6 March 2025

Hansard Global plc

Results for the six months ended 31 December 2024

 

Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider, issues its results for the six months ended 31 December 2024. All figures refer to the six months ended 31 December 2024 ("H1 2025") and all comparisons are with the six months ended 31 December 2023 ("H1 2024"), except where indicated.

SUMMARY OF RESULTS

	H1 2025	H1 2024
New business sales (PVNBP1) New business sales (APE2) IFRS profit before tax	£49.1m £7.3m £0.5m	£36.2m £5.5m £4.1m
IFRS fees and commissions	£23.7m	£23.9m
IFRS administrative and other expenses	£18.4m	£14.7m
IFRS basic earnings per share	0.3p	2.9p
Interim dividend - to be paid on 24 April 2025	1.8p	1.8p

 

At	31 December 2024	30 June 2024
Assets under Administration	£1.2b	£1.2b
Value of In-Force	£108.3m	£110.8m

 

¹              Present Value of New Business Premiums

²              Annual Premium Equivalent

 

Thomas Morfett, Group Chief Executive Officer, commented:

"The Hansard Group has begun to deliver growth in new business flows after several years of laying the groundwork for the future through its Japanese license and new IT system.

 

We are pleased to now be able to launch new, competitive, and innovative products quickly. Our plan is to make the evolution of our proposition a continuous feature of our business model moving forward.

 

There are early signs that our recently launched products and fund range are appealing to clients and advisors.

 

Nevertheless, as we navigate continuing regulatory changes and a challenging financial landscape, we anticipate that it will take time for the growth in new business to translate into improvements in income and profitability.

 

I am confident that we have the right people and culture in place to deliver long-term, sustainable success for the business and all its stakeholders."

 

FINANCIAL HIGHLIGHTS

·   New business sales grew by 36% year-on-year to £49.1m in PVNBP terms, whilst IFRS profit before tax decreased by 88% to £0.5m in H1 2025.

·   The 36% sales growth comprised 18% half-year-on-half-year in the six months to 31 December 2024 and the previously reported 15% growth half-year-on-half-year in the six months to 30 June 2024.

·   Sales growth was driven by the successful launch of a new single premium product earlier in the calendar year, which delivered a 123% increase in single premium sales.

·   Regular premium sales experienced a 22% decline, highlighting the challenges of an aging regular premium product. In response, the Group introduced a new, competitive regular premium offering in December.

·   IFRS profit before tax decreased due to currency movements, strategic investment, new IT system depreciation costs, and litigation costs.

·   Profits have also been impacted by declining sales in recent years. The Group's investment in strategic initiatives is now generating sales momentum but this will take time to translate into higher profits given the long-term nature of our products.

·   Fees and commissions remained stable at £23.7m in H1 2025.

·   Investment and other income decreased by 22% to £2.4m in H1 2025 due to adverse currency movements and lower interest rate returns.

·   Expenses increased by 25% to £18.4m in H1 2025, primarily due to the costs of robustly defending historic litigation claims against the Group. Total writs reduced marginally to £20.0m, with a reducing volume of new writs received in the period.

·   Expenses also increased due to our continuing investment in strategic initiatives to improve future performance, and depreciation of our new IT system.

·   Assets under administration remained steady at £1.2 billion at 31 December 2024.

·   The value of the in-force book fell by 2% to £108.3m between 30 June 2024 and 31 December 2024.

·   The Board has declared an interim dividend of 1.8p per share, consistent with previous years.

STRATEGIC & OPERATIONAL HIGHLIGHTS

·    Our new IT system has enabled the Group to refresh its entire product range and launch a new fund range quickly. We aim to roll out further proposition improvements on a continuous and frequent basis.

·    The Group continues to develop a distribution opportunity in Japan following the registration of two new products in that market. Although the speed of delivery to market is slower than anticipated, constructive progress is being made.

·    The combination of future sales growth and utilisation of our new IT system is expected to help realise economies of scale in due course.

NEW BUSINESS

 

New business flows for the half-year are summarised as follows:

 

		H1   2025	H1 2024	%
Basis		£m	£m	Change
Present Value of New Business Premiums		49.1	36.2	35.6%
Annualised Premium Equivalent		7.3	5.5	32.7%

 

New business flows based on PVNBP are broken down as follows:

		H1 2025	H1 2024	%
PVNBP by product type		£m	£m	change
Regular premium		17.2	21.9	(21.5%)
Single premium		31.9	14.3	123.1%
Total		49.1	36.2	35.6%

 

 

		H1 2025	H1 2024	%
PVNBP by geographical area		£m	£m	Change
Middle East & Africa		18.7	16.2	15.4%
Latin America		17.8	10.6	67.9%
Rest of World		10.0	6.5	53.8%
Far East		2.6	2.9	(10.3%)
Total		49.1	36.2	35.6%

 

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, most premium contributions and AuA are designated in currencies other than sterling. Over 60% of Group AuA are denominated in US dollars.

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, charges and the effect of investment market and currency movements. These factors ultimately affect the level of fund-based income earned by the Group. Net withdrawals are typically experienced in Hansard Europe dac ("Hansard Europe") as it closed to new business in 2013.

The following analysis shows the components of the movement in AuA:

 

 

		H1 2025		H1 2024
		£m		£m
Assets under Administration at 30 June Regular premiums			1,150.9 33.6	1,101.5 38.8
Single premiums			31.3	13.8
Withdrawals and charges			(90.5)	(87.6)
Market and currency movements			27.7	39.5
Change in period			2.1	4.5
Assets under Administration at 31 December		1,153.0		1,106.0

                                                                

AuA is split as follows between Hansard International (incorporating business reinsured from Hansard Worldwide) and Hansard Europe:

				H1 2025	H1 2024
				£m	£m
Hansard International				1,097.5	1,044.5
Hansard Europe				55.5	61.5
Assets under Administration at 31 December				1,153.0	1,106.0

 

 

Outlook

Looking ahead, there are early indications that our new product range will continue to drive sales and foster long-term growth for the business.

However, it will take time for improved sales to fully translate into increased profits and we anticipate profit pressures over the next two years as we continue to invest in strategic initiatives, defend historic litigation claims, depreciate our IT system and meet continuing regulatory changes.

The improved sales momentum from our new products, investment in Japan, and utilisation of our new technology platform are expected to deliver profit growth thereafter.

 

NOTICE OF TRADING UPDATE

A trading update in respect of our financial year ending 30 June 2025 is expected to be published on 25 September 2025.

 

 

 

For further information:

Hansard Global plc                                                               +44 (0) 1624 688 000

Thomas Morfett, Group Chief Executive Officer

Ollie Byrne, Chief Financial Officer

Email: [email protected]

 

Camarco LLP                                                                         +44 (0) 7990 653 341

Ben Woodford, Aoife Mclarnon

 

 

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 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 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 scalable.

·    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. These markets are served by Hansard International Limited and Hansard Worldwide Limited.

 

·    Hansard Europe dac previously operated in Europe but 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 scalability 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 announcement contains inside information which is disclosed in accordance with the Market Abuse Regime.

 

Legal Entity Identifier: 213800ZJ9F2EA3Q24K05

 

 

Hansard Global plc

Interim Report and Accounts for the period ended 31 December 2024

 

CHAIRMAN'S STATEMENT

 

I am pleased to present Hansard Global plc's ("Hansard" or "Group") financial results for the first six months of our 2025 financial year ("H1 2025").

 

Financial objectives

Hansard's financial objectives are measured primarily in terms of its income generation, expense management, solvency management, and generation of cash to pay dividends. In the short term the Group is balancing its net profit result with dividend expectations, while maintaining its strategic solvency target. In the medium term it is seeking to reduce its cost base and increase new business sales by offering a new product range, whilst, in the longer term, it is aiming to increase its scale organically and leverage its relatively fixed cost base to deliver a geared increase in profitability.

Financial performance

IFRS profit before tax decreased by 88% to £0.5m in H1 2025 due to currency movements, strategic investment, new system costs, and litigation costs.

New business grew by 36% to £49.1m in H1 2025 in PVNBP terms from £36.2m in H1 2024, driven by the successful launch of a new single premium product earlier in the calendar year. The Group launched a new, competitive regular premium offering in December.

It will take time for improved sales to fully translate into increased profits and we anticipate profit pressures over the next two years as we continue to invest in strategic initiatives, defend historic litigation claims, depreciate our new IT system and meet continuing regulatory changes.

The Group's new IT system has enabled the Group to refresh its entire product range and launch a new fund range quickly. We aim to roll out further proposition improvements on a continuous and frequent basis. The new system provides the Group with a solid base from which to leverage its relatively fixed cost base.

During the year, the Group has continued to develop its distribution opportunity in Japan following the registration of two new products for that market. Although the speed of delivery to market is slower than anticipated, constructive progress is being made.

The Group remains sufficiently capitalised to meet its regulatory requirements.

Looking ahead, there are early indications that our new product range will continue to drive sales and foster long-term growth for the business.

 

Dividend declaration

The Board has declared an interim dividend of 1.8p per share, consistent with previous years. This will be paid on 24 April 2025 with an ex-dividend date of 13 March 2025.

Board changes

Jose Ribeiro, Independent Non-executive Director, stepped down from the Board on 31 December 2024. On behalf of the Board, I extend our great gratitude to Jose for his valuable contribution.

 

We are pleased to announce that Lynzi Harrison joined the Board as an Independent Non-executive Director on 11 December 2024. With over 25 years of industry experience, Lynzi will serve on the Audit and Risk, Remuneration, and Nomination Committees. We are delighted to welcome Lynzi to the Board.

 

Additionally, Noel Harwerth, OBE, succeeded Jose as Chair of the Remuneration Committee and Senior Independent Director on 1 January 2025.

 

Philip Kay

Chair

5 March 2025

INTERIM MANAGEMENT REPORT

 

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

Thomas morfett

 

The Hansard Group has begun to deliver growth in new business flows after several years of laying the groundwork for the future by developing its Japanese license and new IT system.

 

We are pleased to now be able to launch new, competitive, and innovative products quickly. Our plan is to make the evolution of our proposition a continuous feature of our business model moving forward.

 

There are early signs that our recently launched products and fund range are appealing to clients and advisors.

 

Nevertheless, as we navigate continuing regulatory changes and a challenging financial landscape, we anticipate that it will take time for the growth in new business to translate into improvements in income and profitability.

 

I am confident that we have the right people and culture in place to deliver long-term, sustainable success for the business and our stakeholders.

 

Strategy

The Group provides regular and single premium savings products to expatriate and local clients around the world seeking access to a range of international investments from a safe-haven jurisdiction. 

We continue to pursue our strategy of growing our business organically through Independent Financial Advisor ("IFA") client relationships and the pursuit of targeted opportunities to improve our scale.

Our strategic focus for the second half of this financial year is to:

·      Launch our two new locally licenced investment products in Japan.

·      Leverage and extend our new product and funds propositions globally; and

·      Further embed our new IT system in order to roll out proposition improvements on a continuous basis.

New business

Overall new business grew by 36% to £49.1m in H1 2025 in PVNBP terms ("Present Value of New Business Premiums") compared to £36.2m in H1 2024. Growth of 33% was achieved in APE terms ("Annual Premium Equivalent").

New business growth was driven by the successful launch of a new single premium product earlier in the calendar year, which delivered a 123% increase in single premium sales.

Regular premium sales experienced a 22% decline, highlighting the challenges of an aging regular premium product. In response, the Group introduced a new, competitive regular premium offering in December.

Financial results

IFRS profit before tax decreased by 88% to £0.5m in H1 2025 compared to H1 2024, due to adverse currency movements, legal costs of defending historic litigation claims, and continued investment in strategic initiatives. It will take time for improved sales to translate into higher profits given the long-term nature of our products.

Fees and commissions remained stable at £23.7m in H1 2025.

Investment and other income decreased by 22% to £2.4m in H1 2025 due to adverse currency movements.

Expenses increased by 25% from £14.7m in H1 2024 to £18.4m in H1 2025 due to the legal costs of defending historic litigation claims, continuing investment in strategic initiatives to improve future performance, and depreciation of the new IT system.

 

A summary of the results for H1 2025 are as follows:

 

	H1 2025	H1 2024
IFRS profit before tax	£0.5m	£4.1m
IFRS basic earnings per share	0.3p	3.0p
Interim dividend - to be paid on 24 April 2025	1.8p	1.8p

 

Assets under administration increased marginally to £1.2 billion as at 31 December 2024.

The value of the in-force book remained steady at £108.3m as at 31 December 2024.

As at	31 December 2024	30 June 2024
Assets under Administration	£1,153.0m	£1,150.9m
Value of In-Force (regulatory basis)	£108.3m	£110.8m

 

Details of the results for the period are contained in the Business and Financial Review.

 

Capitalisation and solvency

The Group remains sufficiently capitalised to meet the requirements of regulators, contract holders, intermediaries, and other stakeholders. On a risk-based capital basis, total Group Free Assets in excess of the Solvency Capital Requirements of the Group were £34.3m (June 2024: £39.4m), a solvency coverage of 143% (June 2024: 149%).

The Group's shareholders' equity is held in a wide range of deposit institutions and highly rated money market liquidity funds.

Our people

Our people continue to be crucial to the success of the Group and demonstrate a continued commitment, and resilience in managing both our on-going day-to-day operations and our key strategic projects. 

We maintain a commitment to the highest levels of service and quality in relation to servicing contract holders and intermediaries, and we continue to receive external recognition by our peers. We recently won two awards at the 2024 Investment International awards - Excellence in Fintech, and Excellence in Client Service - Asia.

Regulatory environment

The pace, scale, and complexity of regulatory change continues to evolve, and the Group devotes significant resources to meeting these developments.

Hansard Europe dac ("Hansard Europe")

Hansard Europe was closed to new business in 2013, and the Group's objective is to run the business off in an efficient and well managed manner. It is well capitalised with net assets of £12.1m as at 31 December 2024 (30 June 2024: £12.1m).

We continue to robustly defend historic litigation arising out of circumstances where policyholders consider that the performance of an asset linked to a particular contract is not satisfactory. As outlined more fully in section 11 of the Business and Financial Review, total writs were £20.0m as at 31 December 2024 (30 June 2024: £20.2m).

 

 

Thomas Morfett

Chief Executive Officer

5 March 2025

BUSINESS AND FINANCIAL REVIEW

1.    BUSINESS MODEL

Hansard is a specialist long-term savings provider that has been providing innovative financial solutions for international clients since 1987. We focus on helping our customers with savings and investment products in secure life assurance wrappers to meet their long-term savings and investment objectives.

We administer assets in excess of £1 billion for just under 40,000 client accounts around the world.

We believe that the following areas are fundamental for the continued success of the Group:

·      Proposition enhancement, product improvement and diversification of our distribution channels to enable generation of significant flows of new business from identified target markets.

·      Leveraging our new IT system to drive business efficiency.

·      Proactively managing our cash flows through the cycle to fund the appropriate balance of investment in new business and dividends.

·      Managing and mitigating our exposure to business risks.

·      Positioning ourselves to incorporate increasing levels of regulation into our business model.

