Sabre Insurance see growth softening as competition picks up

Gross written premiums totalled £186.5m for the nine months to 30 September, up 15% on the year before, as the company continues to increase rates to cover elevated claims inflation.

Sabre had written 230,000 motor policies by the end of the period, up from 222,000 a year earlier, while the number of motorcycle and taxi policies dipped to 38,000 and 11,000, from 45,000 and 13,000 respectively. Nevertheless, policies continue to be written at target margins, the company said, underpinning profitable growth this year.

Claims inflation remains at the high singe-digit level, but there are some signs of moderation. However, increased competition for volumes in the mass-market has been evident with reductions in market prices.

While Sabre still expects strong growth in premiums this year, and profit in line with market forecasts, growth is expected to have moderated slightly.

"We have seen clear signs that market pricing has softened considerably during the summer. Our view is that market price movements outstrip any potential short-term benefits from a slight softening in claims inflation," said chief executive Geoff Carter.

"We remain confident in our view on inflation and that market pricing will have to reflect this in due course."

The stock was down 9% at 125p by 1059 BST.