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(Alliance News) - Sabre Insurance PLC on Thursday backed annual guidance, benefiting from its "above market" pricing.
The Surrey, England-based motor insurance provider said it has increased prices in the face of rampant claims inflation, which it says is running at roughly 12%.
"In response to this inflationary environment - and in contrast to the broader market - Sabre has continued to increase prices to reflect claims inflation fully, increasing Motor policy prices by 24% to the end of September 2022, and by 31% over the past twelve months," Sabre said.
Promisingly, volumes are still in line with expectations despite price hikes, it said.
In the nine months to September 30, gross written premiums rose to GBP135.7 million from GBP126.7 million a year earlier. In 2021, gross written premiums amounted to GBP169.3 million.
Chief Executive Officer Geoff Carter said: "It is encouraging that despite our above-market price increases we are still delivering volumes in line with our expectations."
Sabre continues to expect a combined ratio in the "mid-90%s" range, which it expects to improve on next year. A combined ratio below 100% suggests a profit from underwriting activities, so the lower the better.
Hence, the firm said it remains confident in its long-term prospects.
Sabre recorded a pretax profit of GBP4.3 million in the first half of 2022, down 81% from GBP22.2 million the year before, as net insurance claim costs jumped 62% to GBP59.3 million from GBP36.5 million.
Shares were up 0.3% at 91.20 pence each on Thursday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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