CFO John Value mentioned outcomes have been pushed by elevated claims because the enterprise reviews rising GWP in each division besides van.
Revenue after tax fell to £69.7m at Hastings Group in 2019, down from £130.6m in 2018.
The enterprise additionally reported a drop in working revenue to £109.7m for the yr, in comparison with £190.6m in 2018.
Gross written premiums (GWP) remained comparatively flat at £961.6m (2018: £958.3m).
Hastings chief monetary officer, John Value, instructed Insurance coverage Age that the falling numbers have been because of a difficult market surroundings.
The motor supplier warned in a buying and selling replace on 17 January 2020 that its outcomes could be impacted by elevated claims prices within the fourth quarter.
“The elevated claims inflation has had an impression on our loss ratio and certainly on our working revenue,” Value commented.
He added: “One of many options of 2019 is that the value inflation available in the market has not matched the claims inflation.
“We’ve elevated our costs in keeping with this, so our pricing is forward of the remainder of the market. This has impacted on our new enterprise competitiveness, however we’ve made up for that with our retention numbers.”
In July final yr, Hastings revealed it might take an £eight.4m hit from the change within the Ogden charge.
This adopted the federal government’s announcement that the Ogden charge would change from -Zero.75% to -Zero.25% on 5 August.
“The benefit of the speed being set is that we’ve certainty round which charge to make use of going ahead,” Value said.
Trying on the separate divisions, GWP in non-public automotive was as much as £924.7m (2018: £919.5m) whereas GWP in bike inched as much as £18.5m (2018: £18.1m) and GWP for dwelling grew to £9.5m in 2019 from £7.1m in 2018.
Nevertheless, GWP within the van division fell to £eight.9m, in comparison with £13.6m in 2018.
Value defined that there have been two causes behind this drop, including: “One is that it’s very aggressive, the extent of competitors has been extra acute in 2019 than in 2018 and we’ve priced our merchandise accordingly.
“Secondly, we’ve moved our complete enterprise onto the Guidewire system and since van is our smallest product it has been the final one to profit from that.”
Value famous that Hastings shouldn’t be trying to divest from any of its enterprise strains and added: “If there are different alternatives in different strains of enterprise we’ll look fastidiously at these.
“The variety of our dwelling insurance policies has elevated by 25% in 2019 in order that’s a pleasant diversification from motor.”
Hastings additionally said that its variety of reside buyer insurance policies rose to 2.85m in 2018, in comparison with 2.71m in 2018.
Value additional defined that the enterprise had continued to spend money on expertise and information throughout 2019, with the goal of changing into a digital insurance coverage supplier.
He concluded: “In 2020 buying and selling has began in keeping with our expectations. We’re engaged on various developments internally which is able to begin benefiting us quickly.”
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