Hastings had been expecting a rate of 0-1%
Hastings today said it would incur a £8.4m one-off pre-tax charge following yesterday’s Ogden rate revision 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,” it said in a statement.
”The Company can confirm that the best estimate will now be updated to reflect the change in the Ogden rate to -0.25%.”
Hastings said it ”expects this to result in a one-off pre-tax charge to its 2019 financial statements of £8.4m”.
”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.
“Total total reserves continue to be held above the best estimate, recognising the inherent uncertainty in claims development patterns, particularly for bodily injury,” it added.