Sabre Insurance Group has disclosed its financial results for the year 2023.
The firm reported an increase in gross written premiums, rising to £225.1 million from £171.3 million the previous year. Key financial indicators also showed improvement, with the net loss ratio decreasing to 56.3% from 66.0%, and the combined operating ratio improving to 86.3% from 93.4%.
Profit before tax escalated to £23.6 million, up from £14.0 million, while profit after tax grew to £18.1 million from £11.1 million. The total dividend per share was doubled to 9.0p, reflecting a robust return on tangible equity of 22.7% and a pre-final dividend solvency coverage ratio of 205.3%.
Financial highlights also included a 31.4% increase in overall premium, led by a 47.5% surge in the Core Motor Vehicle sector. The company’s capital position, with a pre-dividend solvency ratio of 205.3%, supports the earn-through of the profitable business written in 2023. The year-end dividend was declared at 8.1p per share, comprising both ordinary and special dividends.
The market landscape for Sabre in the latter half of 2023 was favourable, witnessing a significant price correction across the industry. Challenges such as continued claims inflation and uncertainties around personal injury claims costs were noted, alongside a cautionary stance on industry pricing discipline.
Looking ahead, Sabre anticipates improvements in loss ratios and profitability in 2024, driven by the profitable business written in the previous year. The motorcycle and taxi segments are expected to contribute positively to future growth. Market conditions, including pricing discipline and potential regulatory changes, will play a crucial role in shaping the company’s performance in the coming year.
Geoff Carter, CEO of Sabre, remarked on the company's performance, attributing the success to Sabre’s disciplined approach to prioritising profitability over volume.
“We have delivered good profit for the year, ahead of expectations and we anticipate a further significant increase in profitability for 2024 as the profitable business written in 2023 earns through. We believe that ongoing market uncertainties are such that price discipline should be maintained across the sector, which, together with our ongoing focus on profitable growth, will enable Sabre to deliver strong returns to shareholders in 2024,” Carter said.
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