Driving profitable growth by targeting 3 million live customer policies during 2019
Our simple, straightforward business model coupled with our digitally focused distribution ensures we are well positioned to benefit from increasing price comparison website (‘PCW’) penetration amongst customers. Capitalising on this natural momentum will drive sustainable, profitable growth in live customer policies (‘LCP’) whilst strong customer retention rates allow the business to benefit from a naturally maturing portfolio as it develops longstanding relationships with its customers.
Focus on prudent underwriting
We have demonstrated our focus on prudent underwriting while growing the number of LCP. Combining our dynamic footprint selection, extensive use of data, advanced pricing process and rigorous fraud detection systems will support our current growth trajectory whilst maintaining our target through the cycle calendar year net loss ratio of between 75% and 79%.
Continued focus on cash generation and shareholder return
As the business continues its growth trajectory, our focus remains on continuing to deliver significant levels of cash, through our highly cash generative Retail business and our capital efficient Underwriting business. This funds investment in our digital capabilities, supports organic growth and allows us to target a dividend payout ratio to 65% to 75% of adjusted profit after tax.
Ability to respond quickly to market changes
The Group’s agile and digital business model means it is well placed to respond to changing market conditions driving a significant competitive advantage. The separate structure of the Retail and Underwriting businesses coupled with the innovative use of data and continuous market analysis allows the business to benefit from being able to rapidly adjust pricing presented to customers to support market share growth.
No. 1 car insurance brand on price comparison websites for 2015.
Invest in digital capability and mobile distribution channels
We’re committed to being straightforward for customers with the best digital proposition enabling customers to interact with us how they choose, combined with the launch of enhanced capability and leading technology to ensure we can give customers a better price. We have launched our mobile app, providing enhanced policy management functionality and also introduced an electronic claims notification system and digital claims tracking capability, enabling customers to both report a claim digitally and then track its progress online.
Expand our product offering and invest in our competitive position
The Group sees significant opportunities to increase scale of live customer policies and overall profitability by continuing to invest in its core private car. In addition Hastings is set to continue its expansion into the home insurance market where its business model is well placed to benefit from increased PCW penetration.