Driving
Success
Annual Report and Accounts
2024
Who we are
Sabre Insurance Group is
a UK-based motor insurer,
providing fairly priced
policies to a wide range
of customers.
We have a track record of
market-leading underwriting
performance across the
cycle and a diverse, multi-
channel distribution strategy.
Annual Report and Accounts 2024Sabre Insurance Group plc
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1 Alternative performance measure. For reconciliations to alternative
performance measures, see pages 201 to 212
Highlights
Early and decisive pricing action
positioned the Group well for improved
insurance market conditions, resulting in
premium and profitability growth in 2024.
Financial highlights
Ambition 2030
Gross written premium
1
£236.4m
2023 | £225.1m
IFRS profit before tax
£48.6m
2023 | £23.6m
Pre-dividend solvency
coverage ratio
1
216.6%
2023 | 205.3%
Undiscounted combined
operating ratio
1
84.2%
2023 | 91.6%
Total dividend
13.0p
2023 | 9.0p
Post-dividend solvency
coverage ratio
1
171.1%
2023 | 170.9%
– Sabre has set out a medium-term
plan to increase profit to at least
£80m in 2030
– We will expand our competitive
footprint without compromising our
underwriting discipline or margin
on existing business
– We will grow our presence in the
motorcycle market through our
direct brand and further broker
relationships
– More information on pages 14
to 17
Contents
01-65 | Strategic Report
01 | Highlights
02 | At a Glance
03 | Our Business
04 | The Sabre Journey
06 | Investment Case
08 | Market Context
10 | Our Values
11 | Our Business Model
12 | Our Strategy
14 | Ambition 2030
18 | Chief Executive Officer’s Review
22 | Key Performance Indicators
24 | Principal Risks and Uncertainties
33 | Viability Statement
36 | Section 172 Statement
40 | Chief Finance Officer’s Review
44 | Responsibility and sustainability
65 | FCA Consumer Duty
67-122 | Governance
67 | Chair’s introduction
68 | Board of Directors
72 | Governance Report
80 | Audit Committee Report
84 | Risk Committee Report
87 | Nomination & Governance Committee Report
90 | Remuneration Committee Report
94 | Directors’ Remuneration Policy
105 | Annual Report on Directors’ Remuneration
118 | Directors’ Report
122 | Statement of Directors’ Responsibilities
123-217 | Financial Statements
124 | Independent Auditor’s Report
131 | Consolidated Profit or Loss Account
132 | Consolidated Statement of Comprehensive Income
133 | Consolidated Statement of Changes in Equity
134 | Consolidated Statement of Financial Position
135 | Consolidated Statement of Cash Flows
136 | Notes to the Consolidated Financial Statements
200 | Parent Company Statement of Financial Position
201 | Parent Company Statement of Changes in Equity
202 | Parent Company Statement of Cash Flows
203 | Notes to the Parent Company Financial Statements
208 | Financial Reconciliations
213 | Glossary of Terms
215 | Shareholder information
217 | Company Information
For more information
https://sabreplc.co.uk
01Annual Report and Accounts 2024Sabre Insurance Group plc
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Our purpose
To provide motor insurance
based upon a fair, risk-based
pricing model.
Our aim
To generate excess
capital and return this to
shareholders or reinvest in
the business to increase
future returns.
Our values
Fair to customers
Fair to our people
Fair to the planet
Fair to partners
Focused on our strategy
For more information
go to page 36
At a Glance
02 Annual Report and Accounts 2024Sabre Insurance Group plc
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Our products Our channels Our people
c.40%
through direct brands
c.60%
through brokers
Indirect distribution
The Group has established a broad
network of almost 1,000 insurance
brokers across the UK, meaning that
our policies often sit behind well-
known household names.
Price comparison websites
We work with all the major price
comparison websites (“PCWs”),
including Compare The Market,
Moneysupermarket.com and
GoCompare.
Almost all of our policies initiate
on a PCW, whether sold through
our direct brands or our network
of brokers.
We also sell to customers via our
direct brand websites, and through
our broker partners’ branded sites,
to give us an exceptionally wide
coverage of distribution channels.
For more information
https://sabreplc.co.uk
c.266k
In-force policies
2023 | c.290k
c.1,000
Insurance brokers
across the UK
167
Dedicated employees
with over 800
years’ experience
between them
Our success would
clearly not be
possible without
the dedicated
support of the
whole Sabre team.”
Geoff Carter
Chief Executive Officer
Our Business
Motor vehicle
81.6%
Motorcycle
14.3%
Taxi
4 .1%
03Annual Report and Accounts 2024Sabre Insurance Group plc
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How we support
our customers
The Sabre Journey
Choosing the
right policy
Most customers will find the
right policy for them by entering
their details into a price comparison
website and choosing their policy
based on a comprehensive list of
quotes from a number of insurers.
Others may contact a broker via
telephone or their branch office.
We aim to provide a fair price for
almost everyone who requests a
quote, meaning that we can service
customers others can’t reach.
Buying a Sabre policy
We sell policies directly to customers through our brands
GoGirl and Insure2Drive, and through insurance brokers,
meaning that our policies often sit behind well-known
household names. This diverse distribution network allows us
to provide our policies to the largest possible customer base,
and gain direct customer insights through operating our
own brands.
Being a Sabre
customer
Whether you buy a policy through
Sabre’s direct brands or through
a broker, you can be assured of
excellent, expert customer service.
Our direct brands are managed
through a specialist, UK-based call
centre while our network of brokers
operate to the quality expected by
some of the UK’s largest customer
brands.
04 Annual Report and Accounts 2024Sabre Insurance Group plc
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You’re in
safe hands
Sabre is a successful and profitable
Group, with a very robust balance
sheet. The Group holds considerably
more capital than is required to meet
its expected liabilities, and operates a
low-risk model, meaning that you can
be assured that we will be there when
you need to make a claim.
If the worst happens
Sabre’s dedicated claims handling team are experts in their field,
targeting fast, fair claims payments. We thoroughly investigate claims to
ensure that honest customers continue to get the best deal possible.
We operate a ‘zero backlog’, transparent culture, as we understand that
no customer should be left in the dark when making a claim.
Renewing
your policy
Sabre has a bespoke, fully-
automated pricing model,
which means we have always
priced policies fairly and do
not hike prices on renewal.
For more information
https://sabreplc.co.uk
The Sabre Journey continued
05Annual Report and Accounts 2024Sabre Insurance Group plc
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Long and
medium-term
opportunity
A resilient business
− Target margin above industry norm, reflecting a
‘higher-risk’ book and focus on underwriting profitability,
meaning even in years where costs are significantly
greater than expected, the Group has been able to
deliver an underwriting profit.
− Underwriting discipline and focus supports early pricing
action where market conditions change, meaning
future claims costs are fully covered and underwriting
performance can recover quickly from one-off shocks.
− Motor insurance is a compulsory purchase for motorists.
As a specialist provider, primarily in non-standard markets,
Sabre has a strong defensive position.
− The Group is required to hold excess capital, which is known
as its Solvency Capital Requirement (“SCR”). In addition,
the Group prefers to hold regulatory capital
at between 140%-160% of this requirement. The Group holds
a significant excess of assets over liabilities, providing a
strong balance sheet able to withstand the most extreme
foreseeable shocks.
IFRS profit before tax
£48.6m
2023 | £23.6m
Low-risk and capital-light
− The Group looks to balance earnings generation with
effective risk management, limiting the amount of
regulatory capital required to be held.
