Sabre raises guidance after growth accelerates in Q3

(Sharecast News) - UK motor insurance group Sabre raised its full-year guidance on Thursday after a better-than-expected step-up in motor vehicle premium growth in the third quarter. The company said it now expects 2023 gross written premiums to increase by 20% to 25%, ahead of previous guidance in August of 15% to 20% growth.

Motor vehicle premium growth jumped by 61% year-on-year in the three months to 30 September, well ahead of the 19% growth in in the first half, driving vehicle premiums for the first nine months of the year up 33.6% to £140.5m.

Motorcycle premiums, which account for less than 10% of total premiums, dropped 48.8% year-on-year in the nine-month period to £10.7m. Taxi premiums increased 14.6% to £11m.

The result was group gross written premiums rising 19.5% overall over the first three quarters to £162.2m.

"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," said chief executive Geoff Carter.

The stock was up 3.3% at 155p by 1143 BST.