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Sabre Insurance Group LON: SBRE reported higher first-half premium income and said it remains confident that full-year profit will exceed the 2025 result, despite a temporary decline in its underwriting margin as new business written during the period has yet to fully earn through.
Gross written premium rose 15.7% year-over-year to £160 million in the first half of 2026, while profit before tax was £23.9 million, slightly below the comparable prior-year period. Chief Financial Officer Adam Westwood said the profit outcome was in line with expectations, reflecting the timing difference between writing insurance policies and recognizing the associated revenue over their duration.
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The insurer said its net insurance margin was 15.7% in the first half, compared with 19.2% in 2025. Sabre expects the measure to return to its 18%-22% target range by year-end as higher 2026 premium volumes earn through and its expense ratio declines.
Margin pressure tied to earned-premium timing Sabre’s net loss ratio was 55.7%, compared with 54.1% for 2025, while its expense ratio rose to 29.9%. Westwood said the higher expense ratio reflected lower earned premium from reduced volumes written during 2025, alongside continued investments in personnel, systems and technology under its Ambition 2030 strategy.
“Because our growth returned strongly in the first half of this year, there’s a natural timing mismatch between writing the business and earning the associated revenue,” Westwood said.
The current-year loss ratio was 66.5%, although the group said this remained within normal volatility and included substantial explicit margins for recently reported claims. Favorable prior-year development contributed a 10.8% prior-year loss ratio, reflecting releases of margins held against older reserves as claims matured.
Chief Actuary Matt Wright said Sabre expects the overall loss ratio to improve in the second half. He said large claims were more prominent in the first quarter than the second, while the company expects the current-year loss ratio to move closer to its target range as business written at target margins earns through.
Motor growth and motorcycle expansion Motor vehicle remained Sabre’s main source of profitability, delivering a 52% net loss ratio. Policy count in the division increased 16.5% year-over-year, while management said the company had maintained underwriting discipline and continued to write new business within its target margins.
Motorcycle premium increased by more than 50% from the first half of 2025, driven largely by the rollout of Sabre Direct Motorcycle. The business had an elevated first-half loss ratio due to individually large claims, seasonal factors and the relatively small size of the portfolio.
Wright noted that motorcycle claims tend to be weighted toward the peak riding season and said the product had shown similar half-year volatility in 2025. He said the loss ratio was above 100% at the 2025 half-year point before improving to roughly 70% by the end of that year.
Taxi underwriting also improved, with its loss ratio falling to 48.2%. However, Sabre said it has deliberately limited volume in parts of the taxi market where pricing does not provide adequate returns.
The company said it expects further growth in the second half, even if the wider market does not experience a significant pricing turn. It added that its core motor mix was broadly in line with expectations, although the increasing contribution from motorcycle and the gradual rollout of Ambition 2030 initiatives could reduce average premiums over time.
Market pricing and claims inflation Management described the motor insurance pricing environment as stabilized but still insufficient to fully cover expected claims inflation across the market. Sabre said it sees forward-looking claims inflation of 6% to 7% from its current rating base and believes its pricing already reflects that outlook.
The company said other market participants may need to raise prices by 10% to 15% over the next two years to remain profitable. Management said Sabre could potentially increase prices by less than the market because of its existing price adequacy.
Claims Director Trevor Webb said claims frequency had recently begun to edge higher after a period of improvement, while personal-injury frequency had remained broadly flat. He said the group was not seeing offsetting improvements in frequency or severity that would lessen the need to account for mid-single-digit claims inflation.
Sabre said it was monitoring potential cost pressures in care claims and had not yet seen clear evidence that current geopolitical conflicts were affecting claims costs through the supply chain.
Capital returns and technology plans The board declared an interim dividend of 4.1 pence per share, up 20% from 3.4 pence a year earlier and in line with its stated dividend policy. Sabre’s £5 million share buyback program is nearing completion.
Its solvency coverage ratio stood at 161.4% after accounting for the interim dividend and buyback, slightly above the group’s preferred 140%-160% operating range. Westwood said the position provides flexibility to support growth and investment while maintaining shareholder returns.
Sabre also outlined plans to use artificial intelligence to support software development, fraud detection, pricing and customer interactions. Management said it did not intend to reduce headcount through the technology program, instead describing AI as a tool to enhance employees’ work as the business grows.
Webb said the insurer is alert to the potential use of AI-generated images and other material in fraudulent claims, but it has not seen large volumes so far. The company continues to use physical vehicle inspections, accident-scene investigations and other established fraud-control measures.
Looking ahead, Sabre reiterated that it expects strong growth, full-year profit above 2025 levels and a return of net insurance margin to its target range by the end of 2026. Management said Ambition 2030 remains on track, with early evidence of progress coming from motorcycle growth and further motor pricing initiatives.
About Sabre Insurance Group (LON:SBRE)Sabre Insurance Group plc, through its subsidiaries, engages in the writing of general insurance for motor vehicles in the United Kingdom. It offers taxi, private car, and motorcycle insurance through a network of insurance brokers, as well as through its Go Girl and Insure 2 Drive brands. The company was founded in 1982 and is based in Dorking, the United Kingdom.
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