22nd Mar 2018 10:46
Sabre shares were trading at
The results are Sabre's first since its initial public offering in
Gross earned premiums for 2017 totalled
Pretax profit fell to
Sabre, which focuses on motor insurance, said its net loss ratio fell to 46.5% from 47.7% as it benefited from continued positive prior year claims experience and a continued "cautious" pricing strategy.
The company's solvency ratio was 160% in 2017, up from 128% in 2016, and it has a target range of 140% to 160%. Coming in at the top end of this range shows, Sabre said, its "strong" balance sheet, organic surplus capital generation, and "conservative" approach to risk management.
Sabre is not paying a dividend for 2017, as planned. Going forward, however, it will aim to pay 70% of its profit from operations, net of tax, back to shareholders.
The firm said 2017 was a strong year financially, but the impact of the Ogden rate change, which is used to calculate personal injury claims, as well as industry-wide reductions in personal injury frequency led to price pressure at the end of 2017 which has since continued.
Sabre said this has led to a "modest" fall in premium income year-on-year, but it has since taken pricing actions and thus the figure has returned to the run rate seen in 2017.
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