Sabre Insurance has released its Q3 trading update for 2021 which reveals a decline in the group’s gross written premium (GWP) by £12.5m.
The UK motor insurance underwriter’s GWP for the nine months ending 30 September 2021 was £126.7m. Previously, the nine months ending the year 2020 was £139.2m. The net earned premium for this period was £108.8m, whereas it stood at £127.3m last year.
According to Sabre Insurance, the decline is the result of a “subdued” market‐level demand for policies due to the gradual recovery in number of new drivers, continued soft market pricing environment ahead of FCA pricing reforms, and supply‐chain impacted car sales leading to short‐term reduction in volumes.
Sabre Insurance anticipates that profit before tax in FY 2021 will be “moderately below” the range of analysts’ forecasts of £41m‐£46m but with dividend levels supported by the strength of our capital position.
Having “maintained pricing discipline”, Sabre Insurance said it “remains well‐placed” to grow through a recovering market in 2022, said the company.
It added that the business remains “well positioned to take advantage of anticipated growth opportunities” as a result of current internal initiatives and market tailwinds anticipated in 2022.
Geoff Carter, chief executive officer, said: “Sabre has shown a great deal of resilience during recent challenging times, when our addressable market significantly and temporarily reduced in size.
“Whilst this has had an anticipated impact on our short‐term financial performance, we are very confident about the medium‐term and longer‐term growth outlook. We are currently working through a number of growth initiatives that we will discuss further at the Full Year results.”
He added: “We are confident that these initiatives, combined with anticipated market pricing increases and an expansion in our addressable market, will deliver growth in FY22 and beyond.
“By taking the hard decisions to allow volumes to reduce during the recent, unprecedented period, we have maintained our core strengths and are very well positioned to benefit from these opportunities.”