Half-Year Results 2026
Summary by AI BETAClose X
Half-Year Results 2026
Confidence in Ambition 2030 supported by strong growth and confirmed full-year guidance
Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading motor insurance underwriters, reports its half-year results for the six months ended 30 June 2026.
Key financial and operational highlights
- Grew and embedded Sabre Direct motorcycle as first target for Ambition 2030
- Other Ambition 2030 initiatives on-track for completion in-line with our expected timeline
- Gross written premium up over 15% year-on-year
- Full-year guidance, for a profit slightly ahead of 2025, net insurance margin within our target range of 18% to 22% and premium growth, confirmed
- Business continues to be written at target margins, fully covering claims inflation
- Interim dividend of 4.1p underpinned by strong organic capital generation and demonstrates confidence in full-year financial performance
- Profit before tax of £23.9m, expected to accelerate in H2
Summary of results
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Gross written premium (1) |
£116.0m |
£100.3m |
£202.9m |
|
Net insurance margin (1) |
15.7% |
19.0% |
19.2% |
|
Net loss ratio (1) |
55.7% |
54.9% |
54.1% |
|
Expense ratio (1) |
29.9% |
27.7% |
28.2% |
|
Combined operating ratio (1) |
85.6% |
82.6% |
82.3% |
|
Profit before tax |
£23.9m |
£25.5m |
£51.0m |
|
Profit after tax |
£17.9m |
£18.9m |
£37.9m |
|
Interim dividend per share |
4.1p |
3.4p |
3.4p |
|
Final ordinary and special dividend per share |
n/a |
n/a |
10.1p |
|
Solvency coverage ratio (pre-dividend) (1) (2) |
175.9% |
194.3% |
198.7% |
|
Solvency coverage ratio (post-dividend) (1) (2) |
161.4% |
180.9% |
161.5% |
(1) Alternative performance metrics are reconciled to the IFRS reported figures in the Financial Reconciliation section.
(2) 30 June solvency coverage ratios include the impact of share buybacks, which have received regulatory approval. The solvency coverage ratios at 31 December 2025 do not include the impact of share buybacks as regulatory approval was pending.
Geoff Carter, Chief Executive Officer of Sabre, commented:
"I am very pleased with the Group's performance so far this year. We have delivered strong growth, with total premium up over 15% year-on-year and are well on track to deliver on our existing guidance - a profit slightly higher than 2025.
Looking into the performance in a little more detail, it is especially pleasing that Motor Vehicle premiums are up by more than 18% whilst we have maintained our strict underwriting discipline and focus on writing business at our target margins. This growth has been delivered in what continued to be a relatively soft market in H1 2026, throughout which we maintained a cautious approach to claims inflation, with an unchanged mid-single digit claims inflation assumption.
Reported profit and margins for the period do not fully reflect the strength of our performance. We continue to write business at our target margins and the reported net insurance margin of 15.7% at the half year simply reflects the normal timing difference between premium written and premium earned, together with the inherent volatility of a six-month reporting period.
The strong, profitable, premium growth delivered in the first half will "earn through" during H2, driving an improved expense ratio and returning the reported net insurance margin to within our 18% to 22% target range by full year. The premium growth achieved in H1 2026 therefore strongly underpins our confidence in delivering on our full-year guidance.
Whilst there is early evidence of some growth in market pricing in 2026 we, along with industry experts, believe meaningfully more market-wide increases are required as prices continue to lag inflation. We anticipate that this will provide additional momentum to our growth.
Additionally, progress towards our Ambition 2030 plans continues well. The early proof points for this are now emerging in the growth of the Sabre Direct motorcycle product, with premium up over 50% across Motorcycle, the majority relating to our direct product. As part of our strategy, we are fully embracing the opportunities presented by AI across the business - from pricing sophistication to operational efficiency - and I will update on the implementation of these in future reports.
I look forward to reporting on good growth and increased profit for the full year, and as ever would like to thank all my colleagues for their contribution to our continuing success."
Performance in 2026
- Gross written premium up by 15.7% year-on-year
- Net insurance margin below target at the half-year stage, expected to increase to within target range for the full-year
- Expense ratio strain in the period due to lower earned premium reflecting 2025 volumes, expected to reverse in H2 2026
- Loss ratio reflects strong prior-year reserve releases set against normal caution in the current year given the uncertainty attached to new claims and our continued cautious view of claims inflation
Shareholder returns
- Continued strong solvency position of 175.9% pre-dividend, 161.4% post-dividend, reflecting our robust underwriting performance, which continues to generate capital
- Interim dividend of 4.1p per share (2025: 3.4p per share)
- £5m share buyback commenced on 2nd June 2026
Outlook
- Continue to expect year-on-year growth in Gross Written Premium. The rate of growth will be influenced by how quickly the wider market moves to cover claims inflation
- Continue to anticipate profit slightly ahead of 2025 underpinned by sustained pricing discipline during ongoing competitive market conditions and progressive earn-through of premium growth achieved during 2026 to date
- Expect strong undiscounted net insurance margins in 2026, within our target 18% to 22% range
Strategic initiatives
- Continued progress with Ambition 2030 strategy, with initial deliverable of the Sabre Direct motorcycle product growing well and testing of the differentiated pricing approach across our Motor Vehicle product in-line with the timetable set out in our last full-year results
- AI being embedded in a controlled way throughout the business, and anticipated to drive further pricing sophistication and operational efficiencies in future periods
- Optimising growth opportunities whilst ensuring margins are protected through a close focus on emerging claims inflation
Market trends
- Evidence that market prices have stabilised and initial increases are feeding through, but with more expected in order to keep up with claims inflation
- Global conflicts currently having a limited impact on supply chains and costs, but with some level of impact possible in future periods
Legal and regulatory environment
- Relatively clear regulatory horizon following the conclusion of recent regulator and government working parties
- Sabre remains able to evolve and adapt should the regulatory landscape change
There will be a call for analysts and investors at 0930hrs on Tuesday, 4 August 2026. For details, please contact sabre@teneo.com or find the registration link HERE
Enquiries
Sabre Insurance Group 0330 024 4696
Geoff Carter, Chief Executive Officer
Adam Westwood, Chief Financial Officer
Teneo 020 7260 2700
James Macey White/Ffion Dash sabre@teneo.com
Dividend calendar
2026 Interim Dividend Payment Dates
Ex-dividend date: 20 August 2026
Record date: 21 August 2026
Payment date: 23 September 2026
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
The Sabre Insurance Group plc LEI number is 2138006RXRQ8P8VKGV98.
Forward-looking statements disclaimer
Cautionary statement
This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Sabre's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Sabre's business, results of operations, financial position, prospects, growth or strategies and the industry in which it operates.
Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, Sabre disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.
Financial and business review
Highlights
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Gross written premium (1) |
£116.0m |
£100.3m |
£202.9m |
|
Net insurance margin (1) |
15.7% |
19.0% |
19.2% |
|
Net loss ratio (1) |
55.7% |
54.9% |
54.1% |
|
Combined operating ratio (1) |
85.6% |
82.6% |
82.3% |
|
IFRS profit before tax |
£23.9m |
£25.5m |
£51.0m |
|
IFRS profit after tax |
£17.9m |
£18.9m |
£37.9m |
|
Solvency coverage ratio (pre-dividend) (1) (2) |
175.9% |
194.3% |
198.7% |
|
Solvency coverage ratio (post-dividend) (1) (2) |
161.4% |
180.9% |
161.5% |
(1) Alternative performance metrics are reconciled to the IFRS reported figures in the Financial Reconciliation section.
(2) 30 June solvency coverage ratios include the impact of share buybacks, which have received regulatory approval. The solvency coverage ratios at 31 December 2025 do not include the impact of share buybacks as regulatory approval was pending.
The first half of 2026 was dominated by strong growth across both of Sabre's Motor Vehicle and Motorcycle products. This was supported by a solid profit performance, notwithstanding the expected impact of lower premium written in 2025 earning through in the period, together with continued but manageable expense inflation and the cost of recruitment in anticipation of further growth. The Group's profit before tax for H1 2026 was £23.9m, a reduction of 6.3% on H1 2025, but well within expectations. The reduction in profit reflects the timing effect of lower premium volumes written in the latter part of 2025 earning through during H1 2026 rather than any long-term deterioration in underwriting performance. Underwriting margins on policies written in H1 remain in line with expectations and the premium growth of 15.7% achieved during H1 2026 is expected to support increased profit as it earns through during the remainder of the year.
Overall, the first-half result demonstrates the resilience of the Group's business model and the continued effectiveness of its disciplined approach to pricing, risk selection and capital management. The strong written premium performance provides a positive platform for the remainder of the year. With the benefit of recent growth expected to earn through progressively in the second half, the Group remains focused on maintaining underwriting quality, operational control and attractive returns for shareholders.
The Group remains strongly capitalised, supporting continued investment in Ambition 2030 alongside shareholder distributions through dividends and the ongoing share buyback.
