Sabre Insurance Group Plc · LSE:SBRE
Sabre Insurance — Q3 2021 Earnings Presentation
13 slides from Sabre Insurance's earnings presentation, Dec 3, 2021
Slide 1: 2021 Q3 Trading Update
2021 Q3 Trading Update 2019
Slide 2: Results Context
Results Context ‒ Continued soft market, ahead of FCA pricing reforms. Market prices continue to lag claims inflation ‒ Material, temporary reduction in normal addressable market, due primarily to the impact of COVID-19 reducing the flow of new drivers and delays in new car registrations ‒ Rigorous
Slide 3: Q3 Trading Update
Q3 Trading Update ‒ Gross written premium for the nine months ending 30 September 2021 was £126.7m(1) (nine months ending 30 September 2020: £139.2m) ‒ Combined operating ratio for 2021 expected to be towards the upper end of the of the target 75% – 80% range ‒ Continued organic capital generation w
Slide 4: Traffic Levels
Traffic Levels Traffic levels vs pre-pandemic 140% 1st National 2nd National 3rd National lockdown in lockdown in lockdown in England England England 120% 100% 80% 60% 40% 20% 0% ‒ Traffic volumes return to ‘pre-COVID’ levels Source: https://www.gov.uk/government/statistics/transport-use-during-the-
Slide 5: New Drivers
New Drivers Monthly driving test passes 2019 to Jun 2021 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Tests taken Tests passed ‒ Flow of new drivers into the market suppressed since lockdowns began Source: https://www.gov.uk/government/statistical-data-sets/driving-test-stat
Slide 6: New Car Registrations
New Car Registrations Monthly driving test passes 2019 to Jun 2021 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Tests taken Tests passed ‒ New car sales, which drive policy ‘shoparound’, depressed during 2020/21 Source: https://www.smmt.co.uk/vehicle-data/car-registrations/
Slide 7: Claims Inflation
Claims Inflation 6.7% CAGR Year-on-year care cost inflation Source: Innovation Group 8.0% 7.0% 6.0% 5.0% 4.0% ‒ Inflation in care costs and parts 3.0% 2.0% remains significant 1.0% 0.0% 2016 2017 2018 2019 2020 Year-on-year inflation Source: https://www.ons.gov.uk/surveys/informationforbusinesses/bu
Slide 8: Further Claims/Cost Inflation
Further Claims/Cost Inflation Pressure emerging in Clear evidence repair network due to MIB Levy – 21 % Increase in used car emerging of care skills labour shortage, increase for 2022 valuations worker shortages and part and paint supply wage inflation and hire/courtesy vehicle availability We take
Slide 9: Pricing Context
Pricing Context Pricing discipline maintained – continue to price within our target 75% to 80% COR range Year-on-year positions difficult to demonstrate due to: ‒ Claims inflation (which we have sought to cover fully) ‒ Temporary “lockdown-period” discounts reflecting likely lower claims frequency ‒
Slide 10: Quote Volumes
Quote Volumes Quote requests received through ‘big 4’ aggregators vs the same period in 2019 15.0% 10.0% 5.0% 0.0% Jan-20 Mar-20 Jun-20 Sep-20 Dec-20 . Mar-21 Jun-21 Sep-21 -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% Source: Sabre analysis ‒ Quote volumes in the market did not bounce back as strongly a
Slide 11: Growth in Policy Count
Growth in Policy Count Live Policy Count 290,000 285,000 280,000 275,000 270,000 265,000 260,000 255,000 250,000 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 11
Slide 12: Outlook
Outlook ‒ Taking hard decisions to allow volumes to soften in unprecedented market conditions has left us strongly positioned to take advantage of anticipated growth opportunities ‒ Natural growth as market pricing corrects, reflects FCA changes and addressable market returns to growth ‒ New develop
Slide 13: Disclaimer
Disclaimer LEGAL NOTICE This presentation has been prepared to inform investors and prospective investors in the secondary markets and other market participants about Sabre Insurance Group plc and its subsidiaries (the "Group") and does not constitute an offer of securities under any applicable legi
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