REG - Sabre Insurance Grp - Half-year Report 2025
Thu 07:01
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RNS Number : 2819T Sabre Insurance Group PLC 31 July 2025
Half-year Report 2025
Strong margins and earnings on-track for full-year
Good momentum towards Ambition 2030 target
Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading
motor insurance underwriters, reports its half-year results for the six months
ended 30 June 2025.
Key financial and operational highlights
- Healthy premium volumes being written at target margins
- Excellent underwriting performance with net insurance margin in line
with target and significant improvement in loss ratio
- Profit before tax of £25.5m, a 26.2% increase on the same period in
2024 (HY 2024: £20.2m)
- Strong solvency underpinned by continued organic capital generation
- Interim dividend increased by 100% and £5m share buyback launched
- Operational and strategic initiatives are on-track, including the
successful launch of our direct Motorcycle product
- On track to deliver Ambition 2030 targets, including strong levels of
profitability in 2025 and beyond
- Continue to target absolute profit growth through balancing income and
margin whilst maintaining resolute underwriting discipline
Geoff Carter, Chief Executive Officer of Sabre, commented:
"I am very pleased with our position at the halfway point of the year. We have
continued to write measured but healthy volumes of business at our target loss
ratios through the continued soft part of the market pricing cycle. We have
maintained cautious claims inflation assumptions, and focussing on margins not
volumes will help protect us against any external macro shocks. This also
positions us well to resume strong growth as the market cycle turns - which we
still anticipate being later this year.
We have continued to make good progress towards our Ambition 2030 targets; in
particular, we were pleased with the launch of our direct Motorcycle product
which went to market on schedule and has delivered encouraging early results.
I expect us to begin testing of differentiated car insurance rates in H2,
in-line with the timeline set out at our December 2024 Capital Markets
Event.
We have ended the first half of the year in a strong capital position and our
first share buyback programme is progressing well. Our interim dividend is
double that paid in 2024.
We remain confident of delivering a strong profit in 2025, in-line with 2024,
and an attractive dividend. Sabre is well placed to achieve strong levels of
absolute profit growth in the years ahead - delivered both by our margin over
volume strategy and Ambition 2030 initiatives and targets. This will
underpin our commitment to sustainable and attractive total shareholder
returns."
Summary of results
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross written premium £100.3m £125.7m £236.4m
Net insurance margin 19.0% 15.7% 17.6%
Net loss ratio 54.9% 59.7% 58.7%
Expense ratio 27.7% 26.3% 25.5%
Combined operating ratio 82.6% 86.0% 84.2%
Profit before tax £25.5m £20.2m £48.6m
Profit after tax £18.9m £15.1m £36.0m
Interim dividend per share 3.4p 1.7p 1.7p
Final ordinary and special dividend per share n/a n/a 11.3p
Solvency coverage ratio (pre-dividend) ((1)) 194.3% 191.9% 216.6%
Solvency coverage ratio (post-dividend) ((1)) 180.9% 185.2% 171.1%
(1) = 30 June 2025 ratios include the impact of the share buyback. Share
buyback not reflected in 2024 ratios.
Strategic initiatives
- We are continuing to follow our long-established strategy of balancing
volume and margin in order to maximise absolute profit and returns, and have
continued to write comfortable levels of business despite continuing soft
market conditions
- We have made solid progress with key strategic initiatives related to
our "Ambition 2030" - to deliver a profit before tax of at least £80m in
2030:
- 'Sabre Direct' Motorcycle brand launched
- Pricing platform enhancements due to begin testing later in 2025
- All initiatives remain on-track with the timetable set out at our
Capital Markets Event in December 2024
Market trends
- Following price reductions across the market in 2024 and early 2025,
price decreases appear to have slowed or stopped in recent months, supporting
our view that premium increases should return in H2 2025. We are well placed
to return to growth in as market conditions improve
- Claims inflation has continued at elevated levels in 2025, which we
consider is at mid-to-high single-digits
- We have maintained our cautious approach to pricing and reserving,
fully covering the cost of claims
- We continue to expect market pricing to increase to meet the inflating
cost of claims as the delta between pricing and claims costs has widened
during 2025
Performance in 2025
- We have delivered a net insurance margin well inside our 18% to 22%
target range, with continued improvement in loss ratio, particularly in core
Motor Vehicle where we recorded a net loss ratio of 48.1% (HY 2024: 56.7%)
- Overall net loss ratio of 54.9% shows on-target performance across the
business as a whole. Impact of a small number of large claims on Motorcycle
and Taxi has obscured good underlying profitability in those products, which
remain a small part of total income for the Group
- In-line with Sabre's strategy, premium levels have been allowed to
reduce whilst market conditions are weak, ready to return to growth when
market conditions are favourable
Shareholder returns
- Continued strong solvency position of 194.3% pre-dividend, 180.9%
post-dividend, reflecting our robust underwriting performance, which continues
to generate capital
- Interim dividend of 3.4p per share (2024: 1.7p per share)
- Share buyback commenced on 1(st) July 2025 and is progressing well
Legal and regulatory environment
- On 22nd July 2025, the FCA published a suite of documents outlining
their "Roadmap for Retail Insurance" including an analysis of claims costs, an
interim report on the study into premium financing and an evaluation of the
General Insurance Pricing Practices Remedies
- We were encouraged to see the FCA confirm that claims inflation, and
the compensating premium increases, were being primarily driven by external
factors largely outside of insurers' direct control
- The FCA also confirmed that it is unlikely to make material
market-wide interventions around the provision of premium finance, and we
expect action to be taken on an individual firm basis where required. The
existing Consumer Duty and Fair Value rules should be sufficient to address
this
- Sabre employs a robust Consumer Duty framework and therefore we do not
anticipate any material impact on Group profit regardless of the approach
taken. We are pleased with this significant reduction in regulatory
uncertainty
Outlook
- We remain confident in our ability to deliver at least £80m of profit
before tax in 2030
- More material contribution to premium from Ambition 2030 initiatives
expected from 2026 onwards
- Guidance reiterated for the full-year:
- Anticipate net insurance margin within our target range
- Expect gross written premium to be slightly lower than 2024 given
relatively weaker market conditions in H1 2025
- Forward-looking claims inflation in mid-to-high single-digits
There will be a call for analysts and investors at 0930hrs on Thursday, 31
July 2025. For details, please contact sabre@teneo.com or find the
registration link here: Results Presentation
(https://events.teams.microsoft.com/event/e08fd6b0-ba93-4a87-8551-1ba1851bcff2@57dd0ee8-ea36-4e50-af2c-d5f1da335307)
Enquiries
Sabre Insurance Group 0330 024 4696
Geoff Carter, Chief Executive Officer
Adam Westwood, Chief Financial Officer
Teneo 020 7260 2700
James Macey White/Ffion Dash sabre@teneo.com
Dividend calendar
2025 Interim Dividend Payment Dates
Ex-dividend date: 21 August 2025
Record date: 22 August 2025
Payment date: 24 September 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014.
The Sabre Insurance Group plc LEI number is 2138006RXRQ8P8VKGV98.
Forward-looking statements disclaimer
Cautionary statement
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts and involve
predictions. Forward-looking statements may and often do differ materially
from actual results. Any forward-looking statements reflect Sabre's current
view with respect to future events and are subject to risks relating to future
events and other risks, uncertainties and assumptions relating to Sabre's
business, results of operations, financial position, prospects, growth or
strategies and the industry in which it operates.
Forward-looking statements speak only as of the date they are made and cannot
be relied upon as a guide to future performance. Save as required by law or
regulation, Sabre disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements in this
announcement that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this announcement.
Financial and business review
Highlights
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross written premium ((1)) £100.3m £125.7m £236.4m
Net insurance margin ((1)) 19.0% 15.7% 17.6%
Net loss ratio ((1)) 54.9% 59.7% 58.7%
Combined operating ratio ((1)) 82.6% 86.0% 84.2%
IFRS profit before tax £25.5m £20.2m £48.6m
IFRS profit after tax £18.9m £15.1m £36.0m
Solvency coverage ratio (pre-dividend) ((1) (2)) 194.3% 191.9% 216.6%
Solvency coverage ratio (post-dividend) ((1) (2)) 180.9% 185.2% 171.1%
(1) = Alternative performance metrics are reconciled to the IFRS reported
figures in the Financial Reconciliations section
(2) = 30 June 2025 ratios include the impact of the share buyback. Share
buyback not reflected in 2024 ratios.
In the first half of 2025 Sabre has delivered a profit before tax of £25.5m,
a 26.2% increase on the same period in 2024 and a demonstration of the
strength of Sabre's model, having been achieved during the weakest part of the
current pricing cycle, during which prices have fallen in 2024 and 2025 to
date. In-line with Sabre's strategy, premium levels have been allowed to
reduce whilst market conditions are weak. The Group has reported a net
insurance margin of 19.0%, comfortably within the target range of 18% to 22%
set out at the December 2024 Capital Markets Event. Sabre remains on track to
deliver a strong profit for the full-year as we progress towards the Ambition
2030 target of a profit before tax of at least £80m in 2030.
The £5m share buyback programme announced at the year-end results began on
1(st) July following regulatory approval and is progressing well. The full
impact of the share buyback is reflected in both our pre- and post-dividend
capital ratios of 194.3% and 180.9% respectively. Capital generation has been
strong as expected in the first half of the year, and we have announced an
interim dividend of 3.4p per share in-line with our policy. We will consider
an appropriate allocation and distribution of any excess capital at our
year-end results.
Insurance revenue
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross written premium £100.3m £125.7m £236.4m
Movement in unearned element of liability for remaining coverage £10.2m (£5.8m) £7.2m
Gross earned premium £110.5m £119.9m £243.6m
Customer instalment income £1.9m £2.0m £4.5m
Insurance revenue £112.4m £121.9m £248.1m
Reinsurance expense (£13.3m) (£18.8m) (£33.6m)
Net insurance revenue £99.1m £103.1m £214.5m
Gross written premium by product
Motor vehicle £87.4m £112.0m £209.9m
Motorcycle £5.9m £5.6m £9.7m
Taxi £7.0m £8.1m £16.8m
Policy counts by product
Motor vehicle ('000) 199 237 217
Motorcycle ('000) 39 41 38
Taxi ('000) 10 11 11
We have continued to write comfortable levels of premium in the first half of
2025, against a backdrop of continued under-pricing across the market, with
decreases in average premiums across the period unreflective of the increasing
costs of servicing policies - a trend which we expect to reverse during the
second half of this year. Having protected our margins through reflecting the
actual cost of claims in our pricing, which ultimately optimises profit, we
have seen volumes dip in an expected and manageable fashion - and are ready to
return to growth when market conditions become more favourable.
As set out at the December 2024 Capital Markets Event we expect to implement
our 'Ambition 2030' initiatives carefully over the next two years and expect
to see the benefits from these from 2026 onwards. The new Motorcycle product,
'Sabre Direct', launched successfully in April and is showing great potential,
but volumes are being kept at deliberately low levels whilst we gain comfort
in the accuracy of our pricing models and underwriting processes. The enhanced
pricing infrastructure, which will allow us to expand our competitiveness,
remains on-track to test in the later part of this year, with implementation
expected in 2026.
The Motorcycle and Taxi books overall remain a small part of total income,
with Taxi remaining at relatively low levels whilst market premiums remain
unattractive.
The 'unearned' element of the liability for remaining coverage represents the
element of written premium covering future periods, which has the effect of
smoothing gross earned premium ("GEP") (and therefore insurance revenue) over
time, so where there is a big change in written premium, insurance revenue
will change more slowly.
Customer instalment income reflects the interest income charged on instalment
policies and remains a relatively small percentage of the Group's total
insurance revenue.
Insurance expense
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Undiscounted gross claims incurred £84.1m £88.6m £143.7m
Discounting ((1)) (£8.8m) (£3.6m) (£14.2m)
Directly attributable expenses £3.8m £3.8m £7.0m
Amortisation of insurance acquisition costs £8.5m £8.8m £18.2m
Insurance service expense £87.6m £97.6m £154.7m
Undiscounted reinsurance recoveries (£30.7m) (£28.7m) (£21.5m)
Discounting ((1)) £5.3m £1.6m £8.4m
Net insurance expense £62.2m £70.5m £141.6m
Current-year net loss ratio ((2)) 61.2% 59.3% 58.2%
Prior-year net loss ratio ((2)) (6.3%) 0.4% 0.5%
Financial-year net loss ratio ((2)) 54.9% 59.7% 58.7%
Net loss ratio by product
Motor vehicle 48.1% 56.7% 56.1%
Motorcycle 104.2% 110.6% 58.6%
Taxi 111.1% 68.3% 95.7%
Discounted ratios
Discounted financial-year net loss ratio 51.3% 57.3% 55.4%
(1) Includes discounting on Periodic Payment Orders ("PPOs")
(2) Calculation of undiscounted net loss ratio allows for the impact of
discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"),
consistent with presentation under IFRS 4.
Sabre delivered an excellent underwriting performance in the first half of
2025, with a return to releases from prior-years, an overall undiscounted
prior-year loss ratio of (6.3%), and an overall loss ratio of 54.9%, allowing
the Group to deliver a net insurance margin of 19.0%, within its target range
of 18% to 22% despite a slight increase in expense ratio to 27.7% resulting
primarily from the decrease in net earned premium.
The core Motor Vehicle loss ratio was particularly strong, at 48.1%, an
improvement of 8.6 ppts over the same period in 2024. This is the result of
the current year performing as expected and slightly higher than normal
releases from prior years. Motorcycle and Taxi loss ratios have been impacted
by a small number of large claims, which has an outsized impact on the
half-year loss ratios over the 6-month period where earned premium is very
low. We don't see the relatively poor loss ratios reported at the interim as
being indicative of the overall performance of these books, with Motorcycle
business in particular expected to perform well across the full-year. We
remain cautious on the Taxi business given wider market conditions.