Insurance revenue
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Gross written premium |
£116.0m |
£100.3m |
£202.9m |
|
Movement in unearned element of liability for remaining coverage |
(£12.2m) |
£10.2m |
£11.7m |
|
Gross earned premium |
£103.8m |
£110.5m |
£214.6m |
|
Customer instalment income |
£1.3m |
£1.9m |
£3.4m |
|
Insurance revenue |
£105.1m |
£112.4m |
£218.0m |
|
Reinsurance expense |
(£10.6m) |
(£13.3m) |
(£23.9m) |
|
Net insurance revenue |
£94.5m |
£99.1m |
£194.1m |
|
Gross written premium by product |
|
|
|
|
Motor vehicle |
£103.4m |
£87.4m |
£180.1m |
|
Motorcycle |
£8.9m |
£5.9m |
£10.6m |
|
Taxi |
£3.7m |
£7.0m |
£12.2m |
|
Policy counts by product |
|
|
|
|
Motor vehicle ('000) |
232 |
199 |
201 |
|
Motorcycle ('000) |
40 |
39 |
40 |
|
Taxi ('000) |
6 |
10 |
8 |
In the first half of 2026 gross written premium is up by more than 15% overall, with core Motor Vehicle premium up by more than 18%. Growth in Motor Vehicle was principally driven by increased volumes of business written, with the policy count having risen by more than 15% since 31 December 2025. This performance was achieved despite market pricing continuing to lag claims and expense inflation, demonstrating the strength of Sabre's underwriting discipline and ability to identify attractive opportunities at target returns.
Despite the increase in gross written premium, gross earned premium is down 6.1% year-on-year which reflects the lower levels of premium written during 2025, while the higher premium written in the first half of 2026 is expected to earn through progressively during the second half of the year. This lower earned premium in H1 2026 translates to lower insurance revenue in the period, which we expect to increase meaningfully in H2, with consequent benefits to earnings and expense ratio.
Motorcycle written premium increased by more than 50% in comparison to the first half of 2025, reflecting continued growth in the Sabre Direct brand and further progress in developing this product. Taxi premium remained subdued, reflecting the Group's continued cautious approach to this sector in light of unfavourable market pricing conditions.
The 'unearned' element of the liability for remaining coverage represents the element of written premium covering future periods, which has the effect of smoothing the gross earned premium (and therefore insurance revenue) over time, so where there is a significant increase or decrease in written premium, the increase or decrease in insurance revenue will lag.
Customer instalment income reflects the interest income charged on instalment policies and remains a relatively small percentage of the Group's total insurance revenue, with the year-on-year reduction reflecting a small change in interest rates charged to customers.
Insurance expense
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Undiscounted gross claims incurred |
£73.1m |
£84.1m |
£173.8m |
|
Discounting (1) |
(£16.3m) |
(£8.8m) |
(£23.3m) |
|
Directly attributable expenses |
£3.7m |
£3.8m |
£7.2m |
|
Amortisation of insurance acquisition costs |
£8.0m |
£8.5m |
£16.8m |
|
Insurance service expense |
£68.5m |
£87.6m |
£174.5m |
|
Undiscounted reinsurance recoveries |
(£21.2m) |
(£30.7m) |
(£70.6m) |
|
Discounting (1) |
£11.1m |
£5.3m |
£16.0m |
|
Net insurance expense |
£58.4m |
£62.2m |
£119.9m |
|
Current-year net loss ratio (2) |
66.5% |
61.2% |
59.6% |
|
Prior-year net loss ratio (2) |
(10.8%) |
(6.3%) |
(5.5%) |
|
Financial-year net loss ratio |
55.7% |
54.9% |
54.1% |
|
Net loss ratio by product |
|
|
|
|
Motor vehicle |
52.0% |
48.1% |
50.5% |
|
Motorcycle |
120.9% |
104.2% |
70.0% |
|
Taxi |
48.2% |
111.1% |
88.0% |
|
Discounted ratios |
|
|
|
|
Discounted financial-year net loss ratio |
50.1% |
51.3% |
50.4% |
(1) Includes discounting on Periodic Payment Orders ("PPOs").
(2) Calculation of undiscounted net loss ratio allows for the impact of discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"), consistent with presentation under IFRS 4.
The undiscounted net loss ratio of 55.7% reported for the first half of 2026 is c.0.8ppts higher than the comparative period in 2025 but continues Sabre's record of reporting loss ratios far better than industry averages. The net loss ratio is made up of a current-year net loss ratio of 66.5% and a prior-year net loss ratio of minus 10.8%. The latter reflects the run-off of explicit margins on prior-year claims reserves along with reductions in the total ultimate expected cost of claims incurred prior to the start of the year, resulting from experience during the period.
The current-year loss ratio is in line with our expectations at the half-year stage, given the normal volatility and uncertainty associated with early-year claims development, with no unexpected adverse trends in either claims frequency or severity. As is typical at this stage of the underwriting year, ultimate loss expectations will continue to develop as claims mature. This is not fully representative of the ultimate loss ratio we expect for the 2026 accident year. We continue to write business to our target margins.
The smaller Motorcycle and Taxi product lines have shown the usual degree of volatility, which is particularly pronounced at the half-year stage given the relatively modest level of earned premium in those products and in the case of Motorcycle, the impact of individually large claims at an early stage of development along with normal seasonality.
Other operating expenditure
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Employee expenses |
£9.8m |
£8.9m |
£18.2m |
|
IT expenses |
£3.7m |
£3.5m |
£6.9m |
|
Industry levies |
£2.8m |
£3.1m |
£5.7m |
|
Policy servicing costs |
£1.3m |
£0.8m |
£2.1m |
|
Other operating expenses |
£2.2m |
£2.1m |
£4.2m |
|
Before adjustment for directly attributable claims expenses |
£19.8m |
£18.4m |
£37.1m |
|
Reclassification of directly attributable claims expenses |
(£3.7m) |
(£3.8m) |
(£7.2m) |
|
Total operating expenses |
£16.1m |
£14.6m |
£29.9m |
|
Expense ratio |
29.9% |
27.7% |
28.2% |
The increase in the expense ratio to 29.9% was expected, reflecting the dip in net earned premium resulting from volumes written in 2025. On an absolute basis, operational expenses remain well controlled, with increases in staff costs reflecting inflationary pay increases and targeted investment in additional capability ahead of the growth expected in the business over the next few years.
Whilst the Group maintains a high proportion of variable costs, in particular acquisition costs which are reported under Insurance Expense, this reduces rather than removes the impact of volume-based leverage on the expense ratio.
As written premium growth earns through over the coming months, the Group expects the expense ratio to improve, supporting stronger profitability in H2. Having allowed gross written premium to drop in 2025 in order to protect the loss ratio, there is a consequential and expected increase in expense ratio for a limited period, with the value benefit being fully realised when the more recent growth earns through in H2 and beyond.
Other income
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Interest revenue calculated using the effective interest method |
£6.6m |
£5.7m |
£11.7m |
|
Other technical income |
£0.4m |
£0.3m |
£0.6m |
|
Total interest and other income |
£7.0m |
£6.0m |
£12.3m |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Insurance finance expense from insurance contracts issued |
(£5.9m) |
(£5.1m) |
(£10.0m) |
|
Reinsurance finance income from reinsurance contracts held |
£2.8m |
£2.1m |
£4.2m |
|
Net insurance financial result |
(£3.1m) |
(£3.0m) |
(£5.8m) |
Interest revenue
Interest revenue reflects the yield achieved across the Group's investment portfolio. The increase in interest revenue reflects the higher yield gained through reinvesting matured assets. The Group's investment strategy remains unchanged, being invested in a low-risk mix of UK Government bonds, other government-backed securities and diversified investment-grade corporate bonds.
Fair value gains and losses are recognised through Other Comprehensive Income and largely reflect market movements in the yields of risk-free and low-risk assets. The Group does not expect to realise any material market value movements within profit.
Other technical income
Other income, related to non-insurance revenue earned such as product fees (excluding instalment interest) and commissions, remains a very small element of the Group's income.
Net insurance finance result
Net insurance finance result reflects the run-off of discounting applied to insurance liabilities under IFRS 17. As cash flows move towards settlement, the total level of discounting is reduced and this reduction is reflected here. We generally expect the overall impact of IFRS 17 discounting (the net of the discounting credit on claims and the insurance finance expense) to be immaterial in the context of the overall Group result.
Taxation
In the first half of 2026, the Group recorded a corporation tax expense of £6.0m (HY 2025: £6.5m), representing an effective tax rate of 25% (HY 2025: 26%). This is in line with the current UK corporation tax rate of 25%. The Group has not entered into any complex or unusual tax arrangements during the period.
Earnings per share
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Basic earnings per share |
7.33 |
7.64 |
15.37 |
|
Diluted earnings per share |
7.22 |
7.55 |
15.26 |
Basic earnings per share of 7.33p is proportionate to profit after tax. Diluted earnings per share is similarly proportionate to profit after tax, taking into account the potentially dilutive effect of the Group's share schemes. The £5m share buyback programme announced at the Group's year-end results is underway, which we expect to enhance earnings per share relative to profit after tax. As at 30 June 2026, 1,051,134 shares had been cancelled under the programme.
