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.”