− The Group invests in government-backed assets and highly
rated corporate bonds. These assets fuel the Group’s
exceptional target underwriting returns.
− Reinsurance is used to limit exposure to individual large
claims. This reduces year-on-year volatility and the capital
that the Group is required to hold.
Post-dividend solvency
capital ratio
171.1%
2023 | 170.9%
Investment Case
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Reliable dividend flow
− This year, the Group has announced its intention to
distribute further additional capital by way of a share
buy-back.
− Sabre’s core business is fundamentally capital-generative.
The majority of capital generated by the Group has
historically been returned to shareholders by way of
an ordinary and special dividend.
− Since IPO the Group’s dividend payout ratio has remained
above 95.0% of earnings.
Total dividend in
respect of 2024
13.0 p
2023 | 9.0p
Optimised for growth
− Sabre’s market share represents a very small
share of the total motor insurance market
(less than 1% of c28m motor policies), leaving
considerable scope for market share growth
when market conditions are favourable.
− A technologically-focused approach to
underwriting excellence, constantly optimising
pricing opportunities while deploying best-in-
class underwriting and claims teams.
− We consider entering new partnerships in
complementary areas (such as the Motorcycle
and Taxi products).
Premium growth
5.0%
2023 | 31.4%
For more information
https://sabreplc.co.uk
Investment Case continued
07Annual Report and Accounts 2024Sabre Insurance Group plc
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Current market conditions
Motor insurance pricing in the UK entered a downturn in 2018,
with average premiums dropping by 14% between Q1 2018
and Q1 2022. Over the same period, the Consumer Prices
Index (“CPI”) increased by over 10% and, in Sabre’s view,
motor insurance claims costs increased even further.
This cycle downturn was far longer than normal, which was
driven by a ‘normal’ downturn, then impacted by ongoing
influences of the UK’s exit from the European Union, COVID
and the high inflationary period.
Pricing started to recover in Q2 2022 and increased rapidly until
Q1 2024, over which time the CPI-adjusted average premium
charged by the market had recovered to 2017 levels. Since Q1
2024, market prices have decreased, particularly in the second
half of the year.
It is Sabre’s view that the price increases up to Q1 2024 went
some way to covering the increasing costs of claims, but that
they are in no way excessive as compared to the costs of
providing cover in the UK. With price increases having slowed
or reversed since Q1 2024, we consider the market is likely to
be under-pricing policies, and therefore a further correction
to market pricing is required.
Drivers of cost inflation
In previous years, we have described why claims cost inflation
was significantly ahead of wider economic inflation. We still see
evidence that claims costs across the motor insurance industry
are rising, even as wider economic inflation has slowed.
Key elements driving inflation include:
− Care costs for seriously injured people
− Wage inflation
− The costs of car parts
− The costs of hire vehicles and extended hire periods
− Industry levies, such as that paid to the Motor Insurance
Bureau and into the Financial Services Compensation
Scheme
Market Context
The outlook for inflation
It is not possible to predict exactly how cost inflation will
develop; however, we have identified several factors which
will impact costs going forward:
− Care cost inflation, which is largely driven by wage
inflation for care workers, could rise significantly as the
potential pool of care staff from around the world remains
suppressed, and minimum wage and national insurance
rises take effect
− There is some indication the costs of car parts will continue
to rise. The current geopolitical climate, including conflicts
and potential tariffs, may impact supply chains
− Used car prices have stabilised
− The cost of hire vehicles is impacted by the time taken to
carry out repairs. If part availability increases, rental costs
could reduce
− The total impact of whiplash reforms enacted in 2021
remains uncertain
− We expect industry levies to continue to rise in line with
increases in the expected costs of compensating the
victims of uninsured drivers
− Energy costs increases can impact elements of the claims
supply chain, such as repair costs
What does cost inflation mean for Sabre?
Cost inflation is factored into Sabre’s policy pricing – we charge
an amount based on what we expect to pay out over the
period of that policy (generally 12 months), factoring in our
view of inflation. As all the inflationary factors are market-wide,
we expect that market price increases will reflect this inflation,
but, as discussed earlier, this has come in ‘jumps’ as the market
transitions from ‘soft’ to ‘hard’. Lower than expected inflation
can be beneficial to earnings, as pricing assumptions can turn
out to be conservative.
Underlying
market
conditions
Cyclicality in the UK motor insurance market
The UK private motor insurance market has historically
exhibited pricing cyclicality driven by competitive dynamics,
as well as social, economic and regulatory factors.
In times of lower competitive intensity, price levels tend to
rise. However, pricing increases typically enhance industry
profitability, resulting in industry participants reducing prices
to increase volumes and new entrants joining the market.
This increased competition can cause prices to fall, which can
reduce underwriting profitability across the industry and may,
in turn, lead market participants to reduce volumes or seek
to exit the market, reducing competitive intensity and leading
to prices rising again.
The pricing cycle can also be impacted by regulatory
changes, such as pricing interventions or restrictions on
claimant activity.
08 Annual Report and Accounts 2024Sabre Insurance Group plc
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− The Financial Conduct Authority has announced a review
of the provision of premium financing (paying via monthly
instalments) by insurers, brokers and specialist agencies.
Sabre provides premium financing directly to a proportion
of customers on its direct brands, which account for fewer
than 20% of Sabre’s total customers. In 2024, income from
instalment interest made up less than 2% of the Group’s
insurance revenue.
We are aware that there appears to be an increased
regulatory focus on the value presented by non-core
products(“add-ons”). While these do not form a significant
part of Sabre’s income or strategy, we watch with keen interest
developments in this area. We have complied fully with all
current requirements, including the Consumer Duty. As part
of our focus on customer fairness, we have ensured that
our target margins are consistent across all of our products.
We present a statement of compliance with the Consumer
Duty on page 65 of this Report.
Economic
For Sabre, and much of the insurance market, the two most
significant macro-economic factors remain inflation and
interest rates. Inflation is discussed at some length throughout
this Report, with costs rising related to both claims and
operational costs, such as salaries and maintenance of the
Group’s IT network. The increase and decrease of interest rates
has little real-world impact for Sabre, as invested assets are
primarily fixed-rate bonds which the Group holds to maturity,
meaning the cash flows from these bonds are known at
purchase and are not affected by temporary reductions in
their value. The impact on the Group’s balance sheet strength
is also small, as the Group’s liabilities have been discounted
to reflect the time value of money – and the impact of this
discounting is inherently linked to risk-free yields.
Social
In the past two years’ Annual Reports, we have noted that as
individuals’ spending power declined, all companies must
consider the impact that their actions will have on society,
as well as the impact that this societal change will have
on them. Sabre has always aimed to price its policies fairly,
not exploiting any group of customers while fairly reflecting
increased costs. This is underlined in the Group’s adherence
to the robust Consumer Duty rules with which we will continue
to comply fully. Selling a product that is effectively compulsory,
rather than being reliant on discretionary spend, means that
Sabre has historically shown great resilience during periods
where customer spending power has reduced. In addition,
the Group’s exceptionally strong controls over claims spend
has mitigated increases in fraudulent behaviour, which is
sometimes a feature of a challenging economic environment.
We continue to do our best to support customers in financial
difficulty, while providing easy access to fairly priced insurance
for everyone.