Other operating expenditure
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Employee expenses £8.9m £8.0m £15.4m
IT expenses £3.5m £3.3m £6.8m
Industry levies £3.1m £2.9m £6.0m
Policy servicing costs £0.8m £1.5m £3.2m
Other operating expenses £2.1m £2.0m £3.9m
Before adjustment for directly attributable claims expenses £18.4m £17.7m £35.3m
Reclassification of directly attributable claims expenses (£3.8m) (£3.8m) (£7.0m)
Total other operating expenses £14.6m £13.9m £28.3m
Expense ratio 27.7% 26.3% 25.5%
The expense ratio has increased slightly to 27.7% against 26.3% for the last
full-year. This is due to the decrease in insurance revenue set against normal
inflationary increases in the Group's operating expense base. Whilst the Group
maintains a high proportion of variable costs (in particular acquisition
costs) which significantly decrease the impact of volume-based leverage, a
small increase in expense ratio is expected when market conditions are less
favourable.
Overall, the cost base remains tightly controlled, with no unusual or
unexpected expenditure. The Group continues to invest in recruiting and
retaining top talent across the business and in building and maintaining its
secure IT platforms. The impact of this investment on the overall expense base
remains small.
Other income
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Interest revenue calculated using the effective interest method £5.7m £3.5m £7.9m
Other income £0.3m £0.4m £0.7m
Total interest and other income £6.0m £3.9m £8.6m
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Insurance finance expense for insurance contracts issued (£5.1m) (£4.1m) (£8.4m)
Reinsurance finance income for reinsurance contracts held £2.1m £1.9m £3.7m
Net insurance finance result (£3.0m) (£2.2m) (£4.7m)
Interest revenue
Interest revenue reflects the yield achieved across the Group's investment
portfolio. The increase in interest revenue reflects the higher yield gained
through reinvesting matured assets as well as an increase in the total assets
invested during the year. The Group's investment strategy remains unchanged,
being invested in a low-risk mix of UK Government bonds, other
government-backed securities and diversified investment-grade corporate
bonds.
Fair value gains and losses are taken through Other Comprehensive Income and
largely reflect market movements in the yields of risk-free and low-risk
assets. We do not expect to realise any material market value movements within
profit.
Other income
Other income, related to non-insurance revenue earned such as product fees
(excluding instalment interest) and commissions, remains a very small element
of the Group's income.
Net insurance finance result
Net insurance finance result reflects the run-off of discounting applied to
insurance liabilities under IFRS 17. As cash flows move towards settlement,
the total level of discounting is reduced and this reduction is reflected
here. We generally expect the overall impact of IFRS 17 discounting (the net
of the discounting credit on claims and the insurance finance expense) to be
immaterial in the context of the overall Group result.
Taxation
In the first half of 2025 the Group recorded a corporation tax expense of
£6.5m (HY 2024: £5.1m), with an effective tax rate of 25.7%, (HY 2024:
25.3%). It is slightly higher than the current 25% UK rate of corporation tax
mainly due to the Group's employee share schemes. The Group has not entered
into any complex or unusual tax arrangements during the period.
Earnings per share
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Basic earnings per share 7.64p 6.08p 14.48p
Diluted earnings per share 7.55p 6.04p 14.37p
Basic earnings per share of 7.64p is proportionate to profit after tax.
Diluted earnings per share is similarly proportionate to profit after tax,
taking into account the potentially dilutive effect of the Group's share
schemes. No shares have been issued or cancelled during the period, however we
expect the number of shares in issue to reduce in the second half of 2025 due
to the ongoing share buyback programme that started on 1 July 2025.
Cash and investments
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Government bonds £114.4m £109.5m £112.8m
Government-backed securities £100.3m £98.7m £103.3m
Corporate bonds £91.7m £81.4m £95.1m
Cash and cash equivalents £35.6m £37.5m £31.3m
The level of cash retained reflects Sabre's normal liquidity requirements and
there has been no change in the overall investment strategy, with UK
Government bonds and other government-backed assets remaining the majority of
the portfolio, with c.30% of invested assets held in investment-grade
corporate bonds.
Insurance liabilities
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross insurance liabilities £421.6m £421.2m £397.9m
Reinsurance assets (£178.4m) (£179.8m) (£160.8m)
Net insurance liabilities £243.2m £241.4m £237.1m
The Group's net insurance liabilities continue to reflect the underlying
profitability and volume of business written. Generally, the gross insurance
liabilities are more volatile and impacted by the receipt and settlement of
individually large claims. The level of net insurance liabilities held remains
broadly proportionate to the volume of business written along with the
inflation applied to claims costs.
Leverage
The Group continues to hold no external debt. All of the Group's capital is
considered Tier 1 under the UK regulatory regime. The Directors continue to
hold the view that this allows the greatest operational flexibility for the
Group.
Dividends and solvency
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Interim ordinary dividend (proposed) 3.4p 1.7p 1.7p
Final ordinary dividend (paid) - - 8.4p
Total ordinary dividend (paid and proposed) 3.4p 1.7p 10.1p
Special dividend (paid) - - 2.9p
Total dividend (paid and proposed) 3.4p 1.7p 13.0p
The interim dividend proposed is in line with the Group's current policy to
pay an ordinary interim dividend equal to one third of the prior-year's full
interim dividend.
Note that the Group disclosed at its full-year results that from 2025 onwards,
the Group has increased the maximum ordinary dividend to 80% of profit after
tax. This allows for an ordinary dividend much closer to historical levels of
distribution.
Excluding the capital required to pay this interim dividend, the Group's SCR
coverage ratio at 30 June 2025 is 180.9%. The Group has received regulatory
approval for the £5m buyback programme announce at the full-year results and
is currently proceeding with that programme as planned. The programme is
expected to be completed well in advance of the end-date of 31 December 2025.
Condensed Consolidated Profit or Loss Account
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Insurance revenue 112,406 121,852 248,131
Insurance service expense (87,560) (97,646) (154,661)
Insurance service result before reinsurance contracts held 24,846 24,206 93,470
Reinsurance expense (13,292) (18,755) (33,617)
Amounts recoverable from reinsurers for incurred claims 25,392 27,127 13,026
Net income from reinsurance contracts held 12,100 8,372 (20,591)
Insurance service result 36,946 32,578 72,879
Interest income on financial assets using effective interest rate method 4.4 5,743 3,495 7,926
Net losses on derecognition of debt securities measured at FVOCI 4.5 (9) - -
Total investment income 5,734 3,495 7,926
Insurance finance expense from insurance contracts issued (5,061) (4,111) (8,392)
Reinsurance finance income from reinsurance contracts held 2,108 1,892 3,714
Net insurance finance result (2,953) (2,219) (4,678)
Net insurance and investment result 39,727 33,854 76,127
Other income 6 336 427 740
Other operating expenses 7 (14,598) (14,069) (28,305)
Profit before tax 25,465 20,212 48,562
Income tax expense 8 (6,546) (5,106) (12,601)
Profit for the period attributable to ordinary shareholders 18,919 15,106 35,961
Basic earnings per share (pence per share) 7.64 6.08 14.48
Diluted earnings per share (pence per share) 7.55 6.04 14.37
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Profit for the period attributable to ordinary shareholders 18,919 15,106 35,961
Items that are or may be reclassified subsequently to Profit or Loss
Unrealised fair value gains on debt securities 4.5 4,025 819 3,774
Realised losses on derecognition of debt securities reclassified to Profit or 4.5 9 - -
Loss
Tax charge (1,006) (205) (944)
Debt securities at fair value through other comprehensive income 3,028 614 2,830
Insurance finance (expense)/income from insurance contracts issued (2,750) 3,298 6,852
Reinsurance finance income/(expense) from reinsurance contracts held 1,534 (2,127) (5,880)
Tax credit/(charge) 304 (293) 395
Net insurance finance result (912) 878 1,367
Total other comprehensive income for the period, net of tax 2,116 1,492 4,197
Total comprehensive income for the period attributable to ordinary 21,035 16,598 40,158
shareholders
Condensed Consolidated Statement of Financial Position
As at 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Assets
Cash and cash equivalents 4.1 35,626 37,469 31,314
Debt securities at fair value through other comprehensive income 4.2 306,436 289,553 311,184
Receivables 4.3 50 58 32
Current tax assets - 2,281 997
Reinsurance contract assets 3.1 178,396 179,838 160,758
Property, plant and equipment 4,144 4,283 4,204
Deferred tax assets - 167 265
Other assets 2,565 2,186 778
Goodwill 156,279 156,279 156,279
Total assets 683,496 672,114 665,811
Liabilities
Payables 5 12,291 8,561 6,995
Current tax liability 223 - -
Insurance contract liabilities 3.1 421,582 421,184 397,924
Deferred tax liability 270 - -
Other liabilities 2,792 3,303 2,546
Total liabilities 437,158 433,048 407,465
Equity
Issued share capital 250 250 250
Own shares (3,354) (2,722) (3,112)
Merger reserve 48,525 48,525 48,525
FVOCI reserve (36) (5,280) (3,064)
Insurance/Reinsurance finance reserve 2,694 3,117 3,606
Share-based payments reserve 2,359 1,834 2,620
Retained earnings 195,900 193,342 209,521
Total equity 246,338 239,066 258,346
Total liabilities and equity 683,496 672,114 665,811
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025
Share capital Own shares Merger reserve FVOCI reserve Insurance/ Share-based payments reserve Retained earnings Total equity
Reinsurance
finance reserve
£'k £'k £'k £'k £'k £'k £'k £'k
Balance as at 31 December 2023 250 (3,121) 48,525 (5,894) 2,239 2,686 197,727 242,412
Profit for the period attributable to the owners of the Company - - - - - - 15,106 15,106
Total other comprehensive income for the period, net of tax: Items that are or - - - 614 878 - - 1,492
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 614 878 - 15,106 16,598
Share-based payment expense - - - - - (852) 631 (221)
Net movement in own shares - 399 - - - - - 399
Dividends paid - - - - - - (20,122) (20,122)
Balance as at 30 June 2024 250 (2,722) 48,525 (5,280) 3,117 1,834 193,342 239,066
Profit for the period attributable to the owners of the Company - - - - - - 20,855 20,855
Total other comprehensive income for the period, net of tax: Items that are or - - - 2,216 489 - - 2,705
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 2,216 489 - 20,855 23,560
Share-based payment expense - - - - - 786 (449) 337
Net movement in own shares - (390) - - - - - (390)
Dividends paid - - - - - - (4,227) (4,227)
Balance as at 31 December 2024 250 (3,112) 48,525 (3,064) 3,606 2,620 209,521 258,346
Profit for the period attributable to the owners of the Company - - - - - - 18,919 18,919
Total other comprehensive income for the period, net of tax: Items that are or - - - 3,028 (912) - - 2,116
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 3,028 (912) - 18,919 21,035
Share-based payment expense - - - - - (261) 451 190
Net movement in own shares - (242) - - - - - (242)
Share buyback ((1)) - - - - - - (5,000) (5,000)
Dividends paid - - - - - - (27,991) (27,991)
Balance as at 30 June 2025 250 (3,354) 48,525 (36) 2,694 2,359 195,900 246,338
(1) On 30 June 2025, Sabre Insurance Group plc entered into an irrevocable
agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a
liability of £5m has been recorded in the balance sheet with a corresponding
amount in equity. As at 30 June 2025, £0m of shares had been acquired under
the programme (see Note 11 for further information).
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax for the period 25,465 20,212 48,562
Adjustments for:
Depreciation of property, plant and equipment 73 105 184
Share-based payment - equity-settled schemes 1,006 822 1,607
Investment return (5,089) (2,632) (6,458)
Expected credit loss - - 5
Operating cash flows before movements in working capital 21,455 18,507 43,900
Movements in working capital:
Change in receivables (18) 29 55
Change in reinsurance contract assets (16,104) (15,239) 88
Change in other assets (1,787) (1,412) (4)
Change in payables 296 (1,139) (2,705)
Change in insurance contract liabilities 20,908 49,643 29,937
Change in other liabilities 246 116 (641)
Cash generated from operating activities before investment of insurance assets 24,996 50,505 70,630
Taxes paid (5,493) (5,926) (12,286)
Net cash generated from operating activities before investment of insurance 19,503 44,579 58,344
assets
Interest and investment income received 4,262 2,121 5,248
Proceeds from the sale and maturity of invested assets 43,903 17,908 98,656
Purchases of invested assets (34,283) (41,452) (140,180)
Net cash generated from operating activities 33,385 23,156 22,068
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (13) - -
Net cash used by investing activities (13) - -
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in acquiring and disposing of own shares (1,069) (644) (1,484)
Dividends paid (27,991) (20,122) (24,349)
Net cash used by financing activities (29,060) (20,766) (25,833)
Net increase in cash and cash equivalents 4,312 2,390 (3,765)
Cash and cash equivalents at the beginning of the period 31,314 35,079 35,079
Cash and cash equivalents at the end of the period 35,626 37,469 31,314
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025
1. General information
The Condensed Consolidated Interim Financial Statements comprise the results
and balances of the Group for the six-month period ended 30 June 2025, the
comparative period for the six months ended 30 June 2024 and the year ended 31
December 2024. The information in the Condensed Consolidated Interim Financial
Statements is unaudited and does not constitute statutory accounts as defined
in s.434 of the Companies Act 2006. The independent auditor's report on the
Group accounts for the year ended 31 December 2024 is unqualified, does not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report and does not include a statement
under s.498(2) or (3) of the Companies Act 2006.
2. Accounting policies
2.1. Basis of preparation
The Condensed Consolidated Interim Financial Statements have been prepared and
approved by the Directors in accordance with UK-adopted International
Accounting Standard 34 ('Interim Financial Reporting'). As required by the
Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial
Conduct Authority, these Condensed Consolidated Interim Financial Statements
have been prepared applying the accounting policies and presentation that will
be applied in the preparation of the Annual Financial Statements of the Group
and will be prepared in accordance and fully comply with UK-adopted
international accounting standards, comprising International Accounting
Standards ('IAS') and International Financial Reporting Standards ('IFRSs').
The Annual Financial Statements were prepared in accordance with the going
concern principle using the historical cost basis, except for those financial
assets that have been measured at fair value.
The accounting policies applied in the preparation of the Condensed
Consolidated Interim Financial Statements are consistent with those accounting
policies applied in the preparation of the 31 December 2024 Annual Report and
Accounts, expect for those referred to in 2.3 below.
The Condensed Consolidated Interim Financial Statements values are presented
in Pounds Sterling (£) rounded to the nearest thousand (£'k), unless
otherwise indicated. The Group does not consider it is exposed to material
seasonal volatility in its financial results.
