Trading Update

20 October 2026 Sabre Insurance Group plc Trading Update Full-year profit guidance reiterated as premium growth continues

Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading motor insurance underwriters, today provides an update on trading for the period from 1 July 2026 to 30 September 2026.

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Key Highlights

‒ Premium growth of 14.3% year-on-year, with the key strategic Motor Vehicle and Motorcycle segments growing 16.5% and 52.9% respectively

‒ Claims inflation is being covered in Sabre's pricing, with underwriting discipline maintained

‒ Margin improvement expected in the second half of 2026 supported by earn-through of strong premium written in the first half

‒ Ambition 2030 target to deliver a profit before tax of at least £80m in 2030 remains on track

‒ Continued roll-out of Sabre Direct motorcycle, a core element of Ambition 2030, has driven the increase in Motorcycle premium

Market trends

‒ Claims inflation has persisted at between 6% and 7% during 2026

‒ Market-wide motor insurance premiums increased year-to-date, although pricing does not appear to have kept up with the level of claims inflation

‒ Material market-wide price increases are likely to be required to cover claims inflation, which we expect to provide additional momentum to our growth, although the timing remains uncertain

Outlook

‒ Full-year earnings guidance reiterated, with profit before tax for 2026 expected to be slightly higher than 2025

‒ Year-on-year premium growth is expected for the full-year, although growth is likely to moderate in the final quarter as Sabre's pricing discipline is maintained

‒ Strong capital generation anticipated to support attractive dividend for the full year

‒ We continue to anticipate growing premium volumes and earnings into the medium term, with timing influenced by market conditions

‒ Expect undiscounted net insurance margins for 2026 within our target 18% to 22% range

Geoff Carter, Chief Executive Officer of Sabre, commented:

"I am very pleased with our performance through the first nine months of 2026. Our continuing focus on "profit as the target and volume as an outcome" underpins our confidence in delivering a strong full-year result, which we expect will be slightly ahead of 2025.

We have maintained pricing discipline, strong premium volumes and a robust solvency position despite continuing weak market conditions.

We will continue to apply this discipline and focus as we move into 2027 rather than pursue volume for its own sake.

Claims inflation continues to run slightly ahead of historical norms at 6% to 7%, but we do not see market premiums year-to-date keeping pace with this level of cost increase. Sabre is fully covering this through our own pricing, whilst delivering good premium volumes.

Our Ambition 2030 plans continue to progress well as we test and roll-out our various initiatives. The combination of our short-term discipline and longer-term growth ambition leave us well positioned to deliver sustainable performance and earnings growth over time."

For the year ending 31 December 2026 onwards, the reported segments for Motor Vehicle and Taxi will be combined into a single operating segment, "Motor Vehicle", better reflecting the Group's strategic focus. The table below presents the current period and comparative premium information on this basis.

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