Sabre warns on rising cost of motor insurance claims

Shares in UK motor insurer Sabre fell by a third after it warned that inflation was pushing up the cost of paying claims and hitting its profits, prompting a likely cut in its dividend.

In a half-year trading update on Thursday, Sabre said the annual rise in the cost of claims is running at about 12 per cent. That means it is paying more for parts, labour and replacement cars, among other items.

The company said these “extraordinary…