2.2. Going concern
The Condensed Consolidated Interim Financial Statements have been prepared on
a going concern basis. Having assessed the Group's forecasts, projections and
principal risks of the Group over the full duration of the planning cycle, the
Directors have a reasonable expectation that the Group will continue in
operation for at least 12 months from the date the Directors approved these
Condensed Consolidated Financial Statements and that therefore it is
appropriate to adopt a going concern basis for the preparation of these
Condensed Consolidated Interim Financial Statements.
The Group's Principal Risks and Uncertainties are outlined in the Strategic
Report of the 31 December 2024 Annual Report and Accounts and have not changed
since the last reporting date. The principal risks are:
- Insurance
- Operations
- Finance and Capital
- IT and Systems
- Regulatory, Governance and Compliance
- People
- Macro risks
- Climate change
- Inflation and interest rate increases
- Geo-political instability
2.3. New and amended standards and interpretations adopted by the Group
Amendments to IFRS
The following amended standards became effective for the year ended 31
December 2025:
- Lack of Exchangeability (Amendments to IAS 21)
The amendments have not had a material impact on the Group.
2.4. New and amended standards and interpretations not yet effective in 2025
A number of new standards and interpretations adopted by the UK which are not
mandatorily effective, as well as standards' interpretations issued by the
IASB but not yet adopted by the UK, have not been applied in preparing these
financial statements. The Group does not plan to adopt these standards early;
instead, it expects to apply them from their effective dates as determined by
their dates of UK endorsement. The Group is reviewing the upcoming standards
to determine their impact:
- IFRS 18 Presentation and Disclosure in Financial Statements -
Effective 1 January 2027, with retrospective application - IFRS 18, which
replaces IAS 1 "Presentation of Financial Statements", introduces new
requirements for presentation and disclosure in the financial statements, with
a focus on the Profit or Loss Account. Items in the Profit of Loss Account
will be classified into one of five categories: operating, investing,
financing, income taxes and discontinued operations, of which the first three
are new. It also requires the disclosure of newly defined management-derived
performance measures, how these are calculated and why these provide useful
information, reconciled to the IFRS reporting. As a presentation and
disclosure standard, the implementation of IFRS 18 will not affect the Group's
results. The Group is currently working to identify all impacts the amendments
will have on the primary financial statements and notes to the financial
statements.
3. Insurance liabilities and reinsurance assets
CRITICAL ACCOUNTING ESTIMATES AND judgements
There have been no significant changes to the principles, estimates and
judgements used in applying the Group's accounting policies during the period.
Full details of these critical accounting estimates and judgements are
disclosed on pages 151 to 153 of the Group's Annual Report and Accounts 2024.
Discount rates
Discount rates applied for discounting future cash flows are listed below:
30 June 2025 30 June 2024 31 December 2024
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
Motor insurance 4.05% 3.84% 3.91% 4.29% 5.12% 4.48% 4.19% 4.09% 4.70% 4.39% 4.28% 4.31%
Risk adjustment for non-financial risk
The Group has estimated the risk adjustment using a methodology which targets
a confidence level (probability of sufficiency) approach between the 80th and
90th percentile. At 30 June 2025, the risk margin applied equates to an
approximate confidence interval of 82.2% (30 June 2024: 82.1% / 31 December
2024: 80.6%) That is, the Group has assessed its indifference to uncertainty
for all product lines (as an indication of the compensation that it requires
for bearing non-financial risk) as being equivalent to the 80th to 90th
percentile confidence level less the mean of an estimated probability
distribution of the future cash flows.
3.1. Composition of the Statement of Financial Position
An analysis of the amounts presented on the Statement of Financial Position
for insurance contracts is included in the table below.
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Insurance contract liabilities
Insurance contract liabilities
Motor Vehicle insurance 335,289 366,778 334,767
Motorcycle insurance 37,935 35,653 34,321
Taxi insurance 56,584 28,241 37,308
Asset for insurance acquisition cash flows
Motor Vehicle insurance 3.3 (6,174) (7,435) (6,488)
Motorcycle insurance 3.3 (1,107) (1,011) (880)
Taxi insurance 3.3 (945) (1,042) (1,104)
Total insurance contract liabilities 3.2.1 421,582 421,184 397,924
Reinsurance contracts assets
Motor Vehicle insurance 133,571 158,694 133,974
Motorcycle insurance 16,224 13,819 15,018
Taxi insurance 28,601 7,325 11,766
Total reinsurance contract assets 3.2.2 178,396 179,838 160,758
3.2. Movement in insurance and reinsurance contract balances
3.2.1. Insurance contracts issued
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Opening insurance contract liabilities 397,924 374,839 374,839
Insurance revenue (112,406) (121,852) (248,131)
Insurance service expenses 87,560 97,646 154,661
Incurred claims and other directly attributable expenses 85,777 73,326 142,775
Changes that relate to past service - changes in the FCF relating to the LIC (6,691) 15,538 (6,280)
Amortisation of insurance acquisition cash flows 8,474 8,782 18,166
Insurance service result (24,846) (24,206) (93,470)
Insurance finance expense recognised in Profit or Loss Account 5,061 4,111 8,392
Insurance finance expense/(income) recognised in Other Comprehensive Income 2,750 (3,298) (6,852)
Total changes in Comprehensive Income (17,035) (23,393) (91,930)
Cash flows
Premiums received 100,927 130,713 254,389
Claims and other insurance services expenses paid (52,006) (51,438) (121,469)
Insurance acquisition cash flows (8,228) (9,537) (17,905)
Total cash flows 40,693 69,738 115,015
Closing insurance contract liabilities 421,582 421,184 397,924
3.2.2. Reinsurance contracts held
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Opening reinsurance contract assets 160,758 166,726 166,726
Net income from reinsurance contracts held 12,100 8,372 (20,591)
Reinsurance expense (13,292) (18,755) (33,617)
Incurred claims recovery 25,161 11,752 19,438
Changes that relate to past service 231 15,375 (6,412)
Reinsurance finance income recognised in Profit or Loss Account 2,108 1,892 3,714
Reinsurance finance income/(expense) recognised in Other Comprehensive Income 1,534 (2,127) (5,880)
Total changes in Comprehensive Income 15,742 8,137 (22,757)
Cash flows
Premiums paid 6,106 6,043 34,992
Recoveries received (4,210) (1,068) (18,203)
Total cash flows 1,896 4,975 16,789
Closing reinsurance contract assets 178,396 179,838 160,758
3.3. Assets for insurance acquisition cash flows
£'k
Balance as at 31 December 2023 8,733
Amounts incurred during the period 9,537
Amounts derecognised and included in measurement of insurance contracts (8,782)
Balance as at 30 June 2024 9,488
Amounts incurred during the period 8,368
Amounts derecognised and included in measurement of insurance contracts (9,384)
Balance as at 31 December 2024 8,472
Amounts incurred during the period 8,228
Amounts derecognised and included in measurement of insurance contracts (8,474)
Balance as at 30 June 2025 8,226
3.4. Insurance revenue and expenses - Segmental disclosure
An analysis of insurance revenue, insurance service expenses and net
income/(expense) from reinsurance contracts held is included in the tables
below.
The Group provides short-term motor insurance to clients, which comprises
three lines of business, Motor Vehicle insurance, Motorcycle insurance and
Taxi insurance, which are written solely in the UK. The Group has no other
lines of business, nor does it operate outside of the UK. The Group does not
have a single client which accounts for more than 10% of revenue.
30 June 2025 30 June 2024
Motor Vehicles Motorcycle Taxi Total Motor Vehicles Motorcycle Taxi Total
£'k £'k £'k £'k £'k £'k £'k £'k
Insurance revenue
Insurance revenue from contracts measured under the PAA 99,939 4,311 8,156 112,406 109,549 5,059 7,244 121,852
Total insurance revenue 99,939 4,311 8,156 112,406 109,549 5,059 7,244 121,852
Insurance service expense
Incurred claims and other directly attributable expenses (54,717) (6,681) (24,379) (85,777) (62,053) (4,131) (7,142) (73,326)
Changes that relate to past service - changes in the FCF relating to the LIC 5,576 610 505 6,691 (19,987) (1,114) 5,563 (15,538)
Amortisation of insurance acquisition cash flows (6,397) (1,060) (1,017) (8,474) (6,813) (1,046) (923) (8,782)
Total insurance service expense (55,538) (7,131) (24,891) (87,560) (88,853) (6,291) (2,502) (97,646)
Net income from reinsurance contracts held
Reinsurance expenses - contracts measured under the PAA (11,793) (518) (981) (13,292) (16,829) (801) (1,125) (18,755)
Incurred claims recovery 6,272 1,593 17,296 25,161 9,977 237 1,539 11,753
Changes that relate to past service - changes in the FCF relating to incurred 781 319 (869) 231 18,702 159 (3,487) 15,374
claims recovery
Total net (expense)/income from reinsurance contracts held (4,740) 1,394 15,446 12,100 11,850 (405) (3,073) 8,372
Total insurance service result 39,661 (1,426) (1,289) 36,946 32,546 (1,637) 1,669 32,578
Other than reinsurance assets and insurance liabilities (see Note 3.1), the
Group does not allocate, monitor, or report assets and liabilities per
business line and does not consider the information useful in the day-to-day
running of the Group's operations. The Group also does not allocate, monitor,
or report other income and expenses per business line.
31 December 2024
Motor Vehicles Motorcycle Taxi Total
£'k £'k £'k £'k
Insurance revenue
Insurance revenue from contracts measured under the PAA 222,635 10,199 15,297 248,131
Total insurance revenue 222,635 10,199 15,297 248,131
Insurance service expense
Incurred claims and other directly attributable expenses (117,752) (6,873) (18,150) (142,775)
Changes that relate to past service - changes in the FCF relating to the LIC 1,769 188 4,323 6,280
Amortisation of insurance acquisition cash flows (14,234) (1,993) (1,939) (18,166)
Total insurance service expense (130,217) (8,678) (15,766) (154,661)
Net expense from reinsurance contracts held
Reinsurance expenses - contracts measured under the PAA (30,119) (1,405) (2,093) (33,617)
Incurred claims recovery 13,223 944 5,271 19,438
Changes that relate to past service - changes in the FCF relating to incurred (3,803) 262 (2,871) (6,412)
claims recovery
Total net (expense)/income from reinsurance contracts held (20,699) (199) 307 (20,591)
Total insurance service result 71,719 1,322 (162) 72,879
4. Financial assets
The Group's financial assets are summarised below.
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Cash and cash equivalents 4.1 35,626 37,469 31,314
Debt securities held at fair value through Other Comprehensive Income 4.2 306,436 289,553 311,184
Receivables 4.3 50 58 32
Total 342,112 327,080 342,530
4.1. Cash and cash equivalents
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Cash at bank and on hand 20,084 15,995 18,174
Money market funds 15,542 21,474 13,140
Total 35,626 37,469 31,314
Cash held in money market funds has no notice period for withdrawal.
The carrying value of cash and cash equivalents approximates fair value. The
full value is expected to be realised within 12 months.
4.2. Debt securities held at fair value through Other Comprehensive Income
The Group's debt securities held at fair value through Other Comprehensive
Income are summarised below.
30 June 2025 30 June 2024 31 December 2024
£'k % holdings £'k % holdings £'k % holdings
Government bonds 114,398 37.4% 109,396 37.8% 112,793 36.2%
Government-backed securities 100,345 32.7% 98,709 34.1% 103,267 33.2%
Corporate bonds 91,693 29.9% 81,448 28.1% 95,124 30.6%
Total 306,436 100.0% 289,553 100.0% 311,184 100.0%
4.2.1. Fair value
Fair value measurements are based on observable and unobservable inputs.
Observable inputs reflect market data obtained from independent sources, while
unobservable inputs reflect the Group's view of market assumptions in the
absence of observable market information.
IFRS 13 requires certain disclosures which require the classification of
financial assets and financial liabilities measured at fair value using a fair
value hierarchy that reflects the significance of the inputs used in making
the fair value measurement.
Disclosure of fair value measurements by level is according to the following
fair value measurement hierarchy:
- Level 1: fair value is based on quoted market prices (unadjusted) in
active markets for identical instruments as measured on reporting date
- Level 2: fair value is determined through inputs, other than quoted
prices included in Level 1 that are observable for the assets and liabilities,
either directly (prices) or indirectly (derived from prices)
- Level 3: fair value is determined through valuation techniques which
use significant unobservable inputs
Level 1
The fair value of financial instruments traded in active markets is based on
quoted market prices at the Statement of Financial Position date. A market is
regarded as active if quoted prices are readily and regularly available from
the stock exchange or pricing service, and those prices represent actual and
regularly occurring market transactions on an arm's length basis. The quoted
market price used for financial assets held by the Group is the closing bid
price. These instruments are included in Level 1 and comprise only debt
securities classified as fair value through other comprehensive income.
Level 2
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as
little as possible on entity-specific estimates. If all significant input
required to fair value an instrument is observable, the instrument is included
in Level 2. The Group has no Level 2 financial instruments.
Level 3
If one or more of the significant inputs are not based on observable market
data, the instrument is included in Level 3. The Group has no Level 3
financial instruments.
The following table summarises the classification of financial instruments:
Level 1 Level 2 Level 3 Total
At 31 June 2025 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 306,436 - - 306,436
Total 306,436 - - 306,436
Level 1 Level 2 Level 3 Total
At 31 June 2024 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 289,553 - - 289,553
Total 289,553 - - 289,553
Level 1 Level 2 Level 3 Total
At 31 December 2024 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 311,184 - - 311,184
Total 311,184 - - 311,184
Transfers between levels
There have been no transfers between levels during the period (30 June 2024:
no transfers / 31 December 2024: no transfers).
4.3. Receivables
The Group's receivables comprise of:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Other debtors 50 58 32
Total 50 58 32
The estimated fair values of receivables are the discounted amounts of the
estimated future cash flows expected to be received.
The carrying value of receivables approximates fair value. The provision for
expected credit losses is based on the recoverability of the individual
receivables.
The Group has calculated ECL on receivables and has concluded that it is
wholly immaterial and such further disclosure has not been included.
