Sabre holds firm on pricing as premium falls

Sabre’s gross written premiums fell 7.31% to £64.7m as it sacrificed premium to hold the line on pricing.

With claims inflation outstripping rate increases, chief executive Geoff Carter said he was comfortable with the strategy. 

Following the trading update for 2019, Carter said: “We are very comfortable with our premium position at this point in the cycle and believe our strategy positions us well for growth when the market turns.

“The outlook for our full year gross written premium position continues to be in a range depending on the timing of this market turn, but at this stage feels likely to be slightly down year on year.”

Investors were largely unfazed, with the share price remaining solid at 261p. 

Last year was an especially tough period for a number of motor insurers.

Esure’s solvency plummeted as struggled on claims costs and rival Hastings suffered a share price drop as it revealed claims inflation is likely to be at the high end of its expectations. 

RSA’s UK private motor book has struggled and was deep in underwriting loss territory last year, according to experts. 

Elsewhere, Saga’s share price was battered as it revealed the FCA’s crackdown on dual pricing made a huge impact.