Hastings increases its 2017 interim dividend by 24%

DividendMax Ltd.

Hastings increases its 2017 interim dividend by 24%


Continued growth, with gross written premiums up 28% to £462.0m (30 June 2016: £360.6m) and net revenue up 22% to £345.2m (30 June 2016: £282.7m).

Strong trading performance with a 22% increase in adjusted operating profit to £86.5m (30 June 2016: £70.8m).

Sustained increases in customers with live customer policies up by 15% to 2.54 million (30 June 2016: 2.20 million).

Growing market share to 7.0% of UK private car insurance (30 June 2016: 6.2%).

Calendar year loss ratio of 73.4% for the period ended 30 June 2017, below the target range of between 75% and 79% (30 June 2016: 74.0%).

Consistent growth in profitability with an increase in profit after tax of 36% to £57.9m (30 June 2016: £42.7m).

Ongoing cash generation and reduction in net debt leverage multiple, with free cash generated up 34% to £65.8m (30 June 2016: £49.1m) and net debt leverage multiple reduced to 1.7x (31 December 2016: 1.9x).

Continued investment in the business, including Guidewire, the Group's next generation claims and broking platform, which will enable future growth opportunities and operational efficiencies.

A significant improvement in solvency, with a Solvency II coverage ratio of 173% (31 December 2016: 140%), benefiting from the use of Undertaking Specific Parameters in the calculation.

Interim dividend for 2017 of 4.1 pence per share (30 June 2016: 3.3 pence per share) reflecting increasing earnings and strong cash generation.

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