22nd Oct 2024 09:35
(Alliance News) - Sabre Insurance Group PLC on Tuesday said it thinks insurance rates will have to increase to reflect current levels of claims inflation, as gross written premiums climbed despite growing price competition.
Sabre shares were down 9.0% to 125.00 pence each on Tuesday morning in London.
The Dorking, Surrey-based motor insurance underwriter said gross written premiums in the nine months to September 30 rose 15% on-year to GBP186.5 million from GBP162.2 million. It is on track for "record" gross written premiums this year.
Sabre said it has seen signs of claims inflation cooling, though this remains "at a high single-digit level".
Further, it noted that increasing competition in the insurance mass-market was evident in "clear signs of market price reductions."
Sabre expects annual profit to be in line with current market expectations.
The company anticipates "strong" year-on-year premium growth, albeit moderated slightly and to be in-line with its view of high single-digit percentage claims inflation.
Chief Executive Officer Geoff Carter said: "We have seen clear signs that market pricing has softened considerably during the summer. Our view is that market price movements outstrip any potential short-term benefits from a slight softening in claims inflation. We remain confident in our view on inflation and that market pricing will have to reflect this in due course."
By Tom Budszus, Alliance News slot editor
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