Direct Line Insurance Group PLC (LSE:DLG) and Admiral Group Plc (LSE:ADM) shares are up 2.9% and 2.1% respectively, on signs of an upturn in the industry after a positive update from industry peer Sabre Insurance Group PLC (LSE:SBRE).
Sabre raised its premium growth guidance as the increases it has pushed through on car insurance rates are outpacing expectations.
"Premium in recent months has been above expectations, therefore we increase our overall 2023 full-year gross written premium year-on-year growth expectation to 20% - 25%," the company said in a statement.
It said significant rate increases were mitigating the impact of claims inflation and ensuring margins return towards historical levels for business written in recent months.
In July 2002, Sabre shares plunged after it issued a profit warning and flagged dividend cuts amid industry struggles with higher claim costs.
The warning was followed by similar statements across the industry, including from Direct Line and Admiral.
Shares in Sabre are 3.3% higher late morning in London.