The Company's head office is in Douglas, Isle of Man, and its principal subsidiaries operate from the Isle of Man, The Bahamas and the Republic of Ireland. 

Hansard International is authorised by the Isle of Man Financial Services Authority and has a branch in Malaysia, authorised by the Labuan Financial Services Authority, to support business flows from Asian growth economies. It also has a branch in Japan to support its Japanese proposition, which is authorised by the Japanese Financial Services Agency. Through its relationship with a local insurer in the UAE, Hansard International reinsures business written in the UAE

Hansard Worldwide writes international and expatriate business around the world and is underwritten by Hansard International Limited. Hansard Worldwide is authorised by the Insurance Commission of The Bahamas.

Hansard Europe is authorised by the Central Bank of Ireland and ceased accepting new business with effect from 30 June 2013.

Our products are designed to appeal to affluent international investors, institutions, and wealth-management groups. They are distributed exclusively through independent financial advisers (IFAs) and the retail operations of financial institutions.

Our network of Regional Sales Managers provides local language-based support services to independent financial advisors in key territories around the world, supported by our multi-language online platform, Hansard OnLine.

2.    VISION AND STRATEGY

Our vision for the Hansard Group is:

 

"To share success with our clients by providing simple, understandable and innovative financial solutions".

 

To deliver this vision, client outcomes will be the central focus within our business and consequently we will seek to evolve all aspects of our products, processes and distribution in order to constantly improve.

 

Our talented people are the foundation of our business. We have created an empowering culture, which values innovation, quality, integrity and respect.

 

Our strategy to improve, grow and future-proof our business will be delivered through three key areas of strategic focus:

 

i.           Improve our business:  We will continue to improve customer outcomes by introducing new and innovative products and services, focusing on the quality of our IFAs with whom we work with and continuing to drive up the engagement of our people within our business.

 

ii.          Grow our business:  In recent years we established a new life company in The Bahamas, and we have recently signed a distribution agreement with Guardian to access the Japanese domestic market. We will continue to seek out opportunities for additional distribution channels in other targeted jurisdictions in the future.

 

iii.         Future-proof our business: We actively consider new and innovative technologies, propositions, and business models.  It remains critical to support the online and digital needs of our clients alongside improving organisational efficiency and scalability. 

 

3.    HANSARD ONLINE

Hansard is a regular recipient of numerous awards that recognise our reputation for innovation, via the provision of market-leading online platforms that are used daily by its IFAs ('Hansard OnLine') and their clients ('Online Accounts') around the globe. Hansard OnLine and Online Accounts enable us to build on an award-winning, online proposition, and is central to the development and quick deployment of new, future products.

 

Online Accounts

 

Thousands of Hansard clients access their own personal, secure online account every year. Online accounts are mobile friendly and have the capability to provide these clients with a wealth of policy information, 24/7. In addition to other functionality and benefits, clients can:

·        Track the performance of their policy online, with policy valuations and contribution details at the touch of a button.

·        Access their online account with our new-look mobile and tablet friendly platform, enabling access on the go, wherever they are in the world.

·        Access their online account 24/7, safe in the knowledge that their details are secure and protected.

·        Access a wealth of fund performance information, facilitating better informed investment decisions in the future; and

·        Stay informed in a language that they understand, with Online Accounts being available in over 13 different languages.

Cyber security

 

Hansard has continued to invest in its cyber security infrastructure with the implementation of a Security Operations Centre, operating at an ISO27001 (Information Technology Security Standard) standard, to provide further enhanced surveillance of our systems and external threats.

 

4.         New business

 

PROPOSITION

The Group's proposition is to develop and enhance relationships with contract holders and intermediaries through the use of our people, products and technology in a way that meets shared objectives.

 

The results of activities in each region in H1 2025 are reported in the table below.

 

New business performance for the six months ended 31 December 2024

New business for H1 2025 was £49.1m on a PVNBP basis, up 36% from £36.2m in H1 2024 and continuing the upward trend from the second half of 2024.

New business levels for H1 2025 are summarised as follows:

	Six months ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Present Value of New Business Premiums	49.1	36.2	77.8
Annualised Premium Equivalent	7.3	5.5	10.4

 

The following tables show the breakdown of new business calculated on the basis of PVNBP:

 

	Six months ended			Year ended
	31 December			30 June
	2024	2023		2024
By type of contract	£m	£m		£m
Regular premium	17.2	21.9		44.2
Single premium	31.9	14.3		33.6
	49.1	36.2		77.8

 

	Six months ended				Year ended
	31 December				30 June
		2024	2023		2024
By geographical area		£m	£m		£m
Middle East and Africa		18.7	16.2		32.4
Latin America		17.8	10.6		24.3
Rest of World		10.0	6.5		16.4
Far East		2.6	2.9		4.7
Total		49.1	36.2		77.8

 

Our new single premium portfolio bond launched last financial year continues to be a successful offering for our clients and advisers, helping to drive the increase in new business on a PVNBP basis. We have refreshed our single and regular premium propositions, and we expect these to contribute to growth as we move forwards.  

We continue to work with key IFAs to leverage existing and new opportunities. We are exploring new relationships to further expand our network of distributors.

Our sales team remains well positioned to drive IFA and product initiatives to increase new business in future, including the development and launch of new products for key target markets, updates and improvements to existing products and continuation of system developments to support our service and overall proposition.

Premium currencies remained relatively consistent year on year, with the predominant currency being US Dollars.

 

 

5.       IFRS RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024

The Group administers, and earns fees from, a portfolio of unit-linked investment contracts distributed to contract holders around the world.

The nature of the Group's products means that new business flows have a limited immediate impact on current earnings reported under IFRS, as initial fees and acquisition costs from the contracts sold are mostly deferred and amortised over the life of the contract. The benefit of sales to fee income levels are felt in future financial periods, noting also that our newer products have a longer earning period than our older products.

The Group also continues to invest strategically for the future, particularly in relation to new markets and new licensing opportunities.

Results under IFRS

Consolidated profit before taxation for the period was £0.5m (H1 2024: £4.1m).  The decrease on the prior year period is driven by adverse currency movements, legal costs of defending historic litigation claims, continued investment in strategic initiatives, and depreciation of the new IT system.

The following is a summary of key items to allow readers to better understand the results of the period. 

Abridged income STATEMENT

The condensed consolidated statement of comprehensive income which is presented within these half-year results reflects the financial results of the Group's activities during the period under IFRS. However, this statement, as a result of its method of presentation, incorporates a number of features that might affect a clearer understanding of the results of the Group's underlying transactions. This relates principally to:

 

·      Investment gains attributable to contract holder assets were £29.8m (H1 2024: £41.7m). These assets are selected by the contract holder or an authorised intermediary, and the contract holder bears the investment risk; these gains are therefore also reflected within 'Change in provisions for investment contract liabilities'.

·      Third party fund management fees collected and paid onwards by the Group to third parties having a relationship with the underlying contract. In H1 2025 these were £2.5m (H1 2024: £2.5m). These are reflected on a gross basis in both income and expenses under IFRS.

An abridged consolidated income statement is presented below, excluding the items of income and expenditure indicated above.

	Six months ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Fees and commissions	21.3	21.5	43.7
Investment and other income	2.4	3.1	5.9
	23.7	24.6	49.6
Origination costs	(7.3)	(8.3)	(16.1)
Administrative and other expenses attributable to the
Group	(14.0)	(11.4)	(25.0)
Operating profit for the period before litigation and non-recurring expense items	2.4	4.9	8.5
Net litigation and non-recurring expense items	(1.9)	(0.8)	(3.2)
Profit for the period before taxation	0.5	4.1	5.3
Taxation	(0.1)	(0.1)	(0.1)
Profit for the period after taxation	0.4	4.0	5.2

 

 

Fees and commissions

Fees and commissions attributable to Group operations for H1 2025 were £21.3m (H1 2024: £21.5m).  A summary of fees and commissions attributable to Group activities is set out below:

	Six months Ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Contract fee income	14.0	15.2	30.6
Fund management fees	4.7	3.9	8.3
Commissions receivable	2.6	2.4	4.8
	21.3	21.5	43.7

Included in contract fee income is £7.8m (H1 2024: £9.1m) representing the amounts prepaid in previous years and amortised to the income statement, as can be seen in section 7 in the reconciliation of deferred income.

Net fund management fees, together with commissions receivable, totalling £7.3m (H1 2024: £6.3m), are related to the value of contract holder Assets under Administration ("AuA") but also have elements amortised from previous periods.  

Investment and other income

	Six months Ended			Year ended
	31 December			30 June
		2024	2023	2024
		£m	£m	£m
Bank interest, interest on bonds and other income receivable		2.8	2.7	5.5
Foreign exchange (losses) / gains on revaluation
of net operating assets		(0.4)	0.4	0.4
		2.4	3.1	5.9

 

The Group's own liquid assets are held predominantly in sterling and invested in highly rated money market funds and bank deposits.

Further information about the Group's foreign currency exposures is disclosed in note 4.1 to these condensed consolidated financial statements.

Origination costs

Under IFRS, new business commissions paid, together with the directly attributable incremental costs incurred on the issue of a contract, are deferred, and amortised over the life of that contract to match the longer-term income streams expected to accrue from it. Typical terms range between 8 and 16 years, depending on the nature of the product. Other elements of the Group's new business costs, which reflect investment in distribution resources in line with our strategy, are expensed as incurred. 

This accounting policy reflects that the Group will continue to earn income over the long-term from contracts issued in a given financial year.

 

Origination costs in the period were:

	Six months  Ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Origination costs - deferred to match future
income streams	4.4	3.7	8.2
Origination costs - expensed as incurred	0.9	1.2	2.1
Investment in new business in period	5.3	4.9	10.3
Net amortisation of deferred origination costs	2.0	3.4	5.8
	7.3	8.3	16.1

Reflecting the long-term nature of the Group's income streams, amounts totaling £6.5m (H1 2024: £7.1m) have been expensed to match contract fee income of £7.8m (H1 2024: £9.1m) earned in H1 2025 from contracts issued in previous financial years. This reflects the profitability of the existing book.

Summarised origination costs for the period were:

	Six months       Ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Amortisation of deferred origination costs	6.5	7.1	13.9
Other origination costs incurred during the period	0.8	1.2	2.2
	7.3	8.3	16.1

 

 

Administrative and other expenses

We continue to manage our expense base robustly to control administrative expenses while investing strategically in our Japanese proposition and other product developments.

A summary of administrative and other expenses attributable to the Group is set out below:

	Six months                           Ended		Year Ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Salaries and other employment costs	6.6	5.5	11.3
Other administrative expenses	5.9	4.1	7.8
Professional fees, including audit	0.9	0.8	3.2
Recurring administrative and other expenses	13.4	10.4	22.3
Investment in strategic initiatives	0.6	1.0	2.7
Administrative and other expenses, excl. litigation and non-recurring expense items	14.0	11.4	25.0
Net litigation defence and settlement costs	1.5	0.7	2.5
Provision for doubtful debts	0.4	0.1	0.7
Total administrative and other expenses	15.9	12.2	28.2

Salaries and other employment costs have increased by £1.1m over the comparative period to £6.6m as previously capitalised staff costs incurred during the implementation of our new IT system are expensed through profit and loss following implementation of the system on 1 March 2024. Average Group headcount for H1 2025 was 175 compared to 182 for the full 2024 financial year.  Headcount at 31 December 2024 was 173.

Other administrative expenses have increased by £1.8m to £5.9m against the comparative period. This includes an increase of £0.9m in depreciation, and £0.8m in respect of ongoing development and licence costs of the new IT system.

Professional fees including audit (excluding litigation defence costs) have increased by £0.1m to £0.9m against the comparative period, with inflationary pressures well controlled.

Investment in strategic initiatives of £0.6m represents internal and external costs to generate opportunities for growth. This includes the costs of our head office strategy team, support costs for our new IT system and development costs associated with our Japanese proposition.

Litigation defence and settlement costs represent those costs incurred in defending claims against Hansard Europe of £1.5m for the period, compared with £0.7m in H1 2024. The provision for claim settlements was increased by £0.1m.

Provision for doubtful debts reflects the provision for balances considered unlikely to be recoverable. 

 

6.       CASH FLOW ANALYSIS

The sale of the Group's products typically produces an initial cash strain as a result of the commission and other costs incurred at inception of a contract.  

The following summarises the Group's own cash flows in the period:

		Six months Ended		Year ended
		31 December		30 June
		2024	2023	2024
		£m	£m	£m
Net cash (deficit) / surplus from operating activities		(0.8)	10.5	10.9
Interest received		2.5	2.2	4.2
Net cash inflow from operations		1.7	12.7	15.1
Net cash investment in new business		(4.3)	(3.3)	(8.1)
Purchase of software, computer equipment and property		-	(2.4)	(3.9)
Net cash investment in bond portfolio		(4.0)	(5.0)	-
Cashflows from investing activities		-	-	-
Corporation tax paid		-	-	(0.1)
Net cash (outflow) / inflow before dividends		(6.6)	2.0	3.0
Dividends paid		(3.7)	(3.6)	(6.1)
Net cash outflow after dividends		(10.3)	(1.6)	(3.1)

 

Initial new business cash strain is shown within "net cash investment in new business" and varies depending on the level and type of new business written. The Group also invested £4.0m of shareholder funds into a USD bond portfolio as part of its Treasury management activity. These factors, together with the payment of our final dividend for 2024 led to a net cash outflow of £10.3m (H1 2024: £1.6m outflow) in the Group's own cash resources since 1 July 2024. The Group continues to maintain significant cash reserves to cover short-term outflows during this period of strategic investment. 

		Six months ended		Year ended
		31 December		30 June
		2024	2023	2024
		£m	£m	£m
Net cash outflow after dividends		(10.3)	(1.6)	(3.1)
Increase in amounts due to contract holders		6.8	2.6	2.7
Net Group cash movements		(3.5)	1.0	(0.4)
Group cash - opening position		65.0	65.4	65.4
Effect of exchange rate movements		(0.2)	0.1	-
Group cash - closing position		61.3	66.5	65.0

 

Bank deposits and money market funds

The Group holds its liquid assets in highly rated money market liquidity funds and with a wide range of deposit institutions to diversify counterparty risk. Deposits totalling £15.0m (2024: £20.7m) have original maturity dates typically greater than 3 months and are therefore excluded from the definition of "cash and cash equivalents" under IFRS and are instead included within 'Deposits and money market funds' in the consolidated balance sheet. The following table summarises the total cash and deposits at the balance sheet date.

The following table summarises the total shareholder cash and deposits at the balance sheet date.

			31 December		30 June
		2024		2023	2024
		£m		£m	£m
Money market funds		45.7		34.7	47.3
Short-term deposits with credit institutions		0.6		11.1	0.6
Cash and cash equivalents under IFRS		46.3		45.8	47.9
Longer-term deposits with credit institutions		15.0		20.7	17.1
Group cash and deposits		61.3		66.5	65.0

7.       Abridged consolidated balance sheet

The condensed consolidated balance sheet presented under IFRS reflects the financial position of the Group as at 31 December 2024.  As a result of its method of presentation, the consolidated balance sheet incorporates the financial assets held to back the Group's liability to contract holders and incorporates the net liability to those contract holders of £1,153.0m (31 December 2023: £1,106.0m). Additionally, that portion of the Group's capital that is held in bank deposits is disclosed in "cash and cash equivalents" based on original maturity terms, as noted above.

