Sabre Insurance Group (Sabre) has reported strong premium growth and healthy capital position for the trading period July 01, 2023, to September 30, 2023 (Q3 2023).
Sabre's premium in recent months exceeded the group's expectations. For the nine months to September 30, 2023, the group's gross written premium (GWP) totalled £162.2 million, up 19.5% from £135.7 million in 2022.
For the first nine months of 2023, Sabre's core motor vehicle portfolio had a strong performance, with GWP up 34% year-to-date and up 61% versus Q3 2023. It also saw increased policy count while maintaining its focus on profitability as a target and volume as an output (222,000 as of September 30, 2023).
Sabre's motorcycle portfolio continued to focus on margin over volume, with rate increases expected to drive improved loss ratio performance for 2023 (versus 2022). However, policy count and premium growth dipped due to the cessation of trading with MCE Insurance, offset by an increase in sales through Sabre's alternate channel (motorcycle policy count dropped from 48,000 on June 30, 2023, to 45,000 on September 30, 2023).
Meanwhile, Sabre's taxi book continued to improve despite a challenging market, reporting improved loss ratio performance. Underwriting performance across the portfolio in Q3 2023 reflected improvement in the combined operating ratio for the second half of 2023 compared to the first half, with the combined operating ratio for 2023 expected to be at the higher end of 85% to 90% on a discounted basis in-line with previous guidance.
Sabre CEO Geoff Carter said the group's latest financial performance is reflected in the high premium levels and strong solvency position, expected to create sufficient headroom for further growth while allowing broad flexibility in determining appropriate dividend distribution at the end of the year with its policy.
“Having stuck firmly to our 'profitability over volume' strategy through four years of persistent market under-pricing and periods of very high inflation, we are now starting to show the benefits of our strategy as market pricing continues to correct,” Carter said. “I would like to thank all our people and shareholders, who have supported Sabre through an extended and challenging market, as we look to a bright and exciting future.”
