Company plans to grow non-aggregator business
Motor broker/insurer Hastings Insurance Group is keeping its options open with regards to an initial public offering (IPO), says chief executive Gary Hoffman.
The company has long been considering a float, and had been rumoured to be shooting for a 2012 stock market debut, but volatile equity market conditions put the plans on hold.
Speaking to Insurance Times following the release of Hastings’s 2012 results, Hoffman said: “There is no rush to do anything, but we are keeping our options open.
“We don’t need external funding to fund our growth plans. We are expanding rapidly, and we are creating our own capital to reinvest in the business.”
He added that the company has always said it would look at an IPO when market conditions were right and the company was ready, but he added: “We have got no plans for anything at the moment.”
This is despite the fact that one rival, Direct Line Group, has undergone a successful flotation and another, Esure, is set to earn more from its pending IPO than expected.
Hoffman said: “My concentration is on growing the business and creating value for the existing shareholders. But we wouldn’t rule anything out.”
He added that the company also would not rule out acquisitions, but that the main focus was on growing organically.
Growth plans
Hastings reported a solid set of results for 2012, which included a profit increase of 81% and a 20% rise in gross premiums written.
Hoffman said Hastings would continue growing its core car insurance business, the bulk of which comes through aggregators. The company currently has a 4% share if the UK car market, which means there is room to get bigger.
However, he added that there was also plenty of scope to grow Hastings non-car, non aggregator business.
Hoffman said: “There is a lot more room for growth in other products for us, whether it be bike, van, home, travel or pet. We have small-scale businesses in those products. We will extend those and extend our distribution as well.
“We expect in the future to continue to be very successful through the aggregators but we will also write more direct business.”
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