Cash and investments
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Government bonds |
£118.3m |
£114.4m |
£124.8m |
|
Government-backed securities |
£94.1m |
£100.3m |
£100.7m |
|
Corporate bonds |
£93.5m |
£91.7m |
£100.2m |
|
Cash and cash equivalents |
£47.4m |
£35.6m |
£25.5m |
The level of cash retained reflects the Company's normal liquidity requirements and there has been no change in the overall investment strategy, with UK Government bonds and other government-backed assets remaining the majority of the portfolio, with c.30% of invested assets held in investment-grade corporate bonds.
Insurance liabilities
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Gross insurance liabilities |
£467.6m |
£421.6m |
£460.7m |
|
Reinsurance assets |
(£211.0m) |
(£178.4m) |
(£216.4m) |
|
Net insurance liabilities |
£256.6m |
£243.2m |
£244.3m |
The Group's net insurance liabilities continue to reflect the underlying profitability and volume of business written. Generally, the gross insurance liabilities are more volatile and impacted by the receipt and settlement of individually large claims. The level of net insurance liabilities held remains broadly proportionate to the volume of business written along with the inflation applied to claims costs.
The Group continues to maintain a consistent reserving approach. Prior-year reserve development during the period was favourable and reflected both expected levels of run-off and positive experience on open claims during the period.
Leverage
The Group continues to hold no external debt. All of the Group's capital is considered Tier 1 under the UK regulatory regime. The Directors continue to hold the view that this allows the greatest operational flexibility for the Group.
Dividends and solvency
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Interim ordinary dividend (proposed) |
4.1p |
3.4p |
3.4p |
|
Final ordinary dividend (paid) |
- |
- |
8.9p |
|
Total ordinary dividend (paid and proposed) |
4.1p |
3.4p |
12.3p |
|
Special dividend (paid) |
- |
- |
1.2p |
|
Total dividend (paid and proposed) |
4.1p |
3.4p |
13.5p |
The interim dividend of 4.1p per share proposed is in line with the Group's current policy to pay an ordinary interim dividend equal to one third of the prior-year's ordinary dividend.
Excluding the capital required to pay this interim dividend, the Group remains strongly capitalised with an SCR coverage ratio at 30 June 2026 of 161.4%, with the impact of the current share buyback fully reflected.
The Group has received regulatory approval for the £5m buyback programme announced at the full-year results and is proceeding with the programme as planned. The programme is expected to be completed well in advance of its end-date of 31 December 2026. The impact on share capital is disclosed in Note 11 of the Condensed Consolidated Financial Statements.
Condensed Consolidated Profit or Loss Account
For the six months ended 30 June 2026
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Insurance revenue |
|
105,091 |
112,406 |
217,990 |
|
Insurance service expense |
|
(68,586) |
(87,560) |
(174,491) |
|
Insurance service result before reinsurance contracts held |
|
36,505 |
24,846 |
43,499 |
|
Reinsurance expense |
|
(10,552) |
(13,292) |
(23,872) |
|
Amounts recoverable from reinsurers for incurred claims |
|
10,136 |
25,392 |
54,552 |
|
Net (expense)/income from reinsurance contracts held |
|
(416) |
12,100 |
30,680 |
|
Insurance service result |
|
36,089 |
36,946 |
74,179 |
|
Interest income on financial assets using effective interest rate method |
4.4 |
6,604 |
5,743 |
11,719 |
|
Net (losses)/gains on derecognition of debt securities measured at FVOCI |
4.5 |
- |
(9) |
7 |
|
Total investment income |
|
6,604 |
5,734 |
11,726 |
|
Insurance finance expense from insurance contracts issued |
|
(5,917) |
(5,061) |
(9,968) |
|
Reinsurance finance income from reinsurance contracts held |
|
2,786 |
2,108 |
4,236 |
|
Net insurance financial result |
|
(3,131) |
(2,953) |
(5,732) |
|
Net insurance and investment result |
|
39,562 |
39,727 |
80,173 |
|
Other income |
6 |
421 |
336 |
637 |
|
Other operating expenses |
7 |
(16,081) |
(14,598) |
(29,850) |
|
Profit before tax |
|
23,902 |
25,465 |
50,960 |
|
Income tax expense |
8 |
(5,965) |
(6,546) |
(13,045) |
|
Profit for the period attributable to ordinary shareholders |
|
17,937 |
18,919 |
37,915 |
|
Basic earnings per share (pence per share) |
|
7.33 |
7.64 |
15.37 |
|
Diluted earnings per share (pence per share) |
|
7.22 |
7.55 |
15.26 |
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2026
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Profit for the period attributable to ordinary shareholders |
|
17,937 |
18,919 |
37,915 |
|
Items that are or may be reclassified subsequently to Profit or Loss |
|
|
|
|
|
Unrealised fair value (losses)/gains on debt securities |
4.5 |
(1,791) |
4,025 |
5,525 |
|
Realised losses/(gains) on derecognition of debt securities reclassified to Profit or Loss |
4.5 |
- |
9 |
(7) |
|
Tax credit/(charge) |
|
448 |
(1,006) |
(1,381) |
|
Debt securities at fair value through other comprehensive income |
|
(1,343) |
3,028 |
4,137 |
|
Insurance finance income/(expense) from insurance contracts issued |
|
3,358 |
(2,750) |
(5,808) |
|
Reinsurance finance (expense)/income from reinsurance contracts held |
|
(2,317) |
1,534 |
2,856 |
|
Tax (charge)/credit |
|
(260) |
304 |
738 |
|
Net insurance financial result |
|
781 |
(912) |
(2,214) |
|
Total other comprehensive income for the period, net of tax |
|
(562) |
2,116 |
1,923 |
|
Total comprehensive income for the period attributable to ordinary shareholders |
|
17,375 |
21,035 |
39,838 |
Condensed Consolidated Statement of Financial Position
As at 30 June 2026
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
4.1 |
47,396 |
35,626 |
25,475 |
|
Debt securities at fair value through other comprehensive income |
4.2 |
305,921 |
306,436 |
325,752 |
|
Receivables |
4.3 |
4 |
50 |
41 |
|
Current tax assets |
|
1,143 |
- |
209 |
|
Reinsurance contract assets |
3.1 |
211,029 |
178,396 |
216,382 |
|
Property, plant and equipment |
|
4,185 |
4,144 |
4,278 |
|
Deferred tax assets |
|
61 |
- |
82 |
|
Other assets |
|
2,447 |
2,565 |
799 |
|
Goodwill |
|
156,279 |
156,279 |
156,279 |
|
Total assets |
|
728,465 |
683,496 |
729,297 |
|
Liabilities |
|
|
|
|
|
Payables |
5 |
11,536 |
12,291 |
7,048 |
|
Current tax liability |
|
- |
223 |
- |
|
Insurance contract liabilities |
3.1 |
467,630 |
421,582 |
460,682 |
|
Deferred tax liability |
|
- |
270 |
- |
|
Other liabilities |
|
3,754 |
2,792 |
3,705 |
|
Total liabilities |
|
482,920 |
437,158 |
471,435 |
|
Equity |
|
|
|
|
|
Issued share capital |
11 |
246 |
250 |
247 |
|
Own shares |
|
(1,713) |
(3,354) |
(3,354) |
|
Other reserves |
|
48,529 |
48,525 |
48,525 |
|
FVOCI reserve |
|
(270) |
(36) |
1,073 |
|
Insurance/Reinsurance finance reserve |
|
2,173 |
2,694 |
1,392 |
|
Share-based payments reserve |
|
2,494 |
2,359 |
3,495 |
|
Retained earnings |
|
194,086 |
195,900 |
206,484 |
|
Total equity |
|
245,545 |
246,338 |
257,862 |
|
Total liabilities and equity |
|
728,465 |
683,496 |
729,297 |
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2026
|
|
Share capital |
Own shares |
Other reserves (1) |
FVOCI reserve |
Insurance/ |
Share-based payments reserve |
Retained earnings |
Total equity |
|
|
£'k |
£'k |
£'k |
£'k |
£'k |
£'k |
£'k |
£'k |
|
Balance as at 31 December 2024 |
250 |
(3,112) |
48,525 |
(3,064) |
3,606 |
2,620 |
209,521 |
258,346 |
|
Profit for the period attributable to ordinary shareholders |
- |
- |
- |
- |
- |
- |
18,919 |
18,919 |
|
Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss |
- |
- |
- |
3,028 |
(912) |
- |
- |
2,116 |
|
Total comprehensive income for the period |
- |
- |
- |
3,028 |
(912) |
- |
18,919 |
21,035 |
|
Share-based payment expense |
- |
- |
- |
- |
- |
(261) |
451 |
190 |
|
Net movement in own shares |
- |
(242) |
- |
- |
- |
- |
- |
(242) |
|
Share buyback (2) |
- |
- |
- |
- |
- |
- |
(5,000) |
(5,000) |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
(27,991) |
(27,991) |
|
Balance as at 30 June 2025 |
250 |
(3,354) |
48,525 |
(36) |
2,694 |
2,359 |
195,900 |
246,338 |
|
Profit for the period attributable to ordinary shareholders |
- |
- |
- |
- |
- |
- |
18,996 |
18,996 |
|
Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss |
- |
- |
- |
1,109 |
(1,302) |
- |
- |
(193) |
|
Total comprehensive income for the period |
- |
- |
- |
1,109 |
(1,302) |
- |
18,996 |
18,803 |
|
Share-based payment expense |
- |
- |
- |
- |
- |
1,136 |
(1) |
1,135 |
|
Share buyback (2) |
(3) |
- |
- |
- |
- |
- |
(64) |
(67) |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
(8,347) |
(8,347) |
|
Balance as at 31 December 2025 |
247 |
(3,354) |
48,525 |
1,073 |
1,392 |
3,495 |
206,484 |
257,862 |
|
Profit for the period attributable to ordinary shareholders |
- |
- |
- |
- |
- |
- |
17,937 |
17,937 |
|
Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss |
- |
- |
- |
(1,343) |
781 |
- |
- |
(562) |
|
Total comprehensive income for the period |
- |
- |
- |
(1,343) |
781 |
- |
17,937 |
17,375 |
|
Share-based payment expense |
- |
- |
- |
- |
- |
(1,001) |
(583) |
(1,584) |
|
Net movement in own shares |
- |
1,641 |
- |
- |
- |
- |
- |
1,641 |
|
Share buyback (2) |
(1) |
- |
4 |
- |
- |
- |
(5,003) |
(5,000) |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
(24,749) |
(24,749) |
|
Balance as at 30 June 2026 |
246 |
(1,713) |
48,529 |
(270) |
2,173 |
2,494 |
194,086 |
245,545 |
(1) Other reserves as at 30 June 2026 includes capital redemption reserve of £4k and merger reserve of £48,525k
(2) On 2 June 2026, Sabre Insurance Group plc entered into an irrevocable agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a liability of £5m has been recorded in the balance sheet with a corresponding amount in equity. As at 30 June 2026, 1,051,134 of shares had been acquired under the programme (see Note 11 for further information).
