HSTG.L Share News (HSTG)

LONDON (Alliance News) - Insurer Hastings Group Holdings PLC on Thursday reported a "solid" set of annual results, with policies and profit both rising.

Hastings' gross written premiums for 2018 rose 3% on the year to GBP958.3 million, while net revenue climbed 6% to GBP756.4 million.

Customer policies were up 2.5% to 2.71 million, while pretax profit rose to GBP152.9 million from GBP149.0 million.

Hastings' calendar loss ratio was 75.0%, at the bottom of its targeted range of 75% to 79%, from 73% in 2017. This increased due to "adverse" weather in the first quarter, and claims inflation being higher than premium inflation.

The company's solvency position is strong, it said, with its underwriting business having a solvency II coverage ratio of 161% from 167% a year prior.

Hastings is to pay a 9.0 pence per share final dividend, taking the total for 2018 to 13.5p, 7% higher year-on-year. It has increased its dividend target going forward, now aiming for between 65% and 75% of adjusted post-tax profit from a previous range of 50% to 60%.

Hastings' outlook remains unchanged for 2019, and believes it is well placed to continue to grow.

"I am pleased to announce a solid set of results for 2018, continuing our track record of profitable growth," said Chief Executive Toby van der Meer.

"Our strong capital position and continuing cash generation means we are proposing a 7% increase in our full year dividend over last year, and are increasing our target dividend payout ratio to a range of 65% to 75% going forward," he added.

"We remain focused on long term profitable growth, with our price comparison website and digital focused business model built to take advantage of an increasingly digital landscape."

Shares were 0.3% higher Thursday at a price of 219.60 pence each.