(HSD.L) Hansard Global PLC Buy/Sell

as above
7. Name of registered 8. State the nature of
shareholders(s) and, the transaction
if more than one,
the number of shares Transfer to own Self
held by each of them Invested Personal
Pension as part of
As above personal pension
planning
9. Number of shares, 10. Percentage of issued
debentures or class acquired
financial (treasury shares of
instruments relating that class should
to shares acquired not be taken into
account when
N/A calculating
percentage)

11. Number of shares, 12. Percentage of issued
debentures or class disposed
financial (treasury shares of
instruments relating that class should
to shares disposed not be taken into
account when
55,000 calculating
percentage)

0.04%
13. Price per share or 14. Date and place of
value of transaction transaction

NIL Isle of Man
16thMarch 2010

15. Total holding 16. Date issuer informed
following of transaction
notification and
total percentage
holding following 16thMarch 2010
notification (any
treasury shares
should not be taken
into account when
calculating
percentage)

154,871 - 0.11%
direct holding
180,000 - 0.13%
through Self
Invested Personal
Pension

If a person discharging managerial responsibilities has been granted options by the issuer

complete the following boxes

17. Date of grant 18. Period during which or
date on which exercisable

19. Total amount paid 20. Description of shares or
(if any) for grant debentures involved
of the option (class and number)

21. Exercise price (if 22. Total number of shares or
fixed at time of debentures over which
grant) or options held following
indication that notification
price is to be fixed
at the time of
exercise

23. Any additional 24. Name of contact and
information telephone number for
queries

Name of authorised official of issuer responsible for making notification Manoj B Patel Date of notification 16thMarch 2010

Notes: This form is intended for use by an issuer to make a RIS notification required by DR 3.3.

(1) An issuer making a notification in respect of a transaction relating to
the shares or debentures of the issuer should complete boxes 1 to 16, 23
and 24.

(2) An issuer making a notification in respect of a derivative relating the
shares of the issuer should complete boxes 1 to 4, 6, 8, 13, 14, 16, 23
and 24.

(3) An issuer making a notification in respect of options granted to a director/person discharging managerial responsibilities should complete
boxes 1 to 3 and 17 to 24.

(4) An issuer making a notification in respect of a financial instrument
relating to the shares of the issuer (other than a debenture) should
complete boxes 1 to 4, 6, 8, 9, 11, 13, 14, 16, 23 and 24.

This information is provided by RNS The company news service from the London Stock Exchange

RDSLLFEFVVIRLII

Leonard Polonsky, Chief Executive of Hansard Global plc, commented:

"The resilience of the Hansard business model in uncertain financial market conditions has allowed the continued generation of positive operating cash flows and delivered pre-tax IFRS profits of £9.5m in the first half of the financial year. The balance sheet of the Group remains very strong, with £54.8m net assets and no borrowings. The Group's EEV has increased since 30 June 2009 despite restrained new business in the first quarter, and the payment of a dividend of £10.1m in November 2009.

The Group's confidence in its future prospects is reflected in the Board's decision to increase the interim dividend by 4.8% to 5.50 pence per share.

New business flows since 1 October 2009 give us grounds for cautious optimism. We are confident that our business model and prospects remain strong, and expect continued profitability and cash generation in the longer term."

For further information

Hansard Global 01624 688000

Leonard Polonsky, Chief Executive Gordon Marr, Managing Director Vince Watkins, Chief Financial Officer

Pelham Bell Pottinger 020 7337 1500

Daniel de Belder

Chairman's Statement I am pleased to report that the performance of the Group in the first six months of the financial year indicates that the steps taken by the Group in prior periods to invest in distribution infrastructure and to control expenses are bearing fruit. Whilst challenging financial markets and continued low interest rates have contributed to a reduction in IFRS profits to £9.5m before tax (H1 2009: £13.1m), we have continued to generate positive operating cash flows and we have increased Embedded Value by 6.7% to £252.4m (30 June 2009: £236.6m).

The Board has resolved to increase our interim dividend by 4.8% to 5.5 pence per share. The financial position of the Group remains very strong with no borrowings.

An increased level of new business flows at industry-leading margins since 1 October 2009 compared with the prior year gives cause for optimism for the remainder of the financial year and the longer-term. FINANCIAL PERFORMANCE FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 The IFRS profit after tax for the period was £9.2m, including foreign exchange gains of £0.5m (H1 2009: £2.7m), compared to the profit of £12.7m earned in the corresponding period of the previous financial year. Earnings per share were 6.7 pence (H1 2009: 9.3p).

Fee and commission income increased by 4.2% over the corresponding period highlighting the profitability of our underlying business. Returns on Group investments have, unsurprisingly, reflected the current record low interest rates and the continuing volatility in currency markets. Despite this uncertainty, we have continued to invest in distribution infrastructure while reducing administrative and other expenses. Administrative expenses have reduced from £10.7m (H1 2009) to £9.8m in the first half of this financial year.

Throughout the period under review the Group has written new business on profitable terms and has maintained new business margins that meet the Group's return requirements.New business margins for H1 2010 are 6.9% on the Present Value of New Business Premiums ("PVNBP") basis (up from 5.8% at Q1 2010). This increase is primarily due to the change in mix of sales towards higher-margin regular-premium business, and continued expense management.

The European Embedded Value (EEV) of the Group, following the payment of dividends totalling £10.1m in November 2009, has risen to £252.4m, an increase of 6.7% from the value at 30 June 2009. The EEV profit for the period is £25.9m (H1 2009: £34.4m). EEV profits remain adversely affected by policyholder behaviour, particularly in relation to premium reductions, and reduced new business volumes. This experience is partly mitigated by fewer policyholders surrendering their policy than expected and by stable paid-up, mortality and partial withdrawal experience. In aggregate, persistency experience has improved over the period.
DIVIDENDS The Board has resolved to increase the interim dividend by 4.8% to 5.5 pence per share (April 2009: 5.25p). This will be paid on 31 March 2010 to those shareholders on the Register at the close of business on 5 March 2010. Shareholders who elect, prior to the record date, to receive the proposed dividend in US Dollars, will be paid using the exchange rate on 5 March 2010.

On 20 November 2009 the Company paid a final dividend of 7.35p per share. Including the interim dividend referred to above, this results in amounts totalling 12.85p per share, or £17.6m, being paid as dividends during this financial year.

NEW BUSINESS

The improvement in market conditions, the continuing level of interest in Hansard's products among intermediaries and their clients, and our investment in distribution infrastructure has resulted in an increased flow of new business over the last few months of this financial year, compared with the prior year. This is demonstrated, in part, by new business flows in Q2 2010 being approximately 25% above the flows of Q1 2010.

New business flows for the six-month period ended 31 December 2009 are summarised as follows (comparisons on actual currency basis):

Six months ended
31 December

Basis £m £m % change
Compensation Credit 5.3 6.7 (20.9)%
Present Value of New Business Premiums ("PVNBP") 73.5 93.0 (21.0)%
Annualised Premium Equivalent 9.8 12.3 (20.3)%

In the period since 31 December 2009levels of new business continue to exceed the levels of the corresponding period. The percentage shortfall over the prior period continues to be reduced.

FINANCIAL INVESTMENTS The value of financial investments to cover liabilities under investment contracts as at 31 December 2009, at £1.16 billion, has risen by 16% since 30 June 2009, reflecting continued premium flows, the improvement in capital markets and foreign currency movements over that period.

The flexible nature of our products, allowing policyholders the ability to determine the investment mix held within policy contracts has, we believe, helped maintain benefits paid out on those contracts at the previous year's levels.

During the period we have seen a significant reduction in instances in which fund structures selected by policyholders have been affected by market volatility, illiquidity and other factors that might impact on the redemption value of those funds since those reported in the 2009 Annual Report & Accounts. This reflects the improvement in capital markets since 30 June 2009.

CAPITALISATION AND SOLVENCY

The Group continues to be substantially capitalised to satisfy operational, regulatory and policyholder expectations. Following increases in the aggregate minimum regulatory margins in the period, the required margins are covered 14.8 times (H1 2009: 16.7 times) by the Group's capital resources.

The Group's liquid assets are held with a wide range of deposit institutions and in highly-rated money market liquidity funds.The Group had no borrowings during the period or at the period end (31 December 2008: £Nil) and cash of £81.6m.

