FTSE 250 movers: Just Group soars on regulatory news as Hastings crashes

London's FTSE 250 was down 0.22% to 18,447.42 in afternoon trade on Thursday, as Just Group and Kaz Minerals led the gains.

Shares in retirement products company Just Group surged as the Prudential Regulation Authority said it has delayed a decision on changing capital requirements for equity release mortgages for at least a year.

The company had said in its interim results back in July that some of the proposals being put forward would result in a reduction in its regulatory capital position.

Kaz Minerals surged as it reported that it was well positioned to achieve full year guidance of 270-300 kta after a 7% jump in third-quarter copper production to 77.2 kt with higher ore throughput at all its mines.

Plastic piping manufacturer Polypipe advanced after announcing the acquisition of Manthorpe Building Products, which makes moulded and extruded plastic and metal products for the UK and Irish markets, for £52m.

Meanwhile, Hastings Group suffered heavy losses as the insurer reported a rise in nine-month gross written premiums but struck a cautious note on the wider outlook for the market.

The insurer said that despite pricing actions taken during the year, claims inflation is expected to continue to exceed premium inflation and the group's loss ratio for the full year is expected to be at the lower end of the target range of 75% to 79% and trends towards the middle of the target range for the year ending 31 December 2019.

UBS reiterated its 'neutral' rating of the company's shares with a target price of 245p, saying that the outlook for UK motor insurers "remains mixed".

"The key question we have looking at these results, and recent industry data from Confused / AA, is how quickly pricing will catch up with claims inflation. Hastings flags its expectation that the price increases it is seeing will not be enough to offset claims inflation in 2H18E, suggesting market competition may be prohibiting this 'catch-up'," said UBS analysts.

Pharmaceutical stocks were also among the heaviest fallers, with Worldwide Healthcare, BTG and Dechra Pharmaceuticals all lower as US President Donald Trump unveiled a plan to overhaul how Medicare pays for certain drugs.

Dechra was also affected by its stock going ex-dividend.

The proposal, which would target what Trump called "foreign freeloaders", would use Medicare’s innovation center to test three ways to lower the costs of drugs, including negotiating for some drugs that are directly administered by doctors in hopes of keeping them in line with the lower prices paid in many other countries.

The proposals would apply only to medicines administered in doctors’ offices and outpatient hospital departments such as cancer treatments and injectable treatments for rheumatoid arthritis or eye conditions.

Metro Bank was under the cosh following its third-quarter results on Wednesday, which revealed a jump in profit but shrinking margins at the challenger bank.

Market Movers

FTSE 250 (MCX) 18,447.42 0.22%

FTSE 250 - Risers

Just Group (JUST) 84.00p 12.98%
Kaz Minerals (KAZ) 489.60p 9.53%
Polypipe Group (PLP) 334.20p 8.58%
Playtech (PTEC) 464.10p 4.41%
Cairn Energy (CNE) 194.30p 4.18%
IWG (IWG) 229.80p 4.08%
Thomas Cook Group (TCG) 45.16p 3.77%
AA (AA.) 102.10p 3.53%
Rathbone Brothers (RAT) 2,310.00p 3.49%
Sanne Group (SNN) 574.00p 3.42%

FTSE 250 - Fallers

Hastings Group Holdings (HSTG) 198.20p -10.07%
IntegraFin Holding (IHP) 267.00p -4.64%
Worldwide Healthcare Trust (WWH) 2,520.00p -2.89%
Metro Bank (MTRO) 2,200.00p -2.57%
BTG (BTG) 522.50p -2.52%
Synthomer (SYNT) 421.00p -2.41%
Pershing Square Holdings Ltd NPV (PSH) 1,070.00p -2.37%
Hunting (HTG) 649.00p -2.33%
Moneysupermarket.com Group (MONY) 287.50p -2.28%
Dechra Pharmaceuticals (DPH) 2,154.00p -2.27%