Share Name Share Symbol Market Type Share ISIN Share Description
Sabre Insurance Group Plc LSE:SBRE London Ordinary Share GB00BYWVDP49 ORD GBP0.001P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 218.00 218.00 218.50 - 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonlife Insurance 173.9 49.1 16.0 13.6 545

Sabre Insurance Share Discussion Threads

Showing 51 to 74 of 150 messages
Chat Pages: 6  5  4  3  2  1
squeamish - they target people with money who are regarded as high risk by mainstream insurers. They don't compete in the cutthroat mass market. Hence, of course, they don't penalise loyalty: they've said they will be unaffected by the ongoing investigation. Also, they've a reputation for disputing dodgy claims. It's all a tight ship! Hence as they say, they don't pursue volume. Working largely through brokers could be an advantage. This business model means they don't need or want growth, and can throw off surplus capital with special dividends. With Sabre, you'll get a flat share price and 7-8% pa income. (That was the plan until this month, anyway!)
One thing I can’t work out here - what does the average Sabre customer look like, and why do they buy Sabre policies? How can they deliver sustainable CORs in the low-70s, when other motor insurers struggle to deliver below 100%? Without knowing this it’s hard to understand how their margins won’t be competed away, and without that it’s impossible to imagine paying nearly 5x tangible NAV for a motor insurer. Any ideas?
More director buying yesterday - only ISA money I suspect as £20k each for the chief actuary and his wife - bet he's a bit miffed he didn't wait a day.
wish i wasnt in rbs
True, but it was a very positive update none-the-less and the Director buys are a positive sign. Also, the RSI has hit sub 30, oversold territory so I would anticipate this is at the bottom or near bottom and is a very good entry point for new investors especially with the promise of a healthy dividend ahead
Recent Trading Update has not managed to reverse the current weakness... HTTPS://www.investegate.co.uk/sabre-insurance-grp--sbre-/rns/trading-statement/202010130700018399B/ Sabre Insurance Group plc (the " Group ", or " Sabre "), one of the UK's leading private motor insurance underwriters, today provides a trading update for the nine months ending 30th September 2020. Summary - Overall performance is consistent with expectations set at the time of the H1 results, which were announced on 28th July 2020 - The Group has continued to perform well throughout the COVID-19 pandemic and related disruption, continuing to execute our strategy of focusing on underwriting profitability over premium volume - Prices increased to cover underlying claims and other cost inflation of around 10% per year. Temporary COVID-19 lockdown-driven price reductions fully backed out as traffic and claim levels return to near normal - The Group continues to anticipate delivering a FY2020 combined ratio result close to our long-term mid-70%'s target - Continuing the positive trends identified at the H1 results, Gross Written Premiums picked up in Q3, resulting in the first nine months of the year ending 9% lower year-on-year at £139.2m(1) (9 months 2019: £152.9m), having been 14% down year-on-year at H1 2020 - Year-on-year Gross Written Premium for 2020 is anticipated to be in-line with guidance provided with the H1 results, with a likely outcome of around 10% lower year-on-year depending on market conditions - Strong organic capital generation supports the potential for an attractive full year dividend with a solvency coverage ratio of 186%(1) as at the end of September 2020 (September 2019: 198%), well above our 140% to 160% target range - Strong balance sheet with no debt obligations Outlook The performance in the first nine months of the year has been in line with expectations. Policy volumes are currently better than anticipated given the rate increases implemented, with high average premiums being achieved. Our on-going focus is on ensuring that our prices are appropriate for the life of a policy, not just the next few months, and we could be pricing somewhat ahead of the market. This may provide a growth opportunity in 2021 if some competitors need to "catch up" pricing levels. Alternatively, if data subsequently proves we have been too cautious we will be able to moderate rates whilst delivering a strong profit performance for prior periods. Despite the continuing uncertainties we remain confident in delivering a combined operating ratio close to our mid-70%'s target. We anticipate paying an attractive dividend for the full-year, underpinned by our current solvency ratio of 186% which is well above our target 140% to 160% range.
The FCA is to ban loyalty penalties. Sabre is down today, but has already said (July) that it doesn't expect to be affected.
@ wba1 - you'll be pleased at the departure of Mr Snowball!
Hi all, My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion covers SBRE and other Insurers. We also chatted about loads of other Stocks and we managed to include a lot of educational stuff in this one – things like how much Research you need to do and what to consider regarding Retirement. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 29) and you can find it on Soundcloud at the link below. I hope you enjoy it and find it useful, Cheers, WD @wheeliedealer hTTps://soundcloud.com/user-479955511/conkers3-wheeliedealer-29-compounding-investing-winners-adm-loop-swg-boo-5g-loop-midw
I rest my case - dlg up 30p this morning on special divi and resumption of dividends
wish i wasnt in rbs
Presentation: https://www.sabreplc.co.uk/media/1247/sabre_hy2020_results_presentation.pdf
i am surprised that the payment of the special divi hasnt led to more money going in to other insurers - the insurers were asked to consider their dividend payouts and several withheld all or part of their divis - it seems reasonable that these dividends are going to recommence.
wish i wasnt in rbs
It is the increase in new business in an environment where they acknowledge some competitors are pricing for volume which just niggles me slightly. And, of course, business written today will earn over the next 12 months, when claims will (I expect) return to nearer normal given the current recovery in traffic volumes (still not up to pre lockdown but a lot nearer than a month ago). I do not worry too much about fraudulent claims. Insurers have got much better at detecting them over the last few years.
