OREANDA-NEWS. Fitch Ratings has affirmed Jersey-based Hastings' Insurance Group (Finance) plc's (Hastings) Long-term Issuer Default Rating (IDR) at 'B+' with a Positive Outlook. The agency has simultaneously withdrawn the rating. Fitch has also affirmed and withdrawn the 'BB-'/'RR3' ratings on Hastings' GBP150m senior secured floating-rate notes due 2019 and its 8% GBP266.5m senior secured fixed- rate notes due July 2020.

The ratings have been withdrawn due to the early repayment of the bonds. Accordingly Fitch will no longer maintain ratings or analytical coverage of the issuer.

KEY RATING DRIVERS
In Fitch's view, Hastings' financial metrics on a cashflow basis support the IDR at the 'B+' level. The Positive Outlook reflects Fitch's view that additional cash flow generation leading to further deleveraging, supported by a business with greater scale and diversification, would support a higher rating.

Hastings has maintained favourable underwriting performance in the face of a competitive motor insurance market, while broker fee income generation remains strong. Fitch believes that the insurer's agile business model, low expense base and use of extensive driver profile data provide it with a competitive advantage over larger, more established players. However, there is the risk of a competitor replicating this model within three to five years, which could put Hastings' current growth trajectory at risk.