We would love to hear your thoughts about our site and services, please take our survey here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHSTG.L Share News (HSTG)

  • There is currently no data for HSTG

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Hastings warns over claims inflation

Fri, 25th Oct 2019 09:04

(Sharecast News) - Hastings Group warned over claims inflation on Friday as it said gross written premiums ticked higher in the first nine months of the year.
In an update for the nine months to the end of September, the insurer said claims inflation elevated in the third quarter to between 7% and 8%, with inflation experienced across third party credit hire cost, repair costs and mid-range bodily injury costs.

The company cautioned that its full-year loss ratio, before the impact of the Ogden rate change, could move from the top of the target range of 75% to 79% to slightly above if elevated claims inflation continues.

Gross written premiums were up 2% in the nine-month period to £753.1m but net revenue declined 2% to £563.8m. Hastings said the increase in premium prices has been offset by a change in the risk mix of business that is aimed at lower risk segments and a reduction in younger drivers.

Live customer policies rose 5% on the year to 2.84 million as at 30 September 2019, with policy growth supported by continued strong retention rates.

Chief executive officer Toby van der Meer said: "The market remained competitive in the third quarter, with market premium inflation continuing to lag claims inflation. We maintained focus on pricing discipline, applying rates ahead of the market, in line with our stated targets and strategy.

"We are confident that continuing to invest in our growth opportunities whilst navigating these current market conditions is the right thing to do."

Shore Capital analyst Paul De'Ath said the warning over claims inflation is likely to weigh on the shares as the nature of Hastings' business model means that it is relatively more impacted by current year underwriting than many of its peers.

"Hastings' business model is geared into rising motor prices more than many of its peers due to its desire for growth (notwithstanding the current profit focus) and its focus on price comparison websites as its primary distribution channel. Rising prices tend to generate more switching and more opportunities to utilise its advanced pricing models," he said.

"While the business is doing all the right things to improve its own claims handling and anti-fraud capabilities, the competitive nature of the motor insurance market means that the pricing cycle has yet to turn. We continue to believe in the long-term prospects of the business but in the near-term there is likely to be continued pressure on earnings in 2019F."

At 0900 BST, the shares were down 3.9% at 181p.

More News
29 Jul 2020 16:02

Hastings confirms takeover approach from consortium led by Sampo, RMI

(Sharecast News) - Hastings confirmed on Wednesday that it has been approached by a consortium led by Finnish insurer Sampo and its biggest shareholder, Rand Merchant Investment Holdings, about a possible cash offer.

Read more
29 Jul 2020 16:01

Hastings Facing Possible Takeover Offer From Rand Merchant Consortium

Hastings Facing Possible Takeover Offer From Rand Merchant Consortium

Read more
16 Jul 2020 09:37

UK BROKER RATINGS SUMMARY: Jefferies Raises British Land, Cuts SEGRO

UK BROKER RATINGS SUMMARY: Jefferies Raises British Land, Cuts SEGRO

Read more
10 Jul 2020 09:29

Hastings slumps as Goldman Sachs places 22m shares

(Sharecast News) - Hastings was under the cosh on Friday after Goldman Sachs placed 22 million shares in the insurer.

Read more
23 Jun 2020 09:27

UK BROKER RATINGS SUMMARY: Berenberg Likes Direct Line And Hastings

UK BROKER RATINGS SUMMARY: Berenberg Likes Direct Line And Hastings

Read more
29 May 2020 13:18

Friday broker round-up

(Sharecast News) - Admiral Group: Barclays downgrades to equal weight with a target price of 2,304p.

Read more
29 May 2020 09:31

UK BROKER RATINGS SUMMARY: Barclays Lowers Admiral, Raises Direct Line

UK BROKER RATINGS SUMMARY: Barclays Lowers Admiral, Raises Direct Line

Read more
22 May 2020 16:00

UK Dividends Calendar - Next 7 Days

UK Dividends Calendar - Next 7 Days

Read more
14 May 2020 16:28

UK Shareholder Meetings Calendar - Next 7 Days

UK Shareholder Meetings Calendar - Next 7 Days

Read more
13 May 2020 11:30

Hastings Ends Shareholder Agreement With Goldman Sachs As Stake Slips

Hastings Ends Shareholder Agreement With Goldman Sachs As Stake Slips

Read more
12 May 2020 09:42

UK BROKER RATINGS SUMMARY: Morgan Stanley Weighs In On UK Retailers

UK BROKER RATINGS SUMMARY: Morgan Stanley Weighs In On UK Retailers

Read more
7 May 2020 09:40

UK BROKER RATINGS SUMMARY: Morgan Stanley Cuts TUI To Underweight

UK BROKER RATINGS SUMMARY: Morgan Stanley Cuts TUI To Underweight

Read more
24 Apr 2020 09:53

Hastings Senior Independent Director Colraine Picked As New Chair

Hastings Senior Independent Director Colraine Picked As New Chair

Read more
24 Apr 2020 08:15

Hastings chairman Gary Hoffman to leave in May

(Sharecast News) - Hastings Group is looking for a new chairman after Gary Hoffman told the company he would quit in May.

Read more
15 Apr 2020 12:01

LONDON MARKET MIDDAY: Oil Slumps; Caution Ahead Of US Bank Earnings

LONDON MARKET MIDDAY: Oil Slumps; Caution Ahead Of US Bank Earnings

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.