UK insurer Hastings H1 core profit up 22.1pc

LONDON: British insurer Hastings Group Holdings Plc reported a 22.1 per cent jump in first-half adjusted operating profit, as legal changes drove up the cost of motor insurance premiums in the country.

The company, which mainly operates in the UK motor market, said adjusted operating profit rose to £86.5 million ($112.42 million) for the six months ended on June 30 from £70.8 million a year earlier.

Gross written premiums rose 28 per cent to £462 million during the period as a hike in the price of insurance resulted in increased sales of insurance products through price comparison websites.

Hastings, which sells its products to car, bike, van and home insurance customers also declared a dividend of 4.1 pence per share, while solvency coverage ratio improved to 173 per cent from 156 per cent last year.

The company, which listed on the London Stock Exchange in 2015, offers private car insurance, home insurance, motorbike and van insurance and premium financing and ancillary products.

Strong competition in British motor insurance had put pressure on prices in the past few years, partly because of the growth of price comparison websites.

However, in the past year, prices have been increasing due to a rise in premium taxes and a cut in the discount rate, or Odgen rate, used to calculate personal injury claims. — Reuters