Sabre Insurance Group PLC (LON:SBRE) said it anticipates paying “an attractive dividend” for the full-year as positive trends continued in the third quarter, with prices increased 10% to cover underlying claims and other cost inflation.
Following the Financial Conduct Authority’s final report in September on the pricing of home and motor insurance, which proposed that the premium for a customer renewing their home or motor insurance should be no more than if they were a new customer, Sabre said it should not face any negative effects as it “does not operate any 'price-walking' strategies”.
Temporary COVID-19 lockdown-driven price reductions have now been “fully backed out”, the motor insurer said, as traffic and claim levels return to near normal.
Gross written premiums picked up in the past quarter, resulting in the first nine months of the year ending 9% lower year-on-year at £139.2mln, having been 14% down at the half-year stage.
The FTSE 250 group said it continues to expect its full-year combined ratio will be close to its long-term mid-70%'s target.
It said the potential for a healthy dividend was supported by strong organic capital generation with a solvency coverage ratio of 186% at the end of September, versus 198% a year ago and a target range of 140% to 160%, plus a balance sheet with no debt obligations.