BOARD APPOINTMENTS

I am pleased to welcome Joseph Kanarek to the Board of the Company with effect from 1 January 2010. As Chief Distribution Officer since 2000, Joe has been instrumental in developing a diversified range of intermediaries to support the Group's new business activities. I am confident that Joe's experience will continue to contribute to new business growth as global economic conditions recover.

EMPLOYEES AND INTERMEDIARIES

Uncertainty in economic conditions throughout the period has continued to challenge employees, Account Executives, investors and intermediaries. On behalf of the Board and shareholders I would like to thank everyone connected with Hansard for their dedication and contribution to the first half of this financial year.

SIGNIFICANT SHAREHOLDINGS

At the date of this report I have the largest beneficial shareholding in the Company, being approximately 42% of the issued share capital. The Polonsky Foundation has 5.4%. Other significant shareholdings notified to us at the date of this report are Aberforth Partners LLP, F&C Asset Management and Lloyds Banking Group Plc.

We are very pleased with the range and quality of institutional shareholders that have chosen to invest in us and grateful for the long-term loyalty of individual shareholders.

OUTLOOK

New business flows since 1 October 2009 have shown encouraging signs that new business levels are recovering without any reduction in margins.

We are confident that the financial strength of the Group and continued operating cash flows means that we are well placed to continue making the necessary investment in sales and systems to further enhance the performance of the Group in the remainder of the financial year and the long-term.

Dr L S Polonsky

Chairman

24 February 2010

Interim Management Report

FINANCIAL PERFORMANCE FOR THE SIX MONTHS ENDED 31 DECEMBER 2009

Introduction The first quarter of this financial year was particularly challenging for participants in the international financial services industry. However the Hansard business model remains durable and there are signs for cautious optimism from the improvement in market conditions, the continuing level of interest in Hansard's products among intermediaries and their clients, and our investment in distribution infrastructure, as seen in our Q2 new business performance.

Despite a continuation of policyholders reducing contributions to regular premium contracts, overall persistency of existing business remains strong.

Financial results are presented under International Financial Reporting Standards as adopted by the European Union ("IFRS"). Additionally, certain information relating to embedded value is presented using the European Embedded Value ("EEV") methodology. The Board believes that publishing EEV Information in conjunction with IFRS results provides more meaningful information on the financial position and performance of the Group than that provided by IFRS reporting alone.

In the published accounts for the year ended 30 June 2009, we presented abridged financial information to improve the users' understanding of the financial performance of the Group under IFRS reporting. An abridged consolidated income statement and consolidated cashflow statement is set out below. The information contained is consistent with the presentation in the published accounts.

1. IFRS Results for the six months ended 31 December 2009

The performance of the Group under IFRS for the six months ("H1 2010") remained resilient despite uncertainty in global capital markets. Fees receivable from policy contracts continue to increase and the Group's expense management initiatives are reflected in the reduction in administrative and other expenses from £8.7m in the comparative period to £7.9m this year, a decrease of 9.2%. Continued low interest rates and recent strengthening of Sterling against the Group's major trading currencies have contributed to a reduction in operating profit, compared with the results of the comparative period ("H1 2009").The IFRS profit for H1 2010 before tax is £9.5 million, compared with a profit of £13.1m in H1 2009.

The Group's profits arising from its Isle of Man-based operations continue to be taxable at zero percent, as was confirmed in the recent Isle of Man budget. Profit after taxation for the period is £9.2m (H1 2009: £12.7m). Earnings per share are 6.7 pence (H1 2009: 9.3p).

1.1 Abridged consolidated income statement for the six months ended 31 December 2009

The consolidated income statement below highlights the income and expenditure relevant to an understanding of the Group's activities. Although it is not presented under IFRS, the Board considers that it is an appropriate representation of the Group's income and expenditure during the period.
Abridged consolidated income statement Year ended
Six months ended
31 December 31 December 30 June

£m £m £m
Fees and commissions 24.9 23.7 47.5
Group-only investment income 1.1 6.2 6.0
Other operating income 0.2 0.2 0.7
26.2 30.1 54.2
Origination costs (8.8) (8.3) (16.4)
Administrative expenses (7.9) (8.7) (17.0)
Profit for the period before taxation 9.5 13.1 20.8

1.1.1 Fees and commission income

Fees and commissions for the period attributable to Group activities are £24.9m, compared with £23.7m for the corresponding period of the previous financial year, an increase of 5.1%.

A summary of fees and commissions is set out below:
Year ended
Six months ended
31 December 31 December 30 June

Description £m £m £m
Contract fee income 18.2 17.6 35.6
Group-only fund management fees 4.7 4.1 8.5
Commissions receivable 2.0 2.0 3.4
Attributable to Group activities 24.9 23.7 47.5
Third party fund management fees 1.9 2.0 3.9
IFRS fees and commissions 26.8 25.7 51.4

A significant proportion of contract fee income, fund management fees and commissions receivable from third parties are related directly to the value of assets under administration. As the value of these assets increases (whether through new business, strengthening stock markets or currencies strengthening against sterling) it results in a positive impact on that income.

1.1.2 Investment income attributable to the Group

An analysis of investment income is set out below:

Year ended
Six months ended
31 December 31 December 30 June

£m £m £m
Income from investments 0.6 2.4 4.3
Realised/unrealised gains on Group - 1.0 0.9

holdings
Currency gains on net operating assets 0.5 2.8 0.8
1.1 6.2 6.0

Interest income on the Group's increasing capital balances has been affected by continued reductions in bank interest rates, and by a reduction in margins earned on policyholder-held accounts implemented to secure retention of policy contracts.

1.1.3 Origination costs

Origination costs include new business commissions, intermediary incentives and other distribution-related expenditure.

Origination costs and other directly attributable incremental costs incurred on the issue of a policy are deferred and amortised over the life of the relevant contract. Origination costs are largely as expected having regard to new business levels during the period and incentive arrangements in place. Other origination costs incurred reflect investment in Account Executives and supporting distribution resources in line with our strategy.

1.1.4 Administrative expenses

Administrative and other expenses attributable to Group activities are £7.9m, a decrease of 9.2% or £0.8m from the corresponding period. We continue to manage our cost base effectively and are seeing the benefit of the initiatives implemented in the previous financial year to reduce administrative and other expenses, while continuing to invest in the Group's sales and distribution infrastructure. Management will re-appraise the level of cost-saving initiatives before the end of the financial year.

In October 2009, the Group began to implement a number of projects to develop Hansard Online, develop new business initiatives,streamline administrative processes and to ensure that we continue to meet strategic expense management targets. Amounts totalling £0.2m are included in expenses in relation to these activities. We anticipate that expenditure totalling approximately £0.6m will be incurred in the current financial year on these projects and approximately £0.8m in the following financial year.

A summary of Administrative expenses is set out below:

Year ended
Six months ended
31 December 30 June

£m £m £m
Employee costs 4.3 4.7 9.3
Other expenses and professional fees 3.6 4.0 7.7
Attributable to Group activities 7.9 8.7 17.0
Third party fund management fees 1.9 2.0 3.9
IFRS administrative and other expenses 9.8 10.7 20.9

1.2 Taxation
The Group's profits arising from its Isle of Man-based operations continue to be taxable at zero percent. A provision of £0.3m for Corporation Tax has been included in these financial statements, based primarily on the tax rate of 12.5% levied in the Republic of Ireland on the taxable income for the period. 1.3 Abridged Shareholders' Cash Flow statement

Shareholders' cash flows in the period were strongly positive, allowing the Group to fund new business from its own resources, continue to invest in its sales force and support teams, and pay dividends.

The following summarises the Group's own cash flows in the period:
Year ended
Six months ended
31 December 30 June

£m £m £m
Net cash inflow from operating activities 15.1 8.2 20.0
Foreign exchange differences 0.5 2.8 0.8
Interest on investments 0.6 2.4 4.2
Cash inflow 16.2 13.4 25.0

Purchase of plant and equipment (0.1) (0.5) (0.7)
Purchase of investments - - (0.1)
Corporation tax paid (0.3) - (1.1)
Dividends paid (10.1) (9.6) (16.8)
Cash outflow (10.5) (10.1) (18.7)
Net cash inflow from shareholders' activities 5.7 3.3 6.3

Cash and cash equivalent balances, excluding those held to cover liabilities under investment contracts, at 31 December 2009 stood at £81.6m. Following the dividend payment totalling £10.1m in November 2009, this represents an increase of £5.7m since 30 June 2009. This release of profit and cash from the unwinding of our current policyholder book further demonstrates the Group's ability to fund anticipated growth in new business and to continue to fund dividend streams without recourse to borrowing.

