LONDON - Sabre (NASDAQ:SABR) Insurance Group plc, a prominent UK motor insurance underwriter, has reported a significant increase in its gross written premiums for the quarter ending September 30, 2024. The unaudited figures show a 15% rise compared to the same period in 2023, indicating the company is on track to achieve a record premium income for the year.
The company's gross written premiums for motor vehicles climbed to £165.6 million, an 18% increase from the previous year's £140.5 million. However, motorcycle premiums saw a decrease of 23%, dropping to £8.2 million from £10.7 million. Taxi insurance premiums grew by 15%, totaling £12.7 million compared to £11.0 million in 2023. Overall, the total gross written premium reached £186.5 million, up from £162.2 million, marking a 15% growth.
Sabre has managed to consistently write policies at target margins, which is expected to contribute to profitable growth throughout the current year and into 2025. The company's strategy of disciplined underwriting is anticipated to result in a profitable outcome across all product lines.
The firm's post-dividend solvency capital ratio has improved to 195% from 191% in the previous year, signaling strong capital generation and the company's confidence in its ability to pay an attractive dividend for the year.
Despite a slight softening in market prices during the summer and signs of claims inflation moderating, Sabre has continued to increase rates to cover elevated claims inflation, contrasting with broader market trends. The company expects that market prices will need to rise to reflect the current levels of inflation.
Sabre's CEO, Geoff Carter, expressed satisfaction with the company's performance in the third quarter and anticipates a robust full-year result. He also noted the completion of foundation work that will support Sabre's multi-year growth strategy, details of which will be discussed in a capital markets session on December 5, 2024.
The company has reaffirmed its full-year profit guidance, expecting strong year-on-year premium growth and profits in line with current market expectations, albeit with a slight moderation in premium growth due to claims inflation.
This update, based on a press release statement, reflects Sabre Insurance Group's current financial performance and strategic outlook as it navigates through a changing market landscape.
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