REG - Sabre Insurance Grp - Trading Update

Sabre InsuranceAnnouncement

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RNS Number : 6675J  Sabre Insurance Group PLC  22 May 2025

 Sabre Insurance Group plc

 Trading Update

 Active optimisation of premium growth and profit through the cycle

 Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading
 motor insurance underwriters, today provides an update on trading for the
 period from 1 January 2025 to 30 April 2025 ahead of its Annual General
 Meeting ("AGM") later this morning.

          Unaudited       Unaudited
                                        4 months ended  4 months ended
                                         30 Apr 2025     30 Apr 2024
 Gross written premium - Motor Vehicle  £58.1m          £77.1m
 Gross written premium - Motorcycle     £3.3m           £3.5m
 Gross written premium - Taxi           £4.7m           £5.1m
 Gross written premium - Total          £66.1m          £85.7m

Business highlights for the first four months of 2025

 ‒    Good premium volume being written in the first four months of the
 year against historic norms

 ‒    Total gross written premium of £66.1m up over 8% on the prior
 5-year average of £61.0m for the same period. Core Motor Vehicle gross
 written premium of £58.1m over 7% up on the prior 5-year average of £54.2m
 for the same period

 ‒    Comparator period in Q1 2024 was a period of extraordinary growth

 ‒    Long-term commitment to profit over volume underpins our approach to
 managing Sabre through the cycle

 ‒    Loss ratio remains in-line with target

 ‒    Post-dividend solvency capital ratio well above the Group's last
 reported figure of 171.1% at 31 December 2024 reflecting strong profitability
 year-to-date

 ‒    Successful launch of Sabre Direct Motorcycle product, expanding
 distribution and strengthening our presence in the Motorcycle market

 ‒    Good progress towards enhanced pricing infrastructure with testing
 planned for H2 2025

 Market trends

 ‒    Market pricing data suggests that decreases have flattened across
 the Motor Vehicle market

 ‒    Anticipate market premium increases later in 2025 in response to
 12-month market price reductions of c.15%, set against continued high levels
 of inflation

 ‒    Claims inflation for 2025 anticipated to remain at high
 single-digits as previously guided

 Full-year guidance reiterated

 ‒    Outlook for the full-year and delivering on our 2030 targets is
 underpinned by a commitment to profit over volume

 ‒    Anticipate good profit and dividends in 2025 despite weak market
 conditions in the year to date

 ‒    Undiscounted net insurance margin expected to be within our target
 18% to 22% range

 ‒    Premium growth for the remainder of 2025 dependent on market
 conditions. Current expectation of a slight decrease in total premium
 year-on-year

 ‒    On-track to deliver our target of at least £80m of profit before
 tax in 2030

 Geoff Carter, Chief Executive Officer of Sabre, commented:

 "I am pleased that Sabre remains on track to deliver target margins and strong
 profit for the year, despite the relatively weak pricing environment that we
 have seen in 2025 to date. We have managed the insurance cycle in line with
 our successful long-term strategy and have reduced the volume of business
 written during this less attractive period. It is worth noting that our
 reported premium for this period compares the peak of the previous cycle
 against the weakest part of the current pricing cycle.

 We have, however, continued to write healthy levels of business at strong
 margins and are very well positioned to return to growth when pricing
 inevitably corrects. Maintaining pricing discipline means that we are
 confident of delivering strong profitability and a good dividend this year.

 The Sabre Direct Motorcycle product has now launched, thanks to a terrific
 effort by our team. We are currently writing a limited amount of premium as we
 move through our initial "test and learn" phase.

 We have also progressed development of our enhanced pricing infrastructure,
 which is integral to the next stage of our Ambition 2030 plan. This remains
 on-track for testing later this year and is expected to begin positively
 impacting the top-line later, in 2026.

 Overall, the Group is performing well through this current period of market
 weakness and will be in a position of strength, ready to grow the core motor
 book, and accelerate the development of our motorcycle product. We remain
 on-track to deliver our target of at least £80m of profit before tax in
 2030".

Investor enquiries              01306 747 272
 Sabre Insurance Group plc

 Geoff Carter / Adam Westwood

 Media enquiries                 020 7353 4200
 Teneo                           sabre@teneo.com
 James Macey White / Ffion Dash

 

 LEI Code: 2138006RXRQ8P8VKGV98

Business highlights for the first four months of 2025

 ‒    Good premium volume being written in the first four months of the
 year against historic norms

 ‒    Total gross written premium of £66.1m up over 8% on the prior
 5-year average of £61.0m for the same period. Core Motor Vehicle gross
 written premium of £58.1m over 7% up on the prior 5-year average of £54.2m
 for the same period

 ‒    Comparator period in Q1 2024 was a period of extraordinary growth

 ‒    Long-term commitment to profit over volume underpins our approach to
 managing Sabre through the cycle

 ‒    Loss ratio remains in-line with target

 ‒    Post-dividend solvency capital ratio well above the Group's last
 reported figure of 171.1% at 31 December 2024 reflecting strong profitability
 year-to-date

 ‒    Successful launch of Sabre Direct Motorcycle product, expanding
 distribution and strengthening our presence in the Motorcycle market

 ‒    Good progress towards enhanced pricing infrastructure with testing
 planned for H2 2025

 Market trends

 ‒    Market pricing data suggests that decreases have flattened across
 the Motor Vehicle market

 ‒    Anticipate market premium increases later in 2025 in response to
 12-month market price reductions of c.15%, set against continued high levels
 of inflation

