19th Oct 2023 11:55
(Alliance News) - Sabre Insurance Group PLC on Thursday celebrated a sharp increase in gross written premiums in the last nine months despite Motorcycle premiums plummeting, and raised its full-year guidance.
The Dorking, England-based motor insurance underwriter said gross written premiums increased 20% in the nine months ended September 30, to GBP162.2 million from GBP135.7 million. In 2022, they totalled GBP171.3 million.
Sabre said its Motor Vehicle book performed especially strongly, with premiums up 34% to GBP140.5 million from GBP105.2 million.
Taxi premiums increased 15% to GBP11.0 million from GBP9.6 million, although Sabre said the market remains challenging. Motorcycle premiums dropped by 49% to GBP10.7 million from GBP20.9 million.
Sabre said however that Motorcycle policy count and premium growth, down since it stopped trading with MCE Insurance, was offset by increased sales "through our alternate channel" and the book's performance was good overall.
The company's post-dividend solvency capital ratio increased to 191% from 163%, which Sabre said reflected its return to historical levels of underwriting profitability.
"Having stuck firmly to our 'profitability over volume' strategy through four years of persistent market under-pricing and periods of very high inflation, we are now starting to show the benefits of our strategy as market pricing continues to correct," commented Chief Executive Officer Geoff Carter. He added that Sabre has been able to offset inflation through price increases.
Due to premiums in recent months exceeding expectations, Sabre increased its 2023 year-on-year growth guidance to between 20% and 25%. It maintained its profitability outlook.
"Premium growth and momentum in underwriting margin improvements will earn through in 2024, which we expect to result in further improvement in combined operating ratio in-line with previous guidance," the company said.
"Our success so far this year is evident in the high premium levels and very strong solvency position which will allow sufficient headroom for further growth," Carter added, "whilst allowing the board flexibility in determining an appropriate dividend distribution at year-end in line with our policy."
Sabre Insurance shares were up 3.3% at 155.00 pence in London on Thursday around noon.
By Emma Curzon, Alliance News reporter
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