore subject to currency rate fluctuations. Leonard Polonsky, Chief Executive of Hansard Global, commented: 'We are pleased to report continued growth in new business and in assets under administration arising from increased intermediary activity, particularly in the Far East, Scandinavia and Latin America.' 'The continued strengthening of sterling against the US Dollar and other major currencies has the effect of depressing new business figures reported in sterling. The presentation of these figures on a constant currency basis provides an appropriate representation of the activities of the intermediaries who introduce business to us.' 'However, in terms of volume, during the nine-month period to 31 March 2007, the Group issued 19% more policy contracts than in the corresponding period of the previous financial year, which is an indication of new business activity levels that is masked by currency movements.' 'I am pleased to report that the value of Hansard's assets under administration is approximately £1.1bn (US$ 2.2bn) as at 31 March 2007.The value of assets under administration continues to increase, despite the volatility in global capital markets experienced in February and March, demonstrating the benefit of the large number of regular premium contracts that we administer on behalf of policyholders around the world. We attribute some delay in the issue of very large single premium cases to this recent volatility.' For further information Hansard Leonard Polonsky, Chief Executive 01624 688000 Gordon Marr, Director 01624 688000 Bell Pottinger 020 7861 3232 Ben Woodford 020 7861 3917 Daniel de Belder 020 7861 3881 HANSARD GLOBAL PLC NEW BUSINESS RESULTS FOR THE NINE MONTHS ENDED 31 MARCH 2007 1. APE On a Constant Currency Basis Unaudited Nine months ended 31 March 2007 2007 2006 Change £m £m % New Business Premiums (APE)(1)(2) Single 12.7 10.9 16.5% Regular 13.3 11.9 11.8% ---------- ----------- ---------- 26.0 22.8 14.0% ---------- ----------- ---------- New Business Premiums (APE)(1)(2)(3) EU and EEA 10.3 10.6 -2.8% Rest of World 15.7 12.2 28.7% ---------- ----------- ---------- 26.0 22.8 14.0% ---------- ----------- ---------- Unaudited Three months ended 31 March 2007 2007 2006 Change £m £m % New Business Premiums (APE)(1)(2) Single 4.1 3.4 20.6% Regular 4.6 4.2 9.5% ---------- ----------- ---------- 8.7 7.6 14.5% ---------- ----------- ---------- New Business Premiums (APE)(1)(2)(3) EU and EEA 3.3 3.3 0% Rest of World 5.4 4.3 25.6% ---------- ----------- ---------- 8.7 7.6 14.5% ---------- ----------- ---------- 2. APE On an Actual Exchange Rate basis Unaudited Nine months ended 31 March 2007 2007 2006 Change £m £m % New Business Premiums (APE)(1) Single 12.7 11.2 13.4% Regular 13.3 12.7 4.7% ---------- ----------- ---------- 26.0 23.9 8.8% ---------- ----------- ---------- New Business Premiums (APE)(1)(3) EU and EEA 10.3 10.8 -4.6% Rest of World 15.7 13.1 19.8% ---------- ----------- ---------- 26.0 23.9 8.8% ---------- ----------- ---------- Unaudited Three months ended 31 March 2007 2007 2006 Change £m £m % New Business Premiums (APE)(1) Single 4.1 3.5 17.1% Regular 4.6 4.5 4.4% ---------- ----------- ---------- 8.7 8.0 8.8% ---------- ----------- ---------- New Business Premiums (APE)(1)(3) EU and EEA 3.3 3.4 -2.9% Rest of World 5.4 4.6 17.4% ---------- ----------- ---------- 8.7 8.0 8.8% ---------- ----------- ---------- 3. Assets under Administration --------- ------- -------- --------- Unaudited Audited As Change Unaudited As at at 30 June % As at 31 March 2006 31 March 2007 £m 2006 £m £m --------- ------- -------- --------- Assets under Administration (4) 1,074 947 13.4% 970 --------- ------- -------- --------- (1) New business from long-term savings is calculated on an APE basis in accordance with the life assurance industry convention by adding new regular premiums and one tenth of single premiums. Premiums arising in foreign currencies are translated to sterling at the rates of exchange ruling at the transaction date. (2) APE in the nine-month period ended 31 March 2006 is presented in section 1 above on a constant currency basis. Premiums arising in foreign currencies in that period are translated to sterling at the average rates of exchange applicable to the nine- month period ended 31 March 2007. The principal exchange rates applied are: £1 = $1.92 and £1 = €1.48. (3) The geographical split of APE is based on the country of residence of the policyholder. (4) Assets under Administration are valued at market values at the relevant date, using closing exchange rates against sterling. The principal exchange rates applied at 31 March 2007 are: £1 = $1.97 and £1 = €1.47 (31 March 2006: £1 = $1.74 and £1 = €1.43). 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 on 18 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 low-cost distribution model by selling policies exclusively through a network of financial services intermediaries, independent financial advisers and the retail operations of certain financial institutions (collectively 'Intermediaries'), who provide access to their clients in more than 170 countries. The Group's distribution model is supported by an award-winning, multi-language internet platform, and is scaleable. • The principal geographic markets in which the Group currently services Intermediaries and policyholders are the Far East, the Middle East, and South America in the case of Hansard International Limited, and Western Europe in the case of Hansard Europe Limited, the Group's two life assurance companies. • The Group's objective is to grow its business by attracting new business and positioning itself to adapt rapidly to market trends and conditions. The scaleability 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 information is provided by RNS The company news service from the London Stock Exchange
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