Motor insurance provider, Sabre Insurance, has forecasted a slight moderation in its annual gross written premium growth due to persistently high claims inflation.
The company, listed on the London Stock Exchange, posted gross written premiums of £186.5m for Q3, marking a 15 per cent increase from £162.2m recorded in the same period last year, as reported by .
Between July and September, Sabre continued to hike its rates to offset the elevated claims inflation, contrasting with price cuts observed across the broader market.
Despite observing "signs of claims inflation moderating", the firm stated that inflation continues to hover at a high single-digit level.
Geoff Carter, CEO of Sabre, commented: "We have seen clear signs that market pricing has softened considerably during the summer."
He added: "Our view is that market price movements outstrip any potential short-term benefits from a slight softening in claims inflation. We remain confident in our view on inflation and that market pricing will have to reflect this in due course."
Sabre reiterated its profit guidance for the full year, stating it was on track to achieve record premiums by 2024.
The insurer maintained that it continued to underwrite policies at target margins. As of 30 September, its total policy count remained largely unchanged from last year, standing at 279,000.
Sabre reported slightly lower volumes in Q3 compared to H1 of the year, attributing this to rising competition which was "evident in clear signs of market price reductions".
Motor insurance firms are facing increased scrutiny over the spike in premium prices, prompting action from the new government. Just last week, a taskforce was set up with the intent to address and curb these escalating costs.
Recent findings from the Financial Conduct Authority (FCA) reveal that º£½ÇÊÓƵ motor insurance premiums have surged by an average of 21 per cent since June 2022. This rise starkly outpaces those seen in comparable economies such as Germany, France, Spain, and Italy.
Sabre Insurance weighed in on the issue, expressing approval of the government's initiative. A representative noted: "Pleased that this is primarily focusing on options to tackle the underlying cost inflation driving premium increases".
The insurance provider also mentioned its limited risk exposure regarding another FCA investigation disclosed last week, which examines the º£½ÇÊÓƵ's premium finance market.