4.4. Investment income
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Interest income on financial assets using effective interest rate method
Interest income from debt securities 5,098 2,632 6,458
Interest income from cash and cash equivalents 645 863 1,468
Total 5,743 3,495 7,926
4.5. Net gains/(losses) from fair value adjustments on financial assets
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Profit or Loss
Realised fair value losses on debt securities (9) - -
Realised fair value losses on debt securities reclassified to Profit or Loss (9) - -
Other comprehensive income
Unrealised fair value gains on debt securities 4,025 819 3,769
Realised losses on derecognition of debt securities reclassified to Profit or 9 - -
Loss
Expected credit loss - - 5
Realised and unrealised fair value gains on debt securities through Other 4,034 819 3,774
Comprehensive Income
Net gains from fair value adjustments on financial assets 4,025 819 3,774
5. Payables
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Trade and other creditors 787 1,020 951
Other taxes ((1)) 6,504 7,541 6,044
Other financial liabilities ((2)) 5,000 - -
Total 12,291 8,561 6,995
(1) Other taxes consist of Insurance Premium Tax and VAT payable to HM
Revenue & Customs
(2) On 30 June 2025, Sabre Insurance Group plc entered into an irrevocable
agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a
liability of £5m has been recorded in the balance sheet with a corresponding
amount in equity.
Trade and other creditors are carried at amortised cost.
6. Other income
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Administration fees 153 33 182
Brokerage and other fee income 183 394 558
Total 336 427 740
Brokerage and other fee income relates to auxiliary products and services.
7. Other operating expenses
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Employee expenses 7.1 8,897 8,046 15,426
Property expenses 200 161 500
IT expense, including IT depreciation 3,505 3,314 6,756
Other depreciation 56 57 113
Industry levies 3,062 2,927 5,994
Policy servicing costs 804 1,510 3,153
Other operating expenses 1,885 1,817 3,399
Movement in expected credit loss on debt securities - - 5
Before adjustment for directly attributable claims expenses 18,409 17,832 35,346
Adjusted for:
Reclassification of directly attributable claims expenses (3,811) (3,763) (7,041)
Total other operating expenses 14,598 14,069 28,305
7.1. Employee expenses
The aggregate remuneration of those employed by the Group's operations
comprised:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Wages and salaries 6,408 5,939 11,332
Social security expenses 943 691 1,464
Contributions to defined contribution plans 303 307 598
Equity-settled share-based payment 1,006 851 1,607
Other employee expenses 237 258 425
Before adjustment for directly attributable claims expenses 8,897 8,046 15,426
Adjusted for:
Reclassification of directly attributable claims expenses (2,788) (2,531) (4,799)
Employee expenses 6,109 5,515 10,627
8. Income tax expense
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Current taxation
Charge for the period 6,580 5,082 12,157
Charge relating to prior periods 134 - 570
6,714 5,082 12,727
Deferred taxation
Origination and reversal of temporary differences (168) 24 (126)
(168) 24 (126)
Current taxation 6,714 5,082 12,727
Deferred taxation (168) 24 (126)
Income tax expense 6,546 5,106 12,601
Tax recorded in Other Comprehensive Income is as follows:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Current taxation - - -
Deferred taxation 702 498 549
702 498 549
Management estimates the Group's effective tax rate to be approximately 25.7%
of profit before tax for the year ending 31 December 2025, similar to the
corporation tax rate in the UK of 25.0%. This estimate is slightly higher than
the prevailing rate of corporation tax in the UK, reflecting the impact of the
Group's employee share schemes. The income tax expense for the period is
recognised based on this estimate.
9. Dividends
30 June 2025 30 June 2024 31 December 2024
pence per share £'k pence per share £'k pence per share £'k
Amounts recognised as distributions to equity holders in the period
Interim dividend for the current year - - - - 1.7 4,227
Final dividend for the prior year 11.3 27,991 8.1 20,122 8.1 20,122
11.3 27,991 8.1 20,122 9.8 24,349
Proposed dividends
Interim dividend in respect of the current year ((1)) 3.4 8,500 1.7 4,250
(1) Subsequent to 30 June 2025, the Directors declared an interim dividend
for 2025 of 3.4p per ordinary share. This dividend will be accounted for as an
appropriation of retained earnings in the year ended 31 December 2025 and is
not included as a liability in the Statement of Financial Position as at 30
June 2025
The Trustees of the Sabre Insurance Group Employee Benefit Trust waived their
entitlement to dividends on shares held in the trust to meet obligations
arising on share incentives schemes, which reduced the dividends paid for the
period ended 30 June 2025 by £259k (30 June 2024: £128k and 31 December
2024: £151k).
10. Related party transactions
There has been no change to the relationships disclosed in Note 18 of the 31
December 2024 Annual Report and Accounts.
No related party transactions have taken place in the period ended 30 June
2025 that have materially affected the financial position or the financial
performance of the Group.
11. Events after the balance sheet date
Since 1 July 2025, shares have been purchased under the Group's buyback
programme. At 29 July 2025 a total of 1,445,678 ordinary shares (representing
0.58% of Sabre Insurance Group plc's issued share capital at 30 June 2025) had
been purchased for cancellation at a total cost of £2,177,918 including
costs, at an average price of 149.45p per share, excluding any costs.
Other than the share buyback and the declaration of an interim ordinary
dividend as disclosed in Note 9, there have been no material changes in the
affairs or the financial position of the Group and its subsidiaries since the
Statement of Financial Position date.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
The Condensed Consolidated Financial Statements for the six months ended 30
June 2025 have been prepared in accordance with International Accounting
Standards 34 ("IAS 34") as adopted by the UK.
The interim management report includes a fair review of the information as
required by:
- DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of the important events that have occurred during the first six
months of the current financial year and their impact on the condensed set of
Consolidated Financial Statements and a description of the principle risks and
uncertainties for the remaining six months of the financial year; and
- DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transaction that have taken place in the first six months of the current
financial year and that have materially impacted the financial position or
performance of the Group during the period; and any changes in the related
party transactions from the Group's Consolidated Financial Statements for the
year ended 31 December 2024 that could do so.
Signed on behalf of the Board of Directors
Geoff Carter Adam Westwood
Chief Executive Officer Chief Financial Officer
30 July 2025 30 July 2025
Independent review report to Sabre Insurance Group plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Sabre Insurance Group plc's condensed consolidated interim
financial statements (the "interim financial statements") in the Half-Year
Report 2025 of Sabre Insurance Group plc for the 6 month period ended
30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
- the Condensed Consolidated Statement of Financial Position as at
30 June 2025;
- the Condensed Consolidated Profit or Loss Account and the Condensed
Consolidated Statement of Comprehensive Income for the period then ended;
- the Condensed Consolidated Statement of Cash Flows for the period then
ended;
- the Condensed Consolidated Statement of Changes in Equity for the
period then ended; and
- the explanatory notes to the interim financial statements.
The interim financial statements included in the Half-Year Report 2025 of
Sabre Insurance Group plc have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half-Year Report 2025 and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Half-Year Report 2025, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Half-Year Report 2025 in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half-Year Report 2025, including
the interim financial statements, the directors are responsible for assessing
the group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half-Year Report 2025 based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
30 July 2025
Financial Reconciliations
Gross Written Premium
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Movement in unearned premium (10,147) 5,839 (7,203)
Gross written premium 100,324 125,722 236,435
Net Loss Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance service expense 87,560 97,646 154,661
Less: Amortisation of insurance acquisition cash flows (8,474) (8,782) (18,166)
Less: Amounts recoverable from reinsurers for incurred claims (25,392) (27,127) (13,026)
Less: Directly attributable claims expenses (3,811) (3,763) (7,041)
Add: Net impact of discounting ((1)) 3,512 2,350 6,914
Undiscounted net claims incurred ((2)) 53,395 60,324 123,342
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Net loss ratio 54.9% 59.7% 58.7%
(1) Excludes discounting on Periodic Payment Orders ("PPOs")
(2) Calculation of undiscounted net claims incurred allows for the impact of
discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"),
consistent with presentation under IFRS 4.
Expense Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Other operating expenses 14,598 14,069 28,305
Add: Amortisation of insurance acquisition cash flows 8,474 8,782 18,166
Add: Directly attributable claims expenses 3,811 3,763 7,041
Total operating expenses 26,883 26,614 53,512
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Expense ratio 27.7% 26.3% 25.5%
Combined Operating Ratio
30 June 2025 30 June 2024 31 December 2024
Net loss ratio 54.9% 59.7% 58.7%
Expense ratio 27.7% 26.3% 25.5%
Combined operating ratio 82.6% 86.0% 84.2%
Discounted Net Loss Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance service expense 87,560 97,646 154,661
Less: Amortisation of insurance acquisition cash flows (8,474) (8,782) (18,166)
Less: Amounts recoverable from reinsurers for incurred claims (25,392) (27,127) (13,026)
Less: Directly attributable claims expenses (3,811) (3,763) (7,041)
Net claims incurred 49,883 57,974 116,428
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Discounted net loss ratio 51.3% 57.3% 55.4%
Discounted Combined Operating Ratio
30 June 2025 30 June 2024 31 December 2024
Net loss ratio 51.3% 57.3% 55.4%
Expense ratio 27.7% 26.3% 25.5%
Discounted combined operating ratio 79.0% 83.6% 80.9%
Net Insurance Margin
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Net claims incurred 53,395 60,324 123,342
Total operating expenses 26,883 26,614 53,512
Total insurance expense 80,278 86,938 176,854
Insurance revenue 112,406 121,852 248,131
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net insurance revenue 99,114 103,097 214,514
Net insurance margin 19.0% 15.7% 17.6%
Solvency Coverage Ratio - Pre-dividend
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Solvency II net assets 123,514 121,737 134,695
Solvency capital requirement 63,576 63,445 62,199
Solvency coverage ratio - pre-dividend 194.3% 191.9% 216.6%
Solvency Coverage Ratio - Post-dividend
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Solvency II net assets 123,514 121,737 134,695
Less: Interim/Final dividend (8,500) (4,250) (28,250)
Solvency II net assets - post-dividend 115,014 117,487 106,445
Solvency capital requirement 63,576 63,445 62,199
Solvency coverage ratio - post-dividend 180.9% 185.2% 171.1%
Glossary of Terms
Acquisition cash flows Cash flows arising from the costs of selling, underwriting and starting a
group of insurance contracts (issued or expected to be issued) that are
directly attributable to the portfolio of insurance contracts to which the
group belongs. Such cash flows include cash flows that are not directly
attributable to individual contracts or groups of insurance contracts within
the portfolio.
Adjusted IFRS net assets Equals the Group's IFRS net assets, less Goodwill.
Asset for incurred claims ("AIC") The reinsurers' share of the liability for incurred claims ("LIC").
Asset for remaining coverage ("ARC") The reinsurers' share of the liability for remaining coverage ("LRC").
Combined operating ratio ("COR") The combined operating ratio is the ratio of total expenses (which comprises
commission expenses and operating expenses), and net insurance claims relative
to net earned premium ("NEP"), expressed as a percentage.
Contractual service margin ("CSM") This represents the unearned profit the entity will recognise as it provides
insurance contract service under the insurance contracts in the group. It is a
component of the carrying amount of the asset or liability for a group of
insurance contracts.
Coverage period The period during which the entity provides insurance contract services. The
period includes the insurance contract services that relate to all premiums
within the boundary of the insurance contract.
Effective tax rate Effective tax rate is defined as the approximate tax rate calculated by
dividing the Group's profit before tax by the tax charge going through the
Profit or Loss Account.
Expense ratio Expense ratio is a measure of total expenses (which comprises commission
expenses and operating expenses), and claims handling expenses, relative to
net earned premium ("NEP"), expressed as a percentage.
Fair value through OCI ("FVOCI") Unrealised gains and losses from the remeasurement of the fair value financial
assets are recognised in the Statement of Other Comprehensive Income ("OCI").
Financial Reporting Council ("FRC") The UK's regulator for the accounting, audit and actuarial professions,
promoting transparency and integrity in business.
Fulfilment cash flows ("FCF") An explicit, unbiased and probability-weighted estimate (i.e. expected value)
of the present value of the future cash outflows minus the present value of
the future cash inflows that will arise as the entity fulfils insurance
contacts, including a risk adjustment for non-financial risk.
Gross earned premium ("GEP") The proportions of premium attributable to the periods of risk that relate to
the current accounting period. It represents gross written premium ("GWP")
adjusted by the unearned premium provision at the beginning and end of the
accounting period, before deduction of reinsurance expense.
Gross written premium ("GWP") Gross written premium comprises all premiums in respect of policies
underwritten in a particular financial year, regardless of whether such
policies relate in whole or in part to a future financial year, before
deduction of reinsurance expense.
IFRS 17 "Insurance Contracts" An accounting standard that addresses the establishment of principles for the
recognition, measurement, presentation and disclosure of insurance contracts
within the scope of the standard (Effective 1 January 2023).
IFRS net assets The difference between the Group's total assets and total liabilities.
Insurance revenue Gross earned premium ("GEP") plus instalment income.
International Financial Reporting Standards ("IFRS") Accounting standards issued by the IFRS Foundation and the International
Accounting Standards Board ("IASB").
Liability for incurred claims ("LIC") An entity's obligation to:
a) Investigate and pay valid claims for insured events that have already
occurred, including events that have occurred but for which claims have not
been reported, and other incurred insurance expenses; and
b) Pay amounts that are not included in (a) and that relate to:
i. insurance contract services that have already been provided; or
ii. any investment components or other amounts that are not related to
the provision of insurance contract services and that are not in the liability
for remaining coverage.
Liability for remaining coverage ("LRC") An entity's obligation to:
a) investigate and pay valid claims under existing insurance contracts for
insured events that have not yet occurred (i.e. the obligation that relates to
the unexpired portion of the insurance coverage); and
b) pay amounts under existing insurance contracts that are not included in
(a) and that relate to:
i. insurance contract services not yet provided (i.e. the obligations
that relate to future provision of insurance contract services); or
ii. any investment components or other amounts that are not related to
the provision of insurance contract services and that have not been
transferred to the liability for incurred claims.
Net claims incurred Net claims incurred is equal to gross claims incurred less amounts recovered
from reinsurers.
Net earned premium ("NEP") Gross earned premium ("GEP") less reinsurance expense.
Net insurance revenue Insurance revenue less reinsurance expense.
Net loss ratio ("NLR") Net loss ratio measures net insurance claims, less claims handling expenses,
relative to net earned premium expressed as a percentage.
