Hastings Group plc have final proposed dividend for 2019 of 5.5p per share (2018: 9.0p per share) which, together with the interim dividend of 4.5p per share, equates to a total dividend payout ratio of 88.0% of adjusted profit after tax (2018: 58.9%).
Other financial highlights include:
Gross written premiums stable at £961.6m for the year (2018: £958.3m). The Group's underlying average premiums were up 5% with the increase in prices being offset by a change in the risk mix of business.
Growth in live customer policies ('LCP') to 2.85 million, up 5% from last year driven by continued strong retention rates.
Further growth in home to 209,000 policies, a 27% increase year on year, as they continued to enhance the capabilities of the Group's in-house underwriting team and work with third party panel members.
Adjusted operating profit of £109.7m (2018: £190.6m) or £118.1m before the impact of the Ogden rate change (2018: £176.0m before the one off VAT recovery).
Profit after tax for the year of £69.7m (2018: £130.6m).
Calendar year loss ratio before the impact of the Ogden rate change of 81.6% (2018: 75.0%), or 82.6% after the impact of the Ogden rate change. This has been driven by elevated market claims inflation, with increases in repair and third party credit hire costs, and a small number of larger bodily injury losses.
Free cash generation of £141.0m for the year ended 31 December 2019 (2018: £167.7m).
Strong solvency position, with underwriting subsidiary achieving Solvency II coverage ratio of 151% (2018: 161%), or 156% before deducting the anticipated dividend due to be paid to the Group entity in the first half of 2020.
