Sabre Insurance half-year results 2026: premium growth supports full-year guidance

Sabre Insurance Group PLC has reported strong premium growth for the six months ended 30 June 2026, giving management confidence that profit will accelerate during the second half.

Gross written premium increased by 15.7% to £116.0 million, supported by growth across motor vehicle and motorcycle insurance. However, the income statement has not yet caught up with that expansion. Profit before tax fell by 6.3% to £23.9 million, while the net insurance margin declined from 19.0% to 15.7%.

Management says this reflects the timing difference between writing a policy and recognising the resulting premium as revenue. Sabre has maintained its full-year guidance for profit slightly ahead of the £51.0 million reported in 2025, with a net insurance margin within its 18% to 22% target range.

Sabre Insurance half-year results at a glance

Metric	H1 2026	H1 2025	Change
Gross written premium	£116.0 million	£100.3 million	15.7% higher
Net insurance margin	15.7%	19.0%	3.3 percentage points lower
Net loss ratio	55.7%	54.9%	0.8 percentage points higher
Expense ratio	29.9%	27.7%	2.2 percentage points higher
Combined operating ratio	85.6%	82.6%	3.0 percentage points higher
Profit before tax	£23.9 million	£25.5 million	6.3% lower
Profit after tax	£17.9 million	£18.9 million	5.2% lower
Basic earnings per share	7.33p	7.64p	4.1% lower
Interim dividend	4.1p	3.4p	20.6% higher

The headline mix is therefore fairly clear: Sabre wrote considerably more business, but reported profitability weakened during the period.

Why premium growth has not reached profit yet

Gross written premium measures policies written during the period, regardless of when the insurance cover is provided. Earned premium is recognised gradually as Sabre provides that cover.

Sabre's gross earned premium fell by 6.1% to £103.8 million, despite the sharp increase in written premium. This was because lower business volumes written during 2025 continued to feed into the first-half figures.

Meanwhile, some of the premiums written during early 2026 relate to cover extending into future periods. The unearned portion increased by £12.2 million and is expected to be recognised progressively during the second half.

This timing effect also put pressure on the expense ratio. Operating costs rose to £16.1 million from £14.6 million, including higher staff costs and recruitment ahead of anticipated growth. With these expenses spread over a smaller earned premium base, the expense ratio increased to 29.9%.

Management expects the ratio to improve as the newly written business becomes earned revenue. That progression is central to the full-year outlook.

Motor vehicle and motorcycle business drives growth

Motor vehicle gross written premium increased by more than 18% to £103.4 million. Policy numbers reached 232,000, compared with 201,000 at the end of 2025.

This is important because Sabre says the additional policies were still written at its target margins, despite competitive market conditions and prices continuing to lag claims and expense inflation. Its assumption for claims inflation remains at a mid-single-digit level.

Motorcycle premium rose by more than 50% to £8.9 million, with most of the growth coming from Sabre Direct. This is the first target product under the insurer's Ambition 2030 strategy and provides an early indication that the plan is gaining traction.

Taxi remained the outlier. Premium declined from £7.0 million to £3.7 million as Sabre maintained a cautious approach because of unfavourable market pricing.

Underwriting ratios need some context

The combined operating ratio increased from 82.6% to 85.6%. This ratio combines claims and operating expenses as a percentage of net earned premium, with a figure below 100% indicating an underwriting profit.

Although the ratio remains below 100%, the movement in the wrong direction deserves attention.

The net loss ratio edged up to 55.7%. This included a current-year loss ratio of 66.5%, partly offset by favourable development from claims reserves relating to previous years. Those prior-year reserve releases contributed a negative 10.8 percentage points to the ratio.

The motorcycle loss ratio was particularly high at 120.9%. Sabre attributed this to volatility from individually large claims, seasonality and the product's relatively modest earned premium base. Even so, investors will want to see this settle as the direct motorcycle business expands.

Dividend rises as buyback continues

Sabre declared an interim dividend of 4.1p per share, up from 3.4p. It will be paid on 23 September 2026 to shareholders on the register on 21 August, with an ex-dividend date of 20 August.

The company is also continuing the £5 million share buyback launched on 2 June. By 30 June, 1,051,134 shares had been purchased and cancelled. A further 1,667,589 shares were acquired by 31 July, taking the programme's total cost to £4.76 million including stamp duty.

Sabre's solvency coverage ratio was 175.9% before the interim dividend and 161.4% afterwards. The post-dividend figure is almost unchanged from the 161.5% reported at the end of 2025, despite including the impact of the buyback.

The group also has no external debt, while cash and cash equivalents increased to £47.4 million from £25.5 million at the end of 2025.

What investors should watch in the second half

The biggest positive is the combination of double-digit premium growth, pricing discipline and confirmed guidance. Sabre expects 2026 profit to come in slightly ahead of 2025, supported by premiums already written earning through during the second half.

The higher dividend and continued buyback also demonstrate confidence in capital generation. Progress in direct motorcycle insurance provides an initial proof point for Ambition 2030, while the company is embedding artificial intelligence in areas including pricing and operational efficiency.

The main risk is execution. The half-year margin of 15.7% is below the 18% to 22% full-year target, profit has declined and the expense ratio has moved higher. Sabre now needs the expected revenue recognition and operating leverage to appear in the second-half numbers.

Claims inflation is another variable. Management believes wider market price increases are still needed to keep pace with inflation. If competitors do not raise prices sufficiently, Sabre may have to choose between slower growth and accepting weaker economics. It has so far prioritised margin protection.

The original company announcement provides the full financial statements and accompanying notes.

The second-half earn-through is the key test

Sabre's first-half figures are stronger beneath the surface than the decline in profit initially suggests. Premium growth has accelerated, motor vehicle policy volumes have risen and shareholder returns remain well supported by capital generation.

Still, management's explanation creates a clear test for the remainder of 2026. Recently written premiums must translate into higher earned revenue, a lower expense ratio and a return to the targeted insurance margin range. Delivery against those milestones will determine whether Sabre can turn an encouraging growth story into the promised improvement in full-year profit.