 ‒    Claims inflation for 2025 anticipated to remain at high
 single-digits as previously guided

 Full-year guidance reiterated

 ‒    Outlook for the full-year and delivering on our 2030 targets is
 underpinned by a commitment to profit over volume

 ‒    Anticipate good profit and dividends in 2025 despite weak market
 conditions in the year to date

 ‒    Undiscounted net insurance margin expected to be within our target
 18% to 22% range

 ‒    Premium growth for the remainder of 2025 dependent on market
 conditions. Current expectation of a slight decrease in total premium
 year-on-year

 ‒    On-track to deliver our target of at least £80m of profit before
 tax in 2030

 Geoff Carter, Chief Executive Officer of Sabre, commented:

 "I am pleased that Sabre remains on track to deliver target margins and strong
 profit for the year, despite the relatively weak pricing environment that we
 have seen in 2025 to date. We have managed the insurance cycle in line with
 our successful long-term strategy and have reduced the volume of business
 written during this less attractive period. It is worth noting that our
 reported premium for this period compares the peak of the previous cycle
 against the weakest part of the current pricing cycle.

 We have, however, continued to write healthy levels of business at strong
 margins and are very well positioned to return to growth when pricing
 inevitably corrects. Maintaining pricing discipline means that we are
 confident of delivering strong profitability and a good dividend this year.

 The Sabre Direct Motorcycle product has now launched, thanks to a terrific
 effort by our team. We are currently writing a limited amount of premium as we
 move through our initial "test and learn" phase.

 We have also progressed development of our enhanced pricing infrastructure,
 which is integral to the next stage of our Ambition 2030 plan. This remains
 on-track for testing later this year and is expected to begin positively
 impacting the top-line later, in 2026.

 Overall, the Group is performing well through this current period of market
 weakness and will be in a position of strength, ready to grow the core motor
 book, and accelerate the development of our motorcycle product. We remain
 on-track to deliver our target of at least £80m of profit before tax in
 2030".

Investor enquiries              01306 747 272
 Sabre Insurance Group plc

 Geoff Carter / Adam Westwood

 Media enquiries                 020 7353 4200
 Teneo                           sabre@teneo.com
 James Macey White / Ffion Dash

 

 LEI Code: 2138006RXRQ8P8VKGV98

Business highlights for the first four months of 2025

‒    Good premium volume being written in the first four months of the
year against historic norms

‒    Total gross written premium of £66.1m up over 8% on the prior
5-year average of £61.0m for the same period. Core Motor Vehicle gross
written premium of £58.1m over 7% up on the prior 5-year average of £54.2m
for the same period

‒    Comparator period in Q1 2024 was a period of extraordinary growth

‒    Long-term commitment to profit over volume underpins our approach to
managing Sabre through the cycle

‒    Loss ratio remains in-line with target

‒    Post-dividend solvency capital ratio well above the Group's last
reported figure of 171.1% at 31 December 2024 reflecting strong profitability
year-to-date

‒    Successful launch of Sabre Direct Motorcycle product, expanding
distribution and strengthening our presence in the Motorcycle market

‒    Good progress towards enhanced pricing infrastructure with testing
planned for H2 2025

Market trends

‒    Market pricing data suggests that decreases have flattened across
the Motor Vehicle market

‒    Anticipate market premium increases later in 2025 in response to
12-month market price reductions of c.15%, set against continued high levels
of inflation

‒    Claims inflation for 2025 anticipated to remain at high
single-digits as previously guided

Full-year guidance reiterated

‒    Outlook for the full-year and delivering on our 2030 targets is
underpinned by a commitment to profit over volume

‒    Anticipate good profit and dividends in 2025 despite weak market
conditions in the year to date

‒    Undiscounted net insurance margin expected to be within our target
18% to 22% range

‒    Premium growth for the remainder of 2025 dependent on market
conditions. Current expectation of a slight decrease in total premium
year-on-year

‒    On-track to deliver our target of at least £80m of profit before
tax in 2030

 

Geoff Carter, Chief Executive Officer of Sabre, commented:

"I am pleased that Sabre remains on track to deliver target margins and strong
profit for the year, despite the relatively weak pricing environment that we
have seen in 2025 to date. We have managed the insurance cycle in line with
our successful long-term strategy and have reduced the volume of business
written during this less attractive period. It is worth noting that our
reported premium for this period compares the peak of the previous cycle
against the weakest part of the current pricing cycle.

We have, however, continued to write healthy levels of business at strong
margins and are very well positioned to return to growth when pricing
inevitably corrects. Maintaining pricing discipline means that we are
confident of delivering strong profitability and a good dividend this year.

The Sabre Direct Motorcycle product has now launched, thanks to a terrific
effort by our team. We are currently writing a limited amount of premium as we
move through our initial "test and learn" phase.

We have also progressed development of our enhanced pricing infrastructure,
which is integral to the next stage of our Ambition 2030 plan. This remains
on-track for testing later this year and is expected to begin positively
impacting the top-line later, in 2026.

Overall, the Group is performing well through this current period of market
weakness and will be in a position of strength, ready to grow the core motor
book, and accelerate the development of our motorcycle product. We remain
on-track to deliver our target of at least £80m of profit before tax in
2030".

 

 Investor enquiries              01306 747 272
 Sabre Insurance Group plc

 Geoff Carter / Adam Westwood

 Media enquiries                 020 7353 4200
 Teneo                           sabre@teneo.com
 James Macey White / Ffion Dash

 

LEI Code: 2138006RXRQ8P8VKGV98

 

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