May 13, 2022
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Are these 2 auto insurance stocks a good buy for 2022?

By on January 12, 2022 0

Average car insurance premiums fell around 0.6% between August and November 2021, with some age groups and regions across the UK facing rising costs, the firm’s latest research shows. market intelligence Consumer Intelligence.

Average car insurance fell to around £ 782 during the period, which is still around 20% lower than the peak reached in 2017. Yet average premiums rose 0.6% between August and November 2021 for people over 50 years old. The annual cost of car insurance for this age group was around £ 350. However, 25-49 year olds saw a 0.5% drop over the period.

At the same time, some geographies have also experienced an increase in the average price of auto insurance. Some of those regions included Scotland which saw a 1.8 percent increase to an average premium of around £ 516, the East Midlands which saw a 0.6 percent increase to around £ 688 and above.

In this context, let’s take a look at 2 auto insurance stocks listed on the FTSE in the non-life insurance sector and their investment opportunities:

  1. Direct Line Insurance Group PLC (LON: DLG)

Direct Line Insurance Group is a UK-based insurance company providing auto, home and other insurance. It belongs to the FTSE 250 index.

Gross written premiums in the group’s third quarter 2021 autos were £ 440.9million, down 1.4% from £ 447.2million in the third quarter of 2020.

While its total gross premiums written by the group in the third quarter of 2021 stood at £ 857.1million, up 0.7% from the £ 851.5million in the third quarter of 2020.

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The group’s share closed at 297.70 GBX, up 5.10 points, or 1.74% on January 11. It had a market capitalization of £ 3,961.53million to date.

In comparison, the FTSE 250 index stood at 23,028.18, up 26.37 points, or 0.11%.

  1. Saber Insurance Group PLC (LON: SBRE)

Saber Insurance Group is a UK based auto insurance group. It is part of the FTSE All-Share index.

The group’s gross written premium (for the 9 months ended September 30, 2021) was £ 126.7 million, compared to £ 139.2 million the previous year.

During the period, his net earned premium was £ 108.8million, up from £ 127.3million the year before.

Gross and net and net written premiums SBRE

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The group’s share closed at 198.20 GBX, up 5.60 points, or 2.91% on January 11. It had a market capitalization of £ 495.50million to date.