Hastings Direct "on track"

The financial penalty imposed by the Financial Service Authority related to the cancelling of 4,550 incorrectly priced motor insurance policies - without sufficient warning to customers.

It's a setback to the company, Bexhill's largest employer, which recently revealed to the Observer plans to consolidate and improve its service, taking on a further 180 members of staff and spending 1 million on refurbishing the building in Collington Avenue.

However Chief Executive Officer Edward Fitzmaurice said this week: "The investment programme remains on track.

"Hastings Direct is part of Insurance Australia Group, among the largest personal lines insurers in the world. It has made adequate provision to settle both the FSA fine and any subsequent compensation; neither will have a material impact on the company.

"The FSA penalty is intended to act as an incentive to improve behaviours in the market generally, not specifically in Hastings. To put it into context, the regulator fined Liverpool & Victoria 840,000 just two days later."

"We've had an excellent response to our vigorous recruitment programme which began in the middle of July. Following job ads appearing in the Bexhill, Hastings, Rye, St Leonards and Eastbourne local press, more than 40 roles have been filled already. Meanwhile, our plans to refurbish the Collington Avenue head office are progressing well...As I've already said, it's all great news for Bexhill."