Hansard Global Plc · LSE:HSD
Hansard Global — H1 2011 Earnings Presentation
42 slides from Hansard Global's earnings presentation, Feb 24, 2011
Slide 1: Results for the half year ended 31 December 2010
HANSARD GLOBAL plc Results for the half year ended 31 December 2010 24 February 2011
Slide 2: Disclaimer
Disclaimer HANSARD GLOBAL plc This presentation does not constitute an invitation to subscribe for or otherwise to acquire or dispose of shares in Hansard Global plc. This presentation may contain forward-looking statements with respect to certain of the plans and current goals and expectations rela
Slide 3: Contents
Contents HANSARD GLOBAL plc • Introduction • New business • Financial Performance – half year ended 31 December 2010 • Hansard and Technology • Summary • Appendix Contents 2
Slide 4: Introduction
HANSARD GLOBAL plc Introduction Gordon Marr Managing Director Introduction 3
Slide 5: Introduction
Introduction HANSARD GLOBAL plc • Continued new business momentum • EEV profits growth reflects • improvement in margins • strategy to increase Regular premium new business • Investment in growth markets in Latin America and the Far East • Continued growth of Assets under Administration • IFRS resul
Slide 6: Summary of performance
Summary of performance HANSARD GLOBAL plc Resilient H1 2011 H1 2010 New business - PVNBP £114.5m £73.5m performance New business margin 7.4% 6.9% across the EEV profit after tax £27.0m £25.9m business EEV earnings per share 19.6p 18.9p IFRS profit after tax £8.4m £9.2m IFRS earnings per share 6.1p 6
Slide 7: Taking action for growth
Performance in current markets HANSARD GLOBAL plc Taking • Increasing flows of regular premium new business from Latin America and the Far East. Challenging environment in EU and action EEA markets still delivers single premium new business. for growth • Hansard is well placed: • Over £1.3 billion o
Slide 8: Strong financial track record
Highlights - half year ended 31 December HANSARD GLOBAL plc Strong EEV Balance Sheet as at 31 Dec 1,400 AUA as at 31 Dec 300 financial 250 1,200 1,000 track 200 £m £m 800 150 600 record 100 400 50 200 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 EEV PAT for the half year ended IFRS PAT for
Slide 9: New Business
HANSARD GLOBAL plc New Business Vince Watkins Chief Financial Officer New Business 8
Slide 10: New business strategy
New business strategy HANSARD GLOBAL plc Improve IFA • Identify and develop target markets proposition • Develop and enhance profitable relationships with IFAs • Position for growth in Regular Premium new business • Leverage Hansard OnLine • Increase local language support New Business 9
Slide 11: Global distribution – refocus new business flows
Global distribution – refocus new business flows HANSARD GLOBAL plc Targeting high growth • Latin America and Far East are main drivers for Regular Premium growth and high margin areas • Continued investment in distribution infrastructure to capture Regular Premium flows • Strategy – HIL - focus on
Slide 12: Hansard's marketplace
Hansard’s marketplace HANSARD GLOBAL plc Focus on growing markets New Business 11 Data Source – Credit Suisse Global Wealth Report – Oct 2010
Slide 13: New business volumes
New business volumes HANSARD GLOBAL plc Strong H1 H1 2011 2010 growth in £m £m new Regular premiums 47.9 32.2 business Single premiums 66.6 41.3 Present Value of New Business Premiums 114.5 73.5 volumes Compensation Credit 7.9 5.3 Annualised Premium Equivalent 15.0 9.8 New Business Margin – PVNBP ba
Slide 14: New business performance
New business performance HANSARD GLOBAL plc Harnessing new PVNBP - Half Years ended Dec 2010 business 140 momentum 120 100 £m 80 RP 60 SP 40 20 0 2009-H1 2009-H2 2010-H1 2010-H2 2011-H1 New Business 13
Slide 15: Financial Performance - half year ended 31 December 2010
HANSARD GLOBAL plc Financial Performance - half year ended 31 December 2010 Vince Watkins Chief Financial Officer Financial information and EEV information for the half years ended 31 December 2010 and 31 December 2009 has Financial Performance 14 been reviewed. The information is unaudited.
