Compensation Rate Change Costs Insurer Hastings £8.4M

Law360, London (August 8, 2019, 4:14 PM BST) -- Hastings Group Holdings PLC said Thursday that its profits took an £8.4 million ($10.2 million) hit because it will pay out more compensation for personal injury cases after the government unexpectedly increased a key compensation rate by only a narrow margin.

Hastings, which offers vehicle and home insurance, said that its operating profits for the first half of 2019 stood at £59.7 million. The East Sussex-headquartered insurer said this amount, which takes into account the group’s operating expenses, would have been £68.1 million if the government had increased the so-called Ogden rate to positive territory, as promised by the government....

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