Sabre Insurance trading in line, FY gross written premiums seen down 7%
Sabre Insurance said on Thursday that trading in the nine months to the end of September has been in line with its expectations and volumes have not been hit further by rising prices.
In an update for the nine-month period, the private motor insurance underwriter said gross written premiums fell to £152.9m from £162.6m in the same period a year ago. Sabre said it expects gross written premiums for the full year to be down around 7% compared to 2018, in line with its previous guidance.
The group said "strong organic capital generation supports the potential for an attractive full year dividend", with a solvency coverage ratio of 198% as at the end of September versus 195% last year, above its 140% to 160% target range.
Chief executive officer Geoff Carter said: "Throughout a period of significant change in the UK motor insurance sector, we have continued to apply our long-term strategy, to focus on underwriting profitability, with premium volume remaining an output rather than a target.
"Encouragingly, early signs of market premium increases or other competitor actions mean that while we have accelerated price increases to cover these emerging costs as well as ongoing inflation, our volumes are not being further negatively impacted.
"We note the recent FCA report on pricing in the insurance industry. Given Sabre's approach is to price policies on a consistent basis across our new and renewal portfolios we do not anticipate that the proposed remedies will have a detrimental impact on our business."