Hastings raises new debt financing

Hastings Insurance Group has announced the placement of 416.5 million pounds of senior secured bonds. The issuer is Hastings Insurance Group (Finance) plc and the Notes will be listed on the Irish Stock Exchange.

PRESS RELEASE

Hastings Insurance Group (“Hastings”, “the Group”) today announces the successful placement of £416.5m senior secured bonds, split into £266.5m 8% Senior Secured Fixed Rate Notes due in October 2020, and £150.0m of Senior Secured Floating Rate Notes due in October 2019 at an interest rate of LIBOR plus 600 bps.

The issuer is Hastings Insurance Group (Finance) plc and the Notes will be listed on the Irish Stock Exchange.

Hastings has grown since it underwent a management buyout in 2009. For the twelve months ended 30th June 2013, Hastings placed gross premium of £444.1m and generated adjusted EBITDA of £83.3m. As at 30th June 2013, Hastings had 1.3m customers, an increase of 17% on the previous 12 months.

Hastings’ Chief Executive, Gary Hoffman, said:

“Hastings is a fast growing, successful general insurance business. We have a clear strategic plan to continue providing refreshingly straightforward insurance. We are proud of what we do but know we can get better – we intend to be a force for good in the industry.

“The strong appetite for the bond is a testament to the market’s confidence in the financial performance and stability of our business.

“With over £700m of institutional and shareholder capital behind us we can look forward to the future with huge confidence.”

The Notes are being offered only to qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in accordance with Regulation S under the Securities Act.

17 October 2013

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Notes to Editors

About Hastings Insurance Group
Hastings employs 1,500 people. We are a multi-award winning company which has built our business by championing the consumer and helping to hold down the cost of quality insurance. We offer car, motorcycle, van and household insurance direct to the public and through our growing affinity partnerships with many UK and global leading brands. We employ the very latest anti fraud technology to protect our customers and increase the amount of fraud detected. Hastings Direct is the trading name of Hastings Insurance Services Limited. The company’s brands are Hastings Direct, People’s Choice, Insure and Renew. Advantage Insurance Company Limited is the insurer within the Group.

For more information on Hastings please visit www.hastingsinsurancegroup.com

About Goldman Sachs Merchant Banking Division
Since 1986, the Goldman Sachs Merchant Banking Division, through its Principal Investment Area (“GS PIA”) and its predecessor business areas, has raised 18 private equity and principal debt investment funds aggregating over $84 billion of capital (including leverage). A global leader in private corporate equity investing, GS PIA focuses on large, high quality companies with strong management in order to fund acquisition or expansion across a range of industries and geographies. GS PIA has an established track record of investing in financial services including investments in insurance businesses Enstar, Allied World Assurance, ProSight, Safe-Guard, USI and Taikang Life.