Sabre Insurance Group (SBRE) H1 2024 earnings summary

Executive summary

• Achieved strong half-year profit growth, with profit before tax rising to £20.2m from £4.8m in H1 2023 and a 10.2 percentage point improvement in combined operating ratio.

• Gross written premium increased 26% year-on-year to £125.7m, with core Motor Vehicle GWP up 34.9%.

• Interim dividend of 1.7p per share declared, supported by a post-dividend solvency coverage ratio of 185.2%.

• Strategic initiatives advanced, including pricing infrastructure evolution, direct-to-customer efficiencies, and insurer-hosted pricing.

• Confident outlook for further growth in H2, supported by robust strategy and operational improvements.

Financial highlights

• Net profit before tax exceeded £20 million, more than four times H1 2023, with net profit after tax at £15.1m.

• Insurance revenue increased 41.6% year-over-year to £121.9m.

• Combined operating ratio improved to 83.6% from 93.8% in H1 2023, with a net profit margin of 18%.

• Expense ratio reduced to 26.3% from 31.8% in H1 2023.

• Net loss ratio improved to 57.3% from 62.0% in H1 2023.

Outlook and guidance

• Full-year guidance reiterated: expect further premium growth in H2 2024, with the highest ever annual premium anticipated.

• Combined operating ratio guidance reaffirmed at 75%-80% on a discounted basis.

• Claims inflation expected to remain at 10% into 2025, with pricing actions to fully cover this.

• Premium growth expected to outpace claims inflation, with ongoing vigilance on claims trends and pricing.