Technological
Technological change continues apace, not only in the means
of propulsion in vehicles switching from internal combustion to
electric, but in the way that insurance is developed, marketed
and sold to consumers. We continue to invest in cutting-edge
pricing techniques, as well as partnering with some of the most
technologically advanced distributors within the insurance
market, ensuring that our policyholders get the fairest price
and enjoy the best possible customer experience. In particular,
developing increasingly sophisticated pricing infrastructure is
key to achieving our ambitious plans for 2030.
Sabre’s business model is designed to withstand, adapt to,
and thrive over the long term within a changing environment.
Political and regulatory
2024 has been a period of relative calm for new regulatory
rules within the general insurance industry, with recent
enhancements such as Consumer Duty, Operational Resilience
and the General Insurance Pricing Practices rules being
bedded in. Overall, compliance with the new rules has added
a small amount of cost, but has required no material change
to the business, given most rules reflect, in substance, general
good practice within the industry.
The wider political and regulatory landscape does carry
some uncertainty as we move into 2025, although Sabre
is well-placed in all aspects of this. In particular, we note:
− The UK Government has announced a task force to tackle
the rising costs of motor insurance within the UK. It appears
the focus, sensibly, is on identifying the drivers of rising costs
and tackling those. We will continue to engage fully with
this process.
Current
market
focus
Market Context continued
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Our Values
A fair and
focused business
Fair to customers
At the core of our business sit our customers. Fair treatment
of our customers is ingrained in the DNA of our business,
be it through provision of high-quality insurance at a fair
price, fast and efficient handling of claims or high-quality
customer administration through our UK-based call centre.
Fair to our people
Sabre’s greatest asset is the talented group of individuals
who keep the business running every day, from the pricing
and product teams generating our cutting-edge pricing,
through to the expert claims team achieving fair customer
outcomes while robustly managing fraudulent claims.
We strive to place the right people in the right roles at the
right time, while maintaining a happy and safe working
environment.
Fair to the planet
We recognise that all organisations, big and small, have a
responsibility to act in the best interests of our environment
and society as a whole. We have set out a road map to
net zero, which includes making changes now to minimise
the impact of our business on climate change. We believe
that companies can be a force for good, and through our
Charity Committee we support local organisations who we
believe make a real difference to people’s lives.
Fair to partners
We enjoy excellent working relationships with all of
our partners, including our brokers, key suppliers and
outsourced operations. Through the challenging period
of the last two years, we have worked closely with our
partners to assist in their continued success.
Focused on our strategy
Our strategy is simple, clear
and well understood by our
stakeholders. This is discussed
in detail on pages 12 to 13,
but can be distilled further
into one thing: focus. Focus on
profitability through obsessive
management of our pricing
and rigorous discipline.
Focus on long-term growth
by engaging in the right
development projects at the
right time, drawing on our
core strengths. Focus on
attracting and retaining top
talent to achieve all of this.
And, more recently, focus on
the wider needs of stakeholders,
through our sustainability and
responsibility programme.
10 Annual Report and Accounts 2024Sabre Insurance Group plc
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Value creation
Strong cash generation
Our underwriting discipline and streamlined
operating model gives us confidence that we
can deliver our target dividend payout ratio
of a minimum of 70% of IFRS profit after tax.
IFRS profit after tax
£36.0m
Premium growth
We anticipate high growth in gross
written premium across the insurance cycle,
while maintaining our target combined
operating ratio.
Gross written premium
£236.4m
Maintaining expertise
We continue to refine our underwriting model
to drive increasingly accurate, customer-
focused pricing. We aim to retain and develop
superior levels of expertise in underwriting and
claims management at all levels within
our business.
Our Business Model
Underwriting discipline
Sabre’s team of actuaries and underwriting
experts calculate the right price for each policy
which will, on average, generate the Group’s
target margin.
This requires access to high-quality data,
cutting-edge pricing tools, personal expertise
and a sharp focus on achieving target margins.
Claims handling
Sabre’s emphasis on the technical
aspects of claims handling draws on
over 800 years worth of experience,
encompassing cutting-edge fraud
mitigation, excellent cost control and a
high-quality experience for claimants.
Distribution
Sabre employs a
diversified, multi-
channel distribution
strategy through
broker partnerships
and selling direct to
customers through the
Group’s direct brands,
Insure2Drive and GoGirl.
The vast majority of
new business in the UK
market is sold through
price comparison
websites, and so setting
the right price in this
highly competitive
market is critical.
Our inputs How we manage risk
1. Experienced
management and
operational teams
2. Proprietary
data
3. Strong broker
relationships
4. Analysis and
pricing expertise
Risk management
Reinsurance: Sabre operates
an excess-of-loss reinsurance
policy across its entire portfolio,
limiting the cost of any single
large accident.
Balance sheet: All financial
investments are investment-grade
bonds, with over two-thirds in very
low-risk government bonds and
government-backed assets.
Core operations
Sabre’s focus on its key strengths
and the experienced leadership
team has built highly efficient
underwriting and claims
management processes, with
routine, volume-dependent tasks
being outsourced to expert
partners. This allows for a low
expense base, which can flex in
line with business volumes.
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11Annual Report and Accounts 2024Sabre Insurance Group plc
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− Focus on maintaining acceptable underwriting
risk while minimising exposure to other risks within
the business.
− Maintain sufficient capital to allow operational
resilience and meet regulatory requirements
under all reasonably foreseeable outcomes.
− Exposure to large individual claims is managed
through prudent use of reinsurance.
Risk management
Our clear
framework
Our Strategy
− Actuarially driven pricing strategy utilising an
agile proprietary model.
− Risks individually priced using Sabre’s advanced
pricing algorithm, built upon many years of data
collection and expert analysis.
− Unique and extensive catalogue of claims data,
compiled from more than 20 years of successful,
consistent underwriting.
− Robust and extensive claims management
operation, combined with counter-fraud expertise.
Disciplined
underwriting
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Distribution
− Non-core operations are outsourced, while
expertise is retained in-house.
− This allows for a flexible expense base, which
can absorb some operating leverage strain if the
Group decides to slow growth during periods of
unfavourable market conditions.
− Our team consists of talented people making
good decisions every day.
Operations
− Sabre grows where market conditions allow,
without compromising profitability.
Controlled growth
− Brokers account for approximately 60%of the
gross written premium in 2024, with the remainder
being sold through our direct brands, Insure2Drive
and GoGirl. Broker relationships allow us to
leverage their well-established brands, customer
relationships and retail pricing capabilities.
Direct brands ensure we can offer products to
customers not served by traditional brokers,
while allowing a direct line of sight to customer
and price comparison site data.
Our Strategy continued
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Ambition 2030
Sabre has ambitious
medium-term growth plans
These growth plans will be driven by initiatives that
stay true to Sabre DNA – high-margin underwriting
activities.
Growth will not be linear – and will accelerate and
decelerate in various market conditions.
These plans do not require capital investments to be
achieved – the foundations have been laid over the
last two years.
to increase profit to £80m by 2030
What’s new?
We are making use of three core concepts in setting our ambitious growth target:
We will target profit growth
through balancing income
and margin, while maintaining
underwriting discipline.
We will accelerate growth
by competing for additional,
slightly lower-margin business,
without compromising the
profitability of our current book,
enabled through technology.
We are now ready to
expand our motorcycle
product distribution, primarily
through the launch of our
‘Sabre Direct’ brand and
additional broker relationships.
1. 2. 3.
