StockMarketWire.com - Insurance provider Hastings warned on profit and said it would cut its dividend as its annual loss ratio was impacted by elevated claims costs in the fourth quarter.

Hastings said it expected its dividend for the year through December to be lower, without being more specific.

The dividend, however, would be above the company's stated 65-75% target payout range.

Adjusted operating profit was seen in the region of £110m, with a loss ratio in the range of 81%-82%.

The company said claims inflation rose due to increases in repair and third-party credit hire costs, slightly higher winter frequencies and a small number of larger bodily injury losses. Live customer policies were expected to remain broadly flat over the second half of 2019 at 2.85m.

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