The abridged consolidated balance sheet presented below, adjusted for those differences in disclosure, allows a better understanding of the Group's own capital position.

 

 

As at		31 December		30 June
		2024	2023	2024
		£m	£m	£m
Assets
Deferred origination costs		110.0	114.5	112.1
Other assets		46.5	30.0	38.7
Bank deposits and money market funds		61.3	66.5	65.0
		217.8	211.0	215.8
Liabilities
Deferred income		139.0	142.2	140.2
Other payables		61.2	46.8	54.7
		200.2	189.0	195.0
Net assets		17.6	22.0	20.8
Shareholders' equity
Share capital and reserves		17.6	22.0	20.8

 

Deferred origination costs

The deferral of origination costs ("DOC") reflects that the Group will earn fees over the long term from contracts issued in a given financial year. These costs are recoverable out of future net income from the relevant contract and are charged to the consolidated statement of comprehensive income on a straight-line basis over the life of each contract.

The table below shows lower origination costs deferred during the period as a result of lower levels of new business sold compared to last year.

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
At beginning of financial year	112.1		117.8	117.8
Origination costs deferred during the period	4.4		3.8	8.2
Origination costs amortised during the period	(6.5)		(7.1)	(13.9)
	110.0		114.5	112.1

Deferred income

The treatment of deferred income ensures that contract fees are taken to the consolidated statement of comprehensive income in equal instalments over the longer-term, reflecting the services to be provided over the period of the contract. This is consistent with the treatment of deferred origination costs. Deferred income at the balance sheet date is the unamortised balance of accumulated initial amounts received on new business.

The proportion of income deferred in any one year is dependent upon the mix and volume of new business flows in previous years. The Group's focus on regular premium business means that these fees are received over the initial period of the contract, rather than being received up front, as is often the case with single premium contracts.

The majority of initial fees collected during the year relates to charges taken from contracts issued in prior financial years demonstrating the cash generative nature of the business. Regular premium contracts issued in this financial year will generate the majority of their initial fees over the next 18 months on average.

 

The movement in value of deferred income over the financial year is summarised below

	31 December		30 June
	2024	2023	2024
	£m	£m	£m
At beginning of financial year	140.2	144.8	144.8
Initial fees collected in the period and deferred	6.6	6.5	12.7
Income amortised during the period to fee income	(7.8)	(9.1)	(17.3)
	139.0	142.2	140.2

 

8.       Assets under administration ("AuA")

In the following paragraphs, "AuA" refers to net assets held to cover financial liabilities as analysed in note 13 to the condensed consolidated financial statements presented under IFRS.  Such assets are selected by or on behalf of contract holders to meet their investment needs.

 

The Group receives investment inflows to its AuA from single and regular premium contracts which are offset by charges, withdrawals, premium holidays affecting regular premium policies and by market valuation movements.

The majority of premium contributions and AuA are designated in currencies other than sterling, reflecting the wide geographical spread of those contract holders. The currency denomination of AuA at 31 December 2024 is similar to that of 31 December 2023 and consists of approximately 74% denominated in US dollars, 19% in sterling and 6% denominated in euro as reflected in note 4.1 to the condensed consolidated financial statements.

Certain collective investment schemes linked to customers' contracts can from time to time become illiquid, suspended or be put into liquidation. In such cases, the Directors are required to exercise their judgement in relation to the fair value of these assets.  The cumulative impact on the balance sheet is not material.

The following table summarises Group AuA movements for H1 2025:

		31 December		30 June
		2024	2023	2024
		£m	£m	£m
Deposits to investment contracts - regular premiums		33.6	38.8	74.4
Deposits to investment contracts - single premiums		31.3	13.8	33.9
Withdrawals from contracts and charges		(90.5)	(87.6)	(173.6)
Effect of market and currency movements		27.7	39.5	114.7
Movement in period		2.1	4.5	49.4
Opening balance		1,150.9	1,101.5	1,101.5
Closing balance		1,153.0	1,106.0	1,150.9

Group AuA increased to £1,153.0m during H1 2025, an increase of £2.1m from the position at 30 June 2024. Since 31 December 2023, AuA have increased £47.0m (4.2%) reflecting the move in global stock markets over the period.

The analysis of AuA held by each Group subsidiary to cover financial liabilities is as follows:

	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Hansard International	1,097.5	1,044.5	1,091.6
Hansard Europe	55.5	61.5	59.3
	1,153.0	1,106.0	1,150.9

 

Premiums acquired by Hansard Worldwide are reinsured to Hansard International and therefore are included within Hansard International's total AuA.

Since it closed to new business in 2013, Hansard Europe's AuA has been declining broadly in line with expectations as withdrawals are made or contracts mature.  

 

9.       CAPITALISATION AND SOLVENCY

The Group's life insurance subsidiaries continue to be well capitalised with free assets in excess of the regulatory requirements in each relevant jurisdiction. There has been no material change in the Group's management of capital during the period.

Solvency capital is a combination of future margins, where permitted by regulation, and capital. Where future margins are denominated in non-sterling currencies, it is vulnerable to the weakening of those currencies relative to sterling. All of the Group's excess capital is invested in a wide range of deposit institutions, highly rated money market liquidity funds, and high-quality corporate bonds, predominantly in sterling. This approach protects the Group's capital base from stock market falls.

The in-force portfolio has no material investment options or guarantees that could cause capital strain and the Group retains very little of the mortality risk that it has accepted (the balance being reinsured with premium reinsurers). There is no longevity risk exposure.

Policy on capital maintenance

It is the Group's policy to maintain a strong capital base in order to:

·      satisfy the requirements of its contract holders, creditors and regulators;

·      maintain financial strength to support new business growth and create shareholder value;

·      match the profile of its assets and liabilities, taking account of the risks inherent in the business;

·      generate operating cash flows; and

·      fund dividend requirements.

Within the Group each subsidiary company manages its own capital. Capital generated in excess of planned requirements is returned to the Company by way of dividends. Group capital requirements are monitored by the Board.  The capital held within Hansard Europe is considered not to be available for dividend to Hansard Global plc until such time as the legal cases referred to in section 11 below are substantially resolved.

 

10.       DIVIDENDS

A final dividend of 2.65p per share in relation to the previous financial year was paid in November 2024. This amounted to £3.7m. A portion of the dividend is paid in US dollars which gives rise to the variance against the prior year when translated to pounds sterling.

The Board has considered the results for H1 2025, the Group's continued cash flow generation and its future expectations and has resolved to pay an interim dividend of 1.8p per share (H1 2024: 1.8p). This dividend will be paid on 24 April 2025.

The Board has considered the impact of the dividend on the negative consolidated retained earnings of £2.7m as at 31 December. Dividends are paid from Hansard's parent company retained earnings, and not from consolidated Group retained earnings. As at 31 December Hansard's parent company retained earnings were £13.1m and as such the ability to pay dividends is not constrained.

 

11.       complaints and litigation

Financial services institutions can be drawn into disputes in cases where the performance of assets selected directly by or on behalf of contract holders through their advisors fails to meet their expectations. This is particularly relevant in the case of more complex products distributed throughout Europe prior to 2014.

Even though the Group has never given any investment advice, as this is left to the contract holder directly or through an agent, advisor or an entity appointed at their request or preference, the Group has been subject to a number of complaints in relation to the performance of assets linked to contracts. Most of the cases have arisen in Italy, with a smaller number in Belgium and Germany.

As at 30 June 2024, the Group had been served with writs with a net cumulative exposure totalling €23.8m, or £20.2m in sterling terms (30 June 2023: €26.1m / £22.4m) arising from contract holder complaints and other asset performance-related issues. The corresponding figure as at 31 December 2024 was €24.1m or £20.0m (31 December 2023: €25.2m or £22.0m). Between 31 December 2024 and the date of this report there have been no material changes.

Our policy is to maintain contingent liabilities even where we win cases in the court of first instance if such cases have been subsequently appealed.  This includes our largest single case in Belgium.

We have previously noted that we expect a number of our claims to ultimately be covered by our Group insurance cover.  During the period to 31 December 2024, we recorded £0.5m in insurance recoveries in relation to litigation expenses (31 December 2023: £0.7m).  We expect such reimbursement to continue during the course of those claims. 

While it is not possible to forecast or determine the final result of such litigation, based on the pleadings and advice received from the Group's legal representatives and experience with cases previously successfully defended, we believe we have a strong chance of success in defending these claims. Other than smaller cases where, based on past experience, it is expected a settlement might be reached, the writs have therefore been treated as contingent liabilities and are disclosed in note 21 to the consolidated financial statements.  Where there is an established pattern of settlement for a grouping of claims, a provision has been made for the remaining exposures and included in note 20 'Provisions', to the extent that they can be reliably estimated.

12.       Net asset value per shaRE

The net asset value per share on an IFRS basis at 31 December 2024 is 12.8p (31 December 2023: 16.2p) based on the net assets in the consolidated balance sheet divided by the number of shares in issue, being 137,557,079 ordinary shares (31 December 2023: 137,557,079).

13.       Risk Management and internal control

The Group continues to operate a comprehensive Enterprise Risk Management Framework, reflective of the Board's focus on effective risk management as an integral element of corporate success. The ERM Framework sets out the governance arrangements, principles, guidelines, practices and standards for risk management and internal control, which cumulatively ensure that the business is robustly prepared to identify, understand, and navigate the uncertainties and risks which it may encounter, and which can either pose threats or offer opportunities. The ERM Framework ensures that all such threats and opportunities, whether actual or emerging, are identified, assessed, monitored, managed, and reported using structured, consistent, and comprehensive methodologies, which seek to embed risk management within strategic decision-making and business planning activities and continuously shape organisational values and culture. The maturity of the ERM Framework and its capacity to respond quickly to emerging risks and adapt to changes arising via the internal or external environment, ensure that risk management and internal control remain central to the Board's oversight, direction and control of the Group, compelling informed decision making and sound business practices.

 

Approach

Having regard to the Financial Reporting Council's 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting', the ERM Framework encompasses the policies, processes, tasks, cultural attributes, behaviours, reporting conventions, and other aspects of the Group's environment, which cumulatively:

·      Support the Board's determination of the nature and extent of the Group's principal risks and the boundaries of risk appetite governing the pursuit and achievement of strategic objectives.

·      Inform the Board's understanding and assessment of existing, evolving, and emerging risks, together with combinations of those risks in the form of plausible stresses and scenarios, which have the potential to threaten the Company's business model, future performance, solvency, liquidity, operational resilience, regulatory standing, or reputation. This includes analysis of the likelihood, impact, and time horizon over which such risks, or combinations of risks, might emerge or crystallise and determining how such risks should be managed or mitigated to reduce their likelihood or impact.

·      Facilitate the effective and efficient operation of the Group and its subsidiary entities by enabling a consolidated and comprehensive approach to the management of risks across the Group, with specific attention to aggregate impacts and effects, enabling appropriate responses to significant business, operational, financial, compliance and other risks to business objectives, so safeguarding the assets of the Group.

·      Help to ensure the quality of internal and external reporting. This requires the maintenance of proper records and processes that generate a flow of timely, relevant, and reliable information from within and outside the Group, enabling the Board to form their own view on the effectiveness of risk management and internal control arrangements through the regular provision of relevant information and assurances.

·      Seek to ensure continuous compliance with applicable laws and regulations as well as with internal policies governing the conduct of business; and

·      Drive the cultural tone and expectations of the Board in respect of governance, risk management and internal control arrangements and the delegation of associated authorities and accountabilities.

The ERM Framework has been designed to be appropriate to the nature, scale, and complexity of the Group's business at both corporate and subsidiary level. The ERM Framework components are reviewed on at least an annual basis and refined, if necessary, to ensure they remain fit for purpose in substance and form and continue to support the Directors' assessment of the adequacy and effectiveness of the Group's risk management and internal control systems. Such assessment depends upon the Board maintaining a thorough understanding of the Group's risk profile, including the types, characteristics, interdependencies, sources, and potential impact of both existing and emerging risks on an individual and aggregate basis.

Risk governance arrangements

The Board retains ultimate responsibility for the ERM Framework and its effective operation, and the Directors are responsible for determining, evaluating, and controlling the nature and extent of the risks which the Board is willing to accept across the spectrum of risk disciplines. The Board has formally delegated certain responsibilities in respect of internal controls and risk management to the Audit and Risk Committee. These responsibilities are defined within the Committee's terms of reference and provide for a range of important oversight and scrutiny protocols including:

·    Continuous review of the Group's internal financial controls (being the systems established to identify, assess, manage, and monitor financial risks) and other internal control and risk management systems relating to financial reporting.

·    Robust assessment of the emerging and principal risks facing the Group, identified, and reported via established ERM Framework components, and the provision of comfort to the Board that risks are being managed and controlled within the Board's overall risk appetite.

·      Independent evaluation of the ERM Framework to confirm that it remains adequate, effective, and proportionate to the nature, scale and complexity of the risks inherent in the business.

During the period to 31 December 2024 the Group Risk Forum ("GRF") has continued to champion the embedding of risk ownership, ensuring responsibilities and accountabilities for risk management and risk-based decision making are transparent and proactively owned at all business levels. The value of effective, dynamic interfaces between the governance, risk management and internal control conventions of the ERM Framework and those constituting the Group and subsidiary Own Risk and Solvency Assessment ("ORSA") cycles remains a core focus for the GRF.

 

The Group ORSA report reflects the cycle of ongoing activities and arrangements which enable the Board and the Executive Committee to properly assess and understand at a practical level the short and long-term risks facing the Group and the capital required to cover those risks, under both normal and stressed conditions. The 2024 ORSA cycles concluded during the reporting period, and these considered the major sources of risk that the Group, or the subsidiary entities, may face under the principal and subordinate risk designations of the ERM Framework. Both internal and external risks were considered, together with emerging risks and any risks associated with the Group's systems of governance. The ORSA included capital, performance and strategic information, providing management with key information for decision making.

 

The disciplines of the ERM Framework seek to coordinate risk management in respect of the Group as a whole, including for the purpose of ensuring compliance with capital adequacy requirements, liquidity adequacy requirements and regulatory capital requirements, in line with the Isle of Man Financial Services Authority Risk-Based Capital Regime.

Governance, risk management and internal control protocols remain structured upon a 'three lines' model, which determines how specific duties and responsibilities are assigned and coordinated. First line management are responsible for identifying risks, executing effective controls, and escalating risk issues and events to the Group's Control Functions. The Group Risk and Compliance Functions (Second line) oversee and work in collaboration with the First Line, ensuring that the business is conducted in a manner consistent with rules, limits, and risk appetite constraints. The Group Internal Audit Department (Third line) provides independent assurance services to the Board and the Executive Committee on the adequacy and effectiveness of the Group's governance, risk management and internal control arrangements.

The ERM Framework seeks to add value through embedding risk management and effective internal control systems as continuous and developing processes within strategy setting, programme level functions and day-to-day operating activities. The ERM Framework also acknowledges the significance of organisational culture and values in relation to risk management and their impact on the overall effectiveness of the internal control framework.