1.4 Dividends

A final dividend of 7.35p per share in relation to the previous financial year was paid in November 2009. This amounted to £10.1m.

The Board has considered the results for H1 2010 and the Group's continued cash flow generation and, despite the ongoing global economic uncertainty, has resolved to increase the interim dividend by 4.8% to 5.5 pence per share (4 April 2009: 5.25p). This will be paid on 31 March 2010 to those shareholders on the Register at the close of business on 5 March 2010.

1.5 Financial investments

Retention of Assets under Administration ("AUA") remains strong. Strengthening markets have underpinned AUA, while the ability of policyholders to rotate assets held within the contracts further emphasises the value of the insurance wrapper.

The strengthening in global capital markets over the six months ended 31 December 2009 is reflected in the increase in value of AUA at that date, at £1.16bn, up 16% from £1.0bn at 30 June 2009.

Note 10 to the condensed consolidated financial statements summarises the composition of net assets held to cover financial liabilities. While the level of AUA has increased by 16% since 30 June 2009, policyholder and fund deposits and liquid assets have reduced to £145.6m at 31 December 2009 from £170.6m at 30 June 2009. This indicates that policyholder risk appetite has become a little more positive resulting in changes in the investment mix held in policies.

During the period we have seen only a small rise in the number of new notifications of fund structures adversely affected by market volatility or illiquidity; the value of these additional funds is less than £2m and is therefore immaterial to overall AUA.

Under the terms of the unit-linked contracts issued by the Group, the policyholder bears the financial risk attaching to assets to which the contracts are linked. Any value adjustments will result in a corresponding adjustment to financial liabilities under investment contracts.

Note 11 to the condensed consolidated financial statements summarises the movement in financial liabilities over the period. The flexible nature of our products, allowing policyholders the ability to determine the investment mix held within policy contracts has, we believe, helped maintain benefits paid out on those contracts at the previous year's levels. Deposits to investment contracts reflect a reduction of approximately £14m representing the cancellation of two single premium cases, within their contractual cooling off period, issued prior to June 2009.

1.6 Shareholder cash and liquid assets

Cash and cash equivalents disclosed on the consolidated balance sheet include amounts held within policyholders' AUA. The following table analyses cash and cash equivalents in the consolidated balance sheet between those balances relating to policyholder activity and those of the Group. Despite the payment of dividends, the Group's liquid assets continue to increase to meet operational, regulatory and policyholder expectations.

Year ended
Six months ended
31 December 31 December 30 June

£m £m £m
Shareholder cash and cash equivalents 81.6 59.3 75.9
Policyholder cash balances 145.6 170.4 170.6
Cash and cash equivalents 227.2 229.7 246.5

The Group had no borrowings during the period or at the period end (H1 2009: £Nil). Since 31 December 2008, the company has paid a total of £17.3m in dividends from its own resources.

2. Embedded Value Results for the six month period ended 31 December 2009

The European Embedded Value (EEV) is an estimate of the value of the shareholders' interest in the Group. It comprises net worth and the value of future profits from business in-force at the valuation date, 31 December 2009.

EEV results for the period reflect that the Group has written profitable new business throughout the period. EEV continues to be affected by reduced new business volumes and policyholder behaviour, particularly in relation to premium reductions.

A summary of the factors impacting on the EEV results for the period, compared with comparable periods, is set out in the EEV information section of these half-yearly results.

2.1 EEV Profit

EEV operating profit after tax is £7.1m (H1 2009: £11.3m). New business written during the period was profitable and contributed £5.1m to the EEV. Demonstrating the fluctuating value of new business flows in the previous financial year, this contribution has increased by 42% over the contribution of £3.6m in H2 2009, and is some 22% less than the new business contribution of £6.5m in H1 2009.

Experience variances have reduced EEV operating profit by £1.6m (H1 2009: £2.7m loss) in the period, arising mainly from more policyholders reducing their premiums than the long-term expectation used in the previous year-end EEV calculation. This experience is partly mitigated by fewer policyholders surrendering their policy than expected and by stable paid-up, mortality and partial withdrawal experience. In aggregate, persistency experience has improved over the period.

EEV profit after tax is £25.9m (H1 2009: £34.4m). Movements in stock market prices and foreign exchange rates over the period have significantly increased EEV profit, although lower interest rates have reduced treasury margins and the return on net worth. In aggregate, investment experience and economic assumption changes have increased EEV profit by £18.8m (H1 2009: £23.1m profit).

2.2 EEV balance sheet

The Group's EEV at 31 December 2009 has risen to £252.4m, an increase of £15.8m from £236.6m at 30 June 2009, following the payment of dividends totalling £10.1m in November 2009.
3. New business The improvement in market conditions and the continuing level of interest in Hansard's products among intermediaries and their clients has resulted in an increased flow of new business particularly over the last few months, compared with the corresponding period.
3.1 New business for the six months ended 31 December 2009

New business sales volumes are expressed in terms of the Group's internal metric, Compensation Credit, Annualised Premium Equivalent and the Present Value of New Business Premiums.

A summary of new business flows on each metric is set out below. Comparisons against the corresponding period are on an actual currency basis.

Year ended
Six months ended
31 December 30 June
2009 2008 Change 2009
£m £m % £m
Compensation Credit 5.3 6.7 (20.9)% 11.6
Present Value of New Business Premiums 73.5 93.0 (21.0)% 166.2
Annualised Premium Equivalent 9.8 12.3 (20.3)% 22.4

New business flows in Q2 2010 of £40.9m on the basis of Present Value of New Business Premiums ("PVNBP") are 25% above the flows of Q1 2010. The calculation of PVNBP is equal to total single premium sales in the period plus the discounted value of premiums expected to be received over the term of new regular premium policies, and is calculated at the point of sale.

New business for the six-month period ended 31 December 2009 (H1 2010) of £73.5m on a PVNBP basis is approximately 21% below the level of the corresponding period of the previous financial year, reflecting primarily the stronger overall economic conditions in Q1 2009. By comparison, at the end of Q1 2010 the shortfall versus the comparable period was approximately 36%. New business received since Q1 exceeds the levels of the corresponding period.

The tables below provide a summarised breakdown of PVNBP, analysed between single and regular premiums, and also by residence of policyholder, with comparisons on an actual currency basis:
Six months ended Year ended
31 December 31 December 30 June

£m £m £m

By type of product
Regular premium 32.2 40.7 62.4
Single premiums 41.3 52.3 103.8
73.5 93.0 166.2

By geographical area
EU and EEA 31.4 40.1 80.1
Latin America 17.6 16.0 27.0
Far East 13.6 17.5 31.0
Rest of World 10.9 19.4 28.1
73.5 93.0 166.2

Hansard receives business from a well-diversified portfolio of intermediaries around the world, which results in new business being received in a range of currencies. New business premiums received in currencies other than Sterling are translated at the rates of exchange ruling on the transaction date. In line with the Group's principal new business production areas, approximately half of new business premiums continue to be received in US Dollar, with a further 30% received in Euro.

3.2 New business margins

Throughout the period under review the Group has written new business on profitable terms and has maintained new business margins that meet the Group's return requirements. New business margins for H1 2010 are 6.9% on the PVNBP basis (up from 5.8% at Q1 2010). This increase is primarily due to the change in mix of sales towards higher-margin regular-premium business, and continued expense management.

3.3 Return on investment in new business

The underlying profitability of new business written by the Group remains consistently above levels enjoyed by a majority of competitors. The Internal Rate of Return (IRR) of new business written during the period remains in excess of 15% per annum, while initial capital invested in new business is returned, on average, within three years. Additional details are reflected within the EEV information. 3.4 New business developments The Group continues to invest in distribution infrastructure and to develop further intermediary relationships with a view to expanding the range of investment opportunities for policyholders.

3.4.1 Recruitment of Account Executives

At 31 December 2009 the Group has a total of 17 Account Executives (31 December 2008: 19) providing local language and other support to intermediaries. Despite global market uncertainty, selective recruitment of Account Executives continues, in line with the Group's policy of expanding its reach amongst suitable intermediaries in the Group's target markets. An individual has recently been recruited to support intermediaries in eastern Europe.

Recruitment activity continues in various markets to increase the number of Account Executives by year-end.

