Hastings reports 5% rise in FY operating profit

Hastings Group reported a rise in full-year operating profit as gross written premiums grew.

In its preliminary results for the year to the end of December, the insurer said operating profit was up 5% to £132.1m after allowing for the impact of the Ogden rate change. Before the impact of the change, it was up 21% to £152.1m.

Earlier this week, the Ministry of Justice changed the rate used to calculate lump-sum payouts for person injury claims and Hastings said it would take a £20m charge in its full-year results on the back of the move.

Gross written premiums increased 25% to £769m and net revenue was up 23% from the previous year to £590.3m.

In addition, the company saw a 15% jump in its number of live customer policies to 2.35m, while its market share of UK private car insurance increased to 6.5% from 5.8%.

The group proposed a final dividend for the year of 6.6p per share, up from 2.2p the year before, taking the full-year dividend to 9.9p.

Chief executive Gary Hoffman said: “2016 was another year of profitable growth and delivering on our IPO promises.

"We have continued to invest in our future, expanding our site in Leicester, welcoming 340 new colleagues this year, and rolling out our new operating platform, Guidewire. These investments will provide the bedrock for the next stage of the company's growth, supporting our ability to deliver high standards of customer contact and service."