Car and home insurer Hastings Group Holdings Plc (LON:HSTG) says it's on track to deliver on targets for its fiscal year as it unveiled a strong performance for the nine months to end September.
Gross written premiums were up 25% to £714.3mln for the nine months, against £572.8mln in the same period last year.
READ: Hastings Group raises first-half dividend, says “on track for another year of profitable growth”
Its market share of the UK private car market rose to 7.2% compared to a share of 6.4% on September 30 last year. Net revenues for the nine months were up 22%.
"I am delighted to announce that we have continued our strong momentum from the half year," said chief executive Gary Hoffman.
"We now have 2.6mln live customer policies, up 14% on last year, and gross written premiums have increased by 25% to £714.3mln.
"Whilst we have seen some short term market pricing fluctuations following the UK Government's recent Ogden discount rate announcement, our premium and claims inflation have continued to show similar trends to those we reported at the half year."
Hastings sells most of its policies through price comparison websites, and has benefited as higher premiums lead to more use of such websites.
The average price of motor insurance in Britain jumped 10% in the third quarter, taking premiums to their highest level since 2012, the Association of British Insurers (ABI) said on Friday.
READ: Analysts weigh in on insurers Hastings and Esure after government cuts Ogden discount rate
But City broker Shore Capital was less upbeat, repeating a 'sell' recommendation on the shares.
It said the firm's growth metrics reflected new business increases, strong retention rates and targeted, but unquantified, rate increases.
It notes Hastings makes little specific reference to the UK Ogden discount rate - the personal injury discount rate, which was first cut earlier in 2017, and impacted firms' financials in the following quarters.
"...we suspect that UK motor rates have 'rolled over' following the recent Ogden announcement and whilst Hastings has indicated a continuation of the claims experience in H1 17, these rate reductions are likely to result in reduced margins across the industry," said analyst Eamonn Flanagan.
Shares nudged up 0.09% to 319.80p in early deals.