Hansard Regulatory News (HSD)

30 Jul 2007 07:01

Hansard Global plc30 July 2007 HANSARD GLOBAL plc New business results for the year ended 30 June 2007 Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savingsprovider, today announces its new business results for the year ended 30 June2007. The Group has achieved a record year for new business at consistentmargins, but the growth of new business reported in sterling has been restrictedduring the year by a combination of adverse currency movements, timing of newSingle premium business flows and the Group's desire to maintain new businessmargins. New business premiums on an APE basis(1) in sterling terms(1) during the financial year totalled £35.5 million. This represents an increase of 5.3% over the £33.7 million APE of the previous financial year, calculated on a constantcurrency basis. This reflects continued strong new business flows, particularly in the Far East, Scandinavia and Latin America. Regular, as opposed to Single, new business premiums have represented the driver for growth with APE up 12.6% or £2.1 million year-on-year. The core Single premium business performed well, but was impacted by unevennessin the timing of issue of cases at the top end of the premium range. A number ofthese cases were not issued in Q4 of this financial year, but have been issuedin Q1 of the new financial year. In Q4 of this year, reported new businesssuffered in comparison with a very strong comparative period in which one EUcase alone represented £2m of APE. New business margins were approximately 8% on the basis of PVNBP (the presentvalue of new business premiums), consistent with prior periods. These marginsare well above industry average, principally due to Hansard's efficientoperating model and the Group's continual focus on value and the maintenance ofthe margin. The majority of new business premium flows continue to be received in currenciesother than sterling. Approximately 50% of new business in the year was receivedin US Dollars, with premium flows in Euros and Norwegian Krone providing 35% ofnew business flows. Approximately 15% more new policies were issued in the current year than in theprevious year, although reported new business APE, on the basis of actualexchange rates experienced in the previous financial year, was only marginallyabove the previous year. The continued strengthening of sterling against the US Dollar and other majorcurrencies has the effect of depressing new business figures reported insterling. The presentation of these figures on a constant currency basisprovides an appropriate representation of the activities of the intermediarieswho introduce business to the Group. The value of Assets under Administration as at 30 June 2007, at £1.13 billion,has risen by 19.3% since 30 June 2006, despite the impact of weakening exchangerates on those non-sterling assets held within policy contracts. The value ofassets under administration continues to increase, demonstrating the benefit ofthe large number of regular premium contracts that the Group administers onbehalf of policyholders around the world. The main reasons for this increasehave been continued new business premium flows and movements in capital markets.The investment choices of policyholders and their agents generally reflect thecurrency of the territories in which they are resident. The accumulated assetvalues are therefore subject to currency rate fluctuations. Preliminary results for the year ended 30 June 2007 will be announced on 27September 2007. Leonard Polonsky, Chief Executive of Hansard Global, commented: "We are pleased to report record new business levels for the year to 30 June2007, building on the performance of the previous financial year. Growth inintermediary activity, particularly in the Far East, Scandinavia and LatinAmerica, continues in line with our expectations. "We are confident that the outlook for continued new business growth remainspositive for the Group. Additionally, we are continuing to develop our presencein our established markets and have recently strengthened our team to buildinstitutional relationships, which is an area that presents greateropportunities for the Group following the