3.4.2 Development of Hansard OnLine

The development of Hansard OnLine has continued in response to intermediary requirements, with reports now available in Mandarin and Japanese. German has recently been added, increasing the number of languages to ten. Intermediaries can upload scanned documents directly to the company, reducing the need (and eliminating the cost) in a number of cases for copies to be faxed or couriered. Further reflecting the Group's ability to improve new business turnaround times and reduce processing cost, an online new business facility is being tested.

4. Net Asset Value

The net asset value per share ("NAV") at 31 December 2009, on an IFRS basis, is 39.9p, following the payment of interim and final dividends totalling 12.6p per share since 31 December 2008. This represents a marginal decrease from the NAV at that date of 40.4p. The NAV is based upon the consolidated shareholders' funds at the balance sheet date divided by the number of shares in issue at that date.

On the EEV basis, the NAV at 31 December 2009 is 184.0p. This represents a decrease of 5.7% or 11.1p from the NAV at 31 December 2008.

5. Capitalisation and Solvency

The Group continues to be substantially capitalised to satisfy operational, regulatory and policyholder expectations. At the balance sheet date the Group's capital position in relation to the regulatory requirements of subsidiary companies is as set out below. Following increases in the aggregate minimum regulatory margins in the period, the required margins are covered 14.8 times (H1 2009: 16.7 times) by the Group's capital resources.

As at As at
31 December 30 June

£m £m £m
Shareholder cash and short term investments 81.8 59.3 75.9
UK Treasury Stock - 13.9 -
Other net (liabilities)/assets (7.8) 0.1 (0.9)
Capital available to meet regulatory requirements 74.0 73.3 75.0
Aggregate minimum regulatory margin 5.0 4.4 4.6

The following factors are relevant to an understanding of the Group's capital position:

· The relatively low minimum solvency requirement reflects the fact that the Group does not have options or guarantees on its investment portfolio, is not exposed to longevity risk through an annuity book and uses a prudent reassurance programme to manage the mortality and morbidity risks of the life businesses.
· Assets supporting solvency requirements are prudently managed.
6. Operational and financial risks

The Board believes that the principal risks facing the Group are those relating to the operation of the Group's business model and to the environment within which the Group operates. The Group has designed its products, distribution methods and cost base with a view to reducing operational and financial risk.

An Enterprise-wide Risk Management programme is in place to manage the significant risks faced by the Group. Details of the ERM frameworks and the principal risks facing the Group remain as set out in the Annual Report & Accounts for the year ended 30 June 2009.

A summary of the principal financial risks faced by the Group, and an estimate of the potential financial impact on IFRS results, is set out in note 15 to these financial statements. Additionally, the EEV Information includes a summary of the sensitivity of the Group's EEV results to economic and other factors.

Consolidated Income Statement

Six months ended Year ended
31 December 31 December 30 June

Notes £m £m £m
Fees and commissions 5 26.8 25.7 51.4
Investment income 181.0 (43.8) (140.6)
Other operating income 0.2 0.2 0.7
208.0 (17.9) (88.5)
Investment contract benefits 11 (179.9) 50.0 146.6
Origination costs (8.8) (8.3) (16.4)
Administrative and other expenses 6 (9.8) (10.7) (20.9)
(198.5) 31.0 109.3
Profit on ordinary activities before taxation 9.5 13.1 20.8
Taxation on profit on ordinary activities 7 (0.3) (0.4) (0.7)
Profit for the period after taxation 9.2 12.7 20.1

The Group has no other items of Comprehensive Income and as such has not presented a separate condensed consolidated Statement of Comprehensive Income.

Earnings Per Share
Six months ended Year ended
31 December 31 December 30 June

Note (p) (p) (p)

Basic 8 6.7 9.3 14.7

Diluted 8 6.7 9.3 14.7

Consolidated Statement of Changes in Equity

Share Other Retained
capital reserves earnings Total
Note £m £m £m £m
Shareholders' equity at 30 June 68.6 (48.5) 32.3 52.4

Profit for the financial period,
being total comprehensive income - - 12.7 12.7

for the period

Dividends 9 - - (9.6) (9.6)
Shareholders' equity at 31 December 2008 68.6 (48.5) 35.4 55.5
Share Other Retained
capital reserves earnings Total
Note £m £m £m £m
Shareholders' equity at 30 June 68.6 (48.5) 35.6 55.7

Profit for the financial period,
being total comprehensive income - - 9.2 9.2

for the period

Dividends 9 - - (10.1) (10.1)
Shareholders' equity at 31 December 2009 68.6 (48.5) 34.7 54.8

Consolidated Balance Sheet

31 December 31 December 30 June

Notes £m £m £m

Assets

Deferred origination costs 103.3 104.6 104.1
Property, plant and equipment 0.9 1.2 1.1
Financial investments 1,017.8 928.8 822.1
Equity securities 156.7 63.2 147.9
Investments in collective investment schemes 821.0 805.5 642.0
Fixed income securities 40.1 60.1 32.2
Other receivables 12.5 23.5 22.3
Cash and cash equivalents 227.2 229.7 246.5
Total assets 1,361.7 1,287.8 1,196.1

Liabilities

Financial liabilities under investment
contracts 10, 11 1,161.9 1,093.4 1,002.1

Deferred income reserve 124.8 121.0 125.2

Amounts due to investment
contract holders 13.4 10.3 9.2
Other payables 6.8 7.6 3.9
Total liabilities 1,306.9 1,232.3 1,140.4
Net assets 54.8 55.5 55.7

Shareholders' equity
Called up share capital 12 68.6 68.6 68.6
Other reserves (48.5) (48.5) (48.5)
Retained earnings 34.7 35.4 35.6
Total shareholders' equity 54.8 55.5 55.7

Consolidated Cash Flow Statement

Six months ended Year ended
31 December 31 December 30 June

£m £m £m

Cash flow from operating activities
Profit before tax for the period 9.5 13.1 20.8

Adjustments for:
Depreciation 0.3 0.3 0.5
Dividends receivable (1.4) (1.6) (3.1)
Interest receivable (0.6) (4.1) (5.8)
Foreign exchange (gain)/loss (0.5) (2.7) (0.8)
Profit on sale of investments - - (1.0)
Unrealised (gain) / loss on shareholder investments - (1.0) 0.1

Changes in operating assets and liabilities
Decrease / (increase) in debtors 9.8 (3.6) (0.1)
Dividends received 1.4 1.6 3.1
Interest received 1.1 4.1 6.2
Decrease / (increase) in deferred origination costs 0.8 (2.1) (1.6)
(Decrease) / increase in deferred income reserve (0.4) 4.5 8.7
Increase / (decrease) in creditors 7.1 (1.7) (5.7)
(Increase)/ decrease in financial investments (195.7) 66.3 199.2
Increase / (decrease) in financial liabilities 153.7 (21.4) (144.8)
Cash (used by)/generated from operations (14.9) 51.7 75.7
Corporation tax paid (0.3) - (1.1)
Net cash (used by)/generated from operations (15.2) 51.7 74.6

Cash flows from investing activities
Purchase of plant and equipment (0.1) (0.5) (0.7)
Proceeds from sale of investments - - 14.0
Purchase of investments - - (0.1)
Net cash flows from investing activities (0.1) (0.5) 13.2

Cash flows from financing activities
Dividends paid (10.1) (9.6) (16.8)
Net (decrease) / increase in cash and cash equivalents (25.4)
41.6 71.0
Cash and cash equivalents at beginning of period 246.5 166.2 166.2
Effect of exchange rate changes 6.1 21.9 9.3
Cash and cash equivalents at period end 227.2 229.7 246.5

Notes to the Condensed Consolidated Financial Statements

1 General information

The principal activity of the Company is to act as the holding company of the Hansard Group of companies. The activities of the principal operating subsidiaries include the transaction of life assurance business and related activities.

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

These condensed consolidated half-yearly financial statements were approved for issue on 24 February 2010.

These condensed consolidated half-yearly financial statements do not comprise statutory financial statements and are unaudited. The board of directors approved the statutory financial statements for the year ended 30 June 2009 on 23 September 2009. The report of the auditor on those financial statements was unqualified and did not contain an emphasis of matter paragraph. 2 Basis of presentation These condensed consolidated half-yearly financial statements for the half-year ended 31 December 2009 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority ("DTR") and with IAS 34 'Interim Financial Reporting' as adopted by the European Union ("EU"). The condensed consolidated half-yearly financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2009, which were prepared in accordance with International Financial Reporting Standards, as adopted by the EU.