Net insurance margin ("NIM") Net insurance margin measures how much net insurance profit is generated as a
percentage of net insurance revenue.
Own Risk and Solvency Assessment ("ORSA") An prospective assessment of the Group's risks and solvency capital
requirements.
Periodic Payment Order ("PPO") A compensation award as part of a claims settlement that involves making a
series of annual payments to a claimant over their remaining life to cover the
costs of the care they will require.
Premium allocation approach ("PAA") Method for measuring insurance contracts under IFRS 17 "Insurance Contracts"
Return on tangible equity Return on tangible equity is measured as the ratio of the Group's profit after
tax to its average tangible equity over the financial year, expressed as a
percentage.
Risk adjustment for non-financial risk The compensation an entity requires for bearing the uncertainty about the
amount and timing of the cash flows that arises from non-financial risk as the
entity fulfils insurance contracts.
Solvency capital ratio The ratio of Own Funds (Solvency II capital) to Solvency Capital Requirement
"SCR".
Solvency Capital Requirement ("SCR") The total amount of capital that the Group must hold to cover the risks under
the Solvency II regulatory framework. The Group is required to maintain
eligible own funds of at least 100% of the SCR.
The Group uses the Standard Formula to determine the SCR.
(1) = 30 June 2025 ratios include the impact of the share buyback. Share
buyback not reflected in 2024 ratios.
Strategic initiatives
- We are continuing to follow our long-established strategy of balancing
volume and margin in order to maximise absolute profit and returns, and have
continued to write comfortable levels of business despite continuing soft
market conditions
- We have made solid progress with key strategic initiatives related to
our "Ambition 2030" - to deliver a profit before tax of at least £80m in
2030:
- 'Sabre Direct' Motorcycle brand launched
- Pricing platform enhancements due to begin testing later in 2025
- All initiatives remain on-track with the timetable set out at our
Capital Markets Event in December 2024
Market trends
- Following price reductions across the market in 2024 and early 2025,
price decreases appear to have slowed or stopped in recent months, supporting
our view that premium increases should return in H2 2025. We are well placed
to return to growth in as market conditions improve
- Claims inflation has continued at elevated levels in 2025, which we
consider is at mid-to-high single-digits
- We have maintained our cautious approach to pricing and reserving,
fully covering the cost of claims
- We continue to expect market pricing to increase to meet the inflating
cost of claims as the delta between pricing and claims costs has widened
during 2025
Performance in 2025
- We have delivered a net insurance margin well inside our 18% to 22%
target range, with continued improvement in loss ratio, particularly in core
Motor Vehicle where we recorded a net loss ratio of 48.1% (HY 2024: 56.7%)
- Overall net loss ratio of 54.9% shows on-target performance across the
business as a whole. Impact of a small number of large claims on Motorcycle
and Taxi has obscured good underlying profitability in those products, which
remain a small part of total income for the Group
- In-line with Sabre's strategy, premium levels have been allowed to
reduce whilst market conditions are weak, ready to return to growth when
market conditions are favourable
Shareholder returns
- Continued strong solvency position of 194.3% pre-dividend, 180.9%
post-dividend, reflecting our robust underwriting performance, which continues
to generate capital
- Interim dividend of 3.4p per share (2024: 1.7p per share)
- Share buyback commenced on 1(st) July 2025 and is progressing well
Legal and regulatory environment
- On 22nd July 2025, the FCA published a suite of documents outlining
their "Roadmap for Retail Insurance" including an analysis of claims costs, an
interim report on the study into premium financing and an evaluation of the
General Insurance Pricing Practices Remedies
- We were encouraged to see the FCA confirm that claims inflation, and
the compensating premium increases, were being primarily driven by external
factors largely outside of insurers' direct control
- The FCA also confirmed that it is unlikely to make material
market-wide interventions around the provision of premium finance, and we
expect action to be taken on an individual firm basis where required. The
existing Consumer Duty and Fair Value rules should be sufficient to address
this
- Sabre employs a robust Consumer Duty framework and therefore we do not
anticipate any material impact on Group profit regardless of the approach
taken. We are pleased with this significant reduction in regulatory
uncertainty
Outlook
- We remain confident in our ability to deliver at least £80m of profit
before tax in 2030
- More material contribution to premium from Ambition 2030 initiatives
expected from 2026 onwards
- Guidance reiterated for the full-year:
- Anticipate net insurance margin within our target range
- Expect gross written premium to be slightly lower than 2024 given
relatively weaker market conditions in H1 2025
- Forward-looking claims inflation in mid-to-high single-digits
There will be a call for analysts and investors at 0930hrs on Thursday, 31
July 2025. For details, please contact sabre@teneo.com or find the
registration link here: Results Presentation
(https://events.teams.microsoft.com/event/e08fd6b0-ba93-4a87-8551-1ba1851bcff2@57dd0ee8-ea36-4e50-af2c-d5f1da335307)
Enquiries
Sabre Insurance Group 0330 024 4696
Geoff Carter, Chief Executive Officer
Adam Westwood, Chief Financial Officer
Teneo 020 7260 2700
James Macey White/Ffion Dash sabre@teneo.com
Dividend calendar
2025 Interim Dividend Payment Dates
Ex-dividend date: 21 August 2025
Record date: 22 August 2025
Payment date: 24 September 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014.
The Sabre Insurance Group plc LEI number is 2138006RXRQ8P8VKGV98.
Forward-looking statements disclaimer
Cautionary statement
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts and involve
predictions. Forward-looking statements may and often do differ materially
from actual results. Any forward-looking statements reflect Sabre's current
view with respect to future events and are subject to risks relating to future
events and other risks, uncertainties and assumptions relating to Sabre's
business, results of operations, financial position, prospects, growth or
strategies and the industry in which it operates.
Forward-looking statements speak only as of the date they are made and cannot
be relied upon as a guide to future performance. Save as required by law or
regulation, Sabre disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements in this
announcement that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this announcement.
Financial and business review
Highlights
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross written premium ((1)) £100.3m £125.7m £236.4m
Net insurance margin ((1)) 19.0% 15.7% 17.6%
Net loss ratio ((1)) 54.9% 59.7% 58.7%
Combined operating ratio ((1)) 82.6% 86.0% 84.2%
IFRS profit before tax £25.5m £20.2m £48.6m
IFRS profit after tax £18.9m £15.1m £36.0m
Solvency coverage ratio (pre-dividend) ((1) (2)) 194.3% 191.9% 216.6%
Solvency coverage ratio (post-dividend) ((1) (2)) 180.9% 185.2% 171.1%
(1) = Alternative performance metrics are reconciled to the IFRS reported
figures in the Financial Reconciliations section
(2) = 30 June 2025 ratios include the impact of the share buyback. Share
buyback not reflected in 2024 ratios.
In the first half of 2025 Sabre has delivered a profit before tax of £25.5m,
a 26.2% increase on the same period in 2024 and a demonstration of the
strength of Sabre's model, having been achieved during the weakest part of the
current pricing cycle, during which prices have fallen in 2024 and 2025 to
date. In-line with Sabre's strategy, premium levels have been allowed to
reduce whilst market conditions are weak. The Group has reported a net
insurance margin of 19.0%, comfortably within the target range of 18% to 22%
set out at the December 2024 Capital Markets Event. Sabre remains on track to
deliver a strong profit for the full-year as we progress towards the Ambition
2030 target of a profit before tax of at least £80m in 2030.
The £5m share buyback programme announced at the year-end results began on
1(st) July following regulatory approval and is progressing well. The full
impact of the share buyback is reflected in both our pre- and post-dividend
capital ratios of 194.3% and 180.9% respectively. Capital generation has been
strong as expected in the first half of the year, and we have announced an
interim dividend of 3.4p per share in-line with our policy. We will consider
an appropriate allocation and distribution of any excess capital at our
year-end results.
Insurance revenue
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross written premium £100.3m £125.7m £236.4m
Movement in unearned element of liability for remaining coverage £10.2m (£5.8m) £7.2m
Gross earned premium £110.5m £119.9m £243.6m
Customer instalment income £1.9m £2.0m £4.5m
Insurance revenue £112.4m £121.9m £248.1m
Reinsurance expense (£13.3m) (£18.8m) (£33.6m)
Net insurance revenue £99.1m £103.1m £214.5m
Gross written premium by product
Motor vehicle £87.4m £112.0m £209.9m
Motorcycle £5.9m £5.6m £9.7m
Taxi £7.0m £8.1m £16.8m
Policy counts by product
Motor vehicle ('000) 199 237 217
Motorcycle ('000) 39 41 38
Taxi ('000) 10 11 11
We have continued to write comfortable levels of premium in the first half of
2025, against a backdrop of continued under-pricing across the market, with
decreases in average premiums across the period unreflective of the increasing
costs of servicing policies - a trend which we expect to reverse during the
second half of this year. Having protected our margins through reflecting the
actual cost of claims in our pricing, which ultimately optimises profit, we
have seen volumes dip in an expected and manageable fashion - and are ready to
return to growth when market conditions become more favourable.
As set out at the December 2024 Capital Markets Event we expect to implement
our 'Ambition 2030' initiatives carefully over the next two years and expect
to see the benefits from these from 2026 onwards. The new Motorcycle product,
'Sabre Direct', launched successfully in April and is showing great potential,
but volumes are being kept at deliberately low levels whilst we gain comfort
in the accuracy of our pricing models and underwriting processes. The enhanced
pricing infrastructure, which will allow us to expand our competitiveness,
remains on-track to test in the later part of this year, with implementation
expected in 2026.
The Motorcycle and Taxi books overall remain a small part of total income,
with Taxi remaining at relatively low levels whilst market premiums remain
unattractive.
The 'unearned' element of the liability for remaining coverage represents the
element of written premium covering future periods, which has the effect of
smoothing gross earned premium ("GEP") (and therefore insurance revenue) over
time, so where there is a big change in written premium, insurance revenue
will change more slowly.
Customer instalment income reflects the interest income charged on instalment
policies and remains a relatively small percentage of the Group's total
insurance revenue.
Insurance expense
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Undiscounted gross claims incurred £84.1m £88.6m £143.7m
Discounting ((1)) (£8.8m) (£3.6m) (£14.2m)
Directly attributable expenses £3.8m £3.8m £7.0m
Amortisation of insurance acquisition costs £8.5m £8.8m £18.2m
Insurance service expense £87.6m £97.6m £154.7m
Undiscounted reinsurance recoveries (£30.7m) (£28.7m) (£21.5m)
Discounting ((1)) £5.3m £1.6m £8.4m
Net insurance expense £62.2m £70.5m £141.6m
Current-year net loss ratio ((2)) 61.2% 59.3% 58.2%
Prior-year net loss ratio ((2)) (6.3%) 0.4% 0.5%
Financial-year net loss ratio ((2)) 54.9% 59.7% 58.7%
Net loss ratio by product
Motor vehicle 48.1% 56.7% 56.1%
Motorcycle 104.2% 110.6% 58.6%
Taxi 111.1% 68.3% 95.7%
Discounted ratios
Discounted financial-year net loss ratio 51.3% 57.3% 55.4%
(1) Includes discounting on Periodic Payment Orders ("PPOs")
(2) Calculation of undiscounted net loss ratio allows for the impact of
discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"),
consistent with presentation under IFRS 4.
Sabre delivered an excellent underwriting performance in the first half of
2025, with a return to releases from prior-years, an overall undiscounted
prior-year loss ratio of (6.3%), and an overall loss ratio of 54.9%, allowing
the Group to deliver a net insurance margin of 19.0%, within its target range
of 18% to 22% despite a slight increase in expense ratio to 27.7% resulting
primarily from the decrease in net earned premium.
The core Motor Vehicle loss ratio was particularly strong, at 48.1%, an
improvement of 8.6 ppts over the same period in 2024. This is the result of
the current year performing as expected and slightly higher than normal
releases from prior years. Motorcycle and Taxi loss ratios have been impacted
by a small number of large claims, which has an outsized impact on the
half-year loss ratios over the 6-month period where earned premium is very
low. We don't see the relatively poor loss ratios reported at the interim as
being indicative of the overall performance of these books, with Motorcycle
business in particular expected to perform well across the full-year. We
remain cautious on the Taxi business given wider market conditions.
Other operating expenditure
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Employee expenses £8.9m £8.0m £15.4m
IT expenses £3.5m £3.3m £6.8m
Industry levies £3.1m £2.9m £6.0m
Policy servicing costs £0.8m £1.5m £3.2m
Other operating expenses £2.1m £2.0m £3.9m
Before adjustment for directly attributable claims expenses £18.4m £17.7m £35.3m
Reclassification of directly attributable claims expenses (£3.8m) (£3.8m) (£7.0m)
Total other operating expenses £14.6m £13.9m £28.3m
Expense ratio 27.7% 26.3% 25.5%
The expense ratio has increased slightly to 27.7% against 26.3% for the last
full-year. This is due to the decrease in insurance revenue set against normal
inflationary increases in the Group's operating expense base. Whilst the Group
maintains a high proportion of variable costs (in particular acquisition
costs) which significantly decrease the impact of volume-based leverage, a
small increase in expense ratio is expected when market conditions are less
favourable.
Overall, the cost base remains tightly controlled, with no unusual or
unexpected expenditure. The Group continues to invest in recruiting and
retaining top talent across the business and in building and maintaining its
secure IT platforms. The impact of this investment on the overall expense base
remains small.
Other income
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Interest revenue calculated using the effective interest method £5.7m £3.5m £7.9m
Other income £0.3m £0.4m £0.7m
Total interest and other income £6.0m £3.9m £8.6m
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Insurance finance expense for insurance contracts issued (£5.1m) (£4.1m) (£8.4m)
Reinsurance finance income for reinsurance contracts held £2.1m £1.9m £3.7m
Net insurance finance result (£3.0m) (£2.2m) (£4.7m)
Interest revenue
Interest revenue reflects the yield achieved across the Group's investment
portfolio. The increase in interest revenue reflects the higher yield gained
through reinvesting matured assets as well as an increase in the total assets
invested during the year. The Group's investment strategy remains unchanged,
being invested in a low-risk mix of UK Government bonds, other
government-backed securities and diversified investment-grade corporate
bonds.
Fair value gains and losses are taken through Other Comprehensive Income and
largely reflect market movements in the yields of risk-free and low-risk
assets. We do not expect to realise any material market value movements within
profit.