IPO." For further information HansardLeonard Polonsky, Chief Executive 01624 688000Gordon Marr, Director 01624 688000 Bell Pottinger 020 7861 3232Ben WoodfordDaniel de Belder HANSARD GLOBAL PLC NEW BUSINESS RESULTS FOR THE YEAR ENDED 30 JUNE 2007 1. APE on a Constant Currency Basis Unaudited Year ended 30 June 2007 2007 2006 Change £m £m %New Business Premiums (APE)(1)(2)Single 16.7 17.0 -1.8%Regular 18.8 16.7 12.6% ---------- ----------- ---------- 35.5 33.7 5.3% ---------- ----------- ---------- New Business Premiums (APE)(1)(2)(3)EU and EEA 13.2 16.3 -19.0%Rest of World 22.3 17.4 28.2% ---------- ----------- ---------- 35.5 33.7 5.3% ---------- ----------- ---------- 2. APE on an Actual Exchange Rate basis Unaudited Year ended 30 June 2007 2007 2006 Change £m £m %New Business Premiums(APE)(1)Single 16.7 17.6 -5.1%Regular 18.8 17.6 6.8% ---------- ----------- ---------- 35.5 35.2 0.9% ---------- ----------- ---------- New Business Premiums (APE)(1)(3)EU and EEA 13.2 16.6 -20.5%Rest of World 22.3 18.6 19.9% ---------- ----------- ---------- 35.5 35.2 0.9% ---------- ----------- ---------- HANSARD GLOBAL PLC NEW BUSINESS RESULTS FOR THE QUARTER ENDED 30 JUNE 2007 1. APE on a Constant Currency Basis Unaudited Three months ended 30 June 2007 2007 2006 Change £m £m %New Business Premiums(APE)(1)(2)Single 4.1 6.2 -33.9%Regular 5.2 4.6 13.0% ---------- ----------- ---------- 9.3 10.8 -13.9% ---------- ----------- ---------- New Business Premiums(APE)(1)(2)(3)EU and EEA 3.0 5.7 -47.4%Rest of World 6.3 5.1 23.5% ---------- ----------- ---------- 9.3 10.8 -13.9% ---------- ----------- ---------- 2. APE on an Actual Exchange Rate basis Unaudited Three months ended 30 June 2007 2007 2006 Change £m £m %New Business Premiums (APE)(1)Single 4.1 6.4 -35.9%Regular 5.2 4.9 6.1% ---------- ----------- ---------- 9.3 11.3 -17.7% ---------- ----------- ---------- New Business Premiums(APE)(1)(3)EU and EEA 3.0 5.8 -48.3%Rest of World 6.3 5.5 14.6% ---------- ----------- ---------- 9.3 11.3 -17.7% ---------- ----------- ---------- 3. Assets under Administration --------- ------- -------- --------- Unaudited Audited Unaudited As at As at As at 30 June 30 June Change 31 March 2007 2006 % 2007 £m £m £m --------- ------- -------- ---------Assets under Administration (4) 1,130 947 19.3% 1,074 --------- ------- -------- --------- (1) New business from long-term savings is calculated on an APE basis inaccordance with the life assurance industry convention by adding new regularpremiums and one tenth of single premiums. Premiums arising in foreigncurrencies are translated to sterling at the rates of exchange ruling at thetransaction date. (2) APE in the year ended 30 June 2006 is presented in section 1 above on aconstant currency basis. Premiums arising in foreign currencies in the year aretranslated to sterling at the average rates of exchange applicable to the yearended 30 June 2007. The principal exchange rates applied are: £1 = $1.94 and £1= €1.48. (3) The geographical split of APE is based on the country of residence of thepolicyholder. (4) Assets under Administration are valued at market values at the relevantdate, using closing exchange rates against sterling. The principal exchangerates applied at 30 June 2007 are: £1 = $2.01 and £1 = €1.48 (30 June 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 tocertain of Hansard Global plc's plans and its current goals and expectationsrelating to future financial condition, performance and results. By their natureforward-looking statements involve risk and uncertainties because they relate tofuture events and circumstances which are beyond Hansard Global plc's control.As a result, Hansard Global plc's actual future condition, performance andresults may differ materially from the plans, goals and expectations set out inHansard Global plc's forward-looking statements. Hansard Global plc does notundertake to update forward-looking statements contained in this announcement orany other forward-looking statement it may make. No statement in thisannouncement is intended to be a profit forecast or be relied upon as a guidefor future performance. This information is provided by RNS The company news service from the London Stock Exchange