Sabre Insurance Group (SBRE) H2 2024 earnings summary

Executive summary

• Achieved record gross written premium and doubled profit in 2024, supported by strong capital generation, a 44% dividend increase, and a £5m share buyback.

• Launched new motorcycle product and initiated new car product pricing tests, laying foundations for growth through 2030.

• Maintained disciplined underwriting, strong customer and staff engagement, and improved margins.

• On track for Ambition 2030, targeting at least £80m profit before tax by 2030.

Financial highlights

• Gross written premium rose 5% to £236.4m; net insurance margin improved by 7 percentage points to 17.6%, nearing the 18%-22% target range.

• IFRS profit before tax increased 105.9% to £48.6m; profit after tax up 98.9% to £36.0m.

• Total dividend for 2024 increased 44.4% to 13.00p per share, representing about 90% of earnings.

• Return on tangible equity improved to 38.2% from 22.7% in 2023.

• Solvency capital ratio post-dividend stands at 171%.

Outlook and guidance

• Confident in achieving Ambition 2030, with staged roll-out and profit growth expected to accelerate post-2025.

• Net insurance margin expected to remain within 18%-22% target range for 2025.

• Growth in 2025 will depend on market conditions but is not pivotal for medium-term plans.

• 2025 will be a year of testing and transition, with growth benefits expected to materialize in 2026.

• Expecting market pricing to rise in the second half of 2024; prepared for both hard and soft market conditions.