Hastings profit jumps 63% as customer numbers rise

Hastings Insurance Group made a profit after tax of £26m in 2011, up 63% on the £16m it made in 2010.

The company, which comprises broker Hastings and insurer Advantage, reported a combined ratio of 96% in 2011, unchanged from the 2010 level.

Gross premiums placed by the group increased 39% to £358m (2010: £257m), while gross premiums written rose 35% to £296m (2010: £219m). Customer numbers increased 37% to 972,000 (710,000) and the company reported that customer numbers reached the 1 million mark in March.

“2011 was a year of real progress for Hastings,” chief executive Edward Fitzmaurice said in a statement. “It is very pleasing to report another set of strong results and the third consecutive year of significant growth in profits. We now have over one million customers using us to satisfy their insurance needs and are well on our way to our goal of protecting one in 10 UK customers by 2020.”

The company also reiterated its intention to float on the stock market, but remained vague about the target date. “We would like to list Hastings on the public markets at some stage, but will only proceed when market conditions are satisfactory, as there is no pressure on us to drive a process,” Fitzmaurice said. “Our priority is, as it has been, to continue to develop the excellent business we have created.”

Hastings said the static combined ratio had been achieved despite increased levels of reinsurance and “a conservative approach to the recognition of profit commissions in the short term”.

“We have been able to both increase premiums below market inflation and grow gross written premium, supported by a further strengthening of our risk management and fraud prevention, growing our front-line fraud prevention team to 50 at the end of the year,” the company said. “A focus on risk selection, data validation and counter-fraud has resulted in reduced bodily injury frequency and claims inflation below the overall market.”