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2026
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Profit before tax for the period |
23,902 |
25,465 |
50,960 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
114 |
73 |
179 |
|
Share-based payment - equity-settled schemes |
1,178 |
1,006 |
2,142 |
|
Investment return |
(6,030) |
(5,089) |
(10,589) |
|
Expected credit loss |
- |
- |
3 |
|
Operating cash flows before movements in working capital |
19,164 |
21,455 |
42,695 |
|
Movements in working capital: |
|
|
|
|
Change in receivables |
37 |
(18) |
(9) |
|
Change in reinsurance contract assets |
3,036 |
(16,104) |
(52,768) |
|
Change in other assets |
(1,648) |
(1,787) |
(21) |
|
Change in payables |
1,255 |
296 |
53 |
|
Change in insurance contract liabilities |
10,306 |
20,908 |
56,950 |
|
Change in other liabilities |
49 |
246 |
1,159 |
|
Cash generated from operating activities before investment of insurance assets |
32,199 |
24,996 |
48,059 |
|
Taxes paid |
(6,690) |
(5,493) |
(12,717) |
|
Net cash generated from operating activities before investment of insurance assets |
25,509 |
19,503 |
35,342 |
|
Interest and investment income received |
4,824 |
4,262 |
8,484 |
|
Proceeds from the sale and maturity of invested assets |
72,896 |
43,903 |
93,465 |
|
Purchases of invested assets |
(53,648) |
(34,283) |
(100,412) |
|
Net cash generated from operating activities |
49,581 |
33,385 |
36,879 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchases of property, plant and equipment |
(22) |
(13) |
(253) |
|
Net cash used by investing activities |
(22) |
(13) |
(253) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Net cash used in acquiring and disposing of own shares |
(1,122) |
(1,069) |
(1,069) |
|
Options exercised under share option schemes |
- |
- |
9 |
|
Share buyback |
(1,767) |
- |
(5,067) |
|
Dividends paid |
(24,749) |
(27,991) |
(36,338) |
|
Net cash used by financing activities |
(27,638) |
(29,060) |
(42,465) |
|
Net increase/(decrease) in cash and cash equivalents |
21,921 |
4,312 |
(5,839) |
|
Cash and cash equivalents at the beginning of the period |
25,475 |
31,314 |
31,314 |
|
Cash and cash equivalents at the end of the period |
47,396 |
35,626 |
25,475 |
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2026
1. General information
The Condensed Consolidated Interim Financial Statements comprise the results and balances of the Group for the six-month period ended 30 June 2026, the comparative period for the six months ended 30 June 2025 and the year ended 31 December 2025. The information in the Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in s.434 of the Companies Act 2006. The independent auditor's report on the Group accounts for the year ended 31 December 2025 is unqualified, does not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and does not include a statement under s.498(2) or (3) of the Companies Act 2006.
2. Accounting policies
2.1. Basis of preparation
The Condensed Consolidated Interim Financial Statements have been prepared and approved by the Directors in accordance with UK-adopted International Accounting Standard 34 ('Interim Financial Reporting'). As required by the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority, these Condensed Consolidated Interim Financial Statements have been prepared applying the accounting policies and presentation that will be applied in the preparation of the Annual Financial Statements of the Group and will be prepared in accordance and fully comply with UK-adopted international accounting standards, comprising International Accounting Standards ('IAS') and International Financial Reporting Standards ('IFRSs'). The Annual Financial Statements were prepared in accordance with the going concern principle using the historical cost basis, except for those financial assets that have been measured at fair value.
The accounting policies applied in the preparation of the Condensed Consolidated Interim Financial Statements are consistent with those accounting policies applied in the preparation of the 31 December 2025 Annual Report and Accounts, except for those referred to in 2.3 below.
The Condensed Consolidated Interim Financial Statements values are presented in Pounds Sterling (£) rounded to the nearest thousand (£'k), unless otherwise indicated. The Group does not consider it is exposed to material seasonal volatility in its financial results.
2.2. Going concern
The Condensed Consolidated Interim Financial Statements have been prepared on a going concern basis. Having assessed the Group's forecasts, projections and principal risks of the Group over the full duration of the planning cycle, the Directors have a reasonable expectation that the Group will continue in operation for at least 12 months from the date the Directors approved these Condensed Consolidated Financial Statements and that therefore it is appropriate to adopt a going concern basis for the preparation of these Condensed Consolidated Interim Financial Statements.
The Group's Principal Risks and Uncertainties are outlined in the Strategic Report of the 31 December 2025 Annual Report and Accounts and have not changed since the last reporting date. The principal risks are:
- Insurance
- Operations
- Finance and Capital
- IT and Systems
- Regulatory, Governance and Compliance
- People
- Macro risks
- Climate change
- Risks associated with ESG
- Inflation and interest rate increases
- Geo-political instability
2.3. New and amended standards and interpretations adopted by the Group
Amendments to IFRS
The following amended standards became effective for the year ended 31 December 2026:
- Annual improvements to IFRS - Volume 11
- Amendment to IFRS 9 and IFRS 7
The amendments have not had a material impact on the Group.
2.4. New and amended standards and interpretations not yet effective in 2026
A number of new standards and interpretations adopted by the UK which are not mandatorily effective, as well as standards' interpretations issued by the IASB but not yet adopted by the UK, have not been applied in preparing these financial statements. The Group does not plan to adopt these standards early; instead, it expects to apply them from their effective dates as determined by their dates of UK endorsement. The Group is reviewing the upcoming standards to determine their impact:
- IFRS 18 "Presentation and Disclosure in Financial Statements" - Effective 1 January 2027, with retrospective application - IFRS 18, which replaces IAS 1 "Presentation of Financial Statements", introduces new requirements for presentation and disclosure in the financial statements, with a focus on the Profit or Loss Account. Items in the Profit or Loss Account will be classified into one of five categories: operating, investing, financing, income taxes and discontinued operations, of which the first three are new. It also requires the disclosure of newly defined management-derived performance measures, how these are calculated and why these provide useful information, reconciled to the IFRS reporting. As a presentation and disclosure standard, the implementation of IFRS 18 will not affect the Group's results. The Group is currently working to identify all impacts the amendments will have on the primary financial statements and notes to the financial statements.
- IFRS 19 "Subsidiaries without Public Accountability: Disclosures" - Effective 1 January 2027. This new standard reduces the disclosure requirements for subsidiaries while maintaining the usefulness of the information for users of their financial statements. Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS in their consolidated financial statements. As the principal subsidiary of the Group is a public interest entity, the Group does not expect any significant impact from IFRS 19.
- IAS 21 "Translation to a Hyperinflationary Presentation Currency" (Amendments to IAS 21) - Effective 1 January 2027, with early application permitted. The amendments clarify the translation requirements where a non-hyperinflationary functional currency is translated into a hyperinflationary presentation currency and introduces additional disclosure requirements. As the Company prepares its financial statements in GBP and does not operate in hyperinflationary economies, the Company does not expect the amendments to have any impact on its financial statements.