They do talk about "premium discounts during recent months", but claims are down as well. They admit it's really hard to forecast what will happen in H2, as we've never been in anything like this situation before. They also talk about possible increases in fraudulent claims, but I seem to remember reading (at the IPO time) online that they had a reputation for being tough when investingating these.
My only concern with the half year numbers is the extent of the recovery in written premiums in June/July. It makes me wonder if they have priced too sharply to recover business. However this should have minimal effect in 2020 and, as long as they make sure to adjust premiums soon, should not have much effect in 2021. It is also possible that they have overreserved in H1 (both on accident year and prior years - despite the release) in order to smooth profits, in which case they will be able to smooth any effect from current sharper pricing.
Interims; https://www.investegate.co.uk/sabre-insurance-grp--sbre-/rns/half-year-report/202007280700032239U/ Last year's 'special' reinstated, so paying 9.5p. Confident outlook and a V-shaped recovery underway.
wba - good points. The reason for pressure to withhold dividends was due to worries that policy claims couldn't be met without raising more capital. So travel, business interruption, etc. As soon as it's recognised that a company is having no problems there, there would be no reason. Except politics, of course. Plus they will have additional surplus capital to give away next year from any dividends withheld from this year.
wish i wasnt in rbs
Except, of course, that Admiral is barely an insurer. More like an underwriting agency for Munich Re, to whom it lays off huge amounts of its risk and receives a very large % of any surplus profit as commission. So if there is any sort of cap on the profit commission in their deal with Munich Re it would not be their money they are giving away.
A bit unexpected, maybe? Admiral is to refund £110m of premiums to motor insurance customers because people are driving less during the lockdown, a move that will put pressure on rivals to follow suit. The group is the first major UK insurer to offer a blanket refund to all customers. Traffic levels have reduced by 70 per cent because of restrictions on movement during the coronavirus pandemic, according to research from RBC Capital Markets, a development that will lead to fewer accidents and lower claims costs for insurers. “We want to give the money we would have used to pay these claims back to our loyal customers in this difficult time,” said Cristina Nestares, head of UK insurance at Admiral. “We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so.” The company plans to return £25 per vehicle insured to customers. That is equivalent to 5 per cent of the average annual motor insurance premium at the end of last year, according to data from the Association of British Insurers. Admiral says the refund will apply to 4.4m vehicles. It has also committed to spending £80m on other measures, including price cuts and help for NHS workers. £25 Amount per vehicle insured that Admiral plans to return to customers Last week Aviva said it would allow customers to reduce their premiums by going online to change the amount of miles they expect to drive this year but it stopped short of a blanket refund for all customers. In the US, insurers have been more proactive about refunding premiums during the past few weeks. Groups including Geico, Allstate and State Farm have between them pledged to return billions of dollars to customers. In California, the state regulator has insisted that insurers return premiums for the months of March and April, and potentially for May as well if the lockdown continues. Shares in UK motor insurers such as Admiral and Hastings have performed relatively well since the crisis started, outperforming the FTSE All-Share index. Admiral shares rose 3 per cent in response to the refund news on Tuesday, and they are now only 3 per cent below their level in mid-February. But analysts have warned that the crisis will cause problems for motor insurers in the medium term, despite falling traffic levels. The closure of body shops and the low availability of spare parts could drive up repair costs, while the end of social distancing could lead to increased travel and greater risk of accidents. https://www.ft.com/content/4148e104-2a3d-4edb-a019-654caaed1d38
wba - good points. The reason for pressure to withhold dividends was due to worries that policy claims couldn't be met without raising more capital. So travel, business interruption, etc. As soon as it's recognised that a company is having no problems there, there would be no reason. Except politics, of course.
Fair comment by IC and I am holding Sabre in my long term account. But they already have excess capital and, unless they pay that special divi they will simply depress ROE to be seen as politically correct. Of course, they could use the capital to write more business - but the fact that IC complained about their lack of growth just shows that IC do not understand the retail insurance market. It is a commodity market these days. The only exception is niche risks, and that is where Sabre specialise. Significant growth would require them to write more mainstream business, which is much less profitable unless you can write the volumes of the likes of Direct Line. Just look at the awful underwriting performance of Hastings over the years, whilst trying to compete with the big boys. Best to remain a small insurer but one which understands its niche and is able to achieve a COR 10-20% better than the mainstream.
IC, buy at 272p: If there is a criticism of Sabre’s business model, it is a lack of growth. But in the current circumstances this does not seem like a reason to overlook what remains a highly cash-generative business with a defendable position in a market where demand is structurally supported. Numis’s annual forecast assumes an 8.5p special will be declared for 2020 at some point, giving the shares a 7.7 per cent yield. If this ends up deferred, too, then Sabre’s capital will only build. Buy.
rolo - no, the 8.1p final will be paid, but the special has been deferred - maybe to the interims. It's a PR exercise, as I don't see much direct covi risk here.
Dividend cancelled?
Final results: https://www.investegate.co.uk/sabre-insurance-grp--sbre-/rns/final-results/202004070700049758I/ The important ratios seem to be within target range. Special dividend absent, but unless something very unexpected happens it could be added to the next interim. I guess companies which are too generous to their shareholders (or their directors)will attract adverse comment.
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