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Key strategic objectives
£80m profit
before tax
by 2030
Core Motor
Increase Profit
Motorcycle
Increase Profit
Continued controlled expenditure
We were delighted to bring our growth
plans together in our Ambition 2030
strategy and to showcase the
excellent progress the Sabre team
has made in putting in place the
supporting technology stack.”
– Efficiency of Direct Distribution
– Direct Motorcycle
– Expansion of Competitive Market
– Broker Motorcycle
Ambition 2030 continued
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Ambition 2030 continued
– In Q1 2025, we will start to expand
our presence in motorcycle.
– Sabre currently serves less than
3% of the motorcycle market
(by volume).
– Launch of Sabre Direct, a new direct,
online only, brand in Q1 2025.
– 100% online sales and servicing
– a market first. Webchat support
available, resourced by existing
Sabre colleagues.
– Launch with additional brokers
in 2025, alongside continuing
to work closely with our existing
distributor.
– For the existing portfolio, our current
margin is appropriate because
of the relatively higher-risk profile.
– For less ‘higher-risk’ business,
a modestly lower margin is
appropriate.
– By targeting a slightly lower margin,
the competitive footprint will be
materially larger.
– Sabre already quotes for almost
all risks and writes business across
the spectrum.
– This development leverages existing
skills, data and strengths.
Expansion of competitive market
Our motorcycle business
What does this mean in practice?
– We will continue to target our
existing loss ratio and margin on
our current competitive footprint.
– We will target a slightly higher loss
ratio on lower risk business to allow
us to pick up incremental business
– moving down the ‘risk curve’.
– Overall loss ratio will increase as
a result, but margin will be less
impacted as expenses are diluted.
– We will utilise our next generation
pricing, facilitated by the new
Insurer Hosted Pricing (“IHP”)
infrastructure.
– Pricing will be cautiously tested
and rolled out during 2025.
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All initiatives leverage
existing Sabre strengths,
do not require capital
investment and can be rolled
out in a controlled manner.
All foundations for
these initiatives
are already in
place, having been
developed over
the past two years.
2025 will be a year of
testing, transition and
staged roll-out.
2026 onwards will
start to benefit from
increased gross written
premium, before a step
up in absolute profit.
Ambition 2030 continued
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Chief Executive Officer’s Review
We have delivered some
excellent financial results for
the year – a doubling of profit
compared to the previous
year and growth of over 5%.”
Geoff Carter
Chief Executive Officer
Record premium levels,
profit doubled and
attractive capital returns
In our 2023 Report we outlined our key expectations
for 2024:
− Business we wrote in 2023 would earn through at attractive
margins, delivering an increase in profitability in 2024.
− Market pricing discipline would hold, allowing us
to grow further.
− We would continue to develop insurer-hosted pricing
(“IHP”), allowing us to deliver increasingly sophisticated
pricing.
− Expected to add new Motorcycle distribution partners.
− Continued focus in 2024 would be on ‘below the radar’
developments as we continued to invest in our pricing
and claims capabilities to maintain our position as a
leading motor insurer.
I am pleased that many of these happened as we hoped.
Business written in 2023 and 2024 did indeed earn through at
attractive margins, market pricing discipline held in the first half
of the year, facilitating good growth. We have been able to put
our IHP development into context, alongside our motorcycle
development plans, as part of our Ambition 2030 strategy.
More details on these are provided on pages 14 to 17.
18 Annual Report and Accounts 2024Sabre Insurance Group plc
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Gross written premium
£236.4m
2023 | £225.1m
IFRS profit before tax
£48.6m
2023 | £23.6m
Reflections on 2024
2024 was a considerably more straight forward year than the
recent, turbulent past. In the past year we have been able to
focus fully on developing the business rather than having to deal
with the consequences of generational shocks such as COVID or
extraordinary increases in cost inflation.
We have delivered some excellent financial results for the year –
a doubling of profit before tax compared to the previous year
and growth of over 5% despite market pricing softening in H2.
This is clear evidence of a strong return to form for the business.
Within this result we are particularly pleased with the core Motor
Vehicle performance at a 56.1% loss ratio and that Motorcycle
is now delivering the planned performance at a 58.6% loss ratio.
While Taxi is much improved there are further improvements that
are required if this is to be a long-term product for us.
We have continued to take a differentiated approach compared
to the wider market. We deployed rate increases in line with our
view of ongoing high single digit claims inflation, contrasting
to a double-digit rate decrease across the market. This gives us
confidence that strong financial performance is underpinned
well into the medium term.
We were delighted to bring our growth plans together in our
Ambition 2030 strategy and to showcase the excellent progress
the Sabre team has made in putting in place the supporting
technology stack. Core to the ambition is our intention to deliver a
profit after tax in excess of £80m in 2030. Full details can be found
on our website (https://sabreplc.co.uk/investors/results-centre/).
Some key elements of this strategic evolution are:
− Flexing margins in a limited and controlled way
on our existing core non-standard Motor Vehicle book to
maximise absolute profit in different market environments.
− Drive growth by optimising the benefits of our IHP
development by additionally targeting a slightly lower
risk customer segment at an appropriately modestly
reduced margin.
− Expand our Motorcycle distribution through bringing
on new partners and the launch of a new direct brand.
Nothing here will undermine our ongoing commitment to
underwriting and pricing discipline. Growth will not be linear and
will accelerate/decelerate in different parts of the market cycle,
while tracking towards our 2030 target. We will remain true to our
core belief: “Profitability is the target, volume is an output”.
Customers
We have continued to focus on delivering positive customer
outcomes in several ways, which we believe also positions us
well in the context of current regulatory focus.
Our pricing approach has always been to price all customer
segments to a consistent margin requirement, and to minimise
our dependency on ancillary product sales. To support this we
have ensured our margins on all ancillary products are now in
line with the margins we earn on the core product. The margin
we earn on providing premium finance to our direct customers
is consistent with this.
Much effort has been expended on enhancing our direct
customer service offering, most specifically on the usability
of our online customer service portal. This will improve the
customer experience while reducing cost, allowing us to
reduce premiums.
Chief Executive Officer’s Review continued
19Annual Report and Accounts 2024Sabre Insurance Group plc
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Chief Executive Officer’s Review continued
Regulatory
We believe we have a low exposure to current areas of
regulatory focus. Ancillary income is not a material part of
profits and, as outlined above, we have ensured margins
are modest compared to market norms and in line with
our core products.
The change during the year to the Ogden discount rate,
used in the valuation of large value personal injury claims,
was welcome. While the direct financial impact is modest it
should be helpful for future reinsurance costs.
Finally, the team has made excellent progress on the
emerging operational resilience requirements.
Market
The UK motor insurance market remains a competitive and
dynamic environment that delivers good value for the customers.
We believe the market is still seeking equilibrium in pricing –
it appears that some insurers believe that the pendulum swung
too far with rate increases in late 2023/early 2024. However,
it is clear to us that this has now swung too far the other way,
with the continued price decreases later in 2024.
Our current view is that ongoing claims inflation has softened
slightly as we have come through the year-end, but remains
elevated. Our current best estimate is mid to high single-digit.
Given this, our central assumption is that market rates will
remain suppressed in H1, before increasing in H2 to protect
2026/27 results. Our approach will be unchanged –
charge the appropriate price for our margin requirements.
Our Ambition 2030 strategy outlines how we will flex slightly
in different market conditions.
Capital and dividend
Our financial results have resulted in another period of strong
capital generation. This performance has allowed us to declare
a total dividend for the year of 13.0p per share, which is an
increase of 44.4% on prior year total dividend of 9.0p per share.
