Sabre Insurance Increases Profit, Boosts Dividend and Announces £5m Share Buyback

Sabre Insurance Group (LSE:SBRE) reported a 4.9% increase in profit before tax for 2025 to £51 million, while its net insurance margin improved to 19.2%. The results came despite a 14.2% decline in gross written premiums, reflecting the company’s strategy of maintaining strict pricing discipline rather than pursuing volume growth during softer market conditions. Supported by a strong capital position, Sabre raised its total dividend for the year to 13.5p per share and announced plans for a £5 million share buyback. The company said its solvency coverage ratio will remain within the targeted 140%–160% range even after these capital returns.

Management noted that disciplined pricing, combined with easing claims inflation, helped deliver strong profitability and has positioned the group for a return to premium growth. Early trading in 2026 indicates that motor vehicle gross written premiums are already more than 5% higher year on year. Strategic initiatives under the company’s Ambition 2030 plan are also advancing, including the launch of Sabre Direct for motorcycles and the rollout of new differentiated pricing models. These initiatives are expected to support higher profitability and sustainable growth over the coming years.

The company’s outlook is supported by strong financial fundamentals, including a robust balance sheet with low leverage and an attractive valuation profile marked by a relatively low price-to-earnings ratio and a high dividend yield. Technical indicators are moderately positive but mixed when compared with longer-term averages. Recent corporate actions, including the announced share buyback and insider share purchases, also provide supportive signals for investors.

More about Sabre Insurance Group plc

Sabre Insurance Group plc is one of the UK’s leading specialist motor insurance underwriters, offering policies for cars, motorcycles and taxis. The company focuses on disciplined underwriting, careful management of insurance cycles and conservative assumptions around claims inflation, allowing it to maintain strong margins and capital resilience in the competitive UK motor insurance market.