Emerging Risks

The ERM Framework promotes the pursuit of its overarching performance, information, and compliance objectives through focus on five interrelated elements, which enable the management of risk at strategic, programme and operational level to be integrated, so that layers of activity support each other. The five interrelated elements are defined as:

·      Management oversight and the control culture.

·      Risk recognition and assessment.

·      Control activities and segregation of duties.

·      Information and communication.

·      Monitoring activities and correcting deficiencies.

In addition to existing risks the ERM conventions, which support delivery of the elements listed above, target emerging and evolving risks using both top-down and bottom-up bases. The top-down aspect involves the Board regularly analysing and evaluating the nature and extent of the risks to which the Group is or may be exposed, even where these may be difficult to assess and quantify. The bottom-up approach involves the identification, review and continuous monitoring of risk issues and emerging risks at functional and divisional levels, with analysis and formal reporting to the Group Risk Forum on a quarterly basis. This allows actions to be developed or adapted on a timely basis and enables onward analytical reporting to the Board. These arrangements ensure that the Board remains aware of potential changes in risk profile on a forward-looking basis and sensitive to the materiality of potential impacts.    

Stress and scenario testing is used to explore, assess, and quantify emerging risks as well as to analyse and assess any changes in existing aspects of the 'Risk Universe', which are monitored via the ERM Framework. Such assessment and analyses use both quantitative tests and qualitative assessments to consider reasonably plausible risk events, including those stresses and scenarios that could lead to failure of the business, approximated to the range of impact types which can be envisaged. The results of the stress and scenario testing are considered and explored by the Group Risk Forum, the Audit and Risk Committee and the Board, as necessary and appropriate.  

The system of internal control is designed to understand, mitigate, and manage, rather than eliminate risk of failure to achieve business objectives, and seeks to provide reasonable, rather than absolute, assurance against material misstatement or loss.

Review of Risk Management and Internal Control Systems

The results of the risk management processes combine to facilitate identification of the principal business, financial, operational and compliance risks and any associated key risks at a subordinate level. Established reporting cycles enable the Board to maintain oversight of the quality and value of risk management and internal control activities throughout the year and ensure that the entirety of the governance, risk management and internal control frameworks, which constitute the ERM Framework, are operating effectively and as intended. These processes have been in place throughout the year under review and up to the date of this report.

Independently of its quarterly and ad hoc risk reporting arrangements the Board has conducted its annual review of the effectiveness of the Company's risk management and internal control systems including financial, operational and compliance controls. This review is undertaken in collaboration with the Audit and Risk Committee and is based upon analysis and evaluation of:

 

·      Attestation reporting from the key subsidiary companies of the Group as to the effective functioning of the risk management and internal control frameworks and the ongoing identification and evaluation of risk within each subsidiary.

 

·      Formal declarations from Executive Managers, via quarterly risk and control self-assessments, that risks   falling under their respective span of control are being managed and assessed appropriately and key controls are working effectively and as intended. Reporting must include progress updates on the timely and effective delivery of Management Actions to address any identified control weaknesses, in accordance with the commitments recorded in the Group Risk Management Platform. The cumulative results of cyclical risk reporting by senior and executive management via the GRF, having regard to the 'five pillar' structure of the ERM Framework, which drives analytical reporting to the Audit and Risk Committee. Independent assurance work by the Group Internal Audit Department to identify any areas for enhancements to internal controls and work with management to define associated action plans to deliver them.

 

The Board has determined that there were no areas for enhancement which constituted a significant weakness for the year under review and the Directors are satisfied that the Group's governance, risk management and internal control systems are operating effectively and as intended.

Financial Reporting Process

Integral to ERM monitoring and reporting arrangements are the conventions which ensure that the Board maintains a continuous understanding of the financial impacts of the Group failing to meet its objectives, due to crystallisation of an actual or emerging risk, or via the stress and scenario events, which the Board considers to be reasonably plausible. This includes those stresses and scenarios that could lead to a failure of the business. Planning and sensitivity analyses incorporate Board approval of forecast financial and other information. The Board receives regular representations from Senior Executives in this regard.

Performance against targets is reported to the Board quarterly through a review of Group and subsidiary companies' results based on accounting policies that are applied consistently throughout the Group.  Financial and management information is prepared quarterly by the Chief Financial Officer ("CFO") and presented to the Board and the Audit and Risk Committee. The members of the Audit and Risk Committee review the interim financial statements for the half year ending 31 December and the full financial year and engage with the CFO to discuss and challenge the presentation and disclosures therein. Once the draft document is approved by the Audit and Risk Committee, it is reviewed by the Board before final approval by the Board.

Outsourcing

The majority of investment dealing and custody processes in relation to contract holder assets are outsourced under a formal contract to Capital International Limited (CIL, https://www.capital-iom.com), a company authorised by the Isle of Man Financial Services Authority and a member of the London Stock Exchange. The contract is managed by a dedicated Relationship Manager against a documented Service Level Agreement, which includes Key Performance Indicators. CIL is required to confirm quarterly that no material control weaknesses have been identified in their operations; this is overseen via service delivery monitoring performed by the Relationship Manager.  Each year CIL are required to confirm and evidence the adequacy and effectiveness of their internal control framework through a formal Assurance Report on Internal Controls, with an external independent review performed in in 2023 and 2024.

Our core policy administration platform is provided as a "Software As A Service" solution by Majesco (www.majesco.com). This covers all policy and advisor administration as well as the provision of the Hansard Client and Advisor online portals which support self-service administration. Monthly service meetings are held with Majesco with a formal annual review undertaken.  Majesco also participates in scheduled security tests and simulations.  The Majesco system code is held in escrow with the NCC Group, which supports contingency planning in the event of a failure of a provider.

Manx Telecom (wwww.manxtelecom.com) provides our hosting services and core internet connectivity, which supports several core infrastructure elements such as our virtual desktops and servers.  Manx Telecom data centres operate to Tier 3 standard and are ISO 27001 accredited. Monthly service meetings are held with Manx Telecom with a formal annual review undertaken.  Manx Telecom is an active participant in scheduled security tests and simulations.

Risks Relating to the Group's Financial and Other Exposures

Hansard's business model involves the controlled acceptance and management of risk exposures. Under the terms of the unit-linked investment contracts issued by the Group, the contract holder bears the investment risk on the assets in the unit-linked funds, as the policy benefits are directly linked to the value of the assets in the funds. These assets are administered in a manner consistent with the expectations of the contract holders. The Group maintains a precise match between the investment assets held and the contract holder liabilities, and so the market risk and credit risk lie with contract holders.

 

The Group's exposure on this unit-linked business is limited to the extent that income arising from asset management charges and commissions is generally based on the value of assets in the funds, and any sustained falls in value will reduce earnings. In addition, there are certain financial risks (credit, market, and liquidity risks) in relation to the investment of shareholders' funds. The Group's exposure to financial risks is explained in note 3 to the consolidated financial statements.

                       

The Board believes that the principal risks facing the Group's earnings and financial position are those risks which are inherent to the Group's business model and operating environment. The regulatory landscape continues to evolve at both a local and international level and the risk management and internal control frameworks of the Group must remain responsive to developments which may change the nature, impact or likelihood of such risks, or the time horizon within which they might crystallise.

Principal Risks

 

The following table sets out the principal inherent risks that may impact the Group's strategic objectives, profitability, capital position or resilience and provides an overview of how such risks are managed or mitigated. The Board robustly reviews and considers its principal risks on at least a quarterly basis and for the period ended 31 December 2024 has continued to consider specifically the likelihood, impacts and timescales within which such risks might crystallise, together with assessment of contingent uncertainties and any emerging risks. No emerging risks have been identified during the reporting period, which require disclosure additional to the principal risks described below.

 