- IFRS 20 "Regulatory Assets and Regulatory Liabilities" - Effective 1 January 2029, with early application permitted. IFRS 20 introduces requirements for the recognition, measurement, presentation and disclosure of regulatory assets and regulatory liabilities arising from specified rate-regulated activities. The standard is intended to improve the relevance and comparability of financial information provided by entities subject to rate regulation. As the Company is not subject to rate-regulated activities within the scope of IFRS 20, the Company does not expect the standard to have any impact on its financial statements.
3. Insurance liabilities and reinsurance assets
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
There have been no significant changes to the principles, estimates and judgements used in applying the Group's accounting policies during the period. Full details of these critical accounting estimates and judgements are disclosed on pages 154 to 156 of the Group's Annual Report and Accounts 2025.
Discount rates
Discount rates applied for discounting future cash flows are listed below:
|
|
30 June 2026 |
|||
|
|
1 year |
3 years |
5 years |
10 years |
|
Motor insurance |
4.15% |
4.18% |
4.23% |
4.54% |
|
|
30 June 2025 |
|||
|
|
1 year |
3 years |
5 years |
10 years |
|
Motor insurance |
4.05% |
3.84% |
3.91% |
4.29% |
|
|
31 December 2025 |
|||
|
|
1 year |
3 years |
5 years |
10 years |
|
Motor insurance |
3.78% |
3.77% |
3.91% |
4.29% |
Risk adjustment for non-financial risk
The Group has estimated the risk adjustment using a methodology which targets a confidence level (probability of sufficiency) approach between the 80th and 90th percentile. At 30 June 2026, the net risk margin applied equates to an approximate confidence interval of 80.6% (30 June 2025: 82.2% / 31 December 2025: 81.4%). That is, the Group has assessed its indifference to uncertainty for all product lines (as an indication of the compensation that it requires for bearing non-financial risk) as being equivalent to the 80th to 90th percentile confidence level less the mean of an estimated probability distribution of the future cash flows.
3.1. Composition of the Statement of Financial Position
An analysis of the amounts presented on the Statement of Financial Position for insurance contracts is included in the table below.
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Insurance contract liabilities |
|
|
|
|
|
Insurance contract liabilities |
|
|
|
|
|
Motor Vehicle insurance |
|
374,290 |
335,289 |
362,019 |
|
Motorcycle insurance |
|
45,442 |
37,935 |
41,200 |
|
Taxi insurance |
|
56,514 |
56,584 |
65,252 |
|
Asset for insurance acquisition cash flows |
|
|
|
|
|
Motor Vehicle insurance |
3.3 |
(7,143) |
(6,174) |
(6,184) |
|
Motorcycle insurance |
3.3 |
(982) |
(1,107) |
(906) |
|
Taxi insurance |
3.3 |
(491) |
(945) |
(699) |
|
Total insurance contract liabilities |
3.2.1 |
467,630 |
421,582 |
460,682 |
|
Reinsurance contracts assets |
|
|
|
|
|
Motor Vehicle insurance |
|
158,824 |
133,571 |
157,554 |
|
Motorcycle insurance |
|
20,233 |
16,224 |
20,469 |
|
Taxi insurance |
|
31,972 |
28,601 |
38,359 |
|
Total reinsurance contract assets |
3.2.2 |
211,029 |
178,396 |
216,382 |
3.2. Movement in insurance and reinsurance contract balances
3.2.1. Insurance contracts issued
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Opening insurance contract liabilities |
460,682 |
397,924 |
397,924 |
|
Insurance revenue |
(105,091) |
(112,406) |
(217,990) |
|
Insurance service expenses |
68,586 |
87,560 |
174,491 |
|
Incurred claims and other directly attributable expenses |
79,119 |
85,777 |
162,520 |
|
Changes that relate to past service - changes in the FCF relating to the LIC |
(18,561) |
(6,691) |
(4,782) |
|
Amortisation of insurance acquisition cash flows |
8,028 |
8,474 |
16,753 |
|
Insurance service result |
(36,505) |
(24,846) |
(43,499) |
|
Insurance finance expense recognised in Profit or Loss Account |
5,917 |
5,061 |
9,968 |
|
Insurance finance (income)/expense recognised in Other Comprehensive Income |
(3,358) |
2,750 |
5,808 |
|
Total changes in Comprehensive Income |
(33,946) |
(17,035) |
(27,723) |
|
Cash flows |
|
|
|
|
Premiums received |
108,578 |
100,927 |
205,082 |
|
Claims and other insurance services expenses paid |
(58,829) |
(52,006) |
(98,531) |
|
Insurance acquisition cash flows |
(8,855) |
(8,228) |
(16,070) |
|
Total cash flows |
40,894 |
40,693 |
90,481 |
|
Closing insurance contract liabilities |
467,630 |
421,582 |
460,682 |
3.2.2. Reinsurance contracts held
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Opening reinsurance contract assets |
216,382 |
160,758 |
160,758 |
|
Net (expense)/income from reinsurance contracts held |
(416) |
12,100 |
30,680 |
|
Reinsurance expense |
(10,552) |
(13,292) |
(23,872) |
|
Incurred claims recovery |
16,852 |
25,161 |
47,411 |
|
Changes that relate to past service |
(6,716) |
231 |
7,141 |
|
Reinsurance finance income recognised in Profit or Loss Account |
2,786 |
2,108 |
4,236 |
|
Reinsurance finance (expense)/income recognised in Other Comprehensive Income |
(2,317) |
1,534 |
2,856 |
|
Total changes in Comprehensive Income |
53 |
15,742 |
37,772 |
|
Cash flows |
|
|
|
|
Premiums paid |
4,695 |
6,106 |
23,924 |
|
Recoveries received |
(10,101) |
(4,210) |
(6,072) |
|
Total cash flows |
(5,406) |
1,896 |
17,852 |
|
Closing reinsurance contract assets |
211,029 |
178,396 |
216,382 |
3.3. Assets for insurance acquisition cash flows
|
|
£'k |
|
Balance as at 31 December 2024 |
8,472 |
|
Amounts incurred during the period |
8,228 |
|
Amounts derecognised and included in measurement of insurance contracts |
(8,474) |
|
Balance as at 30 June 2025 |
8,226 |
|
Amounts incurred during the period |
7,842 |
|
Amounts derecognised and included in measurement of insurance contracts |
(8,279) |
|
Balance as at 31 December 2025 |
7,789 |
|
Amounts incurred during the period |
8,855 |
|
Amounts derecognised and included in measurement of insurance contracts |
(8,028) |
|
Balance as at 30 June 2026 |
8,616 |
3.4. Insurance revenue and expenses - Segmental disclosure
An analysis of insurance revenue, insurance service expenses and net income/(expense) from reinsurance contracts held is included in the tables below.
The Group provides short-term motor insurance to clients, which comprises three lines of business, Motor Vehicle insurance, Motorcycle insurance and Taxi insurance, which are written solely in the UK. The Group has no other lines of business, nor does it operate outside of the UK. The Group does not have a single client which accounts for more than 10% of revenue.
|
|
6 months ended 30 June 2026 |
|||
|
|
Motor Vehicles |
Motorcycle |
Taxi |
Total |
|
|
£'k |
£'k |
£'k |
£'k |
|
Insurance revenue |
|
|
|
|
|
Insurance revenue from contracts measured under the PAA |
93,869 |
5,920 |
5,302 |
105,091 |
|
Total insurance revenue |
93,869 |
5,920 |
5,302 |
105,091 |
|
Insurance service expense |
|
|
|
|
|
Incurred claims and other directly attributable expenses |
(66,509) |
(7,605) |
(5,005) |
(79,119) |
|
Changes that relate to past service - changes in the FCF relating to the LIC |
7,115 |
1,745 |
9,701 |
18,561 |
|
Amortisation of insurance acquisition cash flows |
(6,233) |
(1,155) |
(640) |
(8,028) |
|
Total insurance service expense |
(65,627) |
(7,015) |
4,056 |
(68,586) |
|
Net (expense)/income from reinsurance contracts held |
|
|
|
|
|
Reinsurance expenses - contracts measured under the PAA |
(9,418) |
(595) |
(539) |
(10,552) |
|
Incurred claims recovery |
15,033 |
873 |
946 |
16,852 |
|
Changes that relate to past service - changes in the FCF relating to incurred claims recovery |
2,020 |
(1,157) |
(7,579) |
(6,716) |
|
Total net (expense)/income from reinsurance contracts held |
7,635 |
(879) |
(7,172) |
(416) |
|
Total insurance service result |
35,877 |
(1,974) |
2,186 |
36,089 |
|
|
6 months ended 30 June 2025 |
|||
|
|
Motor Vehicles |
Motorcycle |
Taxi |
Total |
|
|
£'k |
£'k |
£'k |
£'k |
|
Insurance revenue |
|
|
|
|
|
Insurance revenue from contracts measured under the PAA |
99,939 |
4,311 |
8,156 |
112,406 |
|
Total insurance revenue |
99,939 |
4,311 |
8,156 |
112,406 |
|
Insurance service expense |
|
|
|
|
|
Incurred claims and other directly attributable expenses |
(54,717) |
(6,681) |
(24,379) |
(85,777) |
|
Changes that relate to past service - changes in the FCF relating to the LIC |
5,576 |
610 |
505 |
6,691 |
|
Amortisation of insurance acquisition cash flows |
(6,397) |
(1,060) |
(1,017) |
(8,474) |
|
Total insurance service expense |
(55,538) |
(7,131) |
(24,891) |
(87,560) |
|
Net (expense)/income from reinsurance contracts held |
|
|
|
|
|
Reinsurance expenses - contracts measured under the PAA |
(11,793) |
(518) |
(981) |
(13,292) |
|
Incurred claims recovery |
6,272 |
1,593 |
17,296 |
25,161 |
|
Changes that relate to past service - changes in the FCF relating to incurred claims recovery |
781 |
319 |
(869) |
231 |
|
Total net (expense)/income from reinsurance contracts held |
(4,740) |
1,394 |
15,446 |
12,100 |
|
Total insurance service result |
39,661 |
(1,426) |
(1,289) |
36,946 |
Other than reinsurance assets and insurance liabilities (see Note 3.1), the Group does not allocate, monitor, or report assets and liabilities per business line and does not consider the information useful in the day-to-day running of the Group's operations. The Group also does not allocate, monitor, or report other income and expenses per business line.