I have also been pleased to announce our intention to
execute our first share buy-back in 2025, through which
we expect to return an additional £5m of excess capital to
shareholders. As we set out in our ‘Ambition 2030’ strategy,
our medium-term growth plans do not require this capital
to be retained within the business.
People
Our success would clearly not be possible without the
dedicated support of the whole Sabre team. We seek to
recognise this hard work by maintaining a generous reward
approach, including paying inflation-linked pay rises, annual
performance-related and Christmas bonuses, employee share
plans and free breakfasts. Moreover, we seek to treat people as
individuals and to provide appropriate support where required.
We continue to operate a hybrid work approach with people
expected to be in the office a minimum of three days a week
(many are in much more). This works well for us, our people
and our customers.
Environmental, Social and Governance (“ESG”)
We continue to build on our ESG programme, with continued
efforts across the firm to understand, monitor and minimise our
impact on the environment. We have robust Governance in
place across the firm and consideration of all stakeholders is
taken into account when making key decisions. With people
being core to Sabre’s success, we strive to make Sabre
a welcoming and rewarding workplace for all and value
greatly the range of contributions that can be made through
employing a diverse workforce.
Outlook for 2025
We anticipate another strong year for profitability across
Motor Vehicle and Motorcycle. Total gross written premium
levels will be influenced by market dynamics, but we expect
we will continue to write a good level of business. After a
relatively slow start we have seen increasing momentum in
later Q1 and are comfortable with the volume of business
we are currently writing.
In the second half of 2025 we will start to roll out our Ambition
2030 pricing developments – we described at our recent
Capital Markets Event that this will be on a cautious, staged
basis. We would not expect a meaningful financial impact this
year, but certainly do expect this to enhance growth in profit
into the medium term.
We are genuinely excited by our future prospects, and I would
like to extend my thanks to all my colleagues and the Board for
support in these endeavours.
Geoff Carter
Chief Executive Officer
17 March 2025
20 Annual Report and Accounts 2024Sabre Insurance Group plc
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Our people are core to the success
of the Group, and we seek to create
a positive and collaborative working
environment for all our employees.”
For more information
go to pages 47 to 51
Chief Executive Officer’s Review continued
21Annual Report and Accounts 2024Sabre Insurance Group plc
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Key Performance Indicators
Net loss ratio %
What is it?
Sabre’s total claims expense (on an
undiscounted basis) as a proportion
of the net earned premium.
Why is it important?
This shows how much the Group pays out
in claims for every pound of net premium
earned. It is a useful comparator of
relative underwriting strength and can be
compared across years and against peers.
Aim
To achieve a sufficiently low loss ratio to
achieve the combined operating ratio
and net insurance margin targets.
242322
58.7%
61.6%
71.0%
Links to Strategy
1 4 5
Principal Risks
1 2 5 6 7
Gross written premium £’m
What is it?
The total premium written by the business.
Why is it important?
Writing insurance policies is the Group’s
primary function, and the Group’s margin
targets dictate that on average all business
written should be profitable. Therefore,
in order to grow profit, levels of premium
must be sustained or grown.
Aim
To grow premium over the medium
term such that the profit target set out
in Ambition 2030 can be achieved.
242322
£236.4m
£225.1m
£171.3m
Links to Strategy
1 2 3 4 5
Principal Risks
1 2 3 4 5
6 7
Combined operating ratio %
What is it?
Similar to net insurance margin, this takes
into account only pure premium, claims,
and operating expenses. Presented on an
undiscounted basis.
Why is it important?
This is a common performance indicator
used by similar companies, so will aid in
allowing comparison across the sector.
Aim
To contribute to the overall net insurance
margin target, the Group needs to achieve
a combined operating ratio of 80% – 85%,
while ensuring an optimal level is reached
to maximise profit before tax.
242322
84.2%
91.6%
98.4%
Links to Strategy
1 3 4 5
Principal Risks
1 2 4 5 6
7
Expense ratio %
What is it?
A measure of the Group’s total operating
expense as a proportion of the net earned
premium.
Why is it important?
This shows how efficiently the Group runs
its operations. This is a broadly consistent
measure across insurance companies,
although it is important to note that not all
other companies include their entire
expense base when calculating this
measure. Our reported expense ratio does
include all expenses incurred by the Group.
Aim
To minimise expense ratio to the extent
possible while maintaining a robust operating
environment, such that the Group’s combined
operating ratio target can be achieved.
Links to Strategy
3 4 5
Principal Risks
1 2 4 5 6
7
How our KPIs link to Sabre’s strategy
The most fundamental element of the Group’s strategy
is underwriting profitability, and, as such, our KPIs focus
on measures of profitability – specifically net insurance
margin, loss ratio, expense ratio, combined operating
ratio and IFRS profit after tax. As the Group is focused on
managing risk, maintaining an appropriate solvency
coverage is also important, so solvency coverage ratio
is considered a KPI.
The Group monitors its growth, and intends to grow
when market conditions allow; as such, the level of gross
written premium forms a KPI. Effective deployment of
capital is an overarching element of Sabre’s strategy,
and is measured through return on tangible equity.
For our strategy
go to pages 12 to 13
How our KPIs link to
Directors’ remuneration
Executive Directors’ and senior management’s
remuneration is based on both financial and non-
financial measures, with a primary focus on the financial
performance of the Group. This is achieved through
a ‘profit pool’ whereby participants are entitled to a
maximum bonus equal to a percentage of the Group’s
IFRS profit before tax, which is then modified according
to performance against individual performance goals.
The Group’s Long Term Incentive Plan is underpinned
by measures which include return on tangible equity
and solvency coverage ratio. Each of the KPIs either
contribute towards the Group’s profit or report the
Group’s resultant capital position and are therefore
aligned with this remuneration approach.
For our remuneration report
go to pages 105 to 117
242322
25.5%
30.0%
27.4%
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For our strategy go to pages 12 to 13
Return on tangible equity %
What is it?
The Group’s total IFRS profit after
tax divided by the Group’s average
tangible net assets across the year.
Why is it important?
This is a measure of the efficiency with
which the Group deploys its assets,
and is a useful comparable measure
across different sectors.
Aim
To make efficient use of the capital
available to the business and achieve
broadly consistent returns year-on-year.
242322
38.2%
22.7%
13.3%
Links to Strategy
3 4 5
Net insurance margin %
What is it?
A measure of the total profit generated
through pure underwriting activities,
taking into account premium-like income,
such as instalment interest, claims
expenses and operating expenditure.
Presented on an undiscounted basis.
Why is it important?
Maintaining a profit margin within a target
range ensures that the Group’s top-line
growth does not come at the expense
of total profit, and highlights the Group’s
effective underwriting.
Aim
We aim to operate with a net insurance
margin of between 18% and 22%.
242322
17.6%
10.6%
3.7%
Links to Strategy
1 2 3 4 5
Principal Risks
1 2 5 6 7
IFRS profit before tax £’m
What is it?
A measure of the total pre-tax
earnings of the Group, in accordance
with prevailing accounting standards.
Why is it important?
Generation of profit is core to
the Group’s stated purpose and
our Ambition 2030, which targets
sustainable growth in IFRS profit over
the medium term.
Aim
Through careful management of
expenses and skilled underwriting,
to deliver growth in IFRS profit over the
medium term such that we deliver an
IFRS profit before tax of at least £80m
in 2030.
