In This Article:
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Premium: Highest ever premium recorded in 2024.
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Profit: Profit doubled year-on-year to GBP48.6 million.
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Net Insurance Margin: Improved by 7 percentage points, nearing the 18% to 22% target.
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Dividend: Total dividend increased by 44% to 13% of earnings.
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Capital Ratio: Post-dividend capital ratio at 171%.
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Share Buyback: Announced first share buyback of GBP5 million.
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Combined Operating Ratio: Improved by more than 7 percentage points.
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Solvency Capital Ratio: Excluding dividends and buyback, around 163%.
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Motorcycle Business: Performance improved and aligned with plans.
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Taxi Business: Marginally profitable, with maintained low policy volumes.
Release Date: March 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sabre Insurance Group PLC (FRA:18M) reported its highest ever premium and doubled its profit in 2024.
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The company generated significant capital, enabling a 44% increase in dividends and initiating its first share buyback.
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Sabre Insurance Group PLC launched a new bike insurance product, expanding its market offerings.
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The company maintained a strong focus on profitability, with a 7% improvement in net insurance margin year-on-year.
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Sabre Insurance Group PLC has a robust capital position, with a post-dividend capital ratio of 171%.
Negative Points
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The market is currently in a soft pricing cycle, which may impact future profitability if prices do not increase.
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Claims inflation remains a concern, with mid to high single-digit increases expected, particularly in personal injury claims.
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The prior year did not yield the expected level of positive runoff, indicating some reserve challenges.
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The company faces competitive pressure from mass-market insurers potentially encroaching on its market share.
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There is uncertainty regarding the impact of regulatory changes, such as the FCA's premium finance study, on future operations.
Q & A Highlights
Q: In a soft market, is it still possible to expand your addressable market, and how does price elasticity behave in such conditions? A: Geoff Carter, CEO, stated that Sabre can still grow in a soft market by becoming more competitive, although growth may not be as rapid as in a hard market. Matt Wright, Chief Actuary, added that they can roll out their Ambition 2030 strategy during the soft market and test changes effectively.
Q: Is the share buyback a new tool for Sabre, or is it a one-off event? Why maintain GBP40 million in excess capital? A: Geoff Carter, CEO, confirmed that share buybacks are now part of Sabre's toolbox, used when the share price is undervalued and excess capital is available. Adam Westwood, CFO, explained that the GBP40 million excess capital ensures they can manage risks and continue growth without capital constraints.