LONDON (Alliance News) - General insurer Hastings Group Holdings PLC on Friday said it has made "positive progress" in the first quarter but warned its loss ratio may creep towards the higher end of its target.
Hastings also confirmed John Worth will start as chief financial officer on May 10.
Worth will replace current CFO Richard Hoskins who is retiring from the role. Worth will be appointed to Hastings' board the same day.
For 2019, Hastings said its loss ratio depends on the "market environment".
"If the current market premium and claims dynamics continue through the year the group loss ratio would be expected to move towards the higher end of the 75% to 79% target range," added the company.
In 2018, Hastings' calendar loss ratio was 75.0%.
Hastings remains confident in its profit growth opportunities, however.
Shares in the FTSE 250-listed insurer were trading down 5.8% early Friday morning at 206.40 pence each.
In the three months to March 31, the insurer said gross written premiums increased 4.2% to GBP235.5 million from GBP226.0 million the year before.
Hastings said claims inflation "remains high across the insurance industry", with the company attributing repair costs and further increased in third party property damage costs.
Going forward, Hastings will continue to closely monitor "market premium rate dynamics and claims inflation".
Hastings, which provides UK car, van, bike and home insurance, said revenue in the first quarter was broadly flat year-on-year at GBP183.1 million.
"I am really pleased with the progress we have made towards the strategy and plans we set out with the full year 2018 results. We have clear areas of momentum that leave us very well positioned for ongoing profitable growth in 2020 and beyond," said Chief Executive Toby van der Meer.
"Alongside many other initiatives underway, our new claims supplier deals, increased customer retention and digital enhancements demonstrate the significant progress made in the first quarter of 2019."
The company's live customer policies increased about 3% year-on-year to 2.8 million from 2.7 million.
Hastings said it now owns a 7.6% market share of the UK private car market compared to 7.4% at the same time last year.
The insurer has rolled out new renewal models, increasing customer retention by about 4 basis points, it added.
