Hastings Group (‘Hastings’), the technology driven UK insurance provider, reports on performance for the six months ended 30 June 2023.
Toby van der Meer, Group CEO, commented:
“The motor market continues to experience unusually high claims inflation. As a result, we have seen significant price rises across the market during H1, including double digit increases in the second quarter.
“Hastings has continued to focus on pricing discipline and, with more UK consumers shopping around, our overall policy count has increased 7%, with written premiums increasing 37%, whilst maintaining strong customer retention rates.
“We continue to invest in building the UK’s leading digital insurance provider, with our technology, data, claims and digital initiatives continuing to deliver. Our mobile app also remains one of the most highly rated and highly used.
“As always, I’d like to thank my Hastings colleagues for their fantastic work during the first half of the year.”
Resilient performance for the 6 months ended 30 June 2023, including:
- Gross written premium growth of 37% year on year to £699.5m, reflecting premium growth and an increase in live customer policies (‘LCP’) across all products. Hastings has maintained pricing discipline in a market experiencing elevated claims inflation.
- Increases in premiums across the market have led to increased customer use of price comparison websites (‘PCWs’) and switching to Hastings. This, together with continued high retention rates, has meant LCP increased 7% year on year to 3.4m policies. Home, in particular, experienced strong growth, with LCP increasing 35% year on year to 481,000.
- The calendar year loss ratio for 30 June 2023 was 63.8% (10.1 percentage points up year-on-year), reflecting continued high claims inflation and an increase in claims frequencies as well as weather events in Q1.
- Operational Profit Before Tax, excluding interest rate movements and non-operational amortisation, of £45.9m (consistent with H1 2022).
Strategic and operational initiatives
Continued investment in strategic initiatives in 2023:
- Focus continues on the development of data engineering and modelling to support leading edge pricing and
- Improved customer retention capabilities, including payment enhancements and new digital renewals to make it easier for customers to manage their renewal 24/7.
- Further monthly changes to the mobile app to support customers with service requests as well as claims. The mobile app had over 650,000 downloads during the first half of the year.
- Continued growth and development of our YouDrive telematics product, which supports and encourages safer driving.
- Enhanced customer satisfaction, with combined digital Net Promoter Score (‘NPS’) at 9% ahead of last year.
- New digital claims notification capability launched earlier in the year, leading to increased online completion rates with a positive usability score of 4.5/5 and a NPS of +52.
- Rollout of initiatives to improve operational efficiency through our new contact centre technology, automation of key processes and new functionality built into Guidewire and other platforms.
Our colleagues and communities
Ongoing commitment to supporting colleagues and the communities in which we operate: