Sabre Insurance Group PLC on Tuesday said it is aiming for further growth in its core Motor account amid an expectation that loss ratios will improve, as it reported a surge in profit last year.

The Surrey, England-based motor insurer said gross written premium rose 31% to £225.1 million in 2023 from £171.3 million a year earlier, while combined operating ratio improved to 86.3% from 93.4%. A ratio below 100% indicates profitable underwriting.

Pretax profit jumped by 69% to £23.6 million from GP14.0 million in 2022.

On the back of the results, Sabre proposed a final dividend of 8.1p per share, multiplied from 1.7p a year ago, bringing the total dividend to 9.0p, doubled from 4.5p.

Chief Executive Geoff Carter said: ‘We have delivered good profit for the year, ahead of expectations, and we anticipate a further significant increase in profitability for 2024 as the profitable business written in 2023 earns through. We believe that ongoing market uncertainties are such that price discipline should be maintained across the sector, which, together with our ongoing focus on profitable growth, will enable Sabre to deliver strong returns to shareholders in 2024.’

The annualised return on tangible equity ratio improved to 22.7% as at December 31 from 13.3% a year prior.

Looking ahead, Sabre expects loss ratios to improve ‘as profitable business written in 2023 earns through’ which will increase profit in 2024.

‘If market pricing discipline sustains, then further growth is expected in the core Motor account,’ it added.

Sabre shares rose 3.9% to 165.20 pence each on late Tuesday morning in London.

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