|
|
12 months ended 31 December 2025 |
|||
|
|
Motor Vehicles |
Motorcycle |
Taxi |
Total |
|
|
£'k |
£'k |
£'k |
£'k |
|
Insurance revenue |
|
|
|
|
|
Insurance revenue from contracts measured under the PAA |
193,312 |
9,454 |
15,224 |
217,990 |
|
Total insurance revenue |
193,312 |
9,454 |
15,224 |
217,990 |
|
Insurance service expense |
|
|
|
|
|
Incurred claims and other directly attributable expenses |
(112,244) |
(12,319) |
(37,957) |
(162,520) |
|
Changes that relate to past service - changes in the FCF relating to the LIC |
3,800 |
(93) |
1,075 |
4,782 |
|
Amortisation of insurance acquisition cash flows |
(12,679) |
(2,189) |
(1,885) |
(16,753) |
|
Total insurance service expense |
(121,123) |
(14,601) |
(38,767) |
(174,491) |
|
Net income from reinsurance contracts held |
|
|
|
|
|
Reinsurance expenses - contracts measured under the PAA |
(21,133) |
(1,039) |
(1,700) |
(23,872) |
|
Incurred claims recovery |
15,988 |
4,185 |
27,238 |
47,411 |
|
Changes that relate to past service - changes in the FCF relating to incurred claims recovery |
6,767 |
1,829 |
(1,455) |
7,141 |
|
Total net income from reinsurance contracts held |
1,622 |
4,975 |
24,083 |
30,680 |
|
Total insurance service result |
73,811 |
(172) |
540 |
74,179 |
4. Financial assets
The Group's financial assets are summarised below.
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Cash and cash equivalents |
4.1 |
47,396 |
35,626 |
25,475 |
|
Debt securities held at fair value through Other Comprehensive Income |
4.2 |
305,921 |
306,436 |
325,752 |
|
Receivables |
4.3 |
4 |
50 |
41 |
|
Total |
|
353,321 |
342,112 |
351,268 |
4.1. Cash and cash equivalents
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Cash at bank and on hand |
16,673 |
20,084 |
14,823 |
|
Money market funds |
30,723 |
15,542 |
10,652 |
|
Total |
47,396 |
35,626 |
25,475 |
Cash held in money market funds has no notice period for withdrawal.
The carrying value of cash and cash equivalents approximates fair value. The full value is expected to be realised within 12 months.
4.2. Debt securities held at fair value through Other Comprehensive Income
The Group's debt securities held at fair value through Other Comprehensive Income are summarised below.
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||
|
|
£'k |
% holdings |
£'k |
% holdings |
£'k |
% holdings |
|
Government bonds |
118,350 |
38.6% |
114,398 |
37.4% |
124,798 |
38.3% |
|
Government-backed securities |
94,086 |
30.8% |
100,345 |
32.7% |
100,717 |
30.9% |
|
Corporate bonds |
93,485 |
30.6% |
91,693 |
29.9% |
100,237 |
30.8% |
|
Total |
305,921 |
100.0% |
306,436 |
100.0% |
325,752 |
100.0% |
4.2.1. Fair value
Fair value measurements are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Group's view of market assumptions in the absence of observable market information.
IFRS 13 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement.
Disclosure of fair value measurements by level is according to the following fair value measurement hierarchy:
- Level 1: fair value is based on quoted market prices (unadjusted) in active markets for identical instruments as measured on reporting date
- Level 2: fair value is determined through inputs, other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (prices) or indirectly (derived from prices)
- Level 3: fair value is determined through valuation techniques which use significant unobservable inputs
Level 1
The fair value of financial instruments traded in active markets is based on quoted market prices at the Statement of Financial Position date. A market is regarded as active if quoted prices are readily and regularly available from the stock exchange or pricing service, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the closing bid price. These instruments are included in Level 1 and comprise only debt securities classified as fair value through other comprehensive income.
Level 2
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant input required to fair value an instrument is observable, the instrument is included in Level 2. The Group has no Level 2 financial instruments.
Level 3
If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3. The Group has no Level 3 financial instruments.
The following table summarises the classification of financial instruments:
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
At 30 June 2026 |
£'k |
£'k |
£'k |
£'k |
|
Assets held at fair value |
|
|
|
|
|
Debt securities held at FVOCI |
305,921 |
- |
- |
305,921 |
|
Total |
305,921 |
- |
- |
305,921 |
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
At 30 June 2025 |
£'k |
£'k |
£'k |
£'k |
|
Assets held at fair value |
|
|
|
|
|
Debt securities held at FVOCI |
306,436 |
- |
- |
306,436 |
|
Total |
306,436 |
- |
- |
306,436 |
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
At 31 December 2025 |
£'k |
£'k |
£'k |
£'k |
|
Assets held at fair value |
|
|
|
|
|
Debt securities held at FVOCI |
325,752 |
- |
- |
325,752 |
|
Total |
325,752 |
- |
- |
325,752 |
Transfers between levels
There have been no transfers between levels during the period (30 June 2025: no transfers / 31 December 2025: no transfers).
4.3. Receivables
The Group's receivables comprise of:
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Other debtors |
4 |
50 |
41 |
|
Total |
4 |
50 |
41 |
The estimated fair values of receivables are the discounted amounts of the estimated future cash flows expected to be received.
The carrying value of receivables approximates fair value. The provision for expected credit losses is based on the recoverability of the individual receivables.
The Group has calculated ECL on receivables and has concluded that it is wholly immaterial and such further disclosure has not been included.
4.4. Investment income
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Interest income on financial assets using effective interest rate method |
|
|
|
|
Interest income from debt securities |
6,030 |
5,098 |
10,582 |
|
Interest income from cash and cash equivalents |
574 |
645 |
1,137 |
|
Total |
6,604 |
5,743 |
11,719 |
4.5. Net gains/(losses) from fair value adjustments on financial assets
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Profit or Loss |
|
|
|
|
Net (losses)/gains on derecognition of debt securities measured at FVOCI |
- |
(9) |
7 |
|
Realised fair value losses on debt securities reclassified to Profit or Loss |
- |
(9) |
7 |
|
Other Comprehensive Income |
|
|
|
|
Unrealised fair value (losses)/gains on debt securities |
(1,791) |
4,025 |
5,522 |
|
Realised losses/(gains) on derecognition of debt securities reclassified to Profit or Loss |
- |
9 |
(7) |
|
Expected credit loss |
- |
- |
3 |
|
Unrealised fair value (losses)/gains on debt securities through Other Comprehensive Income |
(1,791) |
4,034 |
5,518 |
|
|
|
|
|
|
Net (losses)/gains from fair value adjustments on financial assets |
(1,791) |
4,025 |
5,525 |
5. Payables
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Trade and other creditors |
619 |
787 |
894 |
|
Other taxes (1) |
7,684 |
6,504 |
6,154 |
|
Other financial liabilities (2) |
3,233 |
5,000 |
- |
|
Total |
11,536 |
12,291 |
7,048 |
(1) Other taxes consist of Insurance Premium Tax and VAT payable to HM Revenue & Customs
(2) On 2 June 2026, Sabre Insurance Group plc entered into an irrevocable agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a liability of £5m has been recorded in the balance sheet with a corresponding amount in equity. As at 30 June 2026, the ongoing share buyback has reduced the liability to £3.2m. Refer Note 11 for further information on the share buyback.
Trade and other creditors are carried at amortised cost.
6. Other income
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Administration fees |
184 |
153 |
314 |
|
Brokerage and other fee income |
237 |
183 |
323 |
|
Total |
421 |
336 |
637 |
Brokerage and other fee income relates to auxiliary products and services.
