Hastings Group Holdings plc Ogden Rate Change (6050F)
July 16 2019 - 1:00AM
UK Regulatory
TIDMHSTG
RNS Number : 6050F
Hastings Group Holdings plc
16 July 2019
Hastings Group Holdings plc ("Company")
16 July 2019
Ogden Rate Change
The Company notes the announcement made yesterday by the Lord
Chancellor regarding the change to the discount rate applicable for
personal injury damage awards ("Ogden rate") from -0.75% to
-0.25%.
As previously indicated, the Group's insurance subsidiary has
held best estimate reserves consistent with an Ogden rate in the
range of 0% to 1%, in line with the range indicated by the
Government previously and the rate at which large bodily injury
claims have been settling. The Company can confirm that the best
estimate will now be updated to reflect the change in the Ogden
rate to -0.25%.
The Company expects this to result in a one-off pre-tax charge
to its 2019 financial statements of GBP8.4m. Excluding this impact,
the Company expects to report an underlying calendar year loss
ratio for the six months to 30 June 2019 at the top of its 75% to
79% target range.
The Company confirms that total reserves continue to be held
above the best estimate, recognising the inherent uncertainty in
claims development patterns, particularly for bodily injury.
For further information, please contact:
John Armstrong
Head of Investor Relations
+44 (0) 7884 650353
ir@hastingsplc.com
Instinctif Partners
Tim Linacre / Lewis Hill
+44 (0) 207 457 2020
hastings@instinctif.com
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END
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