Hansard Global Posts Strong Sales Growth and Improved Solvency in FY2025 Results

Hansard Global FY2025: sales up, solvency stronger, profits lower as investment continues

Hansard Global has posted a useful mix of progress and growing pains in its full-year results to 30 June 2025. New business accelerated, solvency improved materially, and the dividend was held – but IFRS profit dipped as the Group invested in systems, product build and growth markets, and shouldered ongoing litigation defence costs.

For context, PVNBP is the Present Value of New Business Premiums – a standard measure of total new business including the present value of future regular premiums – and APE is the Annual Premium Equivalent, which treats 10% of single premiums as “annualised” to compare single and regular business.

Key numbers that matter

Metric	FY 2025	FY 2024
New business – PVNBP	£82.4m	£77.8m
New business – APE	£12.2m	£10.4m
IFRS profit before tax	£1.8m	£5.3m
Underlying IFRS profit	£5.1m	£8.5m
IFRS EPS	1.31p	3.80p
Solvency ratio	169%	149%
Assets under Administration	£1.13bn	£1.15bn
Total dividend	4.45p	4.45p

Sales mix: single premiums surge, regulars lag but stabilising

New business grew 5.9% on a PVNBP basis to £82.4m, and 17.3% on APE to £12.2m. That growth was driven by the single-premium Global Select product, where sales jumped 72.5% on APE. Regular premiums fell 10.0% on APE and 36.9% on PVNBP, but management highlights improving trends in H2 and expects the newly launched Ascend and Future Focus to support a recovery into FY2026.

Regionally, PVNBP saw Latin America up 15.7% to £28.1m, Middle East & Africa marginally higher at £32.9m, and the Far East at £5.2m. The strategic push into Japan – via a partnership with Guardian – is slated to begin contributing in FY2026.

Profits: lower this year by design

IFRS profit before tax fell to £1.8m from £5.3m. Underlying IFRS profit, which strips out litigation and non-recurring items, was £5.1m (FY 2024: £8.5m). The drivers are clear: continued investment in the new policy administration system, targeted spend to build new products and markets, and litigation defence costs.

• Fee and commission income was stable at £48.2m, helped by resilient policyholder activity and strong equity markets.
• Investment income rose to £5.0m (FY 2024: £4.7m), aided by higher rates and prudent treasury management.
• Administrative and other expenses increased to £36.7m (FY 2024: £33.3m), reflecting depreciation on the new system and growth investment.

Two watch-outs: the Value of In-Force fell to £103.1m (from £110.8m), largely because current-year profits exceeded the expected future profits from FY2025 new business, and assumption updates also trimmed the VIF. Assets under administration dipped slightly to £1,129.8m, reflecting net outflows and FX, partly offset by market gains and single-premium inflows.

Solvency leaps to 169% – a real positive

The solvency ratio rose to 169% (from 149%), with Group Free Assets above the SCR at £45.6m (FY 2024: £39.4m). That gives comfortable headroom to fund growth and support dividends. Given the fee-based model and conservative balance sheet – cash and deposits of £66.2m and a low-risk treasury allocation – the strengthening here stands out as one of the report’s biggest positives.

Dividend held, timetable confirmed

The Board recommended a final dividend of 2.65p, keeping the total payout flat at 4.45p. In other words, the dividend is being sustained through a deliberate investment phase, backed by stronger capital.

• Ex-dividend date: 2 October 2025
• Record date: 3 October 2025
• AGM: 5 November 2025
• Payment date: 13 November 2025

Litigation: volumes easing, exposure stable, recoveries continue

Legacy policyholder litigation remains a feature, mainly tied to Hansard Europe’s historic business. Net cumulative writs are unchanged at €23.8m (£20.4m), but new writs fell to five in the year (FY 2024: 12), signalling a maturing profile. The Group recorded £0.4m of insurance recoveries and expects more as cases progress; a litigation provision of £0.7m is held. Management reiterates confidence in defences.

Cash flow and FX: a couple of moving parts

• Operational cash surplus was £4.6m (FY 2024: £10.9m), consistent with investment to build future earnings capacity.
• Net cash outflow before dividends was £2.9m, chiefly due to a £3.8m investment into a corporate bond portfolio.
• The US dollar weakened against sterling in H2, shaving the sterling value of USD-denominated fee income.

Strategy tracker: Improve, Grow, Future-proof

FY2026 is positioned as an execution year.

• Improve – service standards and product features continue to be upgraded, with digital optimisation of the new admin platform.
• Grow – the Japanese launch with Guardian and deeper Latin American distribution relationships are front and centre.
• Future-proof – efficiency programmes, ESG progress, and disciplined management of legacy litigation remain ongoing.

The revenue model remains fee-led and inherently defensive – about a third of income is linked to AuA – but FX swings and the run-off of older, higher-margin back book fees are real dynamics to watch. Ultimately, scaling newer products and building regular premium flows are the levers to offset that mix shift.

My take: the good, the bad, and what to watch

What I like

• Sales momentum is tangible – APE up 17.3%, with a clean single-premium story via Global Select and a path to revive regulars.
• Solvency strength at 169% provides strategic optionality and underpins the maintained dividend.
• Litigation new-case volumes are easing, and insurance is picking up part of the tab.

What’s less helpful

• IFRS profit and EPS stepped down as spend meets the P&L before new sales fully earn through. That is the nature of the model, but it does require patience.
• VIF declined, reflecting both assumption tweaks and the fact that the year’s profit outpaced the value of expected future profits from the new cohort.
• AuA slipped modestly, and FX headwinds clipped sterling income late in the year.

What to watch next

• Japan launch timing and initial traction – this could be a meaningful swing factor for regular premiums.
• Regular premium recovery from Ascend and Future Focus in FY2026.
• Expense trajectory and benefits from the now-embedded admin platform.
• Ongoing stabilisation of litigation exposure and further insurance recoveries.

Bottom line

Hansard is purposely trading near-term profit for long-term growth, and the capital base looks strong enough to support that choice. If Japan and Latin America deliver and regular premiums regain momentum, today’s sales growth and improved solvency could translate into stronger earnings over the next couple of years – all while shareholders collect a 4.45p dividend.