New Business Results
Hansard Global plc
30 January 2008
Hansard Global plc
New business results for the six months ended 31 December 2007
Hansard Global plc ('Hansard' or 'the Group'), the specialist long-term savings
provider, announces solid New business results for the six months ended 31
December 2007.
Highlights
•New business results of £17.1m APE(1), for the six months ended 31
December 2007 are in line with the strong performance shown in the
corresponding period(2) on a constant currency basis (2006: £17.2m)
•New business margins on a present value of new business premiums
('PVNBP') basis have been maintained at 8.0% (2006: 8.0%)
•New business flows using the Group's internal metric, 'Compensation
Credit'(3), totalled £9.0m for the period, an increase of 9.8% over the six
months ended 31 December 2006 on an actual currency basis
•Continued strengthening of sales management team with three senior
appointments in Moscow, Latin America and Central America
•Assets under Administration at 31 December 2007 rose 7.8% over the period
since 30 June 2007 to £1.22 billion (31 December 2006: £1.03 billion).
Leonard Polonsky, Chief Executive of Hansard Global, commented:
'The first half of the financial year has seen a good performance from the
Group, building on the solid progress we made in our first full year following
the IPO, despite more challenging overall market conditions. We have maintained
our level of new business and expect first half profits to be ahead of last
year.
'We saw some effects of the volatile equity markets on our business, with single
premium flows slowing down, although regular premium flows grew strongly. These
trends have continued into the first month of 2008.
'The diversification of our assets under administration, our strong growth in
emerging markets and lack of exposure to the UK and US markets have helped to
protect Hansard from the current financial market uncertainties.
Solid New Business Flows
The Group has achieved solid new business flows(4), at consistent margins,
benefitting from the geographical spread of the intermediaries with whom we
deal, and the diversity of their client base. Strong growth in Regular premium
flows has been achieved, particularly in the Far East and Latin America, while
turbulent market conditions over the last quarter have had the impact of
reducing the flow of single premium cases as compared with the first quarter of
this financial year. We continue to develop further institutional relationships
with a view to building our distribution and expanding the range of investment
opportunities for Policyholders.
The continued strengthening of sterling against the US Dollar in the first four
months of the period has had the effect of depressing a proportion of our new
business figures, as approximately 50% of new business in the period continues
to be received in US Dollars.
The Group has developed a measure of calculating new business production that is
designed to indicate the relative value of each piece of new business. This
measure is called Compensation Credit ('CC'). The Directors consider CC to be a
more meaningful measure of new business volume than APE, which has limited
correlation with the profitability of new business. The Company will continue to
report new business volumes on an APE basis but will also report using the CC
data that it uses to manage its sales operations.
• APE
New business premiums on an APE basis(1), in sterling terms(1), during the six
months to 31 December 2007 totalled £17.1m. This represents a decrease of 0.6%
over the £17.2m APE in the corresponding period in the previous financial year,
calculated on a constant currency basis. Strong growth of 11.9% in Regular
premium flows has been achieved, particularly in the Far East and Latin America.
Difficult market conditions in Europe and Scandinavia in the quarter ended 31
December 2007, as compared with those of the corresponding period, have resulted
in a significant reduction in Single Premiums. Single Premium APE in the period
was £7.7m, compared with £8.8m.
• Compensation Credit
New business flows using the Group's internal metric, Compensation Credit(3),
totalled £9.0m for the six months to 31 December 2007 compared with £8.2m (on an
actual currency basis) in the comparative period of the last financial year, an
increase of 9.8%.
Compensation Credit ('CC') is an indication of new business activity that is
used by the Group to manage its business. CC measures the relative value of each
piece of new business to allow the Group to maintain margins and protect
capital.
•Present Value of New Business Premiums
New business margins were 8.0 % on the PVNBP basis, consistent with the
corresponding period and levels achieved historically. These margins are well
above industry average, principally due to the Group's continued focus on value.
Recruitment of Account Executives
With effect from 4 January 2008, three new Account Executives (senior sales
executives) took up positions in Moscow, Latin America and Central America to
provide new distribution capability for the Group in new markets, and to
strengthen existing relationships. This recruitment is in accordance with the
Group's strategy of doubling the number of Account Executives by December 2012.
Growth in Assets under Administration
The value of Assets under Administration as at 31 December 2007, at £1.22 bn,
has risen by 7.8% since 30 June 2007 on an actual currency basis. Despite the
declines in capital markets over the period and the weakness of US Dollar
against Sterling, the value of assets under administration has continued to
grow. This reflects positive cash flows and the ability of Policyholders to
rotate assets held within policy contracts, which has reduced the level of
withdrawals relative to those experienced by retail funds in the last few
months. Since 31 December 2006, Assets under Administration have grown by 17.7%
on an actual currency basis.
