In the past year, car insurance group Hastings has seen a 33% increase in pre-tax profits and successfully increased their customer base by a fifth fold. The company has 1.65 million customers at the end of September which is a 22% increase year on year and net revenue stood at £295.4 million for 3/4 of the year, representing a 17% increase.
Gary Hoffman, Group chief executive of Hastings, said, “I’m sure given the trajectory of the firm and numbers we have seen…shareholders and bondholders will be pleased”. Net debt has fallen for the company from £401.3m to £375m during the 3rd quarter whilst adjusted pre-tax profit increased by 31% to £51.8mm.
The company notes an increase in underwriting costs but adjusted earnings per policy in the months to September fell from £54 to £52 as Hastings absorbed the increase. Gary Hoffman added, “We’ve had some price rises going through after the first quarter due to a tick up in personal injury claims. Not anything alarming…. This will always be a market that is incredibly competitive, wherever we are in the cycle”.
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