Except where otherwise stated, all figures included in the condensed consolidated half-yearly financial statements are stated in pounds sterling, which is also the functional currency of the Company, rounded to the nearest hundred thousand pounds.

3 Accounting policies

Except as described below, the significant accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2009 and can be accessed on the Company's website: www.hansard.com.

The Group adopted IFRS 8, 'Operating Segments' with effect from 1 July 2009. IFRS 8 requires an entity to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. IFRS 8 requires an entity to identify its reportable segments and disclose information on those segments. Adoption of IFRS 8 has had no impact on the reported results or the financial position of the Group.

4 Segmental information

The Group adopted IFRS 8, 'Operating Segments' with effect from 1 July 2009. In the opinion of the executive committee (the chief operating decision maker), the Group operates in a single reportable segment, that of the distribution and servicing of long-term investment products through the Group's subsidiaries.

A summary of new business flows on the PVNBP basis by region is contained in the Interim Management Report. Other segmental information is provided below. Revenues and expenses allocated to those locations reflect the revenues and expenses generated in or incurred by the legal entities in those locations.
4.1 Geographical analysis of fees and commissions by origin
Six months ended Year ended
31 December 31 December 30 June

£m £m £m
Isle of Man 20.1 19.3 38.0
Republic of Ireland 6.7 6.4 13.4
26.8 25.7 51.4

4.2 Geographical analysis of profit before taxation
Six months ended Year ended
31 December 31 December 30 June

£m £m £m
Isle of Man 7.3 8.9 15.9
Republic of Ireland 2.2 4.2 4.9
9.5 13.1 20.8

4.3 Geographical analysis of gross assets
31 December 31 December 30 June

£m £m £m
Isle of Man 922.2 822.7 804.4
Republic of Ireland 439.5 465.1 391.7
1,361.7 1,287.8 1,196.1

4.4 Geographical analysis of gross liabilities
31 December 31 December 30 June

£m £m £m
Isle of Man 882.1 786.2 763.4
Republic of Ireland 424.8 446.1 377.0
1,306.9 1,232.3 1,140.4

5 Fees and commissions
Six months ended Year ended
31 December 31 December 30 June

£m £m £m
Contract fee income 18.2 17.6 35.6
Fund management charges 6.6 6.1 12.4
Commission receivable 2.0 2.0 3.4
26.8 25.7 51.4

6 Administrative and other expenses
Included in Administrative and other expenses is the following:
Year ended
Six months ended
31 December 31 December 30 June

£m £m £m

Auditors' remuneration

accounts

legislation
Employee costs 4.3 4.7 9.3
Directors' fees 0.1 0.1 0.2
Renewal and other commission 0.5 0.5 1.5
Investment management fees 1.9 2.0 3.9
Depreciation of plant and equipment 0.3 0.3 0.5
Licences and maintenance fees 0.3 0.2 0.5
Insurance costs 0.3 0.3 0.6
Communications 0.2 0.2 0.4
Operating lease rentals 0.3 0.3 0.7
Professional and other fees 0.7 0.6 1.1

7 Taxation

The Group's profits arising from its Isle of Man-based operations are taxable at zero percent.

Corporation tax for the Republic of Ireland-based operations is based on the effective annual rate for taxable income of 12.5%, applied to the expected taxable profits for the period.

Six months ended Year ended
31 December 31 December 30 June

£m £m £m
Corporation tax 0.3 0.4 0.7

8 Earnings per share

Earnings per share is based upon the profit for the period after taxation divided by the average number of shares in issue throughout the period. There is no significant difference between earnings per share and fully-diluted earnings per share.

Six months ended Year ended
31 December 31 December 30 June

Profit after tax (£m) 9.2 12.7 20.1

Weighted average number of shares in issue 137,281,202 137,281,202 137,281,202
Earnings per share in pence 6.7 9.3 14.7
9 Dividends
Six months ended Year ended
31 December 31 December 30 June

£m £m £m
Final dividend of 7.35p per share paid on 10.1 - -

20 November 2009
Interim dividend of 5.25p per share paid - - 7.2

on 1 April 2009 Final dividend of 7p per share paid on 27
November 2008 - 9.6 9.6
Total 10.1 9.6 16.8

The directors have resolved to pay an interim dividend of 5.50 pence per share. This amounts to £7.5m and will be paid on 31 March 2010 to shareholders on the register at 5 March 2010. This interim dividend has not been recognised as a liability in these half-yearly financial statements.

10 Financial investments held to cover liabilities under investment contracts 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 consolidated balance sheet.
31 December 31 December 30 June

£m £m £m

Assets
Equity securities 156.7 63.2 147.9
Investment in collective investment schemes 820.6 805.2 641.8
Fixed income securities 40.1 46.2 32.2
Cash and cash equivalents 145.6 170.4 170.6
Other receivables 1.3 10.5 11.9
Total 1,164.3 1,095.5 1,004.4
Other payables (2.4) (2.1) (2.3)
Financial investments held to cover 1,161.9 1,093.4 1,002.1

liabilities

11 Financial liabilities under investment contracts
31 December 31 December 30 June

£m £m £m
Deposits to investment contracts 67.3 95.4 188.6
Deductions from investment contracts (87.4) (89.4) (177.3)
Investment contract benefits 179.9 (50.0) (146.6)
159.8 (44.0) (135.3)
Opening balance 1,002.1 1,137.4 1,137.4
Closing balance 1,161.9 1,093.4 1,002.1

The value of these financial liabilities is determined by the fair value of financial investments held to cover liabilities at the balance sheet date.

12 Called up share capital
31 December 31 December 30 June

£m £m £m

Authorised:
200,000,000 ordinary shares of 50p 100 100 100

Issued and fully paid:
137,281,202 ordinary shares of 50p 68.6 68.6 68.6
13 Foreign exchange rates

The closing exchange rates used by the Group for the translation of balance sheet items from US$ and EUR to sterling were as follows:
31 December 31 December 30 June

US Dollar 1.62 1.45 1.65
Euro 1.13 1.05 1.18
14 Related party transactions

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

There have been no significant changes to related parties or related party transactions in the period. 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 2009.

There have been no significant awards during the period under the Save As You Earn (SAYE) share-save programme for employees implemented during the previous financial year. The estimated fair value of the scheme and the imputed cost for the period under review is not material to these financial statements.

15 Financial Risk management The Group's operations expose it to a variety of financial risks. 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 principal method by which the Group seeks to manage risk is through the operation of unit-linked business, whereby the policyholder bears the financial risk relating to the financial assets and liabilities arising from such contracts.

Under the unit-linked investment contracts that are written by the Group, policyholders bear the investment risk on the assets in the unit-linked funds, as the policy benefits are directly linked to the fair value of the assets. These assets are managed consistent with the expectations of the policyholders. By definition, there is a precise match between the investment assets and the policyholder liabilities, and so the market risk and credit risk lie with policyholders.

The shareholders' exposure is limited to the extent that certain contract income is based on the value of assets in the funds.

Information concerning the operation of the frameworks to manage financial and other risks is contained in pages 25-28 of the Report & Accounts for the year ended 30 June 2009, and in note 22 thereto, 'Financial risk management'. There have been no significant changes to the frameworks in the period to 31 December 2009.

The more significant financial risks to which the Group is exposed, and an estimate of the potential financial impact of each on the Group's IFRS earnings, are set out below. For each category of risk, the Group determines its risk appetite and sets its investment, treasury and associated policies accordingly.

15.1 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.

(a) Price risk

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% pa, are based on the market value of assets under administration. Similarly, due to the fact that some of these charges may be deducted from policies in foreign currency, a change in foreign exchange rates relative to Sterling can result in fluctuations in management fee income and expenses reflected in these financial statements. The approximate impact on shareholder profits and equity of a 10% change in unit-linked fund values, either as a result of price or currency fluctuations, is £1.6m (H1 2009: £1.5m) in a financial year.

(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. The Group controls its exposure to interest rate risk by managing its treasury balances on a short-term basis.

A change of 1% p.a. in interest rates will result in an increase or decrease of approximately £0.8m (H1 2009: £0.5m) in the Group's equity and annual investment income.

(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.

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.

