Sabre (NASDAQ:SABR) Insurance Group, a leading motor-insurance provider, reported a significant 19.5% increase in gross written premiums for the nine-month period ending Sept. 30, 2023, reaching GBP162.2 million ($196.9 million). The substantial rise compares favorably with the GBP135.7 million recorded during the same period last year.
The company has confidently revised its full-year growth forecast upwards to 20%-25% from an initial estimate of 15%-20%. This revision reflects the robust performance of the firm and its optimistic outlook for the remainder of the fiscal year. According to InvestingPro data, the company's revenue growth for the last twelve months (LTM2023.Q2) was 27.04%, demonstrating the company's solid growth trajectory.
In addition to the impressive growth in premiums and revised forecast, Sabre's post-dividend solvency capital ratio, a critical measure of financial strength, has surged to 191% from 163%. This increase signifies a return to historical profitability levels in its core motor vehicle business. However, it's worth noting that Sabre operates with a significant debt burden and is quickly burning through cash, as indicated by InvestingPro Tips.
The improved solvency capital ratio also provides flexibility for potential year-end dividends, indicating a healthy financial position that could benefit shareholders. Interestingly, despite Sabre's strong financial indicators, the company does not pay a dividend to shareholders, as pointed out by InvestingPro Tips.
The overall positive news underscores Sabre Insurance Group's strong performance and promising trajectory in the competitive motor-insurance market. Yet, the company's stock has fared poorly over the last month, with a 12.87% decrease, according to InvestingPro data. This volatility is something potential investors should consider, as the stock generally trades with high price volatility, as per InvestingPro Tips.
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