7. Other operating expenses
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£'k |
£'k |
£'k |
|
Employee expenses |
7.1 |
9,828 |
8,897 |
18,161 |
|
Property expenses |
|
269 |
200 |
503 |
|
IT expense, including IT depreciation |
|
3,674 |
3,505 |
6,934 |
|
Other depreciation |
|
58 |
56 |
113 |
|
Industry levies |
|
2,804 |
3,062 |
5,670 |
|
Policy servicing costs |
|
1,296 |
804 |
2,132 |
|
Other operating expenses |
|
1,895 |
1,885 |
3,505 |
|
Movement in expected credit loss on debt securities |
|
- |
- |
3 |
|
Before adjustment for directly attributable claims expenses |
|
19,824 |
18,409 |
37,021 |
|
Adjusted for: |
|
|
|
|
|
Reclassification of directly attributable claims expenses |
|
(3,743) |
(3,811) |
(7,171) |
|
Total operating expenses |
|
16,081 |
14,598 |
29,850 |
7.1. Employee expenses
The aggregate remuneration of those employed by the Group's operations comprised:
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Wages and salaries |
6,792 |
6,408 |
12,956 |
|
Social security expenses |
1,250 |
943 |
1,937 |
|
Contributions to defined contribution plans |
326 |
303 |
615 |
|
Equity-settled share-based payment |
1,188 |
1,006 |
2,142 |
|
Other employee expenses |
272 |
237 |
511 |
|
Before adjustment for directly attributable claims expenses |
9,828 |
8,897 |
18,161 |
|
Adjusted for: |
|
|
|
|
Reclassification of directly attributable claims expenses |
(2,878) |
(2,788) |
(5,199) |
|
Employee expenses |
6,950 |
6,109 |
12,962 |
8. Income tax expense
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Current taxation |
|
|
|
|
Charge for the period |
5,739 |
6,580 |
13,366 |
|
Charge relating to prior periods |
18 |
134 |
139 |
|
|
5,757 |
6,714 |
13,505 |
|
Deferred taxation |
|
|
|
|
Origination and reversal of temporary differences |
208 |
(168) |
(460) |
|
|
208 |
(168) |
(460) |
|
Current taxation |
5,757 |
6,714 |
13,505 |
|
Deferred taxation |
208 |
(168) |
(460) |
|
Income tax expense |
5,965 |
6,546 |
13,045 |
Tax recorded in Other Comprehensive Income is as follows:
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Current taxation |
- |
- |
- |
|
Deferred taxation |
(188) |
702 |
643 |
|
|
(188) |
702 |
643 |
Management estimates the Group's effective tax rate to be approximately 25.0% of profit before tax for the year ending 31 December 2026, similar to the corporation tax rate in the UK of 25.0%. This estimate is in line with the prevailing rate of corporation tax in the UK. The income tax expense for the period is recognised based on this estimate.
9. Dividends
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||
|
|
pence per share |
£'k |
pence per share |
£'k |
pence per share |
£'k |
|
Amounts recognised as distributions to equity holders in the period |
|
|
|
|
|
|
|
Interim dividend for the current year |
- |
- |
- |
- |
3.4 |
8,347 |
|
Final dividend for the prior year |
10.1 |
24,749 |
11.3 |
27,991 |
11.3 |
27,991 |
|
|
10.1 |
24,749 |
11.3 |
27,991 |
14.7 |
36,338 |
|
Proposed dividends |
|
|
|
|
|
|
|
Interim dividend in respect of the current year (1) |
4.1 |
10,068 |
3.4 |
8,500 |
|
|
(1) Subsequent to 30 June 2026, the Directors declared an interim dividend for 2026 of 4.1p per ordinary share. This dividend will be accounted for as an appropriation of retained earnings in the year ended 31 December 2026 and is not included as a liability in the Statement of Financial Position as at 30 June 2026
The Trustees of the Sabre Insurance Group Employee Benefit Trust waived their entitlement to dividends on shares held in the trust to meet obligations arising on share incentives schemes, which reduced the dividends paid for the period ended 30 June 2026 by £158k (30 June 2025: £259k and 31 December 2025: £337k).
10. Related party transactions
There has been no change to the relationships disclosed in Note 18 of the 31 December 2025 Annual Report and Accounts.
No related party transactions have taken place in the period ended 30 June 2026 that have materially affected the financial position or the financial performance of the Group.
11. Share capital
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||
|
Authorised share capital |
Number of shares |
£ |
Number of shares |
£ |
Number of shares |
£ |
|
250,000,000 Ordinary Shares of £0.001 each |
250,000,000 |
250,000 |
250,000,000 |
250,000 |
250,000,000 |
250,000 |
|
|
|
Share capital |
|
Issued ordinary share capital (fully paid up) |
Number of shares |
£ |
|
As at 1 January 2025 |
250,000,000 |
250,000 |
|
Cancellation of shares under share buyback programme |
- |
- |
|
As at 30 June 2025 |
250,000,000 |
250,000 |
|
Cancellation of shares under share buyback programme |
(3,400,000) |
(3,400) |
|
As at 31 December 2025 |
246,600,000 |
246,600 |
|
Cancellation of shares under share buyback programme |
(1,051,134) |
(1,051) |
|
As at 30 June 2026 |
245,548,866 |
245,549 |
Share buyback
During the year the Group executed a share buyback programme. Up to 30 June 2026 a total of 1,051,134 ordinary shares (representing 0.43% of Sabre Insurance Group plc's issued share capital at 31 December 2025) had been purchased and cancelled. Since 1 July 2026 and up to 31 July 2026 a further 1,667,589 ordinary shares (representing 0.68% of Sabre Insurance Group plc's issued share capital at 30 June 2026) had been purchased. The total cost of the programme up to 31 July 2026 is £4,755,067 including stamp duty.
12. Events after the balance sheet date
Other than the declaration of an interim ordinary dividend as disclosed in Note 9 and the share buyback disclosed in Note 11, there have been no material changes in the affairs or the financial position of the Group and its subsidiaries since the Statement of Financial Position date.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
The Condensed Consolidated Financial Statements for the six months ended 30 June 2026 have been prepared in accordance with International Accounting Standards 34 ("IAS 34") as adopted by the UK.
The interim management report includes a fair review of the information as required by:
- DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of the important events that have occurred during the first six months of the current financial year and their impact on the condensed set of Consolidated Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially impacted the financial position or performance of the Group during the period; and any changes in the related party transactions from the Group's Consolidated Financial Statements for the year ended 31 December 2025 that could do so.
Signed on behalf of the Board of Directors
Geoff Carter Adam Westwood
Chief Executive Officer Chief Financial Officer
3 August 2026 3 August 2026
Independent review report to Sabre Insurance Group plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Sabre Insurance Group plc's condensed consolidated interim financial statements (the "interim financial statements") in the Half-Year Report 2026 of Sabre Insurance Group plc for the 6 month period ended 30 June 2026 (the "period").
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
- the Condensed Consolidated Statement of Financial Position as at 30 June 2026;
- the Condensed Consolidated Profit or Loss Account and the Condensed Statement of Comprehensive Income for the period then ended;
- the Condensed Consolidated Statement of Cash Flows for the period then ended;
- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
- the explanatory notes to the interim financial statements.
The interim financial statements included in the Half-Year Report 2026 of Sabre Insurance Group plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
BASIS FOR CONCLUSION
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Half-Year Report 2026 and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements
CONCLUSIONS RELATING TO GOING CONCERN
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.
RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW
OUR RESPONSIBILITIES AND THOSE OF THE DIRECTORS
The Half-Year Report 2026, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Half-Year Report 2026 in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Half-Year Report 2026, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial statements in the Half-Year Report 2026 based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
USE OF THIS REPORT
This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
3 August 2026
Financial Reconciliations
Gross Written Premium
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Insurance revenue |
105,091 |
112,406 |
217,990 |
|
Less: Instalment income |
(1,298) |
(1,935) |
(3,441) |
|
Less: Movement in unearned premium |
12,168 |
(10,147) |
(11,649) |
|
Gross written premium |
115,961 |
100,324 |
202,900 |
Net Loss Ratio
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Insurance service expense |
68,586 |
87,560 |
174,491 |
|
Less: Amortisation of insurance acquisition cash flows |
(8,028) |
(8,474) |
(16,753) |
|
Less: Amounts recoverable from reinsurers for incurred claims |
(10,136) |
(25,392) |
(54,552) |
|
Less: Directly attributable claims expenses |
(3,743) |
(3,811) |
(7,171) |
|
Add: Net impact of discounting (1) |
5,212 |
3,512 |
7,068 |
|
Undiscounted net claims incurred (2) |
51,891 |
53,395 |
103,083 |
|
Insurance revenue |
105,091 |
112,406 |
217,990 |
|
Less: Instalment income |
(1,298) |
(1,935) |
(3,441) |
|
Less: Reinsurance expense |
(10,552) |
(13,292) |
(23,872) |
|
Net earned premium |
93,241 |
97,179 |
190,677 |
|
|
|
|
|
|
Net loss ratio |
55.7% |
54.9% |
54.1% |
(1) Excludes discounting on Periodic Payment Orders ("PPOs")
(2) Calculation of undiscounted net claims incurred allows for the impact of discounting on long-term non-life annuities, Periodic Payment Orders ("PPOs"), consistent with presentation under IFRS 4.