Risk	Risk Factors and Management
Distribution Risk:   Arising from poor planning, execution or governance of distribution strategy, or the emergence of events or conditions which obstruct the achievement of business plan targets, including market changes, technological advancement, loss of key intermediary relationships or competitor activity.	The business environment in which the international insurance industry operates is subject to continuous change and development as new market and competitor forces come into effect, regulatory landscapes evolve, and technological advancements are realised. Any failure by the Group to ensure that distribution strategy is well planned, governed and executed can be expected to undermine competitive advantage in commercially significant jurisdictions, or market segments, or the Group's efforts to build and sustain successful distribution relationships. How we manage the risk: ·      Robust governance, risk management and internal control practices underpin the development and formalisation of distribution strategy. Strategy revisions are designed to add additional scale to the business, on a more diversified basis, through organic growth at acceptable levels of risk and profitability. ·      Key Risk Indicators provide for continuous monitoring of marketplaces, competitor activity and consumer sentiment by the Group Risk Forum and the early identification of emerging risks or threats. Reporting protocols enable the rapid escalation of any adverse trends to the Audit and Risk Committee. ·      Stress and scenario modelling considers the consequences of production falling materially above or below forecast new business levels. This allows the Board to ensure that forecasting and planning activities are sufficiently robust and well targeted. ·      Continuous investment in and development of technology. During the reporting period we have continued to maintain close contact with our distribution partners as new technological solutions were deployed. ·      Investment in new markets and expansion of existing markets, developing new key distributor relationships and new product development for specific markets and globally.
Market Risk:   Arising from major market stresses or fluctuations in market variables, resulting in a fall in equity or other asset values, currency volatilities or a combined scenario manifesting.	Market risk remains an inherent element of the Group's unit linked business and is continuously assessed and monitored via the ERM Framework. This monitoring recognises the international nature of the Group's operations and the challenges which might emerge from a significant adverse currency movement over a sustained period. Key risk indicators also assess the potential for balance sheet and profit reduction impacts to emerge from a drop in equities, and the potential contagion effects for the broader risk portfolio. Such contagion might include deferred impacts to profit through reduced sales activity, concentration risks on fund holdings / underlying assets, and reduced incomes through increased lapse rates. Simultaneously the Board recognises that socioeconomic vulnerabilities and prevailing uncertainties associated with economic volatility might curb consumer appetite for the selection and purchase of financial services products and the period over which business is retained. In addition, the Group operates internationally and earns income in a range of different currencies, with the majority of premiums denominated in USD, whilst the vast majority of its operational cost base is denominated in GBP. A significant adverse currency movement over a sustained period remains a principal risk to the Group. How we manage the risk: ·      The Board recognises that market volatilities and currency movements are unpredictable and driven by a diverse range of factors and these risks are inherent in the provision of investment-linked products. KRIs are established to monitor evolving and emerging indicators of adverse experience to enable the triggering of management actions at the earliest opportunity. ·      The currencies of assets and liabilities are matched within set tolerances and certain expenses are invoiced in US Dollars to match against US Dollar income streams. ·      Business plans are modelled across a broad range of market and economic scenarios and take account of alternative commercial outlooks within overall business strategy. This promotes a greater understanding of market and currency risk, the limits of the Group's resilience and the range of possible mitigating options. ·      Stress testing performed during the year ended 30 June 2024 assessed the impacts of reasonably plausible market risk events and scenarios, including those resulting from macroeconomic challenges driven by geopolitical instabilities, inflationary outlooks, uncertainties in commodity price and currency volatilities. ·      The long-term nature of the Group's products serves to smooth short term currency fluctuations. However, longer term trends are monitored and considered in pricing models.
Credit Risk:   Arising from the failure or default of a counterparty such that the Group does not receive cash flows or assets to which it is entitled.	In dealing with third party financial institutions, including banking, money market and settlement, custody, reinsurers and other counterparties, the Group is exposed to the risk of financial loss and potential disruption of core business functional and operational processes. Financial loss can also arise when the funds in which contract holders are invested become illiquid, resulting in past and future fee income not being received.  The failure of Independent Financial Advisors ("IFAs") can also result in loss where unearned commissions can be due back to the Group. How we manage the risk: ·      The Group seeks to limit exposure to loss or detriment via counterparty failure through robust selection criteria, minimum rating agency limits, pre-defined risk-based limits on concentrations of exposures and continuous review of positions to identify, evaluate, restrict, and monitor various forms of exposure on an individual and aggregate basis. These include robust selection criteria in respect of intermediaries with whom we establish Terms of Business and ongoing monitoring in accordance with key risk indicators and appetite tolerance limits. ·      During the reporting period we have continued to closely monitor geopolitical developments and potential disruptions to international payment systems and capital markets arising from the extensive sanctions in force in the context of the Russia-Ukraine conflict.
Liquidity and Cashflow Risk:   Arising from a failure to maintain adequate levels of liquidity and cashflow to meet financial obligations under both planned and stressed conditions.	If the Group does not have sufficient levels of liquid assets and cashflow to support business activities or settle its obligations as they fall due, the Group may be in default of its obligations and may incur significant sanction, loss, or cost to rectify the position. How we manage the risk: ·      Shareholder and policyholder cash assets are invested in a prudent manner, in accordance with set criteria, designed to mitigate liquidity and cashflow risk, including high quality Money Market Funds, Fixed Deposits and Corporate Bonds. ·      The Treasury Working Group, which reports to the Investment Committee, oversees the day-to-day investment of balances. The Investment Committee and Audit and Risk Committee are responsible for setting the criteria used.
Legal and Regulatory Risk:   Arising from changes in the regulatory landscape, which adversely impact the Group's business model, or from a failure by the Group, or one of its subsidiary entities, to meet its legal, regulatory or contractual obligations, resulting in the risk of loss or the imposition of penalties, damages or fines	The scale and pace of change in regulatory and supervisory environments and expectations continue to require efficient and effective ways to evidence and demonstrate how legal and regulatory obligations are met, whilst compliance analytics and high-quality data driven insights are becoming increasingly important. The direction of regulatory travel demands continued investment in the capacity, competence, and capability of resourcing across all business areas, having regard to the extent of risk interdependencies and the embedding of personal accountability regimes. The impacts associated with crystallisation of a significant legal or compliance failing, including sanctions or judgments against Hansard entities, financial penalties, public disclosures, reputational damage, restrictions on activities and other forms of intervention, have been escalated by sea-changes in political landscapes and shifting supervisory attitudes to regulatory effectiveness. The interpretation or application of regulation over time may impact market accessibility, broker relationships and / or competitive viability. If the Group fails to monitor the legal and regulatory environment or adequately integrate the management of associated obligations within strategic, business model or business planning processes there may be material risk to the achievement of strategic objectives both in the short and longer term. How we manage the risk: ·      Robust strategic planning processes informed by analytical review of the external environment and consideration of associated risk in the short and longer term. ·      Continuous monitoring and review of developments in international law and regulation and proactive management of how such developments might shape jurisdictional specific reaction. ·      Active and transparent engagement with regulatory authorities and industry bodies on a multi-jurisdictional basis, including active engagement in and responding to regulatory consultation exercises. ·      Maintenance of robust governance, risk management and internal control arrangements to ensure that legal and regulatory obligations are substantively met on a continuing basis. ·      Active engagement with professional advisors to address specific risks and issues that arise.
Financial Crime Risk:     Arising from any failure to evidence and demonstrate the establishment, implementation and maintenance of effective governance, risk management and internal control arrangements for the prevention and detection of illicit economic activity, including money laundering, terrorist financing, proliferation financing, sanctions evasion, bribery, corruption, and fraud, or to ensure the arrangements are operating effectively and as intended on a continuing basis.	The Board recognises that financial crime takes on many forms, allowing criminal actors and organised crime gangs alike to infiltrate economic and financial systems, with additional challenges presented by geoeconomic uncertainties and geopolitical instabilities. The breadth of financial crime affirms the ubiquity of this risk with inherent links to violent crime and the ability to significantly undermine jurisdictional social and economic structures. The rapid innovation of digital technologies is increasingly enabling financial crimes to be carried out remotely, presenting additional complexities to prevention and detection and highlighting its transnational impacts. Within this context regulators are taking, and expecting from firms, an increasingly holistic approach to mitigating financial crime risks with robust and effective systems and controls established to detect and prevent all forms of illicit economic activity. It is imperative that these arrangements are fit for purpose in terms of both design and implementation and are capable of adapting to emerging and evolving financial crime risks.  How we manage the risk: ·      Rigorous governance, risk management and internal control arrangements to prevent and detect illicit economic activity with the capability to identify and respond to any emerging risks or threats. ·      Rapid, scalable, and effective sanctions screening mechanisms to ensure robust, effective, and compliant understanding of the landscape on a continuing basis. ·      Implementation of scrutiny and oversight controls across all three lines of defence to ensure governance layers proactively target both the design and effective operation of the risk management and internal control frameworks. ·      Highly experienced technical resource dedicated to respective compliance deliveries.
Culture and Conduct Risk: Arising from any failure of governance, risk management and internal control arrangements, via corporate or individual actions.	Organisational culture remains under scrutiny by the Board as a fundamental driver of corporate success, prudential soundness, and compliant conduct. Any failure to adequately assess, monitor, manage and mitigate risks to the delivery of fair customer outcomes, or to market integrity, can be expected to result in material detriment to the achievement of strategic objectives and incur regulatory censure, financial penalty, contract holder litigation and / or material reputational damage. Clear and heightened regulatory expectations of individual and corporate accountability continue to connect governance, risk, and compliance obligations directly to cultural imperatives and the responsibilities assigned to individual Senior Managers.  How we manage the risk: ·      Programme level initiatives to address and support cultural change and development have remained in active progress during the reporting period with the results of investment in culture diagnostics informing business decision-making and tactical solutions to drive cultural change, where needed. ·      Iterative enhancements to the Group's ERM Framework continue to drive and deliver the integration of conduct risk management at both a cultural and practical level. ·      Business activities designed to manage the volume and velocity of regulatory change include a core focus on ensuring compliance with conduct risk obligations, managing conflicts of interest, preventing market abuse, and building robust governance arrangements around new product development and product suitability processes. ·      Forward looking risk indicators and executive leadership in respect of understanding and addressing the drivers of conduct risk focus on all core areas with assessment at strategic, functional, and operational levels. ·      The Group maintains regular dialogue with its regulatory authorities and with its external advisors in relation to developments in the regulatory environments in which we operate.
Operational Resilience Risk: Arising from any exposure to risk events with the capacity to cause operational failures or wide scale disruptions in financial markets, whether directly or via a third party.	The ability to maintain critical services or operations during periods of disruption is receiving increasing levels of regulatory scrutiny with concurrent growth in the formalisation of regulatory expectation. 'Resilience Principles' build on the real-world tests presented by the Covid-19 pandemic and the near-term threat of disruption of key global infrastructure in the context of the ongoing Russia-Ukraine conflict. Resilience risk and associated regulatory expectations directly extend to threats originating via third parties, including external providers, supply chains networks and outsourcing architectures intended to leverage economies of scale, gain access to specialist expertise, or deliver advanced technologies supporting innovative services. Global supervisory attention is focussed on regulating for resilience by ensuring that strategies such as grounding resilience analyses in key delivery requirements, appreciating the potential for systemic vulnerabilities and embracing a diversity of approaches combine to strengthen the ability of financial services firms to withstand operational risk related events. How we manage the risk: ·      ERM conventions guide the identification and assessment of events or scenarios presenting risk to operational resilience - typically pandemics, cyber incidents, technology failures or natural disasters - as well as supply chain disruption impacts to critical processes, business continuity and good governance. ·      Impact tolerances, together with mapping and testing allow the identification of services which could cause harm, if disrupted and identify any areas of vulnerability. ·      Stress testing, continuity planning, and recovery and resolution strategies provide for continuous review of the adequacy and effectiveness with which the business can respond to and recover from disruptions.
Cyber and Information Security Risk: Arising from the increased digitalisation of business activities and growing dependence upon technology in the context of exposure to elevated and more pernicious forms of digital and cyber risk.	The nature and complexity of cyber threats and cyber risk present the single most significant risk to financial services firms. The mounting sophistication and persistence of cybercrime and the growing adoption of highly advanced, nation-state type tools by cyber criminals, underscore the challenges in understanding and anticipating the nature of cyber threats and cyber risks. Over the longer-term, technological advances, including advances in generative AI, can be expected to enable a wide range of state and non-state agents to access information which will allow new tools of disruption to be conceptualised and developed. Organised crime continues to exploit weaknesses in cyber defences whilst new technological capabilities and use of third-party platforms add to the complexity of understanding the complete reach of cyber and information security exposures. Geopolitical tensions and the rapid escalation of conflict combined with technological advances in generative AI and the leveraging of misinformation and disinformation will continue to provoke unprecedented cyber risks for Western governments and corporations. Building resilience to continuously evolving cyber risk remains a priority for all stakeholders focussed on three core areas - cyber risk identification, cyber risk governance and cyber risk resilience In the event of any material failure in core business systems, or business processes, or if the Group fails to take adequate and appropriate measures to protect its systems and data from the inherent risk of attack, disruption and / or unauthorised access by internal or external parties, this could result in confidential data being exposed and / or systems interruption. A significant cybercrime event could result in reputational damage, regulatory censure, and financial loss. How we manage the risk: ·      Continuous focus on the maintenance of a robust, secure, and resilient IT environment that protects customer and corporate data as a core element of our operational resilience mapping. ·      Control techniques deployed to evaluate the security of systems and proactively address emerging threats both internally within the organisation and externally, through regular engagement with internet and technology providers and through industry forums. ·      Maintenance of detailed and robust Business Continuity and Disaster Recovery Plans, including full data replication at an independent recovery centre, which can be invoked when required. ·      Frequent and robust testing of business continuity and disaster recovery arrangements. ·      Periodic independent third-party systems penetration testing and review of controls. ·      Horizon scanning to identify and assess supervisory initiatives advocating and promoting good practice in cyber resilience and associated industry developments.
Corporate Sustainability Risk: Arising from the risk of failing to integrate environmental, social and governance considerations into the Group's strategic and business planning activities, or to proactively review, understand and act on the challenges and opportunities presented.	The importance of integration of sustainability issues into the Group's core strategies and business plans is recognised by the Board, requiring value-driven, adaptive practices. These practices must continuously enhance the Group's corporate governance arrangements, as sustainability related issues evolve, and demonstrate to clients, investors, regulators, and wider stakeholder groups that sustainability and resilience risks and opportunities are understood. How we manage the risk: ·      Actively building sustainability considerations into strategy development and business planning processes through structured analysis, formal assessment mechanisms and cross-functional collaboration. ·      Factoring emerging sustainability risk issues into key decision-making and understanding the impacts for the tools and methodologies currently used to manage risk, including governance structures, risk ownership, risk and control self-assessment principles, regulatory developments, third party service provisions and effective reporting. ·      Development of adaptation plans, which embrace forward-looking analysis and support strategic decision-making, with consideration of relevant business planning, operations, underwriting and investment activities to contribute to a sustainable transition to net-zero targets and provide effective mitigation of climate change related risks. ·      Detailed analysis of climate and other ESG risks, which could cause macroeconomic stresses in future, including impacts to markets, interest rates, inflation and exchange rates. ·      Developing and updating relevant components in relation to the sustainability risk domain, including policies, procedures, risk indicators, management data and stress testing. ·      'In flight' initiatives addressing cultural alignment and structural resilience encompass core ESG considerations.
Employee Engagement and Talent Risk: Arising from any failure to drive and support the right corporate culture and attract, develop, engage and retain key personnel.	'Talent risk' continues to grow in prominence on the operational risk agenda at industry level with persistent challenges linked to attracting and retaining employees across all financial services sectors. The Group's strategy has core dependencies on attracting and retaining experienced and high-performing management and employees and building a strong and sustainable culture, driven by our purpose, our leadership, our performance management regime and our governance principles and objectives. The knowledge, skills, attitudes and behaviours of our employees, and the success with which these attributes shape and define our culture, are central to our success. How we manage the risk: ·      Significant investment in initiatives to address and support cultural change and development, shape strategy and inform tactical solutions. ·      Continuation of our 'Culture Programme' with clearly defined areas of focus under three core pillars, those being: -       High Performance Culture -       Learning Culture -       Environment & Wellbeing   These remain in active progress led by the Executive Committee with oversight by the Board.

 

By order of the Board
Thomas Morfett	Ollie Byrne
Chief Executive Officer	Chief Financial Officer
5 March 2025

                                 

Condensed Consolidated Statement of Comprehensive Income
								Year
					Six months ended			ended
					31 December		31 December		30 June
						2024	2023		2024
					Notes	£m	£m		£m
Fees and commissions					6	23.7	23.9		48.8
Investment and other operating income						29.8	44.3		119.5
Other operating income						-	0.6		0.8
						53.5	68.8		169.1
Change in provisions for investment contract liabilities						(27.3)	(41.7)		(114.4)
Origination costs						(7.3)	(8.3)		(16.1)
Administrative and other expenses					7	(18.4)	(14.7)		(33.3)
						(53.0)	(64.7)		(163.8)
Profit on ordinary activities before taxation						0.5	4.1		5.3
Taxation on profit on ordinary activities					8	(0.1)	(0.1)		(0.1)
Profit and total comprehensive income for
the period after taxation						0.4	4.0		5.2

 

 

 

Earnings Per Share
						Year
				Six months ended		ended
		31 December			31 December		30 June
				2024	2023		2024
			Note	(p)	(p)		(p)
Basic			9	0.3	2.9		3.8
Diluted			9	0.3	2.9		3.8

 

 

The notes on pages 30 to 49 form an integral part of these condensed consolidated financial statements.

 

Condensed Consolidated Statement of Changes in Equity
		Share	Other	Retained
		Capital	reserves	earnings	Total
	Note	£m	£m	£m	£m
Shareholders' equity at 1 July 2023		68.8	(48.5)	1.5	21.8
Profit and total comprehensive income
for the period after taxation		-	-	4.0	4.0
Transactions with owners
Dividends	10	-	-	(3.6)	(3.6)
Reserve for own shares within EBT		-	(0.2)	-	(0.2)
Shareholders' equity at 31 December 2023		68.8	(48.7)	1.9	22.0

 

 

 

		Share	Other	Retained
		Capital	reserves	earnings	Total
	Note	£m	£m	£m	£m
Shareholders' equity at 1 July 2024		68.8	(48.6)	0.6	20.8
Profit and total comprehensive income
for the period after taxation		-	-	0.4	0.4
Transactions with owners
Dividends	10	-	-	(3.7)	(3.7)
Reserve for own shares within EBT		-	0.1	-	0.1
Shareholders' equity at 31 December 2024		68.8	(48.5)	(2.7)	17.6

 

 

 

 

The notes on pages 30 to 49 form an integral part of these condensed consolidated financial statements.

Condensed Consolidated Balance Sheet
			31 December	31 December	30 June
			2024	2023	2024
		Notes	£m	£m	£m
Assets
Intangible assets		11	22.4	22.3	23.2
Property, plant and equipment		11	2.8	2.6	2.6
Deferred origination costs		12	110.0	114.5	112.1
Financial investments
Measured at fair value:
Equity securities			72.4	58.5	78.9
Collective investment schemes			941.4	923.6	937.5
Fixed income securities			84.2	66.9	70.6
			1,098.0	1,049.0	1,087.0
Measured at amortised cost:
Deposits and money market funds			81.2	84.5	88.2
Other receivables			10.1	5.0	6.3
Cash and cash equivalents			46.3	45.8	47.9
Total assets			1,370.8	1,323.7	1,367.3
Liabilities
Financial liabilities under investment contracts		13	1,153.0	1,106.0	1,150.9
Deferred income		14	139.0	142.2	140.2
Amounts due to investment contract holders			46.1	39.2	39.3
Other payables		15	14.5	14.2	15.6
Provisions		16	0.6	0.1	0.5
Total liabilities			1,353.2	1,301.7	1,346.5
Net assets			17.6	22.0	20.8
Shareholders' equity
Called up share capital		17	68.8	68.8	68.8
Other reserves		18	(48.5)	(48.7)	(48.6)
Retained earnings			(2.7)	1.9	0.6
Total shareholders' equity			17.6	22.0	20.8

 

The notes on pages 30 to 49 form an integral part of these condensed consolidated financial statements.

 

The condensed consolidated financial statements on pages 26 to 29 were approved by the Board on 5 March 2025 and signed on its behalf by:

 

 

Thomas Morfett                                                            Ollie Byrne

Chief Executive Officer                                     Chief Financial Officer

 

Condensed Consolidated Cash Flow Statement
				Six months ended				Year ended
				31 December		31 December	30 June
				2024		2023	2024
				£m		£m	£m
Cash flow from operating activities
Profit before tax for the period				0.5		4.1	5.3
Adjustments for:
Depreciation				1.0		0.2	1.0
Dividends receivable				(2.8)		(2.6)	(5.4)
Dividends received				2.8		2.6	5.4
Interest receivable				(2.7)		(2.2)	(4.7)
Interest received				2.4		2.2	4.2
Movement in Share Based Payment reserve				(0.1)		-	-
Foreign exchange losses / (gains)				0.1		(0.1)	-
Changes in operating assets and liabilities
(Increase) in debtors				(3.4)		(0.1)	(0.9)
Decrease in deferred origination costs				2.1		3.4	5.8
(Decrease) in deferred income				(1.2)		(2.6)	(4.5)
Increase in creditors				5.8		3.1	4.9
Decrease / (increase) in financial investments				1.9		(12.5)	(54.2)
Increase in financial liabilities				0.2		4.4	49.4
Cash flow from operations				6.6		(0.1)	6.3
Corporation tax paid				-		-	(0.1)
Net cash from operations after taxation				6.6		(0.1)	6.2
Cash flows from investing activities
Investment in intangible assets and property, plant & equipment				-		(2.4)	(3.7)
Proceeds from sale of investments				-		-	(0.2)
Purchase of investments				(4.0)		-	-
Purchase of own shares				(0.2)		(0.3)	(0.2)
Cash flows used in investing activities				(4.2)		(2.7)	(4.1)
Cash flows from financing activities
Dividends paid				(3.7)		(3.6)	(6.1)
Principal elements of lease liabilities				(0.1)		(0.1)	(0.2)
Cash flows used in financing activities				(3.8)		(3.7)	(6.3)
Net (decrease) in cash and cash
Equivalents				(1.4)		(6.5)	(4.2)
Cash and cash equivalents at beginning of period				47.9		52.2	52.2
Effect of exchange rate changes				(0.2)		0.1	(0.1)
Cash and cash equivalents at end of period				46.3		45.8	47.9

 

 

 

The notes on pages 30 to 49 form an integral part of these condensed consolidated financial statements.

