Hastings nails its targets a year after listing

Hastings Group Holdings provided an update on its trading performance for the 9 months to 30 September on Tuesday, with the board claiming to to deliver in line with, or ahead of, the targets set at IPO.

The FTSE 250 company said increasing customer policy numbers, higher average premiums and growing retail income continued to drive profitable growth and strong cash generation, while continued premium increases and underwriting discipline maintained a loss ratio below the target range.

Live customer policies increased to 2.29 million by period end - a 16% year-on-year increase, with gross written premiums up 26% to £572.8m.

Hastings’ market share of UK private car insurance policies was up to 6.4% as at 30 September, from 5.6% a year earlier.

Net revenue was up 26% to £440.3m for the period, and the board confirmed its loss ratio remained below the target range set at the IPO of between 75% and 79%.

“It's been a year since we listed on the London Stock Exchange and we continue to deliver against all the promises we made at the time of the IPO,” said chief executive Gary Hoffman.

“Hastings has delivered another excellent performance and our agile and digitally focused business model continues to grow our customer numbers in a market that has seen sustained premium rate increases.

“We are providing refreshingly straightforward service and products to almost 2.3 million customers.”

Hoffman said the implementation of its next generation ‘Guidewire’ system and expansion of the Leicester site means the firm’s 2,700 staff will have the infrastructure, support and insight to continue the positive momentum, and deliver operational efficiencies over the medium term.

“As Hastings has continued to deliver consistently strong performance since the IPO and is on track to either meet or beat the targets set out at the IPO, the board intends to provide updated targets at the time of the 2016 full year results presentation.”