Big-hitter Hoffman to take Hastings to flotation

Hastings Insurance Group has signalled its commitment to float with the appointment of Gary Hoffman as its new group chief executive.

Heavy-hitter Hoffman comes with a big reputation, having led the Northern Rock rescue during the financial crisis.

He boasts an impressive track record that includes a 25-year stint at Barclays, where he was an executive director, group vice-chairman and chief executive.

Most recently he was chief executive at banking start-up NBNK, which was formed to bid for the UK bank branches that Lloyds Bank is selling off.

Hoffman will give Hastings a strong direction as it gears up for flotation, and his appointment will free up current chief executive Edward Fitzmaurice to take on more a strategic role as executive chairman at Hastings Insurance Services, the group’s main UK trading entity.

Hoffman will be watching Direct Line Group’s IPO with interest. DLG’s share price climbed 7.4% in the first day of trading on the London Stock Exchange on Thursday. Meanwhile, German insurer Talanx made a U-turn and pressed ahead with its flotation on the Frankfurt Stock Exchange at the start of this month. UK insurer Esure also has plans to float.

Alongside the IPO, Hoffman will be tasked with maintaining Hastings’ fast EBITDA growth, which rose 60% between 2010 and 2011. No pressure then.

Motor numbers don’t add up

New research by the Institute and Faculty of Actuaries has revealed that third-party motor claims rose 6% last year, with a £400m increase in costs to insurers for claim payouts.

While this may come as no surprise to everyone in the industry, the fact that the average UK motor insurance premium fell 7.1% over the same period is a worrying development for motor insurers struggling to turn a profit in the current market.