Slide 16: Abridged Profit & Loss Account
Abridged Profit & Loss Account HANSARD GLOBAL plc Profitability H1 2011 H1 2010 £m £m by design Fees and commissions 25.1 24.9 Investment income 2.0 1.3 27.1 26.2 Origination costs (9.0) (8.8) Administrative, development and other expenses (9.5) (7.9) Profit before tax 8.6 9.5 Tax (0.2) (0.3) Profit
Slide 17: Sources of revenue
Sources of revenue - half year ended 31 December HANSARD GLOBAL plc Robust fee income Fees and Commissions By Type 30 through 26.8 27.4 design 25 1.9 2.0 2.3 2.1 Fund management fees to 3rd Parties 20 4.7 4.9 Commission Receiveable Fund management 3.5 3.6 fees (net) £m 15 2.7 2.5 Service Charges (In
Slide 18: Abridged Balance Sheet
Abridged Balance Sheet HANSARD GLOBAL plc Continued At 31 Dec At 31 Dec 2010 2009 investment £m £m Deferred Origination Costs 108.9 103.3 in profitable Other Assets 9.4 10.2 policies Shareholder Cash and bank deposits 77.1 81.6 Total Assets 195.4 195.1 Deferred Income Reserve 124.9 124.8 Other Payab
Slide 19: Abridged Cashflow Statement
Abridged Cashflow Statement HANSARD GLOBAL plc Positive H1 2011 H1 2010 operating £m £m cashflows by Cash generated from operations 15.2 22.0 Investment income and foreign exchange 1.8 1.1 design Cash inflow 17.0 23.1 Investment in new business (10.9) (6.9) Corporation tax paid - (0.3) Capital expen
Slide 20: Analysis of movement in Assets under Administration
Analysis of movement in Assets under Administration HANSARD GLOBAL plc Continuing 1,400 137.7 1,303.3 cash flows 1,134.7 106.9 14.5 1,200 underpin AUA 90.5 growth 1,000 800 £m 600 400 200 0 1st July 2010 Deposits to Deductions Foreign Market 31st Dec 2010 Investment from contracts Exchange Movements
Slide 21: EEV profit
EEV profit HANSARD GLOBAL plc H1 2011 H1 2010 EEV profit £m £m growth reflects New business contribution 8.5 5.1 Expected return 2.3 2.8 strategy to Experience variances (1.3) (1.6) attract Regular Operating assumption changes (2.7) (0.1) premium new Expected return on net worth 0.8 1.1 Model change
Slide 22: EEV Balance Sheet
EEV Balance Sheet HANSARD GLOBAL plc EEV growth VIF Net Worth after funding 300 263.4 247.0 new business 250 and dividends 68.0 62.5 £m 200 150 100 200.9 179.0 50 0 Jun-10 Dec-10 Financial Performance 21 EEV is robust, underpinned by speed of cash payback on new business and lack of product options
Slide 23: Hansard and Technology
HANSARD GLOBAL plc Hansard and Technology Gordon Marr Managing Director Hansard and Technology 22
Slide 24: Strategic developments
Strategic developments HANSARD GLOBAL plc Enhancing the A series of projects has been established to: Business • Enhance Hansard OnLine Model • Develop New business opportunities • Enhance IFA and Policyholder experience • Reduce Operational risk • Contain Administrative expenses Hansard and Technol
Slide 25: Strategic developments
Strategic developments HANSARD GLOBAL plc The story so far: Enhancing the Business Enhance Hansard OnLine • OnLine new business successfully piloted Model • Client sites refreshed • OnLine switching under development Develop New business opportunities • OnLine dealing Enhance IFA and Policyholder ex
Slide 26: Hansard OnLine
Hansard OnLine HANSARD GLOBAL plc Continued investment in • OnLine new business. Successfully piloted straight- through processing of Regular Premium and Capital Builder technology applications. 400 policies in H1. • Secure Upload. Intermediaries can upload application documents directly to the comp
Slide 27: Summary
HANSARD GLOBAL plc Summary Gordon Marr Managing Director Summary 26
Slide 28: Summary and Outlook
Summary and Outlook HANSARD GLOBAL plc Recovery in • New business from a strong and diversified intermediary base at industry-leading margins of 7.4%. profitability • Increased Regular Premium new business flows from Latin America reflecting and Far East following strategic realignment. Conditions f
