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Hastings to pay reduced dividend despite Covid-19
15th Apr 2020 07:03
(Sharecast News) - Insurance group Hastings said it still planned to pay a reduced final dividend of 5.5p despite the coronavirus pandemic and a warning from regulators over payouts during the crisis.
The group said its had no business lines with direct claims cost exposure resulting from Covid-19, for example travel or business interruption insurance. The payout represents a 39% cut on 2018, Hastings said in an update on Wednesday.
Insurers Aviva, RSA, Direct Line and Hiscox last week scrapped plans to pay dividends to shareholders during the coronavirus crisis after financial regulators urged them to pause payouts because of the uncertainty caused by Covid-19.
The Bank of England wrote to banks and insurers at the end of March asking them to suspend dividend payments and hold onto the cash which they may need during the crisis.
Hastings said revenue fell 2% to ?179.2m in the quarter to March 31. Gross written premiums fell 1% to ?234.3m.
"The first quarter of 2020 has been unprecedented with the Covid-19 outbreak placing additional operational challenges on top of recent industry headwinds," the company said.
It added that it was monitoring further inflationary risks, which were likely to continue throughout 2020 once Covid-19 restrictions were eased, particularly caused by disruption to repair networks and supply of parts.
"Underlying business performance, including the delivery of benefits from the group's technology and strategic initiatives, remains in line with management's expectations," the company said.
The group said its had no business lines with direct claims cost exposure resulting from Covid-19, for example travel or business interruption insurance. The payout represents a 39% cut on 2018, Hastings said in an update on Wednesday.
Insurers Aviva, RSA, Direct Line and Hiscox last week scrapped plans to pay dividends to shareholders during the coronavirus crisis after financial regulators urged them to pause payouts because of the uncertainty caused by Covid-19.
The Bank of England wrote to banks and insurers at the end of March asking them to suspend dividend payments and hold onto the cash which they may need during the crisis.
Hastings said revenue fell 2% to ?179.2m in the quarter to March 31. Gross written premiums fell 1% to ?234.3m.
"The first quarter of 2020 has been unprecedented with the Covid-19 outbreak placing additional operational challenges on top of recent industry headwinds," the company said.
It added that it was monitoring further inflationary risks, which were likely to continue throughout 2020 once Covid-19 restrictions were eased, particularly caused by disruption to repair networks and supply of parts.
"Underlying business performance, including the delivery of benefits from the group's technology and strategic initiatives, remains in line with management's expectations," the company said.