Other income
Other income, related to non-insurance revenue earned such as product fees
(excluding instalment interest) and commissions, remains a very small element
of the Group's income.
Net insurance finance result
Net insurance finance result reflects the run-off of discounting applied to
insurance liabilities under IFRS 17. As cash flows move towards settlement,
the total level of discounting is reduced and this reduction is reflected
here. We generally expect the overall impact of IFRS 17 discounting (the net
of the discounting credit on claims and the insurance finance expense) to be
immaterial in the context of the overall Group result.
Taxation
In the first half of 2025 the Group recorded a corporation tax expense of
£6.5m (HY 2024: £5.1m), with an effective tax rate of 25.7%, (HY 2024:
25.3%). It is slightly higher than the current 25% UK rate of corporation tax
mainly due to the Group's employee share schemes. The Group has not entered
into any complex or unusual tax arrangements during the period.
Earnings per share
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Basic earnings per share 7.64p 6.08p 14.48p
Diluted earnings per share 7.55p 6.04p 14.37p
Basic earnings per share of 7.64p is proportionate to profit after tax.
Diluted earnings per share is similarly proportionate to profit after tax,
taking into account the potentially dilutive effect of the Group's share
schemes. No shares have been issued or cancelled during the period, however we
expect the number of shares in issue to reduce in the second half of 2025 due
to the ongoing share buyback programme that started on 1 July 2025.
Cash and investments
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Government bonds £114.4m £109.5m £112.8m
Government-backed securities £100.3m £98.7m £103.3m
Corporate bonds £91.7m £81.4m £95.1m
Cash and cash equivalents £35.6m £37.5m £31.3m
The level of cash retained reflects Sabre's normal liquidity requirements and
there has been no change in the overall investment strategy, with UK
Government bonds and other government-backed assets remaining the majority of
the portfolio, with c.30% of invested assets held in investment-grade
corporate bonds.
Insurance liabilities
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Gross insurance liabilities £421.6m £421.2m £397.9m
Reinsurance assets (£178.4m) (£179.8m) (£160.8m)
Net insurance liabilities £243.2m £241.4m £237.1m
The Group's net insurance liabilities continue to reflect the underlying
profitability and volume of business written. Generally, the gross insurance
liabilities are more volatile and impacted by the receipt and settlement of
individually large claims. The level of net insurance liabilities held remains
broadly proportionate to the volume of business written along with the
inflation applied to claims costs.
Leverage
The Group continues to hold no external debt. All of the Group's capital is
considered Tier 1 under the UK regulatory regime. The Directors continue to
hold the view that this allows the greatest operational flexibility for the
Group.
Dividends and solvency
Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Interim ordinary dividend (proposed) 3.4p 1.7p 1.7p
Final ordinary dividend (paid) - - 8.4p
Total ordinary dividend (paid and proposed) 3.4p 1.7p 10.1p
Special dividend (paid) - - 2.9p
Total dividend (paid and proposed) 3.4p 1.7p 13.0p
The interim dividend proposed is in line with the Group's current policy to
pay an ordinary interim dividend equal to one third of the prior-year's full
interim dividend.
Note that the Group disclosed at its full-year results that from 2025 onwards,
the Group has increased the maximum ordinary dividend to 80% of profit after
tax. This allows for an ordinary dividend much closer to historical levels of
distribution.
Excluding the capital required to pay this interim dividend, the Group's SCR
coverage ratio at 30 June 2025 is 180.9%. The Group has received regulatory
approval for the £5m buyback programme announce at the full-year results and
is currently proceeding with that programme as planned. The programme is
expected to be completed well in advance of the end-date of 31 December 2025.
Condensed Consolidated Profit or Loss Account
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Insurance revenue 112,406 121,852 248,131
Insurance service expense (87,560) (97,646) (154,661)
Insurance service result before reinsurance contracts held 24,846 24,206 93,470
Reinsurance expense (13,292) (18,755) (33,617)
Amounts recoverable from reinsurers for incurred claims 25,392 27,127 13,026
Net income from reinsurance contracts held 12,100 8,372 (20,591)
Insurance service result 36,946 32,578 72,879
Interest income on financial assets using effective interest rate method 4.4 5,743 3,495 7,926
Net losses on derecognition of debt securities measured at FVOCI 4.5 (9) - -
Total investment income 5,734 3,495 7,926
Insurance finance expense from insurance contracts issued (5,061) (4,111) (8,392)
Reinsurance finance income from reinsurance contracts held 2,108 1,892 3,714
Net insurance finance result (2,953) (2,219) (4,678)
Net insurance and investment result 39,727 33,854 76,127
Other income 6 336 427 740
Other operating expenses 7 (14,598) (14,069) (28,305)
Profit before tax 25,465 20,212 48,562
Income tax expense 8 (6,546) (5,106) (12,601)
Profit for the period attributable to ordinary shareholders 18,919 15,106 35,961
Basic earnings per share (pence per share) 7.64 6.08 14.48
Diluted earnings per share (pence per share) 7.55 6.04 14.37
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Profit for the period attributable to ordinary shareholders 18,919 15,106 35,961
Items that are or may be reclassified subsequently to Profit or Loss
Unrealised fair value gains on debt securities 4.5 4,025 819 3,774
Realised losses on derecognition of debt securities reclassified to Profit or 4.5 9 - -
Loss
Tax charge (1,006) (205) (944)
Debt securities at fair value through other comprehensive income 3,028 614 2,830
Insurance finance (expense)/income from insurance contracts issued (2,750) 3,298 6,852
Reinsurance finance income/(expense) from reinsurance contracts held 1,534 (2,127) (5,880)
Tax credit/(charge) 304 (293) 395
Net insurance finance result (912) 878 1,367
Total other comprehensive income for the period, net of tax 2,116 1,492 4,197
Total comprehensive income for the period attributable to ordinary 21,035 16,598 40,158
shareholders
Condensed Consolidated Statement of Financial Position
As at 30 June 2025
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Assets
Cash and cash equivalents 4.1 35,626 37,469 31,314
Debt securities at fair value through other comprehensive income 4.2 306,436 289,553 311,184
Receivables 4.3 50 58 32
Current tax assets - 2,281 997
Reinsurance contract assets 3.1 178,396 179,838 160,758
Property, plant and equipment 4,144 4,283 4,204
Deferred tax assets - 167 265
Other assets 2,565 2,186 778
Goodwill 156,279 156,279 156,279
Total assets 683,496 672,114 665,811
Liabilities
Payables 5 12,291 8,561 6,995
Current tax liability 223 - -
Insurance contract liabilities 3.1 421,582 421,184 397,924
Deferred tax liability 270 - -
Other liabilities 2,792 3,303 2,546
Total liabilities 437,158 433,048 407,465
Equity
Issued share capital 250 250 250
Own shares (3,354) (2,722) (3,112)
Merger reserve 48,525 48,525 48,525
FVOCI reserve (36) (5,280) (3,064)
Insurance/Reinsurance finance reserve 2,694 3,117 3,606
Share-based payments reserve 2,359 1,834 2,620
Retained earnings 195,900 193,342 209,521
Total equity 246,338 239,066 258,346
Total liabilities and equity 683,496 672,114 665,811
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025
Share capital Own shares Merger reserve FVOCI reserve Insurance/ Share-based payments reserve Retained earnings Total equity
Reinsurance
finance reserve
£'k £'k £'k £'k £'k £'k £'k £'k
Balance as at 31 December 2023 250 (3,121) 48,525 (5,894) 2,239 2,686 197,727 242,412
Profit for the period attributable to the owners of the Company - - - - - - 15,106 15,106
Total other comprehensive income for the period, net of tax: Items that are or - - - 614 878 - - 1,492
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 614 878 - 15,106 16,598
Share-based payment expense - - - - - (852) 631 (221)
Net movement in own shares - 399 - - - - - 399
Dividends paid - - - - - - (20,122) (20,122)
Balance as at 30 June 2024 250 (2,722) 48,525 (5,280) 3,117 1,834 193,342 239,066
Profit for the period attributable to the owners of the Company - - - - - - 20,855 20,855
Total other comprehensive income for the period, net of tax: Items that are or - - - 2,216 489 - - 2,705
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 2,216 489 - 20,855 23,560
Share-based payment expense - - - - - 786 (449) 337
Net movement in own shares - (390) - - - - - (390)
Dividends paid - - - - - - (4,227) (4,227)
Balance as at 31 December 2024 250 (3,112) 48,525 (3,064) 3,606 2,620 209,521 258,346
Profit for the period attributable to the owners of the Company - - - - - - 18,919 18,919
Total other comprehensive income for the period, net of tax: Items that are or - - - 3,028 (912) - - 2,116
may be reclassified subsequently to Profit or Loss
Total comprehensive income for the period - - - 3,028 (912) - 18,919 21,035
Share-based payment expense - - - - - (261) 451 190
Net movement in own shares - (242) - - - - - (242)
Share buyback ((1)) - - - - - - (5,000) (5,000)
Dividends paid - - - - - - (27,991) (27,991)
Balance as at 30 June 2025 250 (3,354) 48,525 (36) 2,694 2,359 195,900 246,338
(1) On 30 June 2025, Sabre Insurance Group plc entered into an irrevocable
agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a
liability of £5m has been recorded in the balance sheet with a corresponding
amount in equity. As at 30 June 2025, £0m of shares had been acquired under
the programme (see Note 11 for further information).
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2025
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax for the period 25,465 20,212 48,562
Adjustments for:
Depreciation of property, plant and equipment 73 105 184
Share-based payment - equity-settled schemes 1,006 822 1,607
Investment return (5,089) (2,632) (6,458)
Expected credit loss - - 5
Operating cash flows before movements in working capital 21,455 18,507 43,900
Movements in working capital:
Change in receivables (18) 29 55
Change in reinsurance contract assets (16,104) (15,239) 88
Change in other assets (1,787) (1,412) (4)
Change in payables 296 (1,139) (2,705)
Change in insurance contract liabilities 20,908 49,643 29,937
Change in other liabilities 246 116 (641)
Cash generated from operating activities before investment of insurance assets 24,996 50,505 70,630
Taxes paid (5,493) (5,926) (12,286)
Net cash generated from operating activities before investment of insurance 19,503 44,579 58,344
assets
Interest and investment income received 4,262 2,121 5,248
Proceeds from the sale and maturity of invested assets 43,903 17,908 98,656
Purchases of invested assets (34,283) (41,452) (140,180)
Net cash generated from operating activities 33,385 23,156 22,068
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (13) - -
Net cash used by investing activities (13) - -
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in acquiring and disposing of own shares (1,069) (644) (1,484)
Dividends paid (27,991) (20,122) (24,349)
Net cash used by financing activities (29,060) (20,766) (25,833)
Net increase in cash and cash equivalents 4,312 2,390 (3,765)
Cash and cash equivalents at the beginning of the period 31,314 35,079 35,079
Cash and cash equivalents at the end of the period 35,626 37,469 31,314
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025
1. General information
The Condensed Consolidated Interim Financial Statements comprise the results
and balances of the Group for the six-month period ended 30 June 2025, the
comparative period for the six months ended 30 June 2024 and the year ended 31
December 2024. The information in the Condensed Consolidated Interim Financial
Statements is unaudited and does not constitute statutory accounts as defined
in s.434 of the Companies Act 2006. The independent auditor's report on the
Group accounts for the year ended 31 December 2024 is unqualified, does not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report and does not include a statement
under s.498(2) or (3) of the Companies Act 2006.
2. Accounting policies
2.1. Basis of preparation
The Condensed Consolidated Interim Financial Statements have been prepared and
approved by the Directors in accordance with UK-adopted International
Accounting Standard 34 ('Interim Financial Reporting'). As required by the
Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial
Conduct Authority, these Condensed Consolidated Interim Financial Statements
have been prepared applying the accounting policies and presentation that will
be applied in the preparation of the Annual Financial Statements of the Group
and will be prepared in accordance and fully comply with UK-adopted
international accounting standards, comprising International Accounting
Standards ('IAS') and International Financial Reporting Standards ('IFRSs').
The Annual Financial Statements were prepared in accordance with the going
concern principle using the historical cost basis, except for those financial
assets that have been measured at fair value.
The accounting policies applied in the preparation of the Condensed
Consolidated Interim Financial Statements are consistent with those accounting
policies applied in the preparation of the 31 December 2024 Annual Report and
Accounts, expect for those referred to in 2.3 below.
The Condensed Consolidated Interim Financial Statements values are presented
in Pounds Sterling (£) rounded to the nearest thousand (£'k), unless
otherwise indicated. The Group does not consider it is exposed to material
seasonal volatility in its financial results.
2.2. Going concern
The Condensed Consolidated Interim Financial Statements have been prepared on
a going concern basis. Having assessed the Group's forecasts, projections and
principal risks of the Group over the full duration of the planning cycle, the
Directors have a reasonable expectation that the Group will continue in
operation for at least 12 months from the date the Directors approved these
Condensed Consolidated Financial Statements and that therefore it is
appropriate to adopt a going concern basis for the preparation of these
Condensed Consolidated Interim Financial Statements.
The Group's Principal Risks and Uncertainties are outlined in the Strategic
Report of the 31 December 2024 Annual Report and Accounts and have not changed
since the last reporting date. The principal risks are:
- Insurance
- Operations
- Finance and Capital
- IT and Systems
- Regulatory, Governance and Compliance
- People
- Macro risks
- Climate change
- Inflation and interest rate increases
- Geo-political instability
2.3. New and amended standards and interpretations adopted by the Group
Amendments to IFRS
The following amended standards became effective for the year ended 31
December 2025:
- Lack of Exchangeability (Amendments to IAS 21)
The amendments have not had a material impact on the Group.
2.4. New and amended standards and interpretations not yet effective in 2025
A number of new standards and interpretations adopted by the UK which are not
mandatorily effective, as well as standards' interpretations issued by the
IASB but not yet adopted by the UK, have not been applied in preparing these
financial statements. The Group does not plan to adopt these standards early;
instead, it expects to apply them from their effective dates as determined by
their dates of UK endorsement. The Group is reviewing the upcoming standards
to determine their impact:
- IFRS 18 Presentation and Disclosure in Financial Statements -
Effective 1 January 2027, with retrospective application - IFRS 18, which
replaces IAS 1 "Presentation of Financial Statements", introduces new
requirements for presentation and disclosure in the financial statements, with
a focus on the Profit or Loss Account. Items in the Profit of Loss Account
will be classified into one of five categories: operating, investing,
financing, income taxes and discontinued operations, of which the first three
are new. It also requires the disclosure of newly defined management-derived
performance measures, how these are calculated and why these provide useful
information, reconciled to the IFRS reporting. As a presentation and
disclosure standard, the implementation of IFRS 18 will not affect the Group's
results. The Group is currently working to identify all impacts the amendments
will have on the primary financial statements and notes to the financial
statements.