Expense Ratio
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Other operating expenses |
16,081 |
14,598 |
29,850 |
|
Add: Amortisation of insurance acquisition cash flows |
8,028 |
8,474 |
16,753 |
|
Add: Directly attributable claims expenses |
3,743 |
3,811 |
7,171 |
|
Total operating expenses |
27,852 |
26,883 |
53,774 |
|
|
|
|
|
|
Insurance revenue |
105,091 |
112,406 |
217,990 |
|
Less: Instalment income |
(1,298) |
(1,935) |
(3,441) |
|
Less: Reinsurance expense |
(10,552) |
(13,292) |
(23,872) |
|
Net earned premium |
93,241 |
97,179 |
190,677 |
|
|
|
|
|
|
Expense ratio |
29.9% |
27.7% |
28.2% |
Combined Operating Ratio
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Net loss ratio |
55.7% |
54.9% |
54.1% |
|
Expense ratio |
29.9% |
27.7% |
28.2% |
|
Combined operating ratio |
85.6% |
82.6% |
82.3% |
Discounted Net Loss Ratio
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Insurance service expense |
68,586 |
87,560 |
174,491 |
|
Less: Amortisation of insurance acquisition cash flows |
(8,028) |
(8,474) |
(16,753) |
|
Less: Amounts recoverable from reinsurers for incurred claims |
(10,136) |
(25,392) |
(54,552) |
|
Less: Directly attributable claims expenses |
(3,743) |
(3,811) |
(7,171) |
|
Net claims incurred |
46,679 |
49,883 |
96,015 |
|
|
|
|
|
|
Insurance revenue |
105,091 |
112,406 |
217,990 |
|
Less: Instalment income |
(1,298) |
(1,935) |
(3,441) |
|
Less: Reinsurance expense |
(10,552) |
(13,292) |
(23,872) |
|
Net earned premium |
93,241 |
97,179 |
190,677 |
|
|
|
|
|
|
Discounted net loss ratio |
50.1% |
51.3% |
50.4% |
Discounted Combined Operating Ratio
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
Net loss ratio |
50.1% |
51.3% |
50.4% |
|
Expense ratio |
29.9% |
27.7% |
28.2% |
|
Discounted combined operating ratio |
80.0% |
79.0% |
78.6% |
Net Insurance Margin
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Net claims incurred |
51,891 |
53,395 |
103,083 |
|
Total operating expenses |
27,852 |
26,883 |
53,774 |
|
Total insurance expense |
79,743 |
80,278 |
156,857 |
|
|
|
|
|
|
Insurance revenue |
105,091 |
112,406 |
217,990 |
|
Less: Reinsurance expense |
(10,552) |
(13,292) |
(23,872) |
|
Net insurance revenue |
94,539 |
99,114 |
194,118 |
|
|
|
|
|
|
Net insurance margin |
15.7% |
19.0% |
19.2% |
Solvency Coverage Ratio - Pre-dividend
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Solvency II net assets |
121,701 |
123,514 |
133,080 |
|
Solvency capital requirement |
69,173 |
63,576 |
66,986 |
|
Solvency coverage ratio - pre-dividend |
175.9% |
194.3% |
198.7% |
Solvency Coverage Ratio - Post-dividend
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£'k |
£'k |
£'k |
|
Solvency II net assets |
121,701 |
123,514 |
133,080 |
|
Less: Interim/Final dividend |
(10,068) |
(8,500) |
(24,907) |
|
Solvency II net assets - post-dividend |
111,633 |
115,014 |
108,173 |
|
Solvency capital requirement |
69,173 |
63,576 |
66,986 |
|
Solvency coverage ratio - post-dividend |
161.4% |
180.9% |
161.5% |
Glossary of Terms
|
Acquisition cash flows |
|
Cash flows arising from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio. |
|
Adjusted IFRS net assets |
|
Equals the Group's IFRS net assets, less Goodwill. |
|
Asset for incurred claims ("AIC") |
|
The reinsurers' share of the liability for incurred claims ("LIC"). |
|
Asset for remaining coverage ("ARC") |
|
The reinsurers' share of the liability for remaining coverage ("LRC"). |
|
Combined operating ratio ("COR") |
|
The combined operating ratio is the ratio of total expenses (which comprises commission expenses and operating expenses), and net insurance claims relative to net earned premium ("NEP"), expressed as a percentage. |
|
Contractual service margin ("CSM") |
|
This represents the unearned profit the entity will recognise as it provides insurance contract service under the insurance contracts in the group. It is a component of the carrying amount of the asset or liability for a group of insurance contracts. |
|
Coverage period |
|
The period during which the entity provides insurance contract services. The period includes the insurance contract services that relate to all premiums within the boundary of the insurance contract. |
|
Effective tax rate |
|
Effective tax rate is calculated by dividing the tax charge per the Profit or Loss Account by the Group's profit before tax. |
|
Expense ratio |
|
Expense ratio is a measure of total expenses (which comprises commission expenses and operating expenses), and claims handling expenses, relative to net earned premium ("NEP"), expressed as a percentage. |
|
Fair value through OCI ("FVOCI") |
|
Unrealised gains and losses from the remeasurement of the fair value financial assets are recognised in the Statement of Other Comprehensive Income ("OCI"). |
|
Financial Reporting Council ("FRC") |
|
The UK's regulator for the accounting, audit and actuarial professions, promoting transparency and integrity in business. |
|
Fulfilment cash flows ("FCF") |
|
An explicit, unbiased and probability-weighted estimate (i.e. expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk. |
|
Gross earned premium ("GEP") |
|
The proportions of premium attributable to the periods of risk that relate to the current accounting period. It represents gross written premium ("GWP") adjusted by the unearned premium provision at the beginning and end of the accounting period, before deduction of reinsurance expense. |
|
Gross written premium ("GWP") |
|
Gross written premium comprises all premiums in respect of policies underwritten in a particular financial year, regardless of whether such policies relate in whole or in part to a future financial year, before deduction of reinsurance expense. |
|
IFRS 17 "Insurance Contracts" |
|
An accounting standard that addresses the establishment of principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard (Effective 1 January 2023). |
|
IFRS net assets |
|
The difference between the Group's total assets and total liabilities. |
|
Insurance revenue |
|
Gross earned premium ("GEP") plus instalment income. |
|
International Financial Reporting Standards ("IFRS") |
|
Accounting standards issued by the IFRS Foundation and the International Accounting Standards Board ("IASB"). |
|
Liability for incurred claims ("LIC") |
|
An entity's obligation to: b) Pay amounts that are not included in (a) and that relate to: ii. any investment components or other amounts that are not related to the provision of insurance contract services and that are not in the liability for remaining coverage. |
|
Liability for remaining coverage ("LRC") |
|
An entity's obligation to: b) pay amounts under existing insurance contracts that are not included in (a) and that relate to: i. insurance contract services not yet provided (i.e. the obligations that relate to future provision of insurance contract services); or ii. any investment components or other amounts that are not related to the provision of insurance contract services and that have not been transferred to the liability for incurred claims. |
|
Net claims incurred |
|
Net claims incurred is equal to gross claims incurred less amounts recovered from reinsurers. |
|
Net earned premium ("NEP") |
|
Gross earned premium ("GEP") less reinsurance expense. |
|
Net insurance revenue |
|
Insurance revenue less reinsurance expense. |
|
Net loss ratio ("NLR") |
|
Net loss ratio measures net insurance claims, less claims handling expenses, relative to net earned premium expressed as a percentage. |
|
Net insurance margin ("NIM") |
|
Net insurance margin measures how much net insurance profit is generated as a percentage of net insurance revenue. |
|
Own Risk and Solvency Assessment ("ORSA") |
|
A prospective assessment of the Group's risks and solvency capital requirements. |
|
Periodic Payment Order ("PPO") |
|
A compensation award as part of a claims settlement that involves making a series of annual payments to a claimant over their remaining life to cover the costs of the care they will require. |
|
Premium allocation approach ("PAA") |
|
Method for measuring insurance contracts under IFRS 17 "Insurance Contracts" |
|
Return on tangible equity |
|
Return on tangible equity is measured as the ratio of the Group's profit after tax to its average tangible equity over the financial year, expressed as a percentage. |
|
Risk adjustment for non-financial risk |
|
The compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfils insurance contracts. |
|
Solvency coverage ratio |
|
The ratio of Own Funds (Solvency II capital) to Solvency Capital Requirement "SCR". |
|
Solvency Capital Requirement ("SCR") |
|
The total amount of capital that the Group must hold to cover the risks under the Solvency II regulatory framework. The Group is required to maintain eligible own funds of at least 100% of the SCR. The Group uses the Standard Formula to determine the SCR. |
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