Sabre continues to recover from lockdown slump

(Sharecast News) - Sabre Insurance Group said its performance in the first three quarters of the year was consistent with its expectations on Tuesday, reporting an increase in prices to cover underlying claims and other cost inflation of around 10% per year in the nine months ended 30 September.
The FTSE 250 company said temporary Covid-19 lockdown-driven price reductions were now "fully backed out", as traffic and claim levels returned to near-normal.

It said it was still expecting a 2020 combined ratio result close to its long-term target, around the mid-70-percentage point mark.

Gross written premiums picked up in the third quarter, resulting in the first nine months of the year ending 9% lower year-on-year at £139.2m, having been 14% down year-on-year at the end of the first half.

Year-on-year gross written premiums for 2020 were expected to be in-line with Sabre's half-year guidance, with a likely outcome of around 10% lower year-on-year, depending on market conditions.

The company said "strong" organic capital generation supported the potential for an "attractive" full-year dividend, with a solvency coverage ratio of 186% as at the end of September, down from 198% year-on-year, well above its 140% to 160% target range.

It said it had a "strong" balance sheet, with no debt obligations.

"I'm pleased with how Sabre has continued to navigate the Covid-19 pandemic," said chief executive officer Geoff Carter.

"The performance of the business is a result of our total commitment to focusing on profitability over premium growth and the outstanding efforts of all my colleagues through some challenging times.

"While there remain obvious uncertainties going forward, the board is confident that it has the strategy and business model to continue to perform well both through the rest of this financial year and in the longer-term."

At 0823 BST, shares in Sabre Insurance Group were up 0.42% at 254.06p.