(c) (i) Group foreign currency exposures

The Group is exposed to currency risk on the foreign currency denominated bank balances and other net operating assets that it holds to the extent that they do not match liabilities in those currencies. The Group's currency risk is minimised by frequent repatriation of excess foreign currency funds to sterling. At the balance sheet date the Group had exposures in the following currencies:

31 December

US$m EURm US$m EURm
Gross assets 10.4 20.3 12.1 19.5

Matching currency liabilities (9.2) (5.2) (6.4) (6.2)
1.2 15.1 5.7 13.3

Amounts totalling EUR10.9m held at the balance sheet date (H1 2009: EUR5.1m) represent capital in Hansard Europe Limited held in currency to meet regulatory and other commitments.

(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.

At the balance sheet date the analysis of financial investments by currency denomination is as follows:

31 December 30 June

Currency % % %
US Dollars 45 39 42
Euro 30 38 34
Sterling 15 16 16
Others 10 7 8

15.2 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's main exposure to credit risk is in relation to deposits with credit institutions and investments in highly-rated Money market funds. These investments are made in accordance with established policy regarding minimum credit rating profile.

An analysis of the Shareholders' cash and cash equivalent balances and liquid investments is as follows:

31 December 30 June

£m £m £m
Deposits with institutions 19.5 11.5 15.6
Money market funds 62.1 47.8 60.3
81.6 59.3 75.9
UK Government stock - 13.9 -
81.6 73.2 75.9

Maximum counterparty exposure limits are set both at an individual subsidiary company level and on a Group wide basis. There have been no changes to fair value as a result of credit risk.

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

Statement of directors' responsibilities

The directors, whose names are reflected on the company's website, www.hansard.com, confirm that, to the best of their knowledge, this condensed set of consolidated half yearly financial statements has been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8: namely,

· An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

· Material related-party transactions in the first six months and any material changes in the related-party transactions in the last annual report.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the Isle of Man governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By order of the Board

G S Marr

Managing Director

M Dyson

Director

24 February 2010

Independent review report to Hansard Global plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2009, which comprises the consolidated income statement, the statement of changes in equity, the consolidated balance sheet, the consolidated cash flow statement and related notes.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the United Kingdom's Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the International Auditing and Assurance Standards Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers Chartered Accountants

Douglas, Isle of Man

24 February 2010

EUROPEAN EMBEDDED VALUE INFORMATION

1. INTRODUCTION

The European Embedded Value (EEV) is an estimate of the value of the shareholders' interest in the Group. It comprises net worth and the value of future profits from business in-force at the valuation date, 31 December 2009.

This EEV information covers the entire business of the Group, including its life assurance companies and subsidiaries providing administration, distribution and other services. It excludes the value of any future new business that the Group may write after the valuation date. All results are calculated net of corporation tax. The Group does not have any debt or financial reinsurance arrangements in place at the valuation date.

2. EEV PROFIT

EEV profit provides a measure of the Group's performance over the half-year ended 31 December 2009 ("H1 2010").

EEV results for the period reflect that the Group has written profitable new business throughout the period. EEV continues to be affected by reduced new business volumes and policyholder behaviour, particularly in relation to premium reductions. However, as a result of the profitable new business written during the period, the persistency of cash flows and the lack of options, guarantees or other such features within the products issued by the Group, EEV profit remains strong.

The components of EEV profit after tax are set out in the table below.

Year
Six months ended ended
31 December 31 December 30 June

£m £m £m
New business contribution 5.1 6.5 10.1
Expected return on existing business 2.8 4.8 9.7
Experience variances (1.6) (2.7) (5.3)
Operating assumption changes (0.1) 0.0 (8.0)
Expected return on net worth 1.1 1.4 2.8
Model and regulatory changes (0.2) 1.3 2.0
EEV operating profit after tax 7.1 11.3 11.3
Investment return variances 18.8 17.6 (2.1)
Economic assumption changes 0.0 5.5 1.1
EEV profit after tax 25.9 34.4 10.3
2.1 EEV operating profit

EEV operating profit after tax is £7.1m (H1 2009: £11.3m), a half-yearly return on EEV of 3.0% (H1 2009: 4.6%). Although the Group continues to experience low sales volumes, the new business written during the period was profitable. The value added from new business is £5.1m, which is down 22% on £6.5m in H1 2009, but up 42% on £3.6m in H2 2009.

Lower interest rates have reduced the expected return on existing business and net worth, compared with previous periods while experience variances have reduced EEV operating profit by £1.6m in the period, an improvement on the reduction of £2.7m in H1 2009.

Model, regulatory and operating assumption changes have reduced the EEV operating profit by £0.3m, compared to an increase of £1.3m in H1 2009.

2.2 EEV profit

EEV profit after tax is £25.9m (H1 2009: £34.4m), which is equivalent to a half-yearly return on EEV of 10.9% (H1 2009: 14.2%).

Movements in stock market prices and foreign exchange rates over the period have significantly increased EEV profit. The general increase in stock market prices, which affects the value of fund-based income in the period and in the future, has increased EEV profit by £13.7m (H1 2009: £27.8m loss). This includes an EEV reduction to reflect the loss of future management charges arising from the suspension of certain external managed funds. Movements in foreign exchange rates over the period have increased EEV profit by £6.1m (H1 2009: £44.6m profit). Lower interest rates have reduced the actual return on net worth by £1.0m (H1 2009: £0.9m profit) over the period. In aggregate, investment experience and economic assumption changes have increased EEV profit by £18.8m (H1 2009: £23.1m profit).

2.3 New business contribution

The effect of the recession on the insurance long-term savings market continues to impact on the Group's sales activity. New business contribution (NBC) for the half-year is £5.1m and although this is down 22% on H1 2009 (£6.5m), it is up 42% on H2 2009 (£3.6m). This supports management's tentative view that investors appear to be re-entering the market.

Current levels of new business are reflected in an acquisition expense overrun of £1.5m (H1 2009: £1.4m overrun) in the half-year, which has reduced the contribution from new business and hence the new business margin.

2.4 Expected return on existing business

The expected return on existing business of £2.8m (H1 2009: £4.8m) is the increase in the value of future profits over the period, and in new business between the point of sale and the end of the period, due to the time value of money. It is based on the 3.3% assumption for the risk discount rate at the previous financial year-end. The large reduction in this return from the corresponding period last year is primarily due to lower interest rates. A rate of 5.0% was applicable to the corresponding period.

2.5 Experience variances

Experience variances arise where the Group's actual experience in areas such as expenses, policy persistency, premium persistency, mortality and fees from policyholder activity differs during the period from the assumptions used to calculate the EEV at the previous year-end.

Experience variances gave rise to an EEV loss of £1.6m in the period (H1 2009: £2.7m loss). This loss arose mainly from more policyholders reducing their premiums than was reflected in the EEV calculation at the previous year-end. In part, this is due to current premium-reduction experience being worse than the long-term expectation used in the EEV calculation. For this reason, a negative variance is expected to remain present from this source in the short term.

In addition, there has been a trend in recent months of policyholders reducing premiums rather than surrendering policies. This is supported by a large improvement in lapse experience over the same period. There is a small negative variance arising from more policies becoming paid-up in the period than expected, however, the size of this variance has improved significantly since last year. Mortality experience is positive with fewer than expected deaths in the period. Partial withdrawals experience was as expected. In aggregate, persistency experience has improved over the period. Maintenance expense experience is marginally better than expected which resulted in a small renewal expense underrun. Lower levels of policyholder switching activity have reduced shareholder margins from that source.

2.6 Operating assumption changes

Operating experience continues to be broadly in line with assumptions and has remained unchanged with the exception of two minor assumption items, both relating to expenses met directly by policyholders. Such expenses reduce policyholder fund values and hence indirectly reduce future fund-based charges. These operating assumption changes reduced EEV operating profit by £0.1m (H1 2009: £Nil).

2.7 Expected return on net worth

The expected return on net worth of £1.1m (H1 2009: £1.4m) reflects the anticipated increase to shareholder assets over the period due to the time value of money and its calculation is based on the 3.3% risk discount rate at the previous financial year-end. The large reduction in this return from the corresponding period last year is primarily due to lower interest rates.

2.8 Model and regulatory changes

During the period, a number of minor improvements made to the model resulted in a small reduction to EEV of £0.1m (H1 2009: £1.3m profit). In addition, a regulatory change to the minimum solvency threshold in Europe from EUR3.2m to EUR3.5m has increased the cost of capital by £0.1m (H1 2009: £Nil).

