Proactive Investors - Run By Investors For Investors

Sabre Insurance looks sharp as shares rally 10% on LSE debut

Shares were priced at 230p each in the IPO but jumped to 255p early on Wednesday morning trade
two two cars crashing
Sabre’s brands include Insure 2 Drive, Go Girl and Drive Smart

British car insurance underwriter Sabre Insurance Group PLC (LON:SBRE) saw its shares jump 10% on its market debut on Wednesday.

Shares were priced at 230p apiece in its initial public offering but leapt to 255p early on Wednesday morning, valuing the company at £630mln.

Focus on UK private motor sector

Sabre - which was founded in the early ‘80s - generated gross written premiums of £197mln last year and said it intends to maintain its focus on the UK private motor insurance market.

The sector came under pressure earlier in the year when a change in the way personal injury claims were calculated pushed up the size of those claims and dented the insurer’s profits.

But the UK government backtracked on those plans somewhat in September, changing the rate for calculating payments in a move that was seen as favourable for insurers.

According to Reuters, Sabre’s private equity owners BC Partners looked to the London Stock Exchange following an unsuccessful joint approach from US investment group Centerbridge and Qatar Reinsurance Company.

“We are delighted with the response we have received from investors,” said chief executive Geoff Carter.

“This reflects the strong and profitable track record the business has built over previous years, as well as the bright future that lies ahead of us.”

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

December 28 2017
Apparently, at some point in their lives every person in the UK will hold or touch a Lego brick - Parallel is building a business around the famous plastic bricks
October 24 2017
After being rejected by several publishers, Bloomsbury was the one which decided to take a punt on Harry, and what a magical decision it proved to be
February 13 2018
The shares are up 50% over the last year as the company's international expansion gains momentum

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use