Sabre Insurance Group has reported stronger profitability for the first half of 2025, despite a fall in premium income, as it held firm on underwriting discipline and signalled a potential turn in the UK motor insurance market.
The motor-focused insurer posted a 26% year-on-year increase in pretax profit to £25.5 million for the six months to June 30, 2025, up from £20.2 million in the same period last year.
Net insurance margin rose to 19%, compared to 15.7% in 2024, while the combined operating ratio improved to 82.6% from 86.0%.
Gross written premium fell to £100.3 million, down from £125.7 million, as the group continued to prioritise pricing discipline over volume in what it described as a “soft” rating environment.
Chief executive Geoff Carter (pictured) said the company remained focused on writing profitable business and was well positioned to resume growth once market conditions improve.
“We have continued to write measured but healthy volumes of business at our target loss ratios through the continued soft part of the market pricing cycle,” he said. “Focussing on margins not volumes will help protect us against any external macro shocks… We remain confident of delivering a strong profit in 2025, in-line with 2024, and an attractive dividend.”
Claims inflation is said to remain in the mid-to-high single digits, but Sabre noted some stabilisation in pricing trends, raising the prospect of more favourable conditions in the second half of the year.
The interim dividend was increased to 3.4 pence per share, double the level paid in 2024, and the company has launched a £5 million share buy-back programme. By July 29, 1.45 million shares had been repurchased, representing 0.58% of issued share capital.
Carter also pointed to early progress on the group’s “Ambition 2030” strategy, including the April launch of a direct motorcycle insurance product and forthcoming testing of differentiated pricing models in motor. The insurer remains on track to meet its long-term profit target of over £80 million before tax by 2030.
Sabre expects its net insurance margin to remain within target levels for the full year. However, it now forecasts a slight drop in full-year gross written premium compared to 2024, reflecting the ongoing softness in the UK motor market.
The insurer also addressed regulatory developments, noting that the Financial Conduct Authority’s recent “Roadmap for Retail Insurance” did not signal immediate changes to existing premium finance or pricing rules. Sabre said its current Consumer Duty framework is expected to remain sufficient under the FCA’s evolving expectations.
