10th Nov 2021 11:22
(Alliance News) - Sabre Insurance Group PLC on Wednesday inked an agreement with motorcycle insurance firm MCE Insurance Ltd to become the exclusive underwriter for all of its policies.
Sabre, a Dorking-based motor insurance underwriter, will have complete control of pricing, claims handling and reserving. It has received access to MCE's multi-year claims and policy data, which will be combined with Sabre's digital pricing techniques.
Sabre shares rose 5.4% to 201.75 pence each on Wednesday morning in London.
"I am delighted to announce our partnership with MCE Insurance today. Motorcycle insurance is entirely consistent with our focus on engines and wheels, providing an exciting additional opportunity alongside our UK private motor business. The partnership will add significant data capabilities and allows us to retain our underwriting discipline whilst providing incremental earnings growth. We will provide a further update on our progress with MCE at full-year results," Geoff Carter, chief executive at Sabre, said.
Sabre expects gross written premiums of over GBP20 million per year from the deal and a pretax profit contribution between GBP3 million and GBP5 million per year.
Sabre noted that it did not pay any financial consideration to MCE and will not be liable for any historical policies, claims or activities of the previous underwriter.
By Greg Roxburgh; [email protected]
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