Sabre Insurance Group (SBRE) CMD 2024 summary

Medium-term Financial Ambitions and Growth Strategy

• Targeting at least GBP 80 million profit before tax by 2030, representing a ~10% CAGR from 2024, with confidence to exceed this figure depending on market conditions.

• Growth will be achieved organically, with no reliance on M&A or significant capital expenditure; investments in technology and capability have already been made.

• Profit growth will come from expanding both core motor, motorcycle, and taxi segments, leveraging operational efficiencies, new distribution channels, and advanced pricing technology.

• Strategy includes maintaining underwriting discipline, flexing margins between 18%-22% based on market conditions, and balancing profit and volume.

• Growth will not be linear; annual profit increases may vary with market cycles, but the CAGR target is around 10% to 2030.

Business Model, Market Positioning, and Operational Strengths

• Focused on high-margin, higher-premium sectors in UK personal lines insurance, with less than 1% market share, allowing for significant growth without impacting competitors.

• Majority of profit is derived from underwriting, not ancillary products, reducing regulatory risk and exposure.

• Unique data and proprietary pricing technology enable granular risk selection and margin management.

• Experienced management and staff retained through challenging periods, supporting operational resilience and scalability.

• Delivers market-leading underwriting performance, with a 10-year CAGR GWP growth of 5% and average COR of 73% vs. market 102%.

Product, Distribution, and Technology Developments

• Motorcycle segment to be expanded with a new direct online brand and broader broker distribution, launching in Q1 2025, leveraging existing technology and operational infrastructure.

• No call centers for the new direct motorcycle brand; customer service will be portal-based with web chat support.

• Initiatives in motorcycle and core motor are expected to deliver incremental profit, with significant impact from 2026 onward.

• Significant technological enhancements to pricing infrastructure are planned to support growth and enable sophisticated, risk-adjusted pricing.

• No plans to enter home insurance or cross-sell; focus remains on vehicles with engines and wheels.