Sabre Insurance Group (SBRE) H1 2025 earnings summary

Executive summary

• Profit before tax for the half-year rose 26.2% year-over-year to £25.5m, with a 19% margin within the 18%-22% target range, despite weak market conditions.

• Maintained disciplined pricing and premium writing, prioritizing margin and profit over premium growth.

• Interim dividend doubled to 3.4p per share; £5m share buyback program underway and progressing.

• Ambition 2030 strategy on track, including the launch of a direct motorcycle brand and enhanced pricing initiatives.

• Strong solvency and capital generation position the group for growth as market conditions improve.

Financial highlights

• Gross written premium for H1 2025 was £100.3m, down 20.2% year-over-year, reflecting deliberate margin-focused management.

• IFRS profit before tax reached £25.5m, up 26% year-over-year; profit after tax was £18.9m, up 25.2%.

• Net insurance margin improved to 19.0% (H1 2024: 15.7%).

• Combined operating ratio improved to 82.6% from 86.0% year-over-year.

• Solvency coverage ratio at 194.3% pre-dividend and 180.9% post-dividend, above the 140%-160% target range.

Outlook and guidance

• Full-year profit expected to be similar to 2024, with net insurance margin maintained within the 18%-22% target.

• Confident in achieving at least £80m profit before tax by 2030; Ambition 2030 projects progressing.

• Growth in H2 2025 anticipated as market conditions improve and premium increases are expected.

• More material premium contribution from Ambition 2030 initiatives expected from 2026 onwards.