Half Year Results 

Policy changes hurt Hastings

Policy changes hurt Hastings

Hastings’ (HSTG) half-year results have thrown into sharp focus the extent to which the recent Ogden discount rate change will hurt the UK’s insurers. Ogden is used to work out the size of the lump sum accident victims receive. Under the old -0.75 per cent rate, Hasting’s calendar net loss ratio (net claims paid out as a percentage of premiums earned) was 79.1 per cent. The new -0.25 per cent rate sends that figure up to 81.1 per cent. The group was also forced to take a one-off £8.4m charge as a result of the policy change.

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