2.9 Investment return variances

The impact of market and other external conditions gave rise to an EEV investment return profit of £18.8m in the half-year (H1 2009: £17.6m profit). The general increase in capital market levels and the movement in foreign exchange rates over the period have significantly increased EEV profit. Investment performancehas been reduced to reflect the loss of future management charges arising from the suspension of certain external managed funds. Lower interest rates have reduced the actual return on net worth over the period. Commissions received from fund houses in the half-year have increased as market and investor confidence begins to return with investors moving out of deposit-type funds into commission-paying funds.

The main elements contributing to this profit are as follows:
Year
Six months ended Ended
31 December 31 December 30 June

£m £m £m
Investment performance of policyholder 13.7 (27.8) (25.2)

funds
Exchange rate movements 6.1 44.6 24.9
Commissions receivable 0.0 (0.1) (0.7)
Other (1.0) 0.9 (1.1)
Investment return variances 18.8 17.6 (2.1)
2.10 Economic assumption changes

Economic assumptions remained unchanged at their year-end levels (in fact, they reduced marginally by the end of Q1 2010, but increased again by the end of H1 2010). This resulted in no change to EEV profit over the half-year (H1 2009: £5.5m profit). The large profit experienced in the corresponding period last year was due to a 2.0% drop in interest rates over that period

3. DETAILED ANALYSIS OF EEV PROFIT

The table below shows an analysis of EEV profit after tax split between net worth, the value of in-force covered business (VIF), non-market risk and frictional costs.

3.1 EEV reconciliation by component

The analysis facilitates the reconciliation of EEV, presented in section 4.2, between the start and the end of the period. The detailed level of the analysis allows the reconciliation to be performed separately for each of the four components: net worth, VIF, non-market risk and frictional costs.

3.2 Link to IFRS accounts

The analysis, when combined with the reconciliation of net worth in section 4.3, provides a reconciliation of EEV profit and IFRS profit. Note that the total profit recognised over the lifetime of a policy under EEV methodology is the same as reported under IFRS, but the timing of recognition is different.

3.3 Movement between VIF and net worth

The analysis attempts to illustrate, in particular, the movement of cash flows between VIF and net worth during the period.
Movement In: Six months ended 31 December 2009 Six months ended31 December 2008
Non- Non-
Net market Frictional Net market Frictional
EEV worth VIF risk costs EEV worth VIF risk costs
£m £m £m £m £m £m £m £m £m £m
New business contribution 5.1 0.0 5.1 0.0 0.0 6.5 0.0 6.5 0.0 0.0
Expected return on existing 2.8 12.2 (9.3) (0.1) 0.0 4.8 13.8 (8.9) (0.1) 0.0

business
Experience variances (1.6) (1.5) (0.1) 0.0 0.0 (2.7) (2.7) 0.0 0.0 0.0
Operating assumption changes (0.1) 0.0 (0.1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Expected return on net worth 1.1 1.1 0.0 0.0 0.0 1.4 1.4 0.0 0.0 0.0
Modeland regulatorychanges (0.2) 0.0 (0.1) 0.0 (0.1) 1.3 0.0 1.3 0.0 0.0
EEV operating profit 7.1 11.8 (4.5) (0.1) (0.1) 11.3 12.5 (1.1) (0.1) 0.0

after tax

Investment return variances 18.8 (0.9) 19.7 0.0 0.0 17.6 1.6 16.1 0.0 (0.1)
Economic assumption changes 0.0 0.0 0.0 0.0 0.0 5.5 0.0 5.5 0.0 0.0
EEV profit after tax 25.9 10.9 15.2 (0.1) (0.1) 34.4 14.1 20.5 (0.1) (0.1)
4. EMBEDDED VALUE
4.1 EEV balance sheet

The Group's EEV has risen by £15.8m from £236.6m at 30 June 2009 to £252.4m at 31 December 2009, following the payment of dividends totalling £10.1m in the period. The EEV balance sheet is presented below.

31 December 31 December 30 June

£m £m £m
Free surplus 53.2 47.9 53.3
Required capital 15.8 13.5 14.9
Net worth 69.0 61.4 68.2
VIF 189.8 212.5 174.6
Reduction for non-market risk (5.6) (5.4) (5.5)
Frictional costs (0.8) (0.6) (0.7)
Value of future profits 183.4 206.5 168.4
EEV 252.4 267.9 236.6
4.2 Reconciliation of EEV

The following table provides a reconciliation of the opening and closing EEV.

Six months ended 31 December 2009 Six months ended31 December 2008
EEV Net VIF Non-market Frictional EEV Net VIF Non-market Frictional
worth risk costs worth risk costs
£m £m £m £m £m £m £m £m £m £m
Opening 236.6 68.2 174.6 (5.5) (0.7) 243.1 56.9 192.0 (5.3) (0.5)
EEV profit 25.9 10.9 15.2 (0.1) (0.1) 34.4 14.1 20.5 (0.1) (0.1)
262.5 79.1 189.8 (5.6) (0.8) 277.5 71.0 212.5 (5.4) (0.6)
Dividends paid (10.1) (10.1) 0.0 0.0 0.0 (9.6) (9.6) 0.0 0.0 0.0
Closing 252.4 69.0 189.8 (5.6) (0.8) 267.9 61.4 212.5 (5.4) (0.6)
4.3 Reconciliation of net worth

The following table provides a link between the EEV and IFRS net worth.

EEV net worth is the market value of the shareholders' funds, determined on an IFRS basis, adjusted to exclude certain assets such as the deferred origination costs and other debtor assets recognised in the VIF, and certain liabilities such as the deferred income reserve.

31 December 31 December 30 June

£m £m £m
IFRS net asset value 54.8 55.5 55.7
IFRS deferred origination costs (103.3) (104.6) (104.1)
IFRS deferred income reserve 124.8 121.0 125.2
IFRS debtor recognised in VIF (7.3) (10.5) (8.6)
EEV net worth 69.0 61.4 68.2
Value of future profits 183.4 206.5 168.4
EEV 252.4 267.9 236.6

IFRS deferred origination costs are accounting assets, which affect the timing of IFRS profit but do not have any economic value. They are removed so as to avoid any double counting of future margins recognised in the VIF. IFRS deferred income reserve is an accounting liability that spreads fees on premiums received, for example establishment fees charged to policyholder funds in the period after policy inception. It affects the timing of IFRS profit and does not have any economic value and is removed so as to avoid any double counting of future margins recognised in the VIF. IFRS debtor relates to future establishment fees and since they are incurred after the valuation date are recognised in the VIF. They are not included in the EEV net worth.

4.4 Profit emergence

In general, the faster future cash flows (recognised in the VIF) are expected to emerge into net worth, the more certainty there is that those cash flows will be received at their anticipated levels and hence the more certainty there is about the EEV itself.

As at 31 December 2009, the value of future profits is £183.4m. Over a quarter of these profits are expected to convert into net worth within 2 years, half within 5 years and three quarters within 10 years. This reflects a fast conversion of future cash flows to net worth, as required by the Group's pricing methodology.

5. NEW BUSINESS PROFITABILITY

The underlying profitability of new business written by the Group remains consistently above levels enjoyed by competitors. Set out below are indicators of the Group's profitability on a range of market metrics.

5.1 New business margin

New business margin is defined as new business contribution (NBC) divided by Present Value of New Business Premiums (PVNBP).

NBC for the half-year is £5.1m (H1 2009: £6.5m).This represents the present value of the expected stream of shareholder cash flows after tax from new business written in the period.

PVNBP for the half-year is £73.5m (H1 2009: £93.0m) and represents the total single premium sales in the half-year plus the discounted value of regular premiums expected to be received over the term of new regular premium policies, and is calculated at the point of sale.

The new business margin for the half-year is 6.9% (H1 2009: 7.0%) on a PVNBP basis, up from 6.1% for the year ended 30 June 2009. Margins remain consistently above levels enjoyed by a majority of competitors. The increase is primarily due to the change in mix of sales towards higher-margin regular-premium business. A proportion of the Group's cost base is relatively fixed in nature, so the current low level of sales has contributed to an acquisition expense overrun of £1.5m (H1 2009: £1.4m overrun) in the half-year, which has reduced the contribution from new business and hence the new business margin.

Year
Six months ended ended
31 December 31 December 30 June

£m £m £m
PVNBP 73.5 93.0 166.2
NBC (net of corporation tax) 5.1 6.5 10.1
New business margin 6.9% 7.0% 6.1%

NBC and PVNBP have been calculated using the same economic assumptions as those used to determine the EEV as at the start of the period and the same operating assumptions used to determine the EEV as at the end of the period.