Notes to the Condensed Consolidated Financial Statements

 

1          General information

Hansard Global plc ("the Company") is a limited liability company, incorporated in the Isle of Man under the Isle of Man Companies Act 1931 - 2004, whose shares are publicly traded. The principal activity of the Company is to act as the holding company of the Hansard Group ("the Group") of companies. The activities of the principal operating wholly owned subsidiaries include the transaction of life assurance business and related activities. Hansard Europe was closed to new business with effect from 30 June 2013. The principal subsidiaries of the company are as follows:

Company name                                                Incorporated                Activity

Hansard International Limited                             Isle of Man                    Life Assurance

Hansard Worldwide Limited                                The Bahamas                Life Assurance

Hansard Europe Designated Activity Company   Ireland                          Life Assurance

Hansard Administration Services Limited            Isle of Man                    Administration Services

Hansard Development Services Limited              Isle of Man                    Marketing and

Development Services

The registered office of the Company is 55 Athol Street, Douglas, Isle of Man, IM99 1QL.

The Company has its primary listing on the London Stock Exchange.

These condensed consolidated interim financial statements are unaudited and do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Standards and the Isle of Man Companies Acts 1931 - 2004. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. The condensed consolidated interim financial statements were approved by the Board of Directors on 5 March 2025.

 

The Board of Directors approved the Group's statutory financial statements for the year ended 30 June 2024 on 25 September 2024. The report of the independent auditor on those financial statements was unmodified and did not contain an emphasis of matter paragraph.

2          Basis of presentation

The consolidated financial statements have been prepared in accordance with with the Disclosure and Transparency Rules of the Financial Conduct Authority ("DTR") and with IAS 34 "Interim Financial Reporting" as adopted by the United Kingdom ("UK"). The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial investments and financial liabilities at fair value through profit or loss. The Group has applied all International Financial Reporting Standards adopted by the United Kingdom and effective at 31 December 2024.

The Group underwrites an immaterial amount of insurance business. Management has undertaken an assessment of the impact of accounting for this business as investment business rather than insurance business and concluded that this would not have a material impact on the financial statements. This assessment has been refreshed to consider the impact of IFRS 17 in conjunction with new products that have been brought to market, and management have not changed their conclusion that accounting for the business as investment business would not have a material impact on the financial statements. Management will keep this assessment under review and should the outcome change in future the Group accounting treatment will be reassessed. As a result, IFRS17 has not been applied to these financial statements.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting year. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2.

Except where otherwise stated, the financial statements are presented in pounds sterling, the functional currency of the Company, rounded to the nearest one hundred thousand pounds.

The following new standards, amendments and interpretations are in issue but not yet effective and have not been early adopted by the Group and are not expected to have a significant impact;

·       Amendments to the classification and measurement of financial instruments (amendments to IFRS 7 and IFRS 9) - effective from 1 January 2026

·       Presentation and disclosure in financial statements (IFRS18) - effective from 1 January 2027

·       Subsidiaries without public accountability (IFRS 19) - effective from 1 January 2027

 

IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027 and introduces a number of new reporting requirements. The Group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the Group's statement of comprehensive income, the statement of cash flows and the additional disclosures required for management defined performance measures. The Group is also assessing the impact on how information is grouped in the financial statements, including for items currently labelled as 'other".

 

There are no other standards, amendments or interpretations to existing standards that are not yet effective, that would have a material impact on the Group's reported results.

Going Concern

As shown within the Business and Financial Review, the Group's capital position is sufficient and in excess of regulatory requirements. The long-term nature of the Group's business results in considerable recurring cash inflows arising from existing business. The Directors believe that the Group is well placed to manage its business risks successfully.

The Directors are satisfied that the Company and the Group have adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the condensed consolidated financial statements on that basis. The Directors are cognisant of the reduction in profit before tax recorded in the period and are satisfied that this represents a short-term decline as set out in the Future Prospects section of the 2024 Group report.

In making this statement, the Directors have reviewed financial forecasts that show the Group continuing to generate profit over the next 12 months and that the Group has sufficient cash reserves to enable it to meet its obligations as they fall due. Through the ORSA process, the Directors have reviewed a number of scenarios prepared by the Actuarial function that demonstrate resilience to a number of key stresses, and whilst reverse stress scenarios show multiple adverse events coming together result in solvency coverage falling below regulatory minimums, these are considered highly remote. Recovery actions are available to the Group in the event that the strategic solvency target is breached.  

 

Although the Directors expect the acquisition of new business will continue to be challenging, the Group has seen a continued increase in PVNBP as set out in the Business and Financial Review.  The impact of this however is not immediate to the Group's profit and cash flows and therefore allows for longer term adjustments to operations and the cost base.  Long periods of lower new business or indeed lower AuA would be addressed by reducing the cost base and where necessary, the dividend paid.

 

The following factors are considered as supportive to the Group's resilience to business and external environment challenges:

 

·      The Group's business model focuses on long term savings products, a majority of which are regular premium paying products which continue to receive cash inflows regardless of the amount of new business sold. 

 

·      The Group earns approximately a third of its revenues from asset-based income which is not immediately dependent on sourcing new business. Initial fees in respect of new business are broadly offset by initial commissions, limiting the impact of any reduction in new business.

 

·      New business channels are geographically dispersed and therefore less exposed to specific regional challenges. 

 

·      The largest expense associated with new business is commission expenditure which reduces directly in line with reduced sales. 

 

·      The Group has, and continues to the date of this report to have, a strong capital position with significant levels of liquidity and cash (as outlined in the Business and Financial Review).

 

·    The business continues to demonstrate operational resilience in being able to operate remotely from its offices where required without any material impact to processing and servicing levels.

 

·      The Group places the majority its shareholder assets into conservative, highly-liquid, highly rated bank deposits and money market funds.  These are typically not subject to price fluctuation and protect the Group's assets against potential market volatility. 

 

·      The Group has no borrowing.

 

3          Principal accounting policies

As required by the Disclosure and Transparency Rules of the Financial Conduct Authority and IAS 34, this condensed set of consolidated financial statements has been prepared applying the accounting policies and standards that were applied, and the critical accounting estimates and judgements in applying them, in the preparation of the Group's published consolidated financial statements for the year ended 30 June 2024. The published consolidated financial statements for the year ended 30 June 2024 can be accessed on the Company's website: www.hansard.com.

4          Financial risk management

Risk management objectives and risk policies

The Group's objective in the management of financial risk is to minimise, where practicable, its exposure to such risk, except when necessary to support other objectives. The Group seeks to manage risk through the operation of unit-linked business whereby the contract holder bears the financial risk. In addition, shareholder assets are invested in highly rated investments.

Overall responsibility for the management of the Group's exposure to risk is vested in the Board. To support it in this role, an Enterprise Risk Management ("ERM") framework is in place comprising risk identification, risk assessment, control and reporting processes. Information concerning the operation of the ERM framework to manage financial and other risks is contained within the Report and Accounts for the year ended 30 June 2024, and particularly in note 3 thereto, "Financial Risk Management".

The main significant financial risks to which the Group is exposed are set out below. For each category of risk, the Group determines its risk appetite and sets its investment, treasury, and associated policies accordingly.

4.1 Market risk

This is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, analysed between price, interest rate and currency risk. The Group adopts a risk averse approach to market risk, with a stated policy of not actively pursuing or accepting market risk except where necessary to support other objectives. However, the Group accepts the risk that the fall in equity or other asset values, whether as a result of price falls or strengthening of sterling against the currencies in which contract holder assets are denominated, will reduce the level of annual management charge income derived from such contract holder assets and the risk of lower future profits.

Sensitivity analysis to market risk

The Group's business is unit-linked and the direct associated market risk is therefore borne by contract holders (although there is a secondary impact as shareholder income is dependent upon the fair value of contract holder assets). Other financial assets and liabilities held outside of contract holder unitised funds primarily consist of units in money market funds, cash and cash equivalents, and other assets and liabilities. Cash held in unitised money market funds and at bank is valued at par and is unaffected by movements in interest rates. Other assets and liabilities are similarly unaffected by market movements.

As a result of these combined factors, the Group's financial assets and liabilities held outside unitised funds are not materially subject to market risk, and movements at the reporting date in interest rates and equity values have an immaterial impact on the Group's profit after tax and equity. Future revenues from annual management charges may be affected by movements in interest rates, foreign currencies and equity values. The Group does not control the asset selection strategy as assets are chosen by the contract holders.

(a) Price risk

Unit linked funds are exposed to securities price risk as the investments held are subject to prices in the future which are uncertain. The fair value of financial assets (designated at fair value through profit or loss) exposed to price risk as at 31 December 2024 was £1,096.2m (31 December 2023: £1,049.0m). In the event that investment income is affected by price risk then there will be an equal and opposite impact on the value of the changes in provisions for investment contract liabilities in the same accounting period. The impact on the profit or loss before taxation in a given financial year is negligible.

An overall change in the market value of the unit-linked funds would affect the annual management charges accruing to the Group since these charges, which are typically 1% per annum, are based on the market value of contract holder assets under administration. The approximate annual impact on the Group's profits and equity of a 10% change in fund values, either as a result of price, interest rate or currency fluctuations, is £1.5m (H1 2024: £1.5m).

(b) Interest rate risk

Interest rate risk is the risk that the Group is exposed to lower returns or loss as a direct or indirect result of fluctuations in the value of, or income from, specific assets arising from changes in underlying interest rates.

The Group is primarily exposed to interest rate risk on the balances that it holds with credit institutions and in money market funds.

Taking into account the proportion of Group funds held on longer-term, fixed-rate deposits, a change of 1% p.a. in interest rates will result in an increase or decrease of approximately £0.6m (H1 2024: £0.6m) in the Group's annual investment income and equity.

A summary of the Group's liquid assets at the balance sheet date is set out in note 4.2.

(c) Currency risk

Currency risk is the risk that the Group is exposed to higher or lower returns as a direct or indirect result of fluctuations in the value of, or income from, specific assets and liabilities arising from changes in underlying exchange rates.

(c) (i) Group foreign currency exposures

The Group is exposed to currency risk on the foreign currency denominated bank balances, contract fees receivable and other liquid assets that it holds to the extent that they do not match liabilities in those currencies. The impact of currency risk is minimised by frequent repatriation of excess foreign currency funds to sterling. The Group does not hedge foreign currency cash flows as a matter of course but may take advantage of historically strong or weak sterling exchange rates to do so where appropriate.

At the balance sheet date, the Group had exposures in the following currencies:

	31 December
		2024	2024	2024	2023	2023	2023
		US$m	€m	¥m	US$m	€m	¥m
Gross assets		28.4	14.7	438.4	20.8	13.2	286.9
Matching currency liabilities		(25.2)	(15.4)	(571.9)	(21.1)	(11.9)	(386.2)
Uncovered currency
Exposures		3.2	(0.7)	(133.5)	(0.3)	1.3	(99.3)
Sterling equivalent of
exposures (£m)		2.5	(0.6)	(0.7)	(0.2)	1.2	(0.6)

The approximate effect of a 5% change in the value of US dollars to sterling is £0.1m (H1 2024: less than £0.1m); in the value of the euro to sterling is less than £0.1m (H1 2024: £0.1m); and in the value of the yen to sterling is less than £0.1m (H1 2024: less than £0.1m).

 (c) (ii) Financial investments by currency

Certain fees and commissions are earned in currencies other than sterling, based on the value of financial investments held in those currencies from time to time. The sensitivity of the Group to the currency risk inherent in investments held to cover financial liabilities under investment contracts is incorporated within the analysis set out in (a) above.

At the balance sheet date, the analysis of financial investments by currency denomination is as follows; US dollars: 74% (31 December 2023: 71%); sterling: 19% (31 December 2023: 19%); euro: 6% (31 December 2023: 8%); other: 1% (31 December 2023: 2%).

4.2 Credit risk

Credit risk is the risk that the Group is exposed to lower returns or loss if another party fails to perform its financial obligations to the Group. The Group has adopted a risk averse approach to such risk and has a stated policy of not actively pursuing or accepting credit risk except when necessary to support other objectives.

 

The clearing and custody operations for the Group's security transactions are mainly concentrated with one broker, namely Capital International Limited, a member of the London Stock Exchange. At the balance sheet date, substantially all contract holder cash and cash equivalents, balances due from broker and financial investments are placed in custody with Capital International Limited. These operations are detailed in a formal contract that incorporates notice periods and a full exit management plan. Delivery of services under the contract is monitored by a dedicated relationship manager against a documented Service Level Agreement and Key Performance Indicators.

 

The Group has an exposure to credit risk in relation to its deposits with credit institutions and its investments in unitised money market funds. To manage these risks; deposits are made, in accordance with established policy, with credit institutions having a short-term rating of at least F1 or P1 from Fitch IBCA and Moody's respectively and a long-term rating of at least A or A3 respectively. Investments in unitised money market funds are made only where such fund is AAA rated. Additionally maximum counterparty exposure limits are set both at an individual subsidiary company level and on a Group-wide basis.

 

These assets are considered to have a high degree of credit worthiness and no assets of a lower credit worthiness are held. The following table sets out information about the credit quality of the Group's deposits with credit institutions and its investments in unitised money market funds.

 

 

	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Deposits with credit institutions and investments in unitised money market funds
(Based on Standards & Poor's ratings)
AAA	28.6	24.2	29.3
AA- to AA+	1.6	3.7	1.6
A- to A+ BBB to BBB-	14.0 -	17.9 -	16.1 -
Total deposits	44.2	45.8	47.0
AA- to AA+	0.3	0.3	-
A- To A+	16.8	20.4	18.0
BBB to BBB-	-	-	-
Cash at bank	17.1	20.7	18.0
Group cash and deposits	61.3	66.5	65.0

 

 

 

 

 

Credit risk for financial assets held at amortised cost is recognised using an expected credit loss model. The model splits financial assets into those which are performing, underperforming and non-performing based on changes in credit quality since initial recognition. At initial recognition financial assets are considered to be performing. They become underperforming where there has been a significant increase in credit risk since initial recognition, and non-performing when there is objective evidence of impairment. Twelve months of expected credit losses are recognised in the statement of comprehensive income and netted against the financial asset in the statement of financial position for all performing financial assets, with lifetime expected credit losses recognised for underperforming and non-performing financial assets.

 

Trade receivables are designated as having no significant financing component. The Group applies the IFRS 9 simplified approach to measuring expected credit losses for trade receivables by using a lifetime expected loss allowance.

 

Expected credit losses are based on the historic levels of loss experienced for the relevant financial assets, with due consideration given to forward looking information. The group expected credit loss charged in the period is less than £0.1m (H1 2024: less than £0.1m).

 

There have been no changes in the assets in the period ended 31 December 2024 attributable to changes in credit risk (31 December 2023: nil).