Slide 29: Appendix
HANSARD GLOBAL plc Appendix Appendix 28
Slide 30: Hansard – a long-established company new to the market
Timeline HANSARD GLOBAL plc 1970 - Liberty Life founded in the UK by Dr Polonsky Hansard – 1986 - Hansard International incorporated on the Isle of Man a long- established 1995 - Liberty Life sold company new 1995 - Hansard Europe incorporated in Republic of Ireland to the market 1999 - Hansard OnLi
Slide 31: Appendix – Financial performance
HANSARD GLOBAL plc Appendix – Financial performance Appendix 30
Slide 32: IFRS Consolidated Income Statement
IFRS Consolidated Income Statement HANSARD GLOBAL plc Business H1 2011 H1 2010 model £m £m Fees and commission 27.4 26.8 drives Investment return 154.0 181.0 profitability Other operating income 0.2 0.2 181.6 208.0 Investment contract benefits (152.2) (179.9) Origination costs (9.0) (8.8) Administra
Slide 33: IFRS Balance Sheet
IFRS Balance Sheet HANSARD GLOBAL plc Growth in At 31 Dec 2010 At 31 Dec 2009 policy £m £m values Financial investments 1,329.2 936.2 enhances Deferred origination costs 108.9 103.3 Other assets 10.3 11.2 profitability Cash and cash equivalents 52.4 81.6 Total Assets 1,500.8 1,359.5 Financial liabil
Slide 34: Appendix – Structure and Personnel
HANSARD GLOBAL plc Appendix – Structure and Personnel Appendix 33
Slide 35: Hansard Group Structure
Hansard Group Structure HANSARD GLOBAL plc Hansard Global is managed and controlled on the Isle of Man. Its wholly-owned subsidiaries include: • Hansard International Limited - HIL. Life insurance company based on the Isle of Man, regulated by Insurance and Pensions Authority of Isle of Man Governme
Slide 36: Experienced Executive Team
Experienced Executive Team HANSARD GLOBAL plc A century • Leonard Polonsky, Executive Chairman. Dr Polonsky founded the of service Group in 1970. to the • Gordon Marr, Managing Director. Gordon joined the Group in 1988. Group He is a Solicitor of the Supreme Court and member of the Law Society. • Jo
Slide 37: Appendix – Business Model
HANSARD GLOBAL plc Appendix – Business Model Appendix 36
Slide 38: What Hansard Does
What Hansard Does HANSARD GLOBAL plc • Clients interact with their IFA • IFA recommends a life wrapper to their clients • IFA selects with the client the fund links • Client has access to Hansard OnLine 24 / 7 to see Reinsure Life Risk policy and investment performance… • …but client only sees the I
Slide 39: Hansard Business Model
Hansard Business Model HANSARD GLOBAL plc Low-risk Low fixed costs • Benefits of online functionality business • Centralised product design & Operational Gearing „manufacturing‟ model Attractive IFA proposition • Wide range of underlying funds Core of long-term IFAs • OnLine platform • Relationship
Slide 40: Hansard's Marketplace
Hansard’s Marketplace HANSARD GLOBAL plc Diversified • Over 500 active IFAs servicing 43,000+ policyholders in more distribution than 170 countries. base • Hansard Europe writes policies sold by IFAs in EEA markets. Principally Single Premium contracts. • Hansard International writes policies sold b
Slide 41: Hansard's Marketplace
Hansard’s Marketplace HANSARD GLOBAL plc Focus on • Distribution targeted at mature or well developed wealth centres growing markets Appendix 40 Data Source – Credit Suisse Global Wealth Report – Oct 2010
Slide 42: Why Do Intermediaries Choose Hansard?
Why Do Intermediaries Choose Hansard? HANSARD GLOBAL plc • Hansard offers them local presence and support through its relationship managers • Hansard OnLine provides them with a valuable support tool Attractive – White labelling allows intermediary to promote their brand IFA – Helps build their busi