Hastings paraded its wares ahead of a probable flotation yesterday as the fast-growing insurer reported a sharp jump in half-year profits and increased customer numbers.
Gary Hoffman, the former Barclaycard and Northern Rock boss who is expected to lead Hastings into a listing, said the motor and household insurer had shaken off the pressure on prices to raise average premiums by 5 per cent over the past 12 months.
He said that, while Hastings had seen an increase in insurance claims for whiplash injury, most payouts had been relatively small. He blamed the rise on low fuel prices putting more drivers on the roads and the return of aggressive claims management companies.
Mr Hoffman, who was brought in as chief executive three years ago, declined to be drawn on the timing or size of any initial public share offering, but one is thought likely within the next 12 to 18 months.
“We are exploring our options, including a potential IPO [initial public offering] and we have advisers working with us on those options,” he said.
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A listing of Hastings, which is being advised by Credit Suisse and Goldman Sachs, is expected to value the insurer at about £1 billion.
Adjusted pre-tax profits rose by 19 per cent to £59.6 million over the six months to the end of June on revenues that improved by 16 per cent to £222.6 million.
Hastings added 300,000 customers over the 12-month period and now has 1.9 million, an increase of 17 per cent.