 

At the balance sheet date, an analysis of the Group's shareholder cash balances was as follows:

 

	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Longer term deposits with credit institutions	15.0	20.7	17.1
Cash and cash equivalents under IFRS	46.3	45.8	47.9
	61.3	66.5	65.0

 

4.3 Liquidity risk

Liquidity risk is the risk that the Group, though solvent, does not have sufficient financial resources to enable it to meet its obligations as they fall due, or can only secure them at excessive cost.

The Group's objective is to ensure that it has sufficient liquidity over short (up to one year) and medium-term time horizons to meet the needs of the business. This includes liquidity to cover, amongst other things, new business costs, planned strategic activities, servicing of equity capital as well as working capital to fund day-to-day cash flow requirements.

Liquidity risk is principally managed in the following ways:

·      Assets of a suitable marketability are held to meet contract holder liabilities as they fall due.

·      Forecasts are prepared regularly to predict required liquidity levels over both the short and medium term.

The Group's exposure to liquidity risk is considered to be low since it maintains a high level of liquid assets to meet its liabilities.

4.4 Insurance risk

Insurance risk is the risk of loss arising from actual experience being different than that assumed when an insurance product was designed and priced. For the Group, the key insurance risks are lapse risk, expense risk and mortality risk. However, the size of insurance risk is not deemed to be materially significant. From an accounting perspective all contracts have been classified as investment contracts.

4.4.1 Lapse risk

A key risk for investment contracts is policyholder behaviour risk - in particular the risk that contracts are surrendered, or significant cash withdrawals are made before sufficient fees have been collected to cover up-front commissions paid by the Group. The risk is mitigated by charging penalties on the early surrender of contracts.

4.5 Fair value of financial assets and liabilities

The Group closely monitors the valuation of assets in markets that have become less liquid. Determining whether a market is active requires the exercise of judgement and is determined based upon the facts and circumstances of the market for the instrument being measured. Where the Directors determine that there is no active market for a particular financial instrument, for example where a particular collective investment scheme is suspended from trading, fair value is assessed using valuation techniques based on available, relevant information and an appraisal of all associated risks. When a collective investment scheme recommences regular trading, the value would be transferred back to Level 1. This process requires the exercise of significant judgement on the part of the Directors.

 

Due to the linked nature of the contracts administered by the Group's undertakings, any change in the value of financial assets held to cover financial liabilities under those contracts will result in an equal and opposite change in the value of contract liabilities. The separate effect on financial assets and financial liabilities is included in investment income and investment contract benefits, respectively, in the condensed consolidated statement of comprehensive income.

 

IFRS 13 requires the Group to classify fair value measurements into a fair value hierarchy by reference to the observability and significance of the inputs used in measuring that fair value. The hierarchy is as follows:

·      Level 1: fair value is determined using quoted prices (unadjusted) in active markets for identical assets.

·      Level 2: fair value is determined using inputs other than quoted prices included within Level 1 that are observable for the asset either directly (i.e., as prices) or indirectly (i.e., derived from prices).

·      Level 3: fair value is determined using inputs for the asset that are not based on observable market data (unobservable inputs).

The following tables analyse the Group's financial assets and liabilities at fair value through profit or loss, at 31 December 2024:

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	£m	£m	£m	£m
Equity securities	71.6	-	0.8	72.4
Collective investment schemes	924.1	13.0	4.3	941.4
Fixed income securities, bonds and structured notes	5.5	11.4	67.3	84.2
Total financial assets at fair value through profit and loss	1,001.2	24.4	72.4	1,098.0

 

All other financial assets and liabilities are designated as held at amortised cost which approximates to fair value.

	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Deposits and money market funds	81.2			81.2
Total financial assets at fair value through profit or loss	1,082.4	24.4	72.4	1,179.2
Financial liabilities at fair value
through profit or loss	-	1,153.0	-	1,153.0

 

Financial liabilities at fair value through profit or loss are classified as level 2 on the basis that they relate to policies investing in financial assets at fair value through profit or loss.

 

The following tables analyse the Group's financial assets and liabilities at fair value through profit or loss, at 30 June 2024:

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	£m	£m	£m	£m
Equity securities	75.7	3.2	-	78.9
Collective investment schemes	917.8	16.7	3.0	937.5
Fixed income securities, bonds and structured notes	0.8	11.0	58.8	70.6
Total financial assets at fair value through profit and loss	994.3	30.9	61.8	1,087.0

 

All other financial assets and liabilities are designated as held at amortised cost which approximates to fair value.

 

	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Deposit and money market funds	88.2	-	-	88.2
Total financial assets at fair value through profit or loss	1,082.5	30.9	61.8	1,175.2
Financial liabilities at fair value through profit or loss	-	1,150.9	-	1,150.9

 

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments in the statement of financial position, as well as the significant unobservable inputs used.

 

Type	Valuation technique	Significant unobservable input	Sensitivity to changes in unobservable inputs
Suspended assets £4.3m (30 June 2024: £3.0m)	Latest available information including or such as net asset values (NAV) or other communication received	Discount factor (5%) and NAV.	If the NAV was higher/lower, the fair value would be higher/lower. If the discount factor was higher/lower, the fair value would be lower/higher.
Bonds and structured notes Level 2: £11.4m (30 June 2024: £11.0m) Level 3: £67.0m (30 June 2024: £58.8m)	Market comparison / discounted cash flow: The fair value is estimated considering: (i) current or recent quoted prices for identical securities in markets that are not active; and (ii) a net present value calculated using discount rates which are determined with reference to observable market transactions in instruments with substantially the same terms and characteristics including credit quality, the remaining term to repayments of the principal and the currency in which the payments are made.	Level 2: Not applicable Level 3: Underlying volatility.	Level 2: Not applicable Level 3: Significant increases / decreases in this input in isolation would result in higher or lower fair value.

 

Level 3 sensitivity to changes in unobservable measurements

For financial assets assessed as Level 3, based on its review of the prices used, the Company believes that any reasonable change to the unobservable inputs used to measure fair value would not result in a significantly higher or lower fair value measurement at year end, and therefore would not have a material impact on its reported results.

Significant unobservable inputs are developed as follows:

Underlying Volatility

In the absence of implied volatility until the maturity and moneyness of the instrument, the best estimate is the use of extrapolated implied volatility or historical volatility. The inputs used are derived against other independent valuation sources and the reasonableness of the assumptions is evaluated as part of the process.

 

A reconciliation between opening and closing balances of Level 3 assets is presented in the table below:

			31 December		30 June
			2024 £m	2023 £m	2024 £m
	Opening balance		61.8	57.4	57.4
	Unrealised gains / (losses)		3.5	(5.6)	(2.3)
	Transfers into level 3		1.5	0.1	1.1
	Transfers out of level 3		(0.9)	-	-
	Purchases		6.5	9.3	5.6
	Closing balance		72.4	61.2	61.8

 

 

 

During the period under review, £1.5m of assets were transferred into Level 3, reflecting that the value of these assets was no longer based on observable market data or inputs. Separately £0.9m of assets were transferred out of Level 3 where they were again able to be valued based on observable market data or inputs.  Unrealised losses include additional fair value impairments to a range of assets in liquidation which have resulted in £nil of bad debt provisions being made to fees and other receivables as shown in note 7.

Within Investment and other operating income, the Group has recognised gains of £3.2m attributable to Level 3 assets noted above. These assets are classed as financial investments held to cover liabilities under investment contracts (note 13).

 

5          Segmental information

Disclosure of operating segments in these condensed consolidated financial statements is consistent with reports provided to the Chief Operating Decision Maker ("CODM") which, in the case of the Group, has been identified as the Executive Committee of Hansard Global plc.

In the opinion of the CODM, the Group operates in a single reportable segment, that of the distribution and servicing of long-term investment products. New business development, distribution and associated activities in relation to the Republic of Ireland ceased with effect from 30 June 2013. All other activities of the Group are continuing.

The Group's Executive Committee uses two principal measures when appraising the performance of the business: net issued compensation credit ("NICC") (weighted where appropriate by product line) and expenses. NICC is a measure of the value of new in-force business and top-ups on existing single premium contracts. NICC is the total amount of basic initial commission payable to intermediaries for business sold in a period and is calculated on each piece of new business. It excludes override commission paid to intermediaries over and above the basic level of commission.

The following table analyses NICC geographically and reconciles NICC to direct origination costs during the period as set out in section 5 of the Business and Financial Review.

	Six months ended		Year ended
	31 December		30 June
	2024	2023	2023
	£m	£m	£m
Middle East and Africa	1.9	1.1	1.7
Latin America	1.3	0.9	2.1
Rest of World	-	0.4	1.7
Far East	0.2	0.1	0.1
Net issued compensation credit	3.4	2.5	5.6
Other commission costs paid to third parties	1.5	1.5	3.2
Enhanced unit allocations	0.2	0.4	0.9
Direct origination costs during the period	5.1	4.4	9.7

Revenues and expenses allocated to geographical locations contained in sections 5.1 to 5.4 below, reflect the revenues and expenses generated in or incurred by the legal entities in those locations.

 

5.1 Geographical analysis of fees and commissions by origin

	Six months ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Isle of Man	22.4	22.9	46.0
Republic of Ireland	1.0	0.7	2.2
The Bahamas *	0.3	0.3	0.6
	23.7	23.9	48.8

 

* Hansard Worldwide, which is based in the Bahamas, fully reinsures its business to Hansard International.   All external fees and commissions for Hansard Worldwide are therefore presented within the Isle of Man category. Fees shown in respect of Hansard Worldwide represent fees received from Hansard International.

 

 

5.2 Geographical analysis of profit / (loss) before taxation

		Six months ended		Year ended
		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Isle of Man	1.1		4.3	6.5
Republic of Ireland	(0.8)		(0.4)	(1.6)
The Bahamas	0.2		0.2	0.4
	0.5		4.1	5.3

 

 

5.3 Geographical analysis of gross assets

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Isle of Man *	1,290.4		1,235.7	1,283.1
Republic of Ireland	78.4		85.7	82.5
The Bahamas	2.0		2.3	1.7
	1,370.8		1,323.7	1,367.3

 

*  Includes assets held in the Isle of Man in connection with policies written in The Bahamas. As at 31 December 2024 these amounted to £278.2m (31 December 2023: £203.2m).

 

 

5.4 Geographical analysis of gross liabilities

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Isle of Man	1,007.0		1,024.0	1,033.8
Republic of Ireland	67.1		72.4	70.2
The Bahamas	279.1		205.3	242.5
	1,353.2		1,301.7	1,346.5

 

 

 

6          Fees and commissions

 

Fees are charged to the contract holders of investment contracts for contract administration services, investment management services, payment of benefits and other services related to the administration of investment contracts. Fees may be chargeable on either a fixed fee basis, a fee per transaction or as a percentage of assets under administration. Fees are recognised as revenue as the services are provided. Initial fees that exceed the level of recurring fees and relate to the future provision of services are deferred in the balance sheet and amortised on a straight-line basis over the life of the relevant contract. These fees are accounted for on the issue of a contract and on receipt of incremental premiums on existing single premium contracts.

 

Regular fees charged to contracts are recognised on a straight-line basis over the period in which the service is provided. Transactional fees are recorded when the required action is complete.

 

Commissions receivable arise principally from fund houses with which investments are held. Commissions are recognised on an accruals basis in accordance with the relevant agreement.

 

	Six months ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Contract fee income	14.0	15.2	30.6
Fund management fees	7.2	6.3	13.4
Commission receivable	2.5	2.4	4.8
	23.7	23.9	48.8

 

7          Administrative and other expenses

Included in Administrative and other expenses are the following:
	Six months ended		Year ended
	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Auditors' remuneration
-  Fees payable to the Company's auditor for the audit of the Company's annual accounts	0.1	0.1	0.8
- Fees payable for the audit of the Company's subsidiaries pursuant to legislation	0.2	0.3	0.1
- Other services provided to the Group	-	-	-
Employee costs	6.6	5.5	11.5
Directors' fees	0.2	0.2	0.4
Fund management fees	2.5	2.5	5.1
Renewal and other commission	0.4	0.4	0.9
Professional and other fees	1.7	1.8	4.8
Litigation defence and settlement costs	1.5	0.7	2.2
Credit loss allowance	(0.1)	-	-
Licences and maintenance fees	2.7	1.9	4.1
Insurance costs	0.4	0.4	0.9
Depreciation of property, plant and equipment	0.2	0.2	0.5
Amortisation of intangible assets	0.8	-	0.5
Communications	0.1	0.1	0.2

                                                                                                                                                                              

8          Taxation

Taxation is based on profit and income for the period as determined with reference to the relevant tax legislation in the countries in which the Company and its subsidiaries operate. Tax payable is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Tax is recognised in the consolidated statement of comprehensive income except to the extent that it relates to items recognised in equity. Tax on items relating to equity is recognised in equity.

The corporation tax expense for the Group for H1 2025 was £0.1m on a rounded basis (H1 2024: £0.1m). Corporation tax is charged on any profits arising at the following rates depending on location of the company or branch:

Isle of Man                    0% (2023: 0%)

Republic of Ireland        12.5% (2023: 12.5%)

Japan                           23.2% (2023: 23.2%)

Labuan                         24% (2023: 24%)

The Bahamas                0% (2023: 0%)

 

No deferred tax asset is currently being recorded in relation to losses arising in Hansard Europe. 

There is no material difference between the current tax charge in the consolidated statement of comprehensive income and the current tax charge that would result from applying standard rates of tax to the profit before tax.

The OECD's Pillar II global minimum tax, based on the Global Anti-Base Erosion (GloBE) Model Rules, is not expected to have an impact on the Group, as the Group's total revenue is less than €750m.

9          Earnings per share

		Six months ended		Year ended
		31 December		30 June
		2024	2023	2024
Profit after tax (£m)		0.4	4.0	5.2
Weighted average number of shares in issue (millions)		137.6	137.6	137.6
Earnings per share in pence		0.3p	2.9p	3.8p

The Directors believe that there is no material difference between the weighted average number of shares in issue for the purposes of calculating either basic or diluted earnings per share. Earnings under either measure are 0.3 pence per share (H1 2024: 2.9p).

 

10        Dividends

Interim dividends payable to shareholders are recognised in the year in which the dividends are paid. Final dividends payable are recognised as liabilities when approved by the shareholders at the annual general meeting.

        The following dividends have been paid by the Group during the period:

 

	Six months ended 31 December				Year ended 30 June
	2024		2023		2024
	Per share	Total	Per share	Total	Per share	Total
	p	£m	p	£m	p	£m
Final dividend paid	2.65	3.70	2.65	3.60	2.65	3.60
Interim dividend paid	-	-	-	-	1.80	2.50
	2.65	3.70	2.65	3.60	4.45	6.10

The Board have resolved to pay an interim dividend of 1.8p per share. This amounts to £2.5m and will be paid on 24 April 2025 to shareholders on the register at 13 March 2025.

11        Intangible assets and property, plant and equipment

 

Intangible assets

 

The historical cost of computer software is the purchase cost and the direct cost of internal development. Computer software is recognised as an intangible asset.

