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LONDON (Alliance News) - Sabre Insurance Group PLC on Thursday said it expects to exceed its combined ratio target in 2018 due to a strong underwriting performance and will declare an attractive annual dividend.
The combined ratio is a measure of underwriting profitability. The lower the figure below 100%, the more profitable the underwriting.
The vehicle insurance company is targeting a mid-70% combined ratio in the 2018 year, and now expects to surpass this. The insurer also expects to outperform its 2017 combined ratio of 69%.
Sabre said its "superior underwriting performance" in the nine months to September 30, underpinned by "strong claims experience, had confirmed the likelihood that Sabre will exceed its target.
Further to this, Sabre also said its capital generation thus far increases the likelihood of "an attractive full-year dividend" and a solvency coverage ratio of 195% at the end of September, will in excess of its target range of 140% to 160%.
"Having paid an interim dividend of 7.2 pence per share, the solvency capital ratio as at 30 September 2018 is at 195%, well above our target," said Sabre Chief Executive Geoff Carter.
"This provides the board the option to return surplus capital to shareholders following the full-year results, should the capital position improve further throughout the remainder of 2018," he added.
Gross written premium for the first nine months of the year dipped to GBP162.6 million from GBP165.0 million, and Sabre expects 2018 gross written premium to be in line with 2017.
"We have sought to cover anticipated claims inflation and will continue this focus throughout the rest of this year," Carter said.
"We remain confident that we will end the year with premium in-line with 2017," Carter continued.
Shares in Sabre Insurance were up 3.5% at 264.00 pence on Thursday.