5.2 Internal rate of return (IRR)

New business requires initial capital investment to cover set-up costs, commission payments, statutory reserves and solvency capital requirements. IRR is a measure of the post tax shareholder return on this initial capital invested. It is defined as the discount rate at which the present value of expected cash flows over the life of new business written in the period is equal to the total capital invested to support the writing of that business. The assumptions for future investment and operating performance are the same as those used in the calculation of the NBC and hence no credit is taken for real returns in excess of risk-free returns. The average IRR on new business written during the period remains in excess of 15% per annum.

5.3 Break-even point (BEP)

BEP indicates how quickly shareholders can expect new business to repay its capital support. In effect, it is defined as the point at which initial capital invested to support the writing of new business in the period (including its share of overhead expenses) is recouped from revenue from that same business. BEP is calculated ignoring the time-value of money. The assumptions for future investment and operating performance are the same as those used in the calculation of the NBC. The average BEP for new business written during the period remains at 3.0 years.

6. EEV SENSITIVITY ANALYSIS

Sensitivities provide an indication of the impact of changes in particular assumptions on the EEV at 31 December 2009 and the NBC for the half-year then ended.

In each sensitivity calculation, all other assumptions remain unchanged, except where indicated. There is a natural correlation between many of the sensitivity scenarios tested, so the impact of two occurring together is likely to be less than the sum of the individual sensitivities. No changes to statutory valuation bases, pricing bases and required capital have been included. No future management action has been modelled in reaction to the changing assumptions. For new business, the sensitivities reflect the impact of a change immediately after inception of the policy.

Impact on: EEV NBC
£m £m
At 31 December 2009 252.4 5.1

Operating sensitivities

10% increase in expenses (5.2) (0.3)
100bp increase in expense inflation (3.8) (0.2)
100bp increase in charge inflation 3.2 0.2
100bp increase in expense & charge inflation (0.6) (0.0)
10% decrease in lapse rates 3.5 0.2
10% increase in paid-up rates (1.0) (0.1)
10% decrease in mortality rates 0.4 0.0
10% increase in partial withdrawals (1.5) (0.1)
10% increase in premium reductions (0.4) (0.0)
10% increase in premium holidays (0.3) (0.0)

Economic sensitivities

100bp decrease in risk discount rate 9.8 0.6
100bp decrease in investment return rate (7.3) (0.3)
100bp decrease in risk discount rate & investment return rate 1.8 0.3
10% decrease in the value of equities and property (11.0) 0.0
10% increase in sterling exchange rates (16.6) (0.6)
10% decrease in commissions receivable (2.9) (0.1)
Reduce required capital to minimum requirement 0.0 0.0

The sensitivity analysis indicates that the Group's exposure to operating factors is limited, largely as a result of product design. The Group is primarily exposed to economic factors. In particular, it is exposed to movements in equity, property and currency values, through the impact on the level of future fund-based management income.

NOTES TO THE EUROPEAN EMBEDDED VALUE INFORMATION

BASIS OF PREPARATION OF EEV

EEV Principles

The Group's EEV methodology complies fully with the set of EEV Principles published by the CFO Forum in May 2004 and extended in October 2005. It has been calculated using market consistent economic assumptions and best estimate operating assumptions having regard for the Group's own past, current and expected future experience.

MCEV Principles©

In June 2008, the CFO Forum published the European Insurance CFO Forum Market Consistent Embedded Value Principles (MCEV Principles) (Copyright© Stichting CFO Forum Foundation 2008) with a view to bringing greater consistency and improved disclosure to the European insurance industry's embedded value disclosures. In October 2009, they amended the MCEV Principles to allow for a liquidity premium. The CFO Forum believes that MCEV reporting will be mandatory for CFO members after 2011.

The Group's EEV is already calculated on a market-consistent bottom-up basis using interest swap rates to determine the risk discount rate. Therefore, adoption of the MCEV Principles is not expected to have a material financial impact on the embedded value results, although it will necessitate formatting and disclosure changes.

METHODOLOGY

The methodology used to derive the EEV results at the valuation date is consistent with the EEV methodology used in relation to the consolidated financial statements for the half-year ended 31 December 2008 and the year ended 30 June 2009.

OPERATING ASSUMPTIONS

The EEV was calculated using best estimate operating assumptions (e.g. expenses, mortality, lapses, premium persistency, partial withdrawals and policyholder activity) having regard for the Group's own past, current and expected future experience, together with other relevant data. All assumptions were based on the business being part of a going concern.

ECONOMIC ASSUMPTIONS

The principal economic assumptions used in the EEV calculations are actively reviewed at each valuation date and are internally consistent. The principal economic assumptions used are set out below:

31 December 31 December 30 June
Rates per annum 2009 2008 2009
Yield on interest rate swaps 3.3% 3.0% 3.3%
Risk discount rate (VIF calculation) 3.3% 3.0% 3.3%
Risk discount rate (NBC calculation) 3.3% 5.0% 5.0%
Future expense inflation 5.0% 5.0% 5.0%
Corporation Tax - Isle of Man 0% 0% 0%
Corporation Tax - Republic of Ireland 12.5% 12.5% 12.5%

Review of the European Embedded Value ("EEV") of Hansard Global plc for the six months ended 31 December 2009.

Our role

Deloitte LLP has been engaged by Hansard Global plc to act as Reviewing Actuaries in connection with results on an EEV basis published in sections within Hansard Global plc's Results for the six months ended 31 December 2009.

Responsibilities

The EEV Information and the methodology and assumptions underlying it is the sole responsibility of the Directors of Hansard Global plc. It has been prepared by the Directors of Hansard Global plc, and the calculations underlying the EEV Statements have been performed by Hansard Global plc.

Our review was conducted in accordance with generally accepted actuarial practices and processes. It comprised a combination of such reasonableness checks, analytical reviews and checks of clerical accuracy as we considered necessary to provide reasonable assurance that the EEV Information has been compiled free of material error. Our review of half yearly EEV information considered the changes since 30 June 2009 and is substantially less in scope than an annual review and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an annual review.

The EEV Information necessarily makes numerous assumptions with respect to economic conditions, operating conditions, taxes, and other matters, many of which are beyond the Group's control. Although the assumptions used represent estimates which the Directors believe are together reasonable, actual experience in future may vary from that assumed in the preparation of the EEV Information, and any such variations may be material. Deviations from assumed experience are normal, and are to be expected.

The EEV does not purport to be a market valuation of the Group and should not be interpreted in that manner since it does not encompass all of the many factors that may bear upon a market value. For example, it makes no allowance for the value of future new business.

Opinion

On the basis of our limited review, nothing has come to our attention that causes us to retract our opinion that:

· the methodology and assumptions used to prepare the EEV Information comply in all material respects with the European Embedded Values Principles set out by the CFO Forum in May 2004, and additional guidance released in October 2005 (the "CFO Forum Principles");

· the EEV Information has been compiled on the basis of the methodology and assumptions chosen by the Directors of Hansard Global plc, and complies in all material respects with the CFO Forum Principles.

Reliances and Limitations

We have relied on data and information, including the value of net assets, management accounting data and solvency information supplied to us by the Group. Further, we have relied on the terms of the contracts, as they have been reported to us, being enforceable.

We have relied on the reported mathematical reserves, the adequacy of those reserves, and of the methods and assumptions used to determine them. We have assumed that all provisions made in the financial statements for any other liabilities (whether actual, contingent or potential) of whatever nature, are appropriate.

We have also relied on information relating to the current and historical operating experience of the Group's life insurance business, including the results of experience investigations relating to policy persistency, and expense analysis. In forming our opinion, we have considered the assumptions used in the EEV Information in the context of the reported results of those investigations although we have not attempted to predict the impact of potential future changes in the competitive forces in markets on the assumptions.

Yours faithfully

Deloitte LLP

24 February 2010

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other's acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT.

Contacts and Advisors

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Financial Calendar

Ex-dividend date for 3 March 2010
interim dividend 5 March 2010
Record date for interim 31 March 2010
dividend 14 May 2010
Payment date for interim 29 July 2010

dividend
Interim Management Statement 23 September 2010

Announcement of 4thquarter new business

results Preliminary announcement of results

This information is provided by RNS The company news service from the London Stock Exchange

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