Sabre Insurance Group plc has reported a 105.9% year-on-year increase in profit before tax for the year ending December 31, 2024, alongside record-high gross written premium and an expanded dividend.
The UK-based motor insurance underwriter recorded £48.6 million in pre-tax profit, up from £23.6 million in 2023. Gross written premium reached £236.4 million, reflecting a 5% increase compared to the previous year.
The company’s net insurance margin rose to 17.6%, up from 10.6% in 2023, while the combined operating ratio improved to 84.2% from 91.6%.
Sabre’s board has announced a total dividend of 13.0p per share, a 44.4% increase from 2023. The group has also outlined plans for a £5 million share buyback programme, pending regulatory approval.
After accounting for the final dividend, the solvency coverage ratio stands at 171.2%, and after the proposed share buyback, it is 163.1%.
While the increase year-on-year has been notable, CEO Geoff Carter (pictured above) has much more ambitious plans in store, with the group announcing a target of at least £80 million by 2030.
To achieve this, Carter has outlined the company’s “Ambition 2030” roadmap, which notes core pillars for its strategy: an adjustment in the margins of its current core product, a “step to the left” that will allow Sabre to write more business, and the launch of a new direct motorcycle proposition.
The third pillar was a key highlight in Carter’s address in Sabre’s 2024 financials, with the CEO highlighting its launch this month.
“Sabre Direct, our in-house motorcycle brand, is being soft launched in March, and core motor vehicle pricing tests are planned for h2 2025, in-line with the timeline set out at our recent Capital Markets Event,” he said.
“We continue to expect profit growth from Ambition 2030 to be weighted towards the second half of the six-year period as these initiatives gain further traction and momentum - complementing our core business.”
The company also maintained its underwriting discipline throughout 2024, adjusting pricing in line with high single-digit claims inflation. Sabre is also expanding its direct distribution channels, with Sabre Direct, an online-only motorcycle insurance product, set for a soft launch in March.
Core motor vehicle and motorcycle products achieved target margins, supported by stable loss ratios. The company adopted a more cautious approach to loss picks for 2024 accident-year claims to account for ongoing inflationary pressures.
The net loss ratio improved from 61.6% in 2023 to 58.7% in 2024, while return on tangible equity rose from 22.7% to 38.2%. The solvency coverage ratio, pre-final and special dividend, was reported at 216.7%, up from 205.3% the previous year.
Carter said the company demonstrated effective cycle management in 2024, increasing its market presence in the first half of the year when conditions were favourable while maintaining strict underwriting discipline as market prices declined in the second half.
While the "Ambition 2030" strategy will not follow a straight-line trajectory, Carter said Sabre remains focused on delivering sustainable medium-term growth in gross written premium, profit, and shareholder returns.
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