Sabre Insurance Group, a motor-insurance provider, has increased its guidance for gross written premiums for the year due to positive trends in market pricing. Despite reporting a decline in pretax profit for the first half of the year, the company remains optimistic about future growth.
In the six months ending June 30, Sabre Insurance Group recorded a pretax profit of £4.8 million, compared to a restated figure of £8.6 million for the same period in 2022. These numbers adhere to the new IFRS 17 accounting standard.
However, despite the dip in profit, the company saw an increase in gross written premiums, which rose from £91.8 million to £99.5 million. As a result, Sabre Insurance Group now expects this metric to grow by 15% to 20% in 2023, surpassing its previous projection of high single-digit growth. Additionally, the company anticipates further progress in 2024.
The group also revised its premium growth expectations for its core motor vehicle business in 2023. It now forecasts growth between 25% and 30% based on current run-rates, an upgrade from the previous forecast of low double-digit growth.
Sabre Insurance Group's combined operating ratio, which measures the proportion of revenue consumed by losses and expenses, was 93.8% for the first half of the year, compared to 92.7% during the same period last year. A ratio below 100% indicates profitable underwriting. For 2023, the company projects this ratio to be at the upper end of the 85% to 90% range.
The company's board declared an interim dividend of 0.9 pence per share, a reduction from the previous dividend of 2.8 pence.