FTSE Index constituent
The Company is pleased to have been considered eligible for inclusion in the
UK-Series of the FTSE ALL-SHARE index with effect from 24 December 2007. The
company is also a constituent of the following indices: FTSE All-Share ex
Investment Trusts; FTSE Small Cap; and FTSE Small Cap Ex Investment Trusts.
Polar Cap Limited
Polar Cap Limited, the former holding company of the Group, has been placed in
voluntary liquidation in accordance with the timeframe established at the time
of the listing. All shares held by Polar Cap were distributed to its
shareholders during 2007. There was no change to the number of shares of Hansard
Global in existence as a result of the wind-up.
Results for the half-year ended 31 December 2007
Results for the half-year ended 31 December 2007 are expected to be announced on
28 February 2008. The results will be prepared using International Financial
Reporting Standards for the first time. There are not expected to be significant
differences between profits and retained earnings calculated on the basis of UK
GAAP, and those as at 31 December 2007, calculated on the basis of IFRS.
For further information
Hansard Global
Leonard Polonsky, Chief Executive 01624 688000
Gordon Marr, Director 01624 688000
Bell Pottinger 020 7861 3232
Ben Woodford
Daniel de Belder
HANSARD GLOBAL PLC
NEW BUSINESS RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007
1. APE on a Constant Currency Basis
Unaudited
Six months ended 31 December
2007 2006 Change
£m £m %
New Business Premiums
APE)(1)(2)
Regular 9.4 8.4 11.9%
Single 7.7 8.8 (12.5)%
17.1 17.2 (0.6)%
New Business Premiums
(APE)(1)(2)(4)
EU and EEA 6.0 7.2 (16.7)%
Far East 6.0 4.4 36.4%
Latin America 2.6 2.1 23.8%
Rest of World 2.5 3.5 (28.6) %
17.1 17.2 (1.1)%
2. APE on an Actual Exchange Rate basis
Unaudited
Six months ended 31 December
2007 2006 Change
£m £m %
New Business Premiums (
APE) (1)
Regular 9.4 8.7 8.0 %
Single 7.7 8.6 (12.4)%
17.1 17.3 (1.2)%
New Business Premiums
(APE)(1)(4)
EU and EEA 6.0 6.9 (13.0)%
Far East 6.0 4.6 30.4%
Latin America 2.6 2.3 13.0%
Rest of World 2.5 3.5 (28.6) %
17.1 17.3 (1.2)%
NEW BUSINESS RESULTS FOR THE THREE MONTH PERIOD ENDED 31 DECEMBER 2007
1. APE on a Constant Currency Basis
Unaudited
Three months ended 31 December
2007 2006 Change
£m £m %
New Business Premiums
(APE)(1)(2)
Regular 4.9 4.5 8.6 %
Single 3.3 6.3 (50.5)%
8.2 10.8 (26.2)%
New Business Premiums
(APE)(1)(2)(4)
EU and EEA 2.6 5.1 (48.8)%
Far East 2.9 2.4 23.3 %
Latin America 1.5 1.0 51.1 %
Rest of World 1.2 2.3 (51.1)%
8.2 10.8 (24.3)%
2. APE on an Actual Exchange Rate basis
Unaudited
Three months ended 31 December
2007 2006 Change
£m £m %
New Business Premiums
(APE)(1)
Regular 4.9 4.5 8.9 %
Single 3.3 6.1 (48.6)%
8.2 10.6 (22.6)%
New Business Premiums
(APE)(1)(4)
EU and EEA 2.6 4.8 (44.9)%
Far East 2.9 2.5 18.8 %
Latin America 1.5 1.0 43.5 %
Rest of World 1.2 2.5 (53.6)%
8.2 10.6 (23.7)%
HANSARD GLOBAL PLC
ASSETS UNDER ADMINISTRATION AS AT 31 DECEMBER 2007
Unaudited Unaudited Audited
As at As at As at
31 31 30
December December Change June
2007 2006 2007
£m £m % £m
Assets under Administration 1,218 1,035 17.7 1,130
(5)
Notes
(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 period ended 31 December 2006 is presented above on a constant
currency basis. Premiums arising in foreign currencies in the period are
translated to sterling at the average rates of exchange applicable to the period
ended 31 December 2007. The principal exchange rates applied are: £1 = $2.034
and £1 = €1.44.
(3) New business from long-term savings is calculated on an CC basis in
accordance with the Group's internal metrics. CC is an indication of new
business activity that is used by the Group to manage its business. CC measures
the relative value of each piece of new business to allow the Group to maintain
margins and protect capital.
(4) The geographical split of new business premiums is based on the country of
residence of the policyholder.
(5) 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 December 2007 are: £1 = $1.99 and £1 = €1.36 (31 December
2006: £1 = $1.96 and £1 = €1.48).
Notes to editors:
• Hansard Global plc is the holding company of the Hansard Group of
companies. The Group is a specialist long-term savings provider, based in
the Isle of Man.The Company was listed on the London Stock Exchange on 18
December 2006.
• 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
Latin 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
Tuesday, 14th May 2024
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