Newmarket: Improved revenues and profits for insurance group Hastings
09:40 28 August 2014
Insurance group Hastings today reported improved revenues and profits for the second quarter of the year, on the back of continued growth in customer numbers.
Hastings, which is based at Bexhill-on-Sea in East Sussex but also employs more than 200 people at offices on the Oaks Business Park in Newmarket, said customer numbers reached 1.6million during three months to June 30, up from 1.26m in the same period last year.
This helped drive a 19% increase in net revenue to £97.6m, up from £81.9m a year earlier, with gross written premiums rising 24% to £119.8m, against £96.4m for the same period in 2013.
Profit before tax was 90% higher, at £17.1m compared with £9.0m, with the group’s combined operating ratio − claims and operating expenses as a percentage of premium income − for the 12 months to June 30 improving to 90.5%, from 90.7% for the 12 months to March 31.
Hastings Insurance Group’s brands include Hastings Direct, People’s Choice, insure. and insurepink.
Gary Hoffman, chief executive, said: “The car insurance market remains extremely competitive but these results demonstrate how our agility and refreshingly straightforward proposition for customers continue to differentiate us and enable us to grow profitably and sustainably.
“We have achieved strong growth in customer numbers (up 27%) and gross written premiums (up 24%), and continue to make the right trade-offs between long term value and short term growth. Our distinctive model of optimising separate underwriting and retail operations ensures this.”
He added: “Our people, our business model and our agility have created success so far and position us well to compete effectively and provide customers with what they want for the remainder of this year and in years to come.”