Hastings motor insurer posts strong growth

The Motor insurer Hastings, run via the former Northern Rock boss Gary Hoffman, has posted strong development in premiums and customer numbers at the beginning of at the moment.

The firm, that’s above 2.1m customers, floated around the London stock market last October. Choppy market conditions forced it to reduce its float price to 1.1bn from 1.4bn.

Hoffman, who had previously been parachuted into run Northern Rock in 2008 after its government bailout and became leader of Hastings next year, said the strong first-quarter performance established that “we still deliver on our promises”. The shares rose 3.6% to 182.3p on Friday morning, in comparison with a float value of 170p.

Gross written premiums climbed 29% to 171m inside 90 days to 31 March, while net revenues were up 22% to 133m.

The range of customer policies rose 17% year-on-year, and Hastings now controls 6% from the sell for UK private motor insurance policies, up from 5.3% in 2009.

Eamonn Flanagan, analyst at Shore Capital, said this reflected the fact “the barriers to entry are very low that any relative newcomer can gain such scale and market share so quickly – all OK prior to the next new entry unfolds!”

Hastings employs 2,500 people, including more than 500 at its new Leicester site. It absolutely was founded by the flamboyant insurance tycoon Neil Utley, who had been censured because of the Lloyd’s insurance market? in 2013, and stepped down from your board whilst the float.

Flanagan added: “According on the group it really is well positioned in order to meet or beat the 4 targets it set itself within the IPO. Unfortunately the trading update was somewhat light on other important details as regards, one example is, claims experience and investment returns. These are definitely pretty crucial metrics to all of us, especially as a result of deteriorating claims experience across UK personal motor as well as somewhat aggressive investment strategy that Hastings has embraced.”