242322
£48.6m
£23.6m
£14.0m
Links to Strategy
1 3 4 5
Principal Risks
1 3 5 7
Pre-dividend solvency coverage ratio %
What is it?
The Group’s solvency coverage ratio is the
ratio of the Group’s regulatory capital in
a particular point in time to its solvency
capital requirement (“SCR”) for the same
period, expressed as a percentage, stated
before the final dividend declared in
respect of 2024.
Why is it important?
The Group is required to maintain
regulatory capital at least equal to its SCR.
This is a measure of the balance sheet
strength of the Group.
Aim
To hold no less than 140% of the Group’s
SCR and, in general, no more that 160%.
242322
216.6%
205.3%
161.4%
Links to Strategy
1 4 5
Principal Risks
1 2 5 6 7
Principal Risks
1 2 3 5 6
7
Links to Strategy
1
Disciplined Underwriting
2
Risk Management
3
Controlled Growth
4
Operations
5
Distribution
Principal Risks
1
Insurance
2
Operations
3
Finance and Capital
4
IT and Systems
5
Regulatory, Governance and Compliance
6
People
7
Macro Risks
For our Principal Risks go to pages 24 to 33
For a reconciliation of KPIs to IFRS
measures go to pages 208 to 212
KPI to IFRS reconciliations
Key Performance Indicators continued
23Annual Report and Accounts 2024Sabre Insurance Group plc
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Principal Risks and Uncertainties
Risk management
Managing risk effectively is core to Sabre’s strategy and is
integral to delivering sustainable long-term growth for its
investors. The Board is responsible for prudent oversight of the
Group’s business and financial operations, ensuring that they
are conducted in accordance with sound business principles,
and comply with applicable laws and regulations, and to
ensure fair customer outcomes. This includes a responsibility to
articulate and monitor adherence to the Board’s appetite for
exposure to all risk types. The Board also ensures that measures
are in place to provide independent and objective assurance
on the effective identification and management of risk, and on
the effectiveness of the internal controls in place to mitigate
those risks.
The Board delegates the oversight of risk to the Group’s Risk
Committee, which is responsible for understanding the major
risk areas and ensuring that adequate and effective internal
controls are in place to manage the Group’s risk exposure,
and for providing oversight and advice to the Board in relation
to the Group’s risk exposure. Further information on the Group’s
Risk Committee can be found on pages 84 to 86. The Group’s
Risk Committee works closely with the Remuneration Committee
to ensure that the management of risk is accurately reflected
when making remuneration decisions.
Sabre has set a robust and proportionate risk management
strategy and framework as an integral element in its pursuit of
business objectives and in the fulfilment of its obligations to
shareholders, regulators, customers, employees and suppliers.
The Group’s objectives regarding risk management
are that:
1. All significant risks are identified, measured, assessed,
prioritised, managed, monitored and tested in a consistent
and effective manner across the Group;
2. Appropriate and reliable risk management tools (such as
likelihood and impact indicators) are deployed to support
the rating and the management of risks;
3. All Directors, management and relevant employees are
accountable for managing risks in line with their roles and
ensuring that the Group’s reputation remains high;
4. The Group complies with all relevant legislation, regulatory
requirements, guidance and codes of practice; and
5. The Board receives timely, dependable assurance that the
Group is managing the significant risks to the Group.
Risk assessment, identification and evaluation
Sabre’s assessment of risk is not static. The Board and
management continually assess the risk environment in
which the Group operates and ensures that Sabre maintains
appropriate mitigation to remain within risk appetite.
Management recognises that risks must be identified, monitored
and mitigated appropriately, to ensure their negative impacts
on the Group are minimised. While accepting that some
elements of risk are core to the operation of the Group, it is
important to identify and accept only the risks which the Group
considers to be within its risk appetite. To do this, Sabre’s Risk
Framework is based on the common Three Lines of Defence
Model which divides all functions within Sabre into three groups
depending on their primary roles. By doing so it is possible to
clearly define the boundaries around each function to ensure
clarity of functional purpose and remit as well as guard against
potential conflicts of interest arising.
Three lines of defence model
Second line
− Facilitating
the Group’s
risk
management
processes
− Oversight and
challenge
of risk
management
and controls
− Dip testing
of key controls
First line
− Day-to-day
responsibility
for owning,
assessing,
managing
and
controlling
risks
Third line
− Provision of
independent
assurance
through
Internal Audit
24 Annual Report and Accounts 2024Sabre Insurance Group plc
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The risk management process at Sabre
This section sets out the activities that we conduct to
ensure that risks arising are identified and managed.
The risk management process comprises five broad
categories of activities:
1. Risk identification
There are various tools available, and activities undertaken
within the Risk Management process which are used to identify
risks. These include but are not limited to meetings, incident
and loss event analysis, assurance reviews, thematic risk
reviews, simulations and horizon scanning.
2. Risk assessment
Risk assessment involves rating risks at an inherent
level (without controls) and a residual level (post controls).
Risks are rated by likelihood and impact from a scale of 1 to 5.
The impact areas for risk are defined as:
− Business process interruption
− Customer outcomes
− Earnings/financial/solvency
− People and environment
− Reputation and regulatory
3. Risk mitigation and controls
Identified risks are mitigated and controlled to reduce the
likelihood of a risk occurring and/or reducing the impact of
a risk should it occur. Controls can include but are not limited
to implementing policies and operating procedures, authority
and approval levels, segregation of duties, reconciliations,
system restrictions such as password requirements, education,
training and access authorisations.
4. Risk monitoring and Reporting
The output of Sabre’s identification, assessment and mitigation
activities is regularly monitored by responsible business
areas and reported to senior individuals and committees at
management and Board level to ensure appropriate visibility,
discussion and challenge of matters relating to risk, including
the Board’s oversight of adherence to Sabre’s risk appetite.
Key information such as key risk indicators, breaches, incidents,
issues, and significant control weaknesses, is curated and
shared across the relevant individuals and committees.
Risks and controls are reported through the Group bottom
upwards, with management feeding into the Risk Management
and Compliance Forum, which reports to the Group’s Risk
Committee, which then reports to the Board. Comments
from the Board and Risk Committee Directors are given to
management via the Chief Risk Officer, and, if required, by the
Chief Executive Officer.
A Risk Dashboard is produced which covers the Risks, Controls,
Risk appetites, Incidents and Emerging risks over the quarter.
5. Risk response and learning
When risks crystalise, or when Sabre’s residual risk exposures
increase, this is escalated to the appropriate individuals
and committees; either through regular reporting or on an
exceptions basis.
Principal Risks and Uncertainties continued
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Risk universe
The Group uses a risk universe to aid in the identification of
risks and to ensure that no risks are overlooked. Sabre has
identified its risk universe as:
Insurance
Risks associated with the business of the
Group – What we do as a Group, including
claims, reserving, pricing and underwriting
Operations
Risks associated with inadequate or failed
internal processes and systems, or from an
external event – How we operate, including
product development and how we deal
with suppliers, distribution and customers
Finance
and Capital
Risks associated with the Group not being
able to meet its financial and solvency
obligations – How we use our financial
resources, including capital management,
investments, solvency and taxation
IT and Systems
Risks that arise from the development,
implementation, maintenance and
utilisation of the technology ecosystem
which includes infrastructure, software
and cyber protections
Regulatory,
Governance
and Compliance
Risks associated with not complying
with laws and regulations – How we act
People
Risk associated with our employees –
Who we are
Macro
Risks that arise from outside the Group
such as climate, inflation or interest
rate risk
Risk appetite
The Board recognises that it is both necessary and desirable
for the Group to assume and accept a level of risk in pursuing
its strategy, but notes that this must be maintained within
acceptable limits. The Group generally is risk-averse and
operates the business to take advantage of its good utilisation
of operational resources and its strong ability to price risks at
a consistently profitable level. The Group does not tolerate risks
which impact the Group’s key objectives of the preservation
of capital and the reliable and consistent performance of the
Group across the insurance cycle. While developing its risk
appetite, management considers its stakeholders, including
customers, employees, regulators, shareholders and suppliers.
