25 January 2018 Hansard Global plc New business results for the six months ended 31 December 2017 Hansard Global plc ( Hansard or the Group ), the specialist long-term savings provider, issues its new business results for the six months ended 31 December 2017. All figures refer to the six months ended 31 December 2017 ( H1 2018 ), except where indicated. Summary New business for Hansard International Limited ( Hansard International ) for H1 2018 was 77m in PVNBP ( Present Value of New Business Premiums ) terms, approximately 3% higher than H1 2017; New business for Q2 of financial year ( FY ) 2018 was 38.5m, consistent with that written in Q1 FY 2018 and slightly lower than Q2 FY 2017; Single premiums have continued to deliver strong growth as a result of on-going improvements to our single premium proposition; New relationships established in Latin America and the Rest of the World have maintained their trend of very pleasing growth; The Middle East and Africa region was lower compared to the prior period primarily as a result of the exit from the market of one of our distributors (as we noted in our Q1 FY 2018 new business results); Assets under administration were 1.1 billion at 31 December 2017, an increase of 37m (3.5%) in the quarter and 87m (8.7%) since 31 December 2016. Gordon Marr, Group Chief Executive Officer, commented: Hansard has continued to grow new business levels in the first half of the financial year notwithstanding the exit of a distribution partner in our Middle East and Africa region. The well diversified nature of our business allows us to expand through other channels and we remain confident that Hansard will continue to grow as we deliver upon our strategy. For further information: Hansard Global plc +44 (0) 1624 688 000 Gordon Marr, Group Chief Executive Officer Tim Davies, Chief Financial Officer Email: investor-relations@hansard.com Camarco LLP +44 (0) 203 781 8333 Ben Woodford Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
HANSARD GLOBAL plc NEW BUSINESS RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 OVERVIEW The Group continues to focus on the distribution of regular and single premium products in a range of jurisdictions around the world. In Present Value of New Business Premiums ( PVNBP ) terms, new business for the six months to 31 December 2017 was up 2.8% to 77m. New business for Q2 FY 2018 was consistent with that of Q1 FY 2018 and slightly lower than the equivalent prior year quarter (Q2 FY 2017). Single premium business has continued to grow compared to prior periods as a result of the previously noted improvements made to our lump sum proposition. Our regular premium business was down in the quarter compared to Q2 FY 2017 primarily as a result of the exit from the market of one of our distribution partners in the Middle East and Africa (as previously noted in our Q1 FY 2018 new business results). We are working on a number of new distribution opportunities in the Middle East to restore and grow premium levels in that region. The Middle East and Africa region was also affected by changes in the taxation of offshore pensions which has resulted in more of this business being written in other geographies (benefitting our Rest of World region). Business flows through our strategic alliance in the UAE have continued to build month on month and we expect growth to continue to increase through this channel throughout the remainder of the year. Regular premiums in the Far East were down slightly in the quarter as increased regulation in certain jurisdictions impacted on the ability of retail customers to invest in offshore financial products. New relationships established in Latin America and the Rest of the World have continued their trend of very pleasing growth, up 23.5% and 22.5% respectively compared to Q2 FY 2017. The Group has traded profitably during the period and remains strongly capitalised. NEW BUSINESS FLOWS New business flows for Hansard International for the quarter and the half year are summarised as follows: Three months ended Basis m m change m m change Present Value of New Business Premiums 38.5 41.0 (6.1%) 77.0 74.9 2.8 % Annualised Premium Equivalent 6.0 6.4 (6.3%) 12.1 11.7 3.4 % Page 1 of 4
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 ended PVNBP by product type m m change m m change Regular premium 18.6 22.1 (15.8%) 37.9 42.6 (11.0%) Single premium 19.9 18.9 5.3% 39.1 32.3 21.1% Total 38.5 41.0 (6.1%) 77.0 74.9 2.8% Three months ended PVNBP by geographical area m m change m m change Rest of World 17.4 14.2 22.5% 31.0 26.2 18.3% Middle East and Africa 7.8 13.3 (41.4%) 16.3 24.0 (32.1%) Far East 7.0 8.4 (16.7%) 15.7 15.8 (0.6%) Latin America 6.3 5.1 23.5% 14.0 8.9 57.3% Total 38.5 41.0 (6.1%) 77.0 74.9 2.8% 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 dac ( 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 H1 2018, AuA grew to approximately 1.1 billion as investment markets continued to perform strongly. Three months ended 2017 2016 2017 2016 m m m m Deposits to investment contracts regular premiums 21.5 22.9 42.5 42.2 Deposits to investment contracts single premiums 17.8 16.9 35.1 30.9 Withdrawals from contracts and charges (45.0) (43.2) (97.8) (83.0) Effect of market and currency movements 42.7 22.6 58.0 87.4 37.0 19.2 37.8 77.5 Opening balance 1,050.5 981.8 1,049.7 923.5 Assets under Administration at 31 December 1,087.5 1,001.0 1,087.5 1,001.0 Page 2 of 4
The movement in AuA is split as follows between Hansard International and Hansard Europe: 31 December 2017 2016 m m Hansard International 48.7 78.3 Hansard Europe (10.9) (0.8) Increase / (decrease) in period 37.8 77.5 RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017 Trading results for the half-year are expected to be announced on 22 February 2018. OUTLOOK We continue to pursue opportunities for growth in line with our strategic objectives and are optimistic that these initiatives will yield positive results in the second half of the financial year. In particular we are working on a number of new distribution opportunities in the Middle East to restore and grow premiums levels in that region. Page 3 of 4
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 longterm 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 scaleable. 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, 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 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. 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 Regime. Legal Entity Identifier: 213800ZJ9F2EA3Q24K05 Page 4 of 4