Hastings Group (‘Hastings’), the technology driven UK insurance provider, announces its results for the year ended 31 December 2022.
Toby van der Meer, Group CEO, commented:
“2022 has been a challenging year with double digit claims inflation, regulatory changes and the cost of living crisis. Despite this, Hastings has delivered another solid set of results, and I’m proud of the actions we’ve taken to support our customers and colleagues.
“We have prioritised pricing discipline throughout the year and raised prices ahead of the market to combat claims inflation, estimated to be around 12% for the year. We have maintained high customer retention rates and have continued to invest for the future to build the UK’s leading digital insurance provider.
“As always, I’d like to thank my 3,200 Hastings colleagues for their fantastic work and commitment throughout 2022.”
Solid results for the year to 31 December 2022, including:
- Gross written premium growth of 15% year on year to £1,119.7m, reflecting a focus on pricing discipline in a market experiencing elevated claims inflation.
- Adjusted operating profit of £129.0m, down 15% on 2021, and profit before tax of £62.0m, down 35% on 2021, driven by rising claims volumes post Covid, higher claims cost inflation, and the impact of Q4 weather.
- Total live customer policies (‘LCP’) increased 2% year on year to over 3.2 million. Home LCP increased 33% year on year to 412,000.
- High customer retention rates maintained, supported by enhanced digital service capabilities including the UK’s most popular motor insurance app.
- Improved solvency and capital position, and reduced net debt, reflected in an upgrade in Fitch credit rating to ‘A’.
Strategic and operational initiatives
Continued investment in strategic initiatives throughout 2022:
- Development of new pricing deployment platforms, automation and improved analytical capacity enabling more responsive price changes.
- Launched a new online-only product, providing a lower cost self-service policy option for customers.
- Improved ‘quote to buy’ digital sales journey and improved app functionality leading to growth in customer digital adoption.
- Successful migration of technology platforms and core data to the cloud, delivering an even more resilient and accessible platform for customers and colleagues.
- Rollout and development of new counter-fraud and claims capabilities, delivering multi-million pound savings.
- New reinsurance arrangements, with a reduction in quota share from 35% to 30% from 1 January 2023, meaning increased retention of profitable written premiums.
Our colleagues and communities
Hastings has remained firmly committed to supporting colleagues and the communities in which it operates:
- Substantial colleague investment, including leader and colleague development programmes, record levels of promotions, internal moves and take up of apprenticeship schemes.
- Cost of living support for colleagues, including a special Q3 cost of living salary increase and bonus payments, as well as the introduction of the Colleague Hardship Fund, ringfencing at least £200,000 to help those colleagues, and their families, experiencing financial difficulty.
- Ranked 9th in the Inclusive Top 50 UK Employers List 2022/23 with gold standard accreditation.
- 1,600 community days donated by colleagues to charities, schools and community groups across the year.
- Certified CarbonNeutral® organisation for the third year running, with commitment to ambitious emission reduction targets with Science Based Targets Initiative, supporting net-zero emissions by 2050 target.
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