Any residual risk with an impact of four and higher and a
likelihood rating of four and higher is deemed to be outside the
Group’s risk appetite, and management will work to improve
the controls to reduce the residual ratings of the risk. The risk
appetite is reviewed by the Group’s Management Risk and
Compliance Forum and Risk Committee annually to confirm
that it remains appropriate.
Emerging risks
The management of emerging risks is a key element of the
Group’s strategic risk management. The Group monitors external
developments, including regulatory changes, industry trends,
and changes in the economic environment, which would
impact its risk profile. Emerging risk scanning provides a forward-
looking view of the risks that have the potential to impact
Sabre but have not yet crystalised. The Management Risk and
Compliance Forum and Risk Committee review the Emerging
Risk Log at each meeting, allowing the impact of the emerging
risk to be mitigated where possible.
Risk culture
The Group has adopted the following principles to guide
decision making throughout the Group and its attitudes to risk
and its management.
1. The Group conducts its business with integrity, due skill,
care and diligence and observes high standards of
market conduct.
2. The Group organises and controls its affairs responsibly
and effectively with sound risk management systems
and procedures.
3. The Group treats its customers fairly and communicates
with them in a way which is clear, fair and not misleading.
4. The Group manages conflicts of interest fairly, both between
itself and its clients and between itself and reinsurers, brokers,
shareholders and other stakeholders.
5. The Group manages risk in a cost-effective manner, subject
to compliance with applicable legislation and regulatory
requirements and effective management of risk exposures.
6. The Group’s employees all play an active role in the
management of risk.
7. The Group deals with its regulators and other supervisory
bodies in an open and co-operative way, making full and
open disclosure of risk events where appropriate.
8. The Group ensures that adequate processes and controls
are in place to ensure that it meets the requirements of
a listed company, including rules relating to disclosure,
transparency and management of conflicts of interest.
9. The Group considers the needs of all relevant stakeholders
in making material decisions.
Sabre’s risk culture is formally reviewed on an annual basis as
part of the work that feeds into the annual Chief Risk Officer
report. This aims to provide an assessment and commentary
on the prevailing state of Sabre’s risk culture and highlight any
areas for development where relevant.
Principal Risks and Uncertainties continued
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Assessment of principal risks and uncertainties
The Directors confirm that they have undertaken a robust assessment of the principal risks and
uncertainties, and emerging risks that the Group faces – this includes those that threaten the
business model, future performance, solvency or liquidity of the Group.
Set out in the following table is an overview of the principal risks the Board believes could
threaten the Group’s strategy, performance and reputation, and the actions management takes
to respond to and mitigate those risks.
Having given both new and evolving risks due consideration, the Directors continue to consider
insurance activity to present the most material risk to the Group, in particular the estimation risk
of reserving and the ability to price premiums correctly.
Although Sabre is a UK-based business, global issues can have a significant impact on the
Group. The Group has reviewed the impact on its risk profile from continued global instability
and has updated the individual risks accordingly, notably increases in inflation and energy
costs, and supply chain issues.
The following table shows the principal risks the Group faces, their impacts and how they
are mitigated.
Insurance
Risk Description Mitigation
Pricing
Change from prior year
Link to strategy
1
2
3
Failure to price risks effectively can result in worse-than-expected loss
ratios or significant unexpected changes in volumes of business written.
Pricing considerations include appropriate estimation of the increasing
cost of claims, through both historical trends, such as repair costs,
and emerging considerations such as climate change and the impact
of legal reforms.
The Group operates a highly sophisticated pricing model which is built upon fully tested
scientific principles. The model is updated only when sufficient data has been collected
and analysed to support a change.
Management continually monitors the market for pricing developments but prioritises
maintenance of appropriate margins over the volume of business written.
We consider the impact in the changing profile of physical risks related to climate
change in pricing our policies.
Changes in the costs of claims settlements which could relate to climate change are
captured in our normal-course reviews of policy pricing. The pricing of all new products
is carefully assessed and closely monitored by the Chief Actuary and his team.
Reserving
Change from prior year
Link to strategy
1
2
3
Inappropriate estimation of the ultimate cost of claims incurred can lead
to corrections in future periods which could have a detrimental impact on
the Group’s capital position and profitability. Further, incorrect reserving can
lead to errors in the pricing of new policies due to a poor understanding
of the profitability of business already written. Estimates made in relation
to inflationary, or potentially inflationary, factors such as legal reform, and
climate change are equally relevant to reserving.
There is a consistent and cautious approach to reserving with a risk adjustment held
above the actuarial best estimate. The Group’s actuarial function analyses and projects
historic claims development data and uses a number of actuarial techniques to
both test and forecast claims provisions. The Group also commissions an additional
independent actuarial review on a triennial basis.
Key
LINK TO STRATEGY*
Disciplined Underwriting
1
Risk Management
2
Controlled Growth
3
Operations
4
Distribution
5
CHANGE IN RISK RATING FROM PRIOR YEAR
Increase
Decrease
No change
New risk
* Further information on the Group’s strategy can be
found on pages 12 to 13
Principal Risks and Uncertainties continued
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Principal Risks and Uncertainties continued
Risk Description Mitigation
Claims handling
Change from prior year
Link to strategy
1
2
3
4
The inappropriate handling of claims could cause customer detriment and
financial loss for Sabre.
The Group has in place strong controls, authority levels, rigorous review processes and
a robust internal claims training programme. Sabre uses outsourced specialists to deal
with the first notification of loss and, as such, this ensures that the projected volume of
claims which will be handled by the business is not in excess of the capacity of skilled
claims handlers available to the Claims Team.
Large losses
Change from prior year
Link to strategy
1
2
A small number of random very large claims could have a significant
impact on the short-term profitability and capital position of the Group.
Reinsurance is purchased on an excess-of-loss basis to limit the impact of large
individual losses and catastrophic events.
Reinsurance
Change from prior year
Link to strategy
1
2
Should reinsurance become unavailable at an acceptable cost, the
Group’s profit would become considerably more volatile, and its capital
position would suffer.
The Group ensures that pricing decisions are taken on the basis that the gross loss
ratio should be preserved in the long term, such that reinsurers achieve satisfactory
returns through their relationship with Sabre. This ensures the greatest possible appetite
for reinsurers to renew Sabre’s coverage. Sabre maintains an open and transparent
relationship with all reinsurers on its panel.
Operations
Risk Description Mitigation
Customers
Change from prior year
Link to strategy
1
2
3
4
5
Failure of the Group to meet customer requirements or expectations. Sabre’s business is built around the customer, with the goal to provide access to fairly
priced motor insurance. We want our customers to experience high-quality customer
service and peace of mind. The Group has an established claims handling function
and Actuarial Team ensuring that claims are appropriately handled, and pricing is fair.
