The Isle of Man-based long-term savings provider reported present value of new business premiums (PVNBP) of £32.6m ($42.8m, €38.9m) for 4Q16, up by 65% from £19.8m in 4Q15.
PVNBP was up 7% from £30.4m in 3Q16, while full year PVNBP rose 97% to £119.3m, up from £60.6m in the 12 months ending 30 June 2015.
It should be noted, however, that the strong growth stems from a low base with group chief executive Gordon Marr describing the previous year as “a year of transition”.
He said: “We are pleased to announce the delivery of sustained new business growth quarter-on-quarter. The full year business levels have put us on a strong footing after a year of transition in 2015.
“We see further opportunities for growth in new and existing markets and are confident of achieving this in the coming financial year.”
Founder investment
During the company’s fiscal second quarter (ending 31 December 2015), president and non-executive director Leonard Polonsky invested the sterling equivalent of £8.3m as a lump sum top-up of a Hansard savings product.
The investment was made on arms-length terms and significantly impacted 2Q16 results.
No reference was made to the investment in the company’s 4Q16 results statement.
Product breakdown
Hansard focuses on distributing regular and single premium products in a range of jurisdictions around the world.
Both premium types reported quarter-on-quarter and year-on-year growth.
In March 2016 the company launched an upgraded version of its regular premium product Vantage Platinum, which has taken in over £13m in PVNBP since launch.
International
Hansard advised that the fourth quarter saw continued progression of the new business growth generated since the start of the year. The Middle East and Africa region was again the most successful source of new business, with the Rest of World region also performing well.
Assets under administration
AuA rose £46.9m to £923.5m during 4Q16, a marked improvement compared with outflows of £28.7m during the same quarter last year.
For the year ending 30 June 2016, group AuA was up £16.4m.
The main driver for the increase in AuA was the weakening of sterling following the UK’s referendum to leave the European Union.
The company advised that net withdrawals are typically experienced in Hansard Europe, which closed to new business in 2013.
Brexit
The decision by the UK to leave the EU has little direct impact on Hansard, the company advised. Incorporated and based on the Isle of Man, Hansard affirmed that it is not reliant on the UK’s membership of the EU to conduct its business.
In fact, sterling weakness compared to the US dollar stands to benefit the company in terms of income and profit levels, as the majority of premium contributions and assets under administration are in currencies other than sterling.