3. Insurance liabilities and reinsurance assets
CRITICAL ACCOUNTING ESTIMATES AND judgements
There have been no significant changes to the principles, estimates and
judgements used in applying the Group's accounting policies during the period.
Full details of these critical accounting estimates and judgements are
disclosed on pages 151 to 153 of the Group's Annual Report and Accounts 2024.
Discount rates
Discount rates applied for discounting future cash flows are listed below:
30 June 2025 30 June 2024 31 December 2024
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
Motor insurance 4.05% 3.84% 3.91% 4.29% 5.12% 4.48% 4.19% 4.09% 4.70% 4.39% 4.28% 4.31%
Risk adjustment for non-financial risk
The Group has estimated the risk adjustment using a methodology which targets
a confidence level (probability of sufficiency) approach between the 80th and
90th percentile. At 30 June 2025, the risk margin applied equates to an
approximate confidence interval of 82.2% (30 June 2024: 82.1% / 31 December
2024: 80.6%) That is, the Group has assessed its indifference to uncertainty
for all product lines (as an indication of the compensation that it requires
for bearing non-financial risk) as being equivalent to the 80th to 90th
percentile confidence level less the mean of an estimated probability
distribution of the future cash flows.
3.1. Composition of the Statement of Financial Position
An analysis of the amounts presented on the Statement of Financial Position
for insurance contracts is included in the table below.
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Insurance contract liabilities
Insurance contract liabilities
Motor Vehicle insurance 335,289 366,778 334,767
Motorcycle insurance 37,935 35,653 34,321
Taxi insurance 56,584 28,241 37,308
Asset for insurance acquisition cash flows
Motor Vehicle insurance 3.3 (6,174) (7,435) (6,488)
Motorcycle insurance 3.3 (1,107) (1,011) (880)
Taxi insurance 3.3 (945) (1,042) (1,104)
Total insurance contract liabilities 3.2.1 421,582 421,184 397,924
Reinsurance contracts assets
Motor Vehicle insurance 133,571 158,694 133,974
Motorcycle insurance 16,224 13,819 15,018
Taxi insurance 28,601 7,325 11,766
Total reinsurance contract assets 3.2.2 178,396 179,838 160,758
3.2. Movement in insurance and reinsurance contract balances
3.2.1. Insurance contracts issued
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Opening insurance contract liabilities 397,924 374,839 374,839
Insurance revenue (112,406) (121,852) (248,131)
Insurance service expenses 87,560 97,646 154,661
Incurred claims and other directly attributable expenses 85,777 73,326 142,775
Changes that relate to past service - changes in the FCF relating to the LIC (6,691) 15,538 (6,280)
Amortisation of insurance acquisition cash flows 8,474 8,782 18,166
Insurance service result (24,846) (24,206) (93,470)
Insurance finance expense recognised in Profit or Loss Account 5,061 4,111 8,392
Insurance finance expense/(income) recognised in Other Comprehensive Income 2,750 (3,298) (6,852)
Total changes in Comprehensive Income (17,035) (23,393) (91,930)
Cash flows
Premiums received 100,927 130,713 254,389
Claims and other insurance services expenses paid (52,006) (51,438) (121,469)
Insurance acquisition cash flows (8,228) (9,537) (17,905)
Total cash flows 40,693 69,738 115,015
Closing insurance contract liabilities 421,582 421,184 397,924
3.2.2. Reinsurance contracts held
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Opening reinsurance contract assets 160,758 166,726 166,726
Net income from reinsurance contracts held 12,100 8,372 (20,591)
Reinsurance expense (13,292) (18,755) (33,617)
Incurred claims recovery 25,161 11,752 19,438
Changes that relate to past service 231 15,375 (6,412)
Reinsurance finance income recognised in Profit or Loss Account 2,108 1,892 3,714
Reinsurance finance income/(expense) recognised in Other Comprehensive Income 1,534 (2,127) (5,880)
Total changes in Comprehensive Income 15,742 8,137 (22,757)
Cash flows
Premiums paid 6,106 6,043 34,992
Recoveries received (4,210) (1,068) (18,203)
Total cash flows 1,896 4,975 16,789
Closing reinsurance contract assets 178,396 179,838 160,758
3.3. Assets for insurance acquisition cash flows
£'k
Balance as at 31 December 2023 8,733
Amounts incurred during the period 9,537
Amounts derecognised and included in measurement of insurance contracts (8,782)
Balance as at 30 June 2024 9,488
Amounts incurred during the period 8,368
Amounts derecognised and included in measurement of insurance contracts (9,384)
Balance as at 31 December 2024 8,472
Amounts incurred during the period 8,228
Amounts derecognised and included in measurement of insurance contracts (8,474)
Balance as at 30 June 2025 8,226
3.4. Insurance revenue and expenses - Segmental disclosure
An analysis of insurance revenue, insurance service expenses and net
income/(expense) from reinsurance contracts held is included in the tables
below.
The Group provides short-term motor insurance to clients, which comprises
three lines of business, Motor Vehicle insurance, Motorcycle insurance and
Taxi insurance, which are written solely in the UK. The Group has no other
lines of business, nor does it operate outside of the UK. The Group does not
have a single client which accounts for more than 10% of revenue.
30 June 2025 30 June 2024
Motor Vehicles Motorcycle Taxi Total Motor Vehicles Motorcycle Taxi Total
£'k £'k £'k £'k £'k £'k £'k £'k
Insurance revenue
Insurance revenue from contracts measured under the PAA 99,939 4,311 8,156 112,406 109,549 5,059 7,244 121,852
Total insurance revenue 99,939 4,311 8,156 112,406 109,549 5,059 7,244 121,852
Insurance service expense
Incurred claims and other directly attributable expenses (54,717) (6,681) (24,379) (85,777) (62,053) (4,131) (7,142) (73,326)
Changes that relate to past service - changes in the FCF relating to the LIC 5,576 610 505 6,691 (19,987) (1,114) 5,563 (15,538)
Amortisation of insurance acquisition cash flows (6,397) (1,060) (1,017) (8,474) (6,813) (1,046) (923) (8,782)
Total insurance service expense (55,538) (7,131) (24,891) (87,560) (88,853) (6,291) (2,502) (97,646)
Net income from reinsurance contracts held
Reinsurance expenses - contracts measured under the PAA (11,793) (518) (981) (13,292) (16,829) (801) (1,125) (18,755)
Incurred claims recovery 6,272 1,593 17,296 25,161 9,977 237 1,539 11,753
Changes that relate to past service - changes in the FCF relating to incurred 781 319 (869) 231 18,702 159 (3,487) 15,374
claims recovery
Total net (expense)/income from reinsurance contracts held (4,740) 1,394 15,446 12,100 11,850 (405) (3,073) 8,372
Total insurance service result 39,661 (1,426) (1,289) 36,946 32,546 (1,637) 1,669 32,578
Other than reinsurance assets and insurance liabilities (see Note 3.1), the
Group does not allocate, monitor, or report assets and liabilities per
business line and does not consider the information useful in the day-to-day
running of the Group's operations. The Group also does not allocate, monitor,
or report other income and expenses per business line.
31 December 2024
Motor Vehicles Motorcycle Taxi Total
£'k £'k £'k £'k
Insurance revenue
Insurance revenue from contracts measured under the PAA 222,635 10,199 15,297 248,131
Total insurance revenue 222,635 10,199 15,297 248,131
Insurance service expense
Incurred claims and other directly attributable expenses (117,752) (6,873) (18,150) (142,775)
Changes that relate to past service - changes in the FCF relating to the LIC 1,769 188 4,323 6,280
Amortisation of insurance acquisition cash flows (14,234) (1,993) (1,939) (18,166)
Total insurance service expense (130,217) (8,678) (15,766) (154,661)
Net expense from reinsurance contracts held
Reinsurance expenses - contracts measured under the PAA (30,119) (1,405) (2,093) (33,617)
Incurred claims recovery 13,223 944 5,271 19,438
Changes that relate to past service - changes in the FCF relating to incurred (3,803) 262 (2,871) (6,412)
claims recovery
Total net (expense)/income from reinsurance contracts held (20,699) (199) 307 (20,591)
Total insurance service result 71,719 1,322 (162) 72,879
4. Financial assets
The Group's financial assets are summarised below.
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Cash and cash equivalents 4.1 35,626 37,469 31,314
Debt securities held at fair value through Other Comprehensive Income 4.2 306,436 289,553 311,184
Receivables 4.3 50 58 32
Total 342,112 327,080 342,530
4.1. Cash and cash equivalents
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Cash at bank and on hand 20,084 15,995 18,174
Money market funds 15,542 21,474 13,140
Total 35,626 37,469 31,314
Cash held in money market funds has no notice period for withdrawal.
The carrying value of cash and cash equivalents approximates fair value. The
full value is expected to be realised within 12 months.
4.2. Debt securities held at fair value through Other Comprehensive Income
The Group's debt securities held at fair value through Other Comprehensive
Income are summarised below.
30 June 2025 30 June 2024 31 December 2024
£'k % holdings £'k % holdings £'k % holdings
Government bonds 114,398 37.4% 109,396 37.8% 112,793 36.2%
Government-backed securities 100,345 32.7% 98,709 34.1% 103,267 33.2%
Corporate bonds 91,693 29.9% 81,448 28.1% 95,124 30.6%
Total 306,436 100.0% 289,553 100.0% 311,184 100.0%
4.2.1. Fair value
Fair value measurements are based on observable and unobservable inputs.
Observable inputs reflect market data obtained from independent sources, while
unobservable inputs reflect the Group's view of market assumptions in the
absence of observable market information.
IFRS 13 requires certain disclosures which require the classification of
financial assets and financial liabilities measured at fair value using a fair
value hierarchy that reflects the significance of the inputs used in making
the fair value measurement.
Disclosure of fair value measurements by level is according to the following
fair value measurement hierarchy:
- Level 1: fair value is based on quoted market prices (unadjusted) in
active markets for identical instruments as measured on reporting date
- Level 2: fair value is determined through inputs, other than quoted
prices included in Level 1 that are observable for the assets and liabilities,
either directly (prices) or indirectly (derived from prices)
- Level 3: fair value is determined through valuation techniques which
use significant unobservable inputs
Level 1
The fair value of financial instruments traded in active markets is based on
quoted market prices at the Statement of Financial Position date. A market is
regarded as active if quoted prices are readily and regularly available from
the stock exchange or pricing service, and those prices represent actual and
regularly occurring market transactions on an arm's length basis. The quoted
market price used for financial assets held by the Group is the closing bid
price. These instruments are included in Level 1 and comprise only debt
securities classified as fair value through other comprehensive income.
Level 2
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as
little as possible on entity-specific estimates. If all significant input
required to fair value an instrument is observable, the instrument is included
in Level 2. The Group has no Level 2 financial instruments.
Level 3
If one or more of the significant inputs are not based on observable market
data, the instrument is included in Level 3. The Group has no Level 3
financial instruments.
The following table summarises the classification of financial instruments:
Level 1 Level 2 Level 3 Total
At 31 June 2025 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 306,436 - - 306,436
Total 306,436 - - 306,436
Level 1 Level 2 Level 3 Total
At 31 June 2024 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 289,553 - - 289,553
Total 289,553 - - 289,553
Level 1 Level 2 Level 3 Total
At 31 December 2024 £'k £'k £'k £'k
Assets held at fair value
Debt securities held at FVOCI 311,184 - - 311,184
Total 311,184 - - 311,184
Transfers between levels
There have been no transfers between levels during the period (30 June 2024:
no transfers / 31 December 2024: no transfers).
4.3. Receivables
The Group's receivables comprise of:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Other debtors 50 58 32
Total 50 58 32
The estimated fair values of receivables are the discounted amounts of the
estimated future cash flows expected to be received.
The carrying value of receivables approximates fair value. The provision for
expected credit losses is based on the recoverability of the individual
receivables.
The Group has calculated ECL on receivables and has concluded that it is
wholly immaterial and such further disclosure has not been included.
4.4. Investment income
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Interest income on financial assets using effective interest rate method
Interest income from debt securities 5,098 2,632 6,458
Interest income from cash and cash equivalents 645 863 1,468
Total 5,743 3,495 7,926
4.5. Net gains/(losses) from fair value adjustments on financial assets
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Profit or Loss
Realised fair value losses on debt securities (9) - -
Realised fair value losses on debt securities reclassified to Profit or Loss (9) - -
Other comprehensive income
Unrealised fair value gains on debt securities 4,025 819 3,769
Realised losses on derecognition of debt securities reclassified to Profit or 9 - -
Loss
Expected credit loss - - 5
Realised and unrealised fair value gains on debt securities through Other 4,034 819 3,774
Comprehensive Income
Net gains from fair value adjustments on financial assets 4,025 819 3,774
5. Payables
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Trade and other creditors 787 1,020 951
Other taxes ((1)) 6,504 7,541 6,044
Other financial liabilities ((2)) 5,000 - -
Total 12,291 8,561 6,995
(1) Other taxes consist of Insurance Premium Tax and VAT payable to HM
Revenue & Customs
(2) On 30 June 2025, Sabre Insurance Group plc entered into an irrevocable
agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a
liability of £5m has been recorded in the balance sheet with a corresponding
amount in equity.
Trade and other creditors are carried at amortised cost.
6. Other income
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Administration fees 153 33 182
Brokerage and other fee income 183 394 558
Total 336 427 740
Brokerage and other fee income relates to auxiliary products and services.
