The latest RNS stock market update from Sabre Insurance, MCE has contacted policyholders today to inform them that MCE Gibraltar is no longer acting as underwriter.
Sabre Insurance Group plc (“Sabre” or the “Company”) , one of the UK’s leading motor insurance underwriters, today announces that it has signed an agreement with MCE Insurance (‘MCE’), one of the largest distributors of motorcycle insurance in the UK, to become the exclusive underwriter for policies issued by MCE Insurance Ltd effective immediately.
Under the terms of the agreement, Sabre will have complete control of pricing, claims handling and reserving. It has also received access to MCE’s multi-year claims and policy data which will be combined with Sabre’s leading digital pricing techniques.
Sabre is not paying a financial consideration to MCE and will not be liable for any historical policies, claims or activities of the previous underwriter. Sabre has no obligation to take on any employees from MCE’s existing underwriting business.
This agreement provides a unique opportunity for Sabre to enter a new market at scale. Sabre will apply its disciplined approach to underwriting motorcycle insurance and expects GWP over GBP20m per annum and to generate a pre-tax profit contribution in the region of GBP3m to GBP5m on a fully earned, annualised basis.
This agreement comes into effect from today’s date, on Sabre calculated rates.
Geoff Carter, Chief Executive Officer said: ” I am delighted to announce our partnership with MCE Insurance today. Motorcycle Insurance is entirely consistent with our focus on engines and wheels, providing an exciting additional opportunity alongside our UK private motor business. The partnership will add significant data capabilities and allows us to retain our underwriting discipline whilst providing incremental earnings growth. We will provide a further update on our progress with MCE at full year results.”