Sabre Insurance Group PLC (LSE:SBRE) announced an agreement to become the exclusive underwriter for policies issued by motorcycle insurance company MCE Insurance Ltd.
Under the deal, which is effective immediately, Sabre will have complete control of pricing, claims handling and reserving, the company said in a statement.
It will also have access to MCE’s multi-year claims and policy data, which will be combined with Sabre’s leading digital pricing techniques.
It expects the agreement to generate gross written premiums of over GBP20mln a year and a pre-tax profit contribution in the region of GBP3mln-GBP5mln.
Sabre pointed out that is not paying a financial consideration to MCE and will not be liable for any historical policies, claims or activities of the previous underwriter.
Commenting on the deal, Sabre chief executive Geoff Carter said: “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.”
Sabre shares jumped 5.28% to 201.50p.