7. Other operating expenses
30 June 2025 30 June 2024 31 December 2024
Notes £'k £'k £'k
Employee expenses 7.1 8,897 8,046 15,426
Property expenses 200 161 500
IT expense, including IT depreciation 3,505 3,314 6,756
Other depreciation 56 57 113
Industry levies 3,062 2,927 5,994
Policy servicing costs 804 1,510 3,153
Other operating expenses 1,885 1,817 3,399
Movement in expected credit loss on debt securities - - 5
Before adjustment for directly attributable claims expenses 18,409 17,832 35,346
Adjusted for:
Reclassification of directly attributable claims expenses (3,811) (3,763) (7,041)
Total other operating expenses 14,598 14,069 28,305
7.1. Employee expenses
The aggregate remuneration of those employed by the Group's operations
comprised:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Wages and salaries 6,408 5,939 11,332
Social security expenses 943 691 1,464
Contributions to defined contribution plans 303 307 598
Equity-settled share-based payment 1,006 851 1,607
Other employee expenses 237 258 425
Before adjustment for directly attributable claims expenses 8,897 8,046 15,426
Adjusted for:
Reclassification of directly attributable claims expenses (2,788) (2,531) (4,799)
Employee expenses 6,109 5,515 10,627
8. Income tax expense
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Current taxation
Charge for the period 6,580 5,082 12,157
Charge relating to prior periods 134 - 570
6,714 5,082 12,727
Deferred taxation
Origination and reversal of temporary differences (168) 24 (126)
(168) 24 (126)
Current taxation 6,714 5,082 12,727
Deferred taxation (168) 24 (126)
Income tax expense 6,546 5,106 12,601
Tax recorded in Other Comprehensive Income is as follows:
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Current taxation - - -
Deferred taxation 702 498 549
702 498 549
Management estimates the Group's effective tax rate to be approximately 25.7%
of profit before tax for the year ending 31 December 2025, similar to the
corporation tax rate in the UK of 25.0%. This estimate is slightly higher than
the prevailing rate of corporation tax in the UK, reflecting the impact of the
Group's employee share schemes. The income tax expense for the period is
recognised based on this estimate.
9. Dividends
30 June 2025 30 June 2024 31 December 2024
pence per share £'k pence per share £'k pence per share £'k
Amounts recognised as distributions to equity holders in the period
Interim dividend for the current year - - - - 1.7 4,227
Final dividend for the prior year 11.3 27,991 8.1 20,122 8.1 20,122
11.3 27,991 8.1 20,122 9.8 24,349
Proposed dividends
Interim dividend in respect of the current year ((1)) 3.4 8,500 1.7 4,250
(1) Subsequent to 30 June 2025, the Directors declared an interim dividend
for 2025 of 3.4p per ordinary share. This dividend will be accounted for as an
appropriation of retained earnings in the year ended 31 December 2025 and is
not included as a liability in the Statement of Financial Position as at 30
June 2025
The Trustees of the Sabre Insurance Group Employee Benefit Trust waived their
entitlement to dividends on shares held in the trust to meet obligations
arising on share incentives schemes, which reduced the dividends paid for the
period ended 30 June 2025 by £259k (30 June 2024: £128k and 31 December
2024: £151k).
10. Related party transactions
There has been no change to the relationships disclosed in Note 18 of the 31
December 2024 Annual Report and Accounts.
No related party transactions have taken place in the period ended 30 June
2025 that have materially affected the financial position or the financial
performance of the Group.
11. Events after the balance sheet date
Since 1 July 2025, shares have been purchased under the Group's buyback
programme. At 29 July 2025 a total of 1,445,678 ordinary shares (representing
0.58% of Sabre Insurance Group plc's issued share capital at 30 June 2025) had
been purchased for cancellation at a total cost of £2,177,918 including
costs, at an average price of 149.45p per share, excluding any costs.
Other than the share buyback and the declaration of an interim ordinary
dividend as disclosed in Note 9, there have been no material changes in the
affairs or the financial position of the Group and its subsidiaries since the
Statement of Financial Position date.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
The Condensed Consolidated Financial Statements for the six months ended 30
June 2025 have been prepared in accordance with International Accounting
Standards 34 ("IAS 34") as adopted by the UK.
The interim management report includes a fair review of the information as
required by:
- DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of the important events that have occurred during the first six
months of the current financial year and their impact on the condensed set of
Consolidated Financial Statements and a description of the principle risks and
uncertainties for the remaining six months of the financial year; and
- DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transaction that have taken place in the first six months of the current
financial year and that have materially impacted the financial position or
performance of the Group during the period; and any changes in the related
party transactions from the Group's Consolidated Financial Statements for the
year ended 31 December 2024 that could do so.
Signed on behalf of the Board of Directors
Geoff Carter Adam Westwood
Chief Executive Officer Chief Financial Officer
30 July 2025 30 July 2025
Independent review report to Sabre Insurance Group plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Sabre Insurance Group plc's condensed consolidated interim
financial statements (the "interim financial statements") in the Half-Year
Report 2025 of Sabre Insurance Group plc for the 6 month period ended
30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
- the Condensed Consolidated Statement of Financial Position as at
30 June 2025;
- the Condensed Consolidated Profit or Loss Account and the Condensed
Consolidated Statement of Comprehensive Income for the period then ended;
- the Condensed Consolidated Statement of Cash Flows for the period then
ended;
- the Condensed Consolidated Statement of Changes in Equity for the
period then ended; and
- the explanatory notes to the interim financial statements.
The interim financial statements included in the Half-Year Report 2025 of
Sabre Insurance Group plc have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half-Year Report 2025 and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Half-Year Report 2025, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Half-Year Report 2025 in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half-Year Report 2025, including
the interim financial statements, the directors are responsible for assessing
the group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half-Year Report 2025 based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
30 July 2025
Financial Reconciliations
Gross Written Premium
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Movement in unearned premium (10,147) 5,839 (7,203)
Gross written premium 100,324 125,722 236,435
Net Loss Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance service expense 87,560 97,646 154,661
Less: Amortisation of insurance acquisition cash flows (8,474) (8,782) (18,166)
Less: Amounts recoverable from reinsurers for incurred claims (25,392) (27,127) (13,026)
Less: Directly attributable claims expenses (3,811) (3,763) (7,041)
Add: Net impact of discounting ((1)) 3,512 2,350 6,914
Undiscounted net claims incurred ((2)) 53,395 60,324 123,342
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Net loss ratio 54.9% 59.7% 58.7%
(1) Excludes discounting on Periodic Payment Orders ("PPOs")
(2) Calculation of undiscounted net claims incurred allows for the impact of
discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"),
consistent with presentation under IFRS 4.
Expense Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Other operating expenses 14,598 14,069 28,305
Add: Amortisation of insurance acquisition cash flows 8,474 8,782 18,166
Add: Directly attributable claims expenses 3,811 3,763 7,041
Total operating expenses 26,883 26,614 53,512
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Expense ratio 27.7% 26.3% 25.5%
Combined Operating Ratio
30 June 2025 30 June 2024 31 December 2024
Net loss ratio 54.9% 59.7% 58.7%
Expense ratio 27.7% 26.3% 25.5%
Combined operating ratio 82.6% 86.0% 84.2%
Discounted Net Loss Ratio
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Insurance service expense 87,560 97,646 154,661
Less: Amortisation of insurance acquisition cash flows (8,474) (8,782) (18,166)
Less: Amounts recoverable from reinsurers for incurred claims (25,392) (27,127) (13,026)
Less: Directly attributable claims expenses (3,811) (3,763) (7,041)
Net claims incurred 49,883 57,974 116,428
Insurance revenue 112,406 121,852 248,131
Less: Instalment income (1,935) (1,969) (4,493)
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net earned premium 97,179 101,128 210,021
Discounted net loss ratio 51.3% 57.3% 55.4%
Discounted Combined Operating Ratio
30 June 2025 30 June 2024 31 December 2024
Net loss ratio 51.3% 57.3% 55.4%
Expense ratio 27.7% 26.3% 25.5%
Discounted combined operating ratio 79.0% 83.6% 80.9%
Net Insurance Margin
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Net claims incurred 53,395 60,324 123,342
Total operating expenses 26,883 26,614 53,512
Total insurance expense 80,278 86,938 176,854
Insurance revenue 112,406 121,852 248,131
Less: Reinsurance expense (13,292) (18,755) (33,617)
Net insurance revenue 99,114 103,097 214,514
Net insurance margin 19.0% 15.7% 17.6%
Solvency Coverage Ratio - Pre-dividend
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Solvency II net assets 123,514 121,737 134,695
Solvency capital requirement 63,576 63,445 62,199
Solvency coverage ratio - pre-dividend 194.3% 191.9% 216.6%
Solvency Coverage Ratio - Post-dividend
30 June 2025 30 June 2024 31 December 2024
£'k £'k £'k
Solvency II net assets 123,514 121,737 134,695
Less: Interim/Final dividend (8,500) (4,250) (28,250)
Solvency II net assets - post-dividend 115,014 117,487 106,445
Solvency capital requirement 63,576 63,445 62,199
Solvency coverage ratio - post-dividend 180.9% 185.2% 171.1%
Glossary of Terms
Acquisition cash flows Cash flows arising from the costs of selling, underwriting and starting a
group of insurance contracts (issued or expected to be issued) that are
directly attributable to the portfolio of insurance contracts to which the
group belongs. Such cash flows include cash flows that are not directly
attributable to individual contracts or groups of insurance contracts within
the portfolio.
Adjusted IFRS net assets Equals the Group's IFRS net assets, less Goodwill.
Asset for incurred claims ("AIC") The reinsurers' share of the liability for incurred claims ("LIC").
Asset for remaining coverage ("ARC") The reinsurers' share of the liability for remaining coverage ("LRC").
Combined operating ratio ("COR") The combined operating ratio is the ratio of total expenses (which comprises
commission expenses and operating expenses), and net insurance claims relative
to net earned premium ("NEP"), expressed as a percentage.
Contractual service margin ("CSM") This represents the unearned profit the entity will recognise as it provides
insurance contract service under the insurance contracts in the group. It is a
component of the carrying amount of the asset or liability for a group of
insurance contracts.
Coverage period The period during which the entity provides insurance contract services. The
period includes the insurance contract services that relate to all premiums
within the boundary of the insurance contract.
Effective tax rate Effective tax rate is defined as the approximate tax rate calculated by
dividing the Group's profit before tax by the tax charge going through the
Profit or Loss Account.
Expense ratio Expense ratio is a measure of total expenses (which comprises commission
expenses and operating expenses), and claims handling expenses, relative to
net earned premium ("NEP"), expressed as a percentage.
Fair value through OCI ("FVOCI") Unrealised gains and losses from the remeasurement of the fair value financial
assets are recognised in the Statement of Other Comprehensive Income ("OCI").
Financial Reporting Council ("FRC") The UK's regulator for the accounting, audit and actuarial professions,
promoting transparency and integrity in business.
Fulfilment cash flows ("FCF") An explicit, unbiased and probability-weighted estimate (i.e. expected value)
of the present value of the future cash outflows minus the present value of
the future cash inflows that will arise as the entity fulfils insurance
contacts, including a risk adjustment for non-financial risk.
Gross earned premium ("GEP") The proportions of premium attributable to the periods of risk that relate to
the current accounting period. It represents gross written premium ("GWP")
adjusted by the unearned premium provision at the beginning and end of the
accounting period, before deduction of reinsurance expense.
Gross written premium ("GWP") Gross written premium comprises all premiums in respect of policies
underwritten in a particular financial year, regardless of whether such
policies relate in whole or in part to a future financial year, before
deduction of reinsurance expense.
IFRS 17 "Insurance Contracts" An accounting standard that addresses the establishment of principles for the
recognition, measurement, presentation and disclosure of insurance contracts
within the scope of the standard (Effective 1 January 2023).
IFRS net assets The difference between the Group's total assets and total liabilities.
Insurance revenue Gross earned premium ("GEP") plus instalment income.
International Financial Reporting Standards ("IFRS") Accounting standards issued by the IFRS Foundation and the International
Accounting Standards Board ("IASB").
Liability for incurred claims ("LIC") An entity's obligation to:
a) Investigate and pay valid claims for insured events that have already
occurred, including events that have occurred but for which claims have not
been reported, and other incurred insurance expenses; and
b) Pay amounts that are not included in (a) and that relate to:
i. insurance contract services that have already been provided; or
ii. any investment components or other amounts that are not related to
the provision of insurance contract services and that are not in the liability
for remaining coverage.
Liability for remaining coverage ("LRC") An entity's obligation to:
a) investigate and pay valid claims under existing insurance contracts for
insured events that have not yet occurred (i.e. the obligation that relates to
the unexpired portion of the insurance coverage); and
b) pay amounts under existing insurance contracts that are not included in
(a) and that relate to:
i. insurance contract services not yet provided (i.e. the obligations
that relate to future provision of insurance contract services); or
ii. any investment components or other amounts that are not related to
the provision of insurance contract services and that have not been
transferred to the liability for incurred claims.
Net claims incurred Net claims incurred is equal to gross claims incurred less amounts recovered
from reinsurers.
Net earned premium ("NEP") Gross earned premium ("GEP") less reinsurance expense.
Net insurance revenue Insurance revenue less reinsurance expense.
Net loss ratio ("NLR") Net loss ratio measures net insurance claims, less claims handling expenses,
relative to net earned premium expressed as a percentage.
Net insurance margin ("NIM") Net insurance margin measures how much net insurance profit is generated as a
percentage of net insurance revenue.
Own Risk and Solvency Assessment ("ORSA") An prospective assessment of the Group's risks and solvency capital
requirements.
Periodic Payment Order ("PPO") A compensation award as part of a claims settlement that involves making a
series of annual payments to a claimant over their remaining life to cover the
costs of the care they will require.
Premium allocation approach ("PAA") Method for measuring insurance contracts under IFRS 17 "Insurance Contracts"
Return on tangible equity Return on tangible equity is measured as the ratio of the Group's profit after
tax to its average tangible equity over the financial year, expressed as a
percentage.
Risk adjustment for non-financial risk The compensation an entity requires for bearing the uncertainty about the
amount and timing of the cash flows that arises from non-financial risk as the
entity fulfils insurance contracts.
Solvency capital ratio The ratio of Own Funds (Solvency II capital) to Solvency Capital Requirement
"SCR".
Solvency Capital Requirement ("SCR") The total amount of capital that the Group must hold to cover the risks under
the Solvency II regulatory framework. The Group is required to maintain
eligible own funds of at least 100% of the SCR.
The Group uses the Standard Formula to determine the SCR.
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