(Alliance News) - Insurer Hastings Group Holdings PLC on Thursday reported profit was down by nearly half in 2019, despite gross written premiums edging higher.
Pretax profit came in 46% lower at GBP82.1 million from GBP152.9 million in 2018, with net revenue down 2.0% to GBP741.3 million from GBP756.4 million.
Revenue consists of net earned premiums and investment income. It also includes what Hastings classes as "other revenue".
Gross written premiums however, were up 0.3% to GBP961.6 million from GBP958.3 million.
The company slashed its final dividend by 39% to 5.5 pence per share from 9.0p, bringing its total payout to 10.0p, down 26% from 13.5p.
Chief Executive Toby van der Meer said: "The market environment was challenging in 2019, particularly due to elevated claims inflation which has impacted our loss ratio for the year and our adjusted operating profit."
Its loss ratio in 2019 worsened to 82.6% from 75.0% in 2018.
Hastings added: "2020 trading has started in line with expectations. The group remains focussed on pricing discipline, targeting a 75% to 79% loss ratio on written business, supported by advanced risk selection and claims initiatives."
The company is penned to report on first-quarter trading on April 29. Hastings shares were 1.7% lower at 169.50 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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