RE: Discount Rate15 Feb 2017 16:34
Fitch report
Reuters LONDON, February 13 (Fitch) Fitch Ratings says in a new report that a likely reduction in the UK's Ogden discount rate in February 2017 would result in higher costs for claims settled as a lump sum. This could be significant as many payouts are intended to cover decades of costs, so small changes in the discount rate can add up to a large effect on lump-sum payments. The poor profitability of the UK personal motor market means the sector is unlikely to be able to simply absorb increased claims costs.
Presumably this is why Macquarie have a 295p price target?