REG - Sabre Insurance Grp - Trading Update

Sabre InsuranceAnnouncement

23/05/2024 07:00

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RNS Number : 5354P  Sabre Insurance Group PLC  23 May 2024

 Sabre Insurance Group plc

 Trading Update

 Strong year-on-year growth in the period
 Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading
 motor insurance underwriters, today provides an update on trading for the
 period from 1 January 2024 to 30 April 2024 ahead of its Annual General
 Meeting ("AGM") later this morning.

                    Unaudited       Unaudited
                     4 months ended  4 months ended
                      30 Apr 2024     30 Apr 2023
 Gross written premium - Motor Vehicle  £77.1m          £47.9m
 Gross written premium - Motorcycle     £3.5m           £6.3m
 Gross written premium - Taxi           £5.1m           £4.7m
 Gross written premium - Total          £85.7m          £58.9m

Business highlights for the first four months of 2024

 -   Strong Motor Vehicle performance with gross written premium up 61%,
 having implemented price increases fully covering anticipated claims inflation
 of approximately 10%

 -   Gross written premium run-rate for Motorcycle and Taxi products ahead of
 Q4 2023

 -   Claims experience across all products in-line with our expectation

 -   Remain committed to profitability over volume across all products; total
 policy count of 295k at 30 April 2024 (31 December 2023: 290k)

 -   Policy count by product at 30 April 2024: Motor Vehicle - 242k,
 Motorcycle - 42k, Taxi - 11k (31 December 2023: Motor Vehicle - 234k,
 Motorcycle - 44k, Taxi - 12k)

 -   Post-dividend solvency capital ratio at 31 March 2024 of 183% (31
 December 2023: 171%)

 Market trends

 -   Claims inflation for 2024 anticipated to remain at c.10%, as previously
 guided

 -   Evidence of some slowing of pricing increases during Q1 across the core
 Motor Vehicle market, although Sabre has remained competitive within its
 target market

 Full-year guidance reiterated

 -   As previously guided we continue to anticipate further growth in the
 core Motor account with overall growth in GWP above claims inflation across
 2024

 -   Loss ratios should improve further as profitable business written in
 2023 earns through, leading to a strong increase in profit in 2024

 -   Overall COR of 75% to 80% on an IFRS 17 (discounted) basis, dependent on
 the level of discounting credit recorded for the year

 Geoff Carter, Chief Executive Officer of Sabre, commented:

 "I am very pleased that the strong trading we experienced throughout the
 latter half of 2023 has continued into 2024. We have delivered high levels of
 premium growth whilst also increasing prices to cover fully forward-looking
 claims inflation of circa 10%, illustrating both our commitment to, and the
 success of, our long-standing "profitability as a target, volume as an output"
 strategy.

 It is encouraging that both expected profitability and volume are in a strong
 position and our outlook for the year remains unchanged. We are particularly
 pleased that all three of our products are expected to make a positive
 contribution to profit this year.

 As demonstrated by the strong solvency position, we are also benefiting from
 expected improvements in profitability as our disciplined pricing approach
 continues to earn through from the business written last year.

 Looking forward, we continue to anticipate above-inflation growth in full-year
 GWP, providing market pricing remains rational, and an overall COR within our
 target range of 75% to 80%.

Investor enquiries              01306 747 272
 Sabre Insurance Group plc

 Geoff Carter / Adam Westwood

 Media enquiries                 020 7353 4200
 Teneo                           sabre@teneo.com (mailto:sabre@teneo.com)
 James Macey White / Ffion Dash

 

 LEI Code: 2138006RXRQ8P8VKGV98

Business highlights for the first four months of 2024

-   Strong Motor Vehicle performance with gross written premium up 61%,
having implemented price increases fully covering anticipated claims inflation
of approximately 10%

-   Gross written premium run-rate for Motorcycle and Taxi products ahead of
Q4 2023

-   Claims experience across all products in-line with our expectation

-   Remain committed to profitability over volume across all products; total
policy count of 295k at 30 April 2024 (31 December 2023: 290k)

-   Policy count by product at 30 April 2024: Motor Vehicle - 242k,
Motorcycle - 42k, Taxi - 11k (31 December 2023: Motor Vehicle - 234k,
Motorcycle - 44k, Taxi - 12k)

-   Post-dividend solvency capital ratio at 31 March 2024 of 183% (31
December 2023: 171%)

Market trends

-   Claims inflation for 2024 anticipated to remain at c.10%, as previously
guided

-   Evidence of some slowing of pricing increases during Q1 across the core
Motor Vehicle market, although Sabre has remained competitive within its
target market

Full-year guidance reiterated

-   As previously guided we continue to anticipate further growth in the
core Motor account with overall growth in GWP above claims inflation across
2024

-   Loss ratios should improve further as profitable business written in
2023 earns through, leading to a strong increase in profit in 2024

-   Overall COR of 75% to 80% on an IFRS 17 (discounted) basis, dependent on
the level of discounting credit recorded for the year

Geoff Carter, Chief Executive Officer of Sabre, commented:

"I am very pleased that the strong trading we experienced throughout the
latter half of 2023 has continued into 2024. We have delivered high levels of
premium growth whilst also increasing prices to cover fully forward-looking
claims inflation of circa 10%, illustrating both our commitment to, and the
success of, our long-standing "profitability as a target, volume as an output"
strategy.

It is encouraging that both expected profitability and volume are in a strong
position and our outlook for the year remains unchanged. We are particularly
pleased that all three of our products are expected to make a positive
contribution to profit this year.

As demonstrated by the strong solvency position, we are also benefiting from
expected improvements in profitability as our disciplined pricing approach
continues to earn through from the business written last year.

Looking forward, we continue to anticipate above-inflation growth in full-year
GWP, providing market pricing remains rational, and an overall COR within our
target range of 75% to 80%.

 

 

 Investor enquiries              01306 747 272
 Sabre Insurance Group plc

 Geoff Carter / Adam Westwood

 Media enquiries                 020 7353 4200
 Teneo                           sabre@teneo.com (mailto:sabre@teneo.com)
 James Macey White / Ffion Dash

 

LEI Code: 2138006RXRQ8P8VKGV98

 

 

 

 

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