26th Nov 2015 11:18
LONDON (Alliance News) - NAHL Group PLC on Thursday said it is equipped to cope with changes by the UK government to make it harder for people to claim compensation for exaggerated or fraudulent whiplash claims.
NAHL, a personal injury claims group, was commenting one day after the UK government said it is ending the right to cash compensation.
The government's plans mean that more injuries will also be able to go to the small claims court as the upper limit for these claims will be increased to GBP5,000 from GBP1,000.
"Clearly this is still at an early stage with little detail available as to how, if and when it might be implemented but most likely this will be subject to consultation to which NAHL will contribute. Therefore there is currently a level of uncertainty as to whether these changes will affect NAHL. There is no impact to management's expectations in the short term," NAHL said in a statement.
NAHL said its recent acquisitions of Bush & Company and Fitzalan Partners have helped to diversify its business, and that it will consider "further opportunities" to continue its diversification. The company said that neither Bush & Company nor Fitzalan Partners is affected by the government changes.
"There will remain a significant market for claims valued below GBP5,000 and the group's personal injury subsidiary, National Accident Helpline, is ideally positioned to assist consumers in processing those claims going forward. There may be potential to further accelerate industry consolidation meaning that more competitors are removed from the market, leaving NAHL in a stronger position to grow its market share with higher value claim enquiries," the company said.
Shares in NAHL were down 9.3% at 353.25 pence Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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