 

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Intangible assets	22.4		22.3	23.2

 

The intangible asset relates to capitalised costs associated with the development of a replacement policy administration system. The system went live in early March 2024, at which point amortisation has commenced over its estimated Useful Economic Life.

 

Property, plant and equipment

 

Property, plant and equipment includes both tangible fixed assets and 'right of use assets' recognised in accordance with IFRS 16.

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Property, plant and equipment	0.7		0.3	0.5
Right of use assets	2.1		2.3	2.1
	2.8		2.6	2.6

 

IFRS 16 - Leases

During the period to 31 December 2024, there were no changes to lease terms for any of the Group's Leases recognised under IFRS 16 and the Group did not enter into any new leases or lease extensions. The weighted average borrowing rate applied to the lease liabilities at 31 December 2024 was 7.0% (31 December 2023: 7.0%).

The recognition of the right-of-use asset represents an increase in the property, plant and equipment figure of £2.1m (31 December 2023: £2.3m). Lease liabilities relating to the right-of-use asset are included within other payables. The interest recognised on the lease liabilities in respect of the right of use asset was £0.1m (31 December 2023: less than £0.1m).

During the year ended 30 June 2021, the Group entered into a sub-lease for part of a building that is reported as a right-of-use asset. The group has classified the sub-lease as an operating lease, as it does not transfer substantially all of the risks and rewards incidental to the ownership of the sub-let asset. During the period ending 31 December 2024, the Group recognised rental income of less than £0.1m (31 Dec 2023: less than £0.1m).

			31 December					30 June
			2024		2023		2024
			£m		£m		£m
Right of use asset recognised b/f			2.1		2.4		2.4
Additions during the period			0.1		-		-
Depreciation			(0.1)		(0.1)		(0.3)
Net book value of right of use asset c/f			2.1		2.3		2.1
Lease liability recognised b/f			2.7		2.9		2.9
Additions during the period			0.1		-		-
Lease payments made during the period			(0.2)		(0.2)		(0.4)
Interest on leases			0.1		0.1		0.2
Lease liability recognised c/f			2.7		2.8		2.7
Of which are:
Current lease liabilities				0.2	0.2	0.2
Non-current lease liabilities				2.5	2.6	2.5

 

12        Deferred origination costs

Amortisation of deferred origination costs is charged within the origination costs line in the consolidated statement of comprehensive income.

Formal reviews to assess the recoverability of deferred origination costs on investment contracts are carried out at each balance sheet date to determine whether there is any indication of impairment. If there is any indication of irrecoverability or impairment, the asset's recoverable amount is estimated. Impairment losses are reversed through the consolidated statement of comprehensive income if there is a change in the estimates used to determine the recoverable amount. Such losses are reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortisation where applicable, if no impairment loss had been recognised.

The movement in value over the period under review is summarised below.

 

					31 December			30 June
		2024					2023	2024
		£m					£m	£m
At beginning of financial year				112.1			117.8	117.8
Origination costs incurred during the period				4.4			3.8	8.2
Origination costs amortised during the period				(6.5)			(7.1)	(13.9)
		110.0					114.5	112.1
						31 December		30 June
			2024				2023	2024
Carrying value			£m				£m	£m
Expected to be amortised within one year			11.6				16.6	11.6
Expected to be amortised after one year			98.4				97.9	100.5
			110.0				114.5	112.1

 

13         Financial investments held to cover liabilities under investment contracts

The Group classifies its financial assets into the following categories: financial investments and trade receivables. Financial investments consist of units in collective investment schemes, equity securities, fixed income securities and deposits with credit institutions. Collective investment schemes, equity securities and fixed income securities are designated at fair value through profit or loss. Deposits with credit institutions are designated at amortised cost.

The decision by the Group to designate its financial investments at fair value through profit or loss reflects the fact that the investment portfolio is managed, and its performance evaluated, on a fair value basis.

The Group recognises purchases and sales of investments on trade date. Investment transaction costs are written off in administration expenses as incurred.

All gains and losses derived from financial investments, realised or unrealised, are recognised within investment income in the consolidated statement of comprehensive income in the period in which they arise.

The value of financial assets at fair value through profit or loss that are traded in active markets (such as trading securities) is based on quoted market prices at the balance sheet date. The quoted market price for financial assets held by the Group is the current bid price. Investments in funds are valued at the latest available net asset valuation provided by the administrators or managers of the funds and companies, unless the Directors are aware of good reasons why such valuations would not be the most appropriate or indicative of fair value. Where necessary, the Group uses other valuation methods to arrive at the stated fair value of its financial assets, such as recent arms' length transactions or reference to similar listed investments.

Loans and receivables are financial assets with fixed or determinable payments that are not quoted on an active market. Loans and receivables consist, primarily, of contract fees receivable, long-term cash deposits (i.e., with an original maturity duration greater than three months) and cash and cash equivalents.

The following investments, other assets and liabilities are held to cover financial liabilities under investment contracts. They are included within the relevant headings on the condensed consolidated balance sheet.

 

		31 December			30 June
	2024		2023	2024
	£m		£m	£m
Equity securities	72.4		58.5	78.9
Investment in collective investment schemes	941.4		923.6	937.5
Fixed income securities, bonds and structured notes	78.8		61.5	70.6
Deposits and money market funds	64.4		63.8	64.3
Total assets	1,157.0		1,107.4	1,151.3
Other payables	(4.0)		(1.4)	(0.4)
Financial investments held to cover liabilities	1,153.0		1,106.0	1,150.9

 

The other receivables and other payables' fair value approximates amortised cost.

14        Deferred income

 

Fees charged for services related to the management of investment contracts are recognised as revenue as the services are provided. Initial fees which exceed the level of recurring fees and relate to the future provision of services are deferred. These are amortised over the anticipated period in which services will be provided. The recognition of balances in the deferred income reserve is based on actuarial assumptions around future income over the life of each policy. These actuarial assumptions are complex in nature and are subject to estimation uncertainty. The actuarial assumptions are reviewed regularly by the Appointed Actuary.

 

The movement in value of deferred income over the period is summarised below:

 

 

			31 December				30 June
					2024 £m	2023 £m		2024 £m
At beginning of financial year					140.2	144.8		144.8
Income received and deferred during the year					6.6	6.5		12.7
Income amortised and recognised in contract fees during the year					(7.8)	(9.1)		(17.3)
					139.0	142.2		140.2
				31 December					30 June
		2024				2023		2024
Carrying value		£m				£m		£m
Expected to be amortised within one year		15.4				18.7		15.0
Expected to be amortised after one year		123.6				123.5		125.2
		139.0				142.2		140.2

 

15        Other payables

Other payables are initially recognised at fair value and subsequently measured at amortised cost. They are recognised at the point where service is received but payment is due after the balance sheet date.

 

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Commission payable	1.3		1.1	1.2
Other creditors and accruals	10.5		10.3	11.7
Lease liabilities of which:
Current lease liabilities	0.2		0.2	0.2
Non-current lease liabilities	2.5		2.6	2.5
	14.5		14.2	15.6

 

 

16        Provisions

 

Provisions represent amounts to settle a number of the claims referred to in Note 21 'Contingent Liabilities' where it is economically beneficial to do so. Such provisions are calculated where there is an established pattern of settlement for that grouping of claims. The following table reflects the movement in the provision during the period under review.

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Settlement provision at beginning of financial year	0.5		0.1	0.1
Additional provisions made in the period	0.2		-	0.4
Released from the provision for settlement	(0.1)		-	-
	0.6		0.1	0.5

 

 

Further information outlined within IAS 37.85 is not disclosed on the basis that it may prejudice the Company's position. 

With the exception of the lease liabilities shown in note 11, and the provisions referred to above, all other payable balances, including amounts due to contract holders, are deemed to be current. Due to the short-term nature of these payables the carrying value is considered to reflect fair value.

 

17        Called up share capital        

 

	31 December		30 June
	2024	2023	2024
	£m	£m	£m
Authorised:
200,000,000 ordinary shares of 50p	100	100.0	100.0
Issued and fully paid:
137,557,079 ordinary shares of 50p
(30 June 2024: 137,557,079 ordinary shares)	68.8	68.8	68.8

 

18        Other Reserves

Other reserves comprise the merger reserve arising on the acquisition by the Company of its subsidiary companies on 1 July 2005, the share premium account and the share save reserve. The merger reserve represents the difference between the par value of shares issued by the Company for the acquisition of those companies, compared to the par value of the share capital and the share premium of those companies at the date of acquisition.

 

		31 December		30 June
	2024		2023	2024
	£m		£m	£m
Merger Reserve	(48.5)		(48.5)	(48.5)
Share premium	0.1		0.1	0.1
Share Save Reserve	0.1		0.1	0.1
Reserve for own shares held within EBT (note 19)	(0.2)		(0.4)	(0.3)
	(48.5)		(48.7)	(48.6)

 

Included within other reserves is an amount representing 863,700 (2024: 1,182,101) ordinary shares held by the Group's employee benefit trust ('EBT') which were acquired at a cost of £0.6m (see note 19). The ordinary shares held by the trustee of the Group's employee benefit trust are treated as treasury shares in the consolidated balance sheet in accordance with IAS 32 ''Financial Instruments: Presentation''.

This reserve arose when the Group acquired equity share capital under its EBT, which is held in trust by the trustee of the EBT. Treasury shares cease to be accounted for as such when they are sold outside the Group, or the interest is transferred in full to the employee pursuant to the terms of the incentive plan.

19        Equity settled share-based payments

 

The Company has established a number of equity-based payment programmes for eligible employees. The fair value of expected equity-settled share-based payments under these programmes is calculated at date of grant using the market value of the shares at the date granted and is amortised over the vesting period on a straight-line basis through the consolidated statement of comprehensive income. A corresponding amount is credited to equity over the same period.

At each balance sheet date, the Group reviews its estimate of the number of shares granted that are expected to be exercised. The impact of any revision in the number of shares granted is recognised in the consolidated statement of comprehensive income so that the charge to the consolidated statement of comprehensive income is based on the number shares that actually vest. A corresponding adjustment is made to equity.

The estimated fair value of the schemes and the imputed cost for the period under review is not material to these financial statements.

19.1      Incentive Plan Employee Benefit Trust

 

An Employee Benefit Trust was established in February 2018 to hold shares awarded to employees as an incentive on a deferred basis. Shares awarded under the scheme are purchased by the Trust in the open market and held until vesting. Awards made under the scheme would normally vest after three years.

 

		31 December		30 June
	2024		2023	2024
Share Awards	No. of Shares		No. of Shares	No. of Shares
Outstanding at start of period	926,000		601,684	601,684
Granted Forfeited	296,729  -		463,823  -	463,823 (64,608)
Vested	(393,300)		(74,899)	(74,899)
Outstanding at end of period	829,429		990,608	926,000

 

The Trust has been funded by way of a loan, and as at 31 December 2024 the outstanding balance on the loan was £554,000 (2023: £554,000).

 

 

		31 December		30 June
	2024		2023	2024
Shares Held by the Trust	No. of Shares		No. of Shares	No. of Shares
Outstanding at start of period	1,257,000		557,000	557,000
Purchased Forfeited	-		700,000	700,000 -
Vested	(393,300)		(74,899)	-
Outstanding at end of period	863,700		1,182,101	1,257,000

During the period the expense arising from share-based payment transactions was £148,000 (2023: £82,000).

 

20        Related party transactions

Intra-group transactions are eliminated on consolidation and are not disclosed separately here.

There have been no significant related party transactions in the period, nor changes to related parties. Related party transactions affecting the results of previous periods and an understanding of the Group's financial position at previous balance sheet dates are as disclosed in the Annual Report & Accounts for the year ended 30 June 2024.

Details of any share-based transactions with employees during the period are set out in note 19.

21           Contingent liabilities               

21.1      Litigation

The Group does not and has never given any investment advice. Investment decisions are taken either by the contract holder directly or through a professional intermediary appointed by the contract holder. Contract holders bear the financial risk relating to the investments underpinning their contracts, as the policy benefits are linked to the value of the assets. Notwithstanding the above, financial services institutions are frequently drawn into disputes in cases where the value and performance of assets selected by or on behalf of contract holders fails to meet their expectations.  At the balance sheet date, a number of fund structures remain affected by liquidity or other issues that hinder their sales or redemptions on normal terms with a consequent adverse impact on policy transactions.

As reported previously, the Group has been subject to a number of complaints in relation to the selection and performance of assets linked to contracts.  The Group has been served with a number of writs arising from such complaints and other asset-related issues. Most of the writs relate to historic business written prior to the closure to new business of Hansard Europe in 2013, with some relating to Hansard International Limited. Most of the cases have arisen in Italy, with a smaller number in Belgium and Germany

As at 30 June 2024, the Group had been served with cumulative writs with a net exposure totalling €23.8m, or £20.2m in sterling terms (30 June 2023: €26.1m / £22.4m) arising from contract holder complaints and other asset performance-related issues. The corresponding figure as at 31 December 2024 was €24.1m or £20.0m (31 December 2023: €25.2m or £22.0m).

 

Our policy is to maintain contingent liabilities even where we win cases in the court of first instance if such cases have been subsequently appealed. 

We have previously noted that we expect a number of our larger claims and litigation costs to ultimately be covered by our Group insurance cover.  During the period to 31 December 2024, we recorded £0.5m in insurance recoveries in relation to litigation expenses (31 December 2023: £0.7m). We expect such reimbursement to continue during the course of those claims. 

While it is not possible to forecast or determine the final results of pending or threatened legal proceedings, based on the pleadings and advice received from the Group's legal representatives, the Directors believe that the Group has strong defences to such claims. Notwithstanding this, there may be circumstances where in order to avoid the expense and distraction of protracted litigation the Board may consider it in the best interests of the Group and its shareholders to reach a commercial resolution with regard to certain of these claims. Where an established pattern of settlement is established for any grouping of claims, a provision for expected future settlements is made in line with IAS 37.

At this time, it is not possible to make any further estimates of liability.

Between 31 December 2024 and the date of this report, there have been no material developments.

21.2      Isle of Man Policyholders Compensation Scheme

The Group's principal subsidiary, Hansard International, is a member of the Isle of Man Policyholders' Compensation Scheme governed by the Life Assurance (Compensation of Policyholders) Regulations 1991. The objective of the Scheme is to provide compensation for policyholders should an authorised insurer be unable to meet its liabilities to policyholders. In the event of a levy being charged by the Scheme members, Hansard International would be obliged to meet the liability arising at the time. The maximum levy payable in accordance with the regulations of the Scheme in respect of the insolvency of the insurer is 2% of long-term business liabilities. Hansard International's products include a clause in their terms and conditions permitting it to recover any monies paid out under the Scheme from contract holders.

22        Foreign exchange rates

The closing exchange rates used by the Group for the translation of balance sheet items to sterling were as follows:

		31 December		30 June
	2024		2023	2024
US Dollar	1.25		1.27	1.26
Japanese Yen	197		180	203
Euro	1.20		1.15	1.18

 

23        Events after the reporting period

 

This report for the period ended 31 December 2024 was approved for issue on 5 March 2024. No other material events have occurred between the reporting date and the issue date that require disclosure under IAS 10.