Premium growth muted by designMargins improve substantiallyDividend up 44% plus buybackPatience is a virtue, and investors in motor insurer Sabre (SBRE) have finally been rewarded after the group posted slightly better-than-expected results, hiked the dividend and announced a small buyback, the first in its history.The shares, which had been languishing at 12-month lows, jumped 10p or 8% to...

On 1 August the Bank of England's Monetary Policy Committee made a 5-4 decision to kickstart its rate-cutting cycle. A 25 basis point reduction in the base rate to 5% marking The Old Lady of Threadneedle Street's first cut since March 2020.This means cash savings rates are heading in one direction, down. And the lower-than-expected jump in UK inflation reported on 14 August only boosted market...

While motorists have benefitted from falling petrol and diesel prices this year - helping to offset some of the increased cost of the weekly shop - many are finding their motor insurance quotes have gone through the roof, typically with no explanation.According to the ONS (Office for National Statistics), car insurance prices have jumped more than 40% in the last 12 months, while the ABI...

Insurance company Direct Line (DLG) sparked a more than 25% drop in its share price after announcing (11 January) it wouldn't pay a final dividend due to poor trading which has put pressure on its balance sheet.Direct Line was hit by a combination of extreme weather and higher motor claims inflation which dented profit and caused the company to reassess what it needed to do with its cash.What...

Following on from the pandemic and war in Ukraine, UK stocks are being buffeted by headwinds from hot inflation, rising rates and the cost-of-living crisis. But it is UK small and mid-cap investors that have endured the toughest period over the past year, with the small cap, mid cap and AIM indices all suffering severe setbacks.The good news, however, is this sell-off has created opportunities...

- Shares trade sideways despite first half results ahead of expectations- Motor insurance underwriting impacts profitability- Management reiterates 2022 guidance for 96%-98% combined ratioShares in insurance group Direct Line (DLG) traded sideways despite the release of its first half results that are ahead of consensus.However today's results will be overshadowed by the group's recent profit...

Inflation is running at 40-year highs with June consumer prices increasing by more than 9% year-on-year on both sides of the Atlantic.Unsurprisingly it continues to grab headlines and keeps investors' attention firmly fixed on central bank interest rate rises designed to cool the economy.Supply shortages created by the reopening of the world economy have been exacerbated by the war in Ukraine...

Shares in motor insurance group Sabre (SBRE) and Direct Line (DLG) both slumped heavily on profit warnings on 14 July and 18 July respectively.This has led to selling across the wider peer group and has pushed dividend yields to double-digit levels in some cases. However, there are big risks to consider for investors attracted to this generous-looking income.Sabre is now guiding for earnings...

- Shares fall 12.5% on profit warning- Rising claims inflation the main issue- Management postpone share buybackShares in motor insurance group Direct Line (DLG) skidded 12.5% to a five-year low of 189.3p following the announcement of a damaging profit warning.Management is now guiding to a combined operating ratio in the range of 96-98% for 2022. This compares with previous guidance of...

- Shares slide 35% as first half earnings tumble- Higher claims inflation and lower volumes to continue- 2022 full-year outlook and dividend cutShares in UK motor insurer Sabre (SBRE) careered 35% lower to 126p after the firm posted much worse than expected earnings for the six months to June and warned its full year results would also miss forecasts.First half profit after tax was £3.5...

Shares in Sabre Insurance (SBRE) drifted lower despite the group announcing a first quarter update which revealed a 30% increases in premiums.Sabre says it has increased prices by 12% year-on-year, materially ahead of the market. This decision reflects the focus on maintaining profitability over volume against a backdrop of claims inflation estimated to be at least 10%.Premiums of £59.8...

UK car insurance stocks Direct Line (DLG) and Sabre Insurance (SBRE) could be among the companies enjoying a temporary benefit from the Government's latest Plan B to help fight Covid-19, which includes the requirement to work from home if possible.A reduction in cars on the road should in theory see fewer people get in accidents and therefore fewer insurance claims.The general insurance sector...

London's FTSE 100 finished Friday's trading session 1.2% higher at 7,043.6 points after US retail sales came in flat, short of expectations and helping to calm the recent fears over inflation that have spooked global markets.By 4.30pm UK time the S&P 500 index was up 1.2% at 4,163.67. In the UK, the domestically focused FTSE 250 finished up 1.2% at 22,336.1 points.SAGE NUMBERS ADD UPIn...

Motor insurer Sabre Insurance (SBRE) gained 2% to 261.5p as a trading update ahead of its AGM pointed to a 'strong' result for the current financial year.The company reported that volumes were in line with expectations for the first quarter of 2021 despite continuing to prioritise profitability over volume with price increases 'materially' ahead of the wider market.Gross written premiums for...

One of the most notable director deals over the past week comes from motor insurer Sabre Insurance (SBRE), whose chief executive and chief financial officer both sold a chunk of shares.Chief executive Geoffrey Carter sold over 140,000 shares this week at a price of 260p each in two separate transactions worth a combined £370,000, while chief financial officer Adam Westwood sold around 70,000...

UK stocks opened unchanged despite strong gains overnight in US tech stocks such as Amazon, up 4.75% ahead of its Prime Day campaign, and Apple up 6.3% ahead of its 5G iPhone launch, as the Nasdaq 100 index posted its best daily performance since April, gaining over 4%.Later in the US session futures slipped back on news that Johnson & Johnson's Covid vaccine study had been paused due to an...

Shares in motor insurer Sabre (SBRE) gained 8% to 282p after the firm reported resilient first half trading helped by lower claims as lockdown resulted in fewer drivers taking to the roads.Gross written premiums in the six months to 30 June were 14% lower year on year at £86.9 million as the firm stuck to its policy of focusing on profits over volumes and Covid-19 reduced overall demand for...

This morning's half-year report from specialist insurer Sabre (SBRE) should be ringing alarm bells for investors in its mainstream car and home insurance rivals.Sabre takes what chief executive Geoff Carter calls a 'prudent' approach both to risk and returns, putting underwriting discipline and profitability above volume growth.In the first half it raised premiums to offset claims inflation...

Motor and home insurance stocks have generated significant returns for investors over the past decade with the FTSE All-Share non-life insurance index almost trebling between 2009 and the middle of 2018.However increased competition, rising claims - and the need to hold more capital to meet future claims - together with tighter regulation mean that the party may be coming to an end.While the...

Full year results from motor insurer Sabre Insurance (SBRE) demonstrate once again management's 'laser-like' focus on quality over quantity.Rather than grow its revenues at the expense of margins, Sabre's 'core principle' is to put underwriting profitability first. By treating volume as 'an output not a target', the firm continues to generate exceptionally strong cash-flows.READ MORE ABOUT...