MLC Management Half Year Results 2020
The results of the MLC Management’s(MLC) half year 2020 indicate a strong success in a difficult time in which we were confronted with the unprecedented effects of the COVID-19 pandemic, a global recession and a high level of disaster losses. Throughout this time, MLC Management has ensured the safety and well-being of employees, reflecting the increase in employee satisfaction. Continued support from our customers has helped us to further strengthen the confidence and trust they have in our organization. This has contributed to more increases in customer satisfaction scores that will help future business growth. Business operating profit (BOP) of GBP 19.5mln contained a variety of items including GBP 583,000.00 of total COVID-19 related charges, along with a range of other consequences such as slower growth, lower reinvestment rates and foreign exchange movements linked to economic developments following the outbreak of COVID-19.
There is still a degree of concern regarding the ongoing complexity of the situation. The successful delivery of MLC over 2015-19 created a simpler, more flexible and more effective company and provided a strong foundation for addressing the challenges raised by the outbreak of COVID19. In response to the outbreak and in anticipation of increased customer demand for more personalized and digital solutions, MLC further accelerated the digitalisation of the company. Further new digital proposals are expected to be carried out in the coming months.
Since the outbreak of COVID-19 around the world, MLC’s goals have been to protect workers while at the same time serving consumers and societies in which they work. During the first half of the year, MLC contributed more than GBP 1.9m to benefit customers through premium refunds, payment holidays and other forms of support. During the first half of the year, MLC continued to follow its customer-focused approach, showing more growth in the level of customer satisfaction at both retail and institutional level. In addition to offering direct financial assistance to consumers, MLC has helped customers to adapt their companies to the changing situation.
In addition to customer service, we have continued to support charities around the country providing up to GBP 380,000.00 to react to the crisis of the COVID-19. MLC also supports local efforts to help counties respond to their local situation and needs through matching funds raised by MLC workers to benefit local charities. To date, donations have funded more than 51 charities and are estimated to affect more than 300,000 disadvantaged people across the United Kingdom.
MLC’s balanced and diverse global business, combined with a solid, conservatively controlled balance sheet and a high degree of liquidity, provide a strong foundation to accelerate growth through our customer-focused strategy.
In support of a customer-focused approach, MLC continued to improve its digital capabilities, increase customer access and reinforce market positions in focus areas. Investments made in 2019 and 2020 to completely digitize the work-flow of MLC agents were crucial to retaining the ability to represent customers well during the lock-down and positioning of MLC to meet the changing customer requirements for more digital experiences.
The MLC balance sheet remains solid, with a moderate degree of financial debt, a strong liquidity position and a conservative investment portfolio.
There was no difference in the quality investment portfolio of the MLC during the first half, which remains conservative, with 84% of investments in fixed income securities and ETFs.
Investment income was GBP 1.6 million above 2019, due to a more aggressive positioning in the stock market. Realised capital gains of 3.8 million were GBP
1,230,000 above the first 6 months of 2019. MLC’s business continued to be driven by stable income streams on a source of earnings view, with 45% of income coming from coupons on high yield bonds and 12% from stock dividends.
MLC’s Non-Core Businesses, which consists of run-off portfolios operated with a view to proactively minimizing risk and releasing capital, reported a profit of GBP 927,000 driven by developments in the US markets.
Full brochure with slides can be found at https://mlcmanagement.com/BrochureHY2020.pdf
Certain statements in this document are forward-looking statements, including but not limited to, statements that forecast or suggest future events, developments, plans or goals of MLC Management. Forward-looking statements include statements on MLC Target Profit Control, Investment Return, Expenditures, Dividend Yield, as well as our view of the general financial market conditions and anticipated developments. Such statements should not be subject to undue reliance because by their nature, they are subject to known and unknown risks and uncertainties and may be affected by factors like economic developments, the risk of a global recession, the volatility of financial markets, interest rate levels, changes in legislation and regulations.
It should be remembered that past success is not a guarantee for future performance. Individuals seeking advice should work with an independent consultant.