The Group has implemented the requirements under the Consumer Duty regulation,
including a dashboard which is reviewed by the Board regularly. Additionally, a set of Key
Performance Indicators has been introduced to assess the delivery of good customer
outcomes and an Annual Consumer Duty Board Report, which details how outcomes
have been monitored and delivered, is prepared, and approved by the Board.
Insurance continued
28 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Risk Description Mitigation
Suppliers and
outsourced operations
Change from prior year
Link to strategy
2
4
The use of outsourced functions in routine operations, such as customer
services, exposes the Group to the practices and procedures prevalent
at the outsourced operation.
The Group monitors its outsourced operations closely, through regular audits and
monitoring of key performance metrics to minimise customer detriment, financial
damage and failure to meet regulatory requirements.
Product development
Change from prior year
Link to strategy
4
5
Sabre could fail in the implementation of new products and services.
This could manifest in inappropriate pricing, poor provision of services
to customers or failure to sell new products at expected volumes.
All material product developments have a project risk assessment completed ensuring
that related risks are identified and, where possible, mitigated.
Failure of brokers
(distribution)
Change from prior year
Link to strategy
5
While the Group accesses the market through almost all retail brokers
within the UK, much of its business is written through a relatively small
number of large brokers. It is therefore particularly exposed to the failure
of those brokers.
The Group monitors its exposure to its broker partners on a continual basis and regularly
reviews the financial stability and solvency of its larger brokers.
Inefficient business
processes
Change from prior year
Link to strategy
1
2
4
Sabre’s business processes could fail or be inefficient, causing business
disruption or customer detriment.
Sabre has experienced employees and a supportive training environment to ensure
processes are carried out as required. Any failures in the processes are reported and
reviewed by management and any lessons learned are implemented.
Financial crime
Change from prior year
Link to strategy
2
4
Financial crime, whether internal or external, could result in material loss
of assets and significant reputational risk. Financial crime can include
misappropriation of assets or fraudulent activity designed to misrepresent
the financial performance or position of the Group.
Ownership and management of operational risks sit with the first line business functions.
While substantial internal controls are in place to mitigate the risk of financial crime,
the Group considers its culture and ‘tone from the top’ to be key in raising awareness
of external crime, including training and limiting the risk of occurrence of internal
financial crime.
Operations continued
Principal Risks and Uncertainties continued
29Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Principal Risks and Uncertainties continued
Finance and Capital
Risk Description Mitigation
Capital management
Change from prior year
Link to strategy
1
2
3
If the Group fails to maintain adequate solvency capital, this could result in
regulatory intervention which may limit profitability or the ability of the Group to
distribute capital. Some issues impact primarily on the solvency position but do
not affect the trading result of the Group. Rapid growth in the business, such as
that seen in 2023, can cause additional strain on the Group’s capital.
The Group has strong governance in place to monitor its solvency position on a
continual basis, including forecast solvency and scenario testing, primarily as part
of the Group’s Own Risk and Solvency Assessment (“ORSA”) process. The Group
ensures that key elements of judgement, such as reserving, are reviewed by the
Audit and Risk Committees and undergo appropriate independent scrutiny.
Investments
Change from prior year
Link to strategy
2
3
The Group invests primarily in government-backed securities and other
fixed-interest securities and is therefore exposed to the impact of interest
rate movements on the value of these investments. The valuation and
creditworthiness of such assets can be impacted by macro-economic
factors, such as political uncertainty and economic factors.
The investment portfolio is relatively short term, limiting the impact of interest rate
movements on the valuation of invested assets. The maturity profile of these investments is
designed to match the pattern of outgoing claims payments, such that the impact of any
movement in interest rates is mitigated by a converse movement in the value of claims
liabilities, which are discounted. Sabre has an Investment Policy, and the appointment of
an outsourced investment manager ensures that investment decisions are made on the
basis of the most up-to-date and relevant information.
Accounting
Change from prior year
Link to strategy
2
4
Failure to comply with Accounting Standards. This being the second full
year of reporting under IFRS 17, the associated inherent risk has reduced.
Finance processes are designed to minimise the risk of error in the Group’s financial
reporting. Sabre maintains straightforward and transparent accounting systems and
invests in sufficient resources within the Finance Team to ensure the accuracy and
consistency of financial reporting.
Taxation
Change from prior year
Link to strategy
2
4
Failure to comply with tax legislation. Sabre engages with appropriate internal and external tax specialists and maintains a
Corporate Tax Strategy (available at https://www.sabreplc.co.uk/about-us/corporate-
tax-strategy/).
Finance processes are designed to minimise the risk of error in the Group’s reporting
and payment of taxes.
Default payments
Change from prior year
Link to strategy
2
4
5
The Group is exposed to counterparty default risk in four main areas:
investment assets, amounts due from customers, amounts due from
brokers, and amounts due from reinsurers. Failure to recover funds due
from counterparties could result in write-offs which would reduce profit and
could damage the Group’s capital position. Similarly, excess exposure to
poorly rated counterparties can increase Sabre’s capital requirement.
The creditworthiness of the Group’s counterparties has been considered in
the context of continued economic uncertainty. We have not identified any
material deterioration in the quality of our financial assets and receivables.
The Group invests primarily in government-backed securities and a diverse selection
of highly rated corporate bonds, which carry a very low risk of default.
The Group operates a robust programme of credit control and performs due diligence
on broker partners before the commencement of a relationship and then continually
through the life of the relationship.
The financial security of reinsurers is considered when selecting panel members and
reviewed on a regular basis.
30 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Risk Description Mitigation
Liquidity
Change from prior year
Link to strategy
2
4
Inadequate monitoring of liquidity could result in the inability to meet
liabilities as they fall due.
The Group maintains a Liquidity Policy. The Group maintains sufficient cash reserves
at all times to meet its best estimate of short-term liabilities and monitors this position
continually. While the Group considers its investment portfolio to consist of actively
traded assets and therefore liquid, it ensures that the maturity of its investment portfolio
is matched to its ongoing cash requirement.
Investors
Change from prior year
Link to strategy
2
4
The Group fails to meet investor expectations. The Group maintains dialogue with its investors throughout the year through its financial
reporting, Annual General Meeting and investor roadshows. The Group has in place an
experienced Management Team and Board to ensure the success of the Group.
IT and Systems
Risk Description Mitigation
Software and
infrastructure
Change from prior year
Link to strategy
4
The Group operates bespoke IT systems and is reliant on the accurate
recording, storage and recall of data. Failure of these systems could result in
the business being unable to price or process new business or manage claims
effectively. IT systems are supported by a third party and hosted in external
data centres. This creates a dependency on these suppliers.
The Group operates a small number of key systems which are overseen by a highly
experienced team of bespoke systems specialists. A robust backup and recovery plan
is in place to ensure continuity of systems in the event of local system failure.
The Group has sought to avoid any identifiable single points of failure and maintains
continuity solutions for all key services.
Cyber attack and
data breach
Change from prior year
Link to strategy
4
Loss of data, including personal data, could lead to significant financial
or reputational detriment and there is the risk of not complying with the
appropriate regulation. Theft of the Group’s intellectual property could
impact the ability of the Group to compete in the market. The rise in
phishing attacks presents an escalating risk to Sabre, as attackers employ
increasingly sophisticated tactics to compromise security that could
severely impact business operations and data integrity.
The Group maintains several layers of security to ensure that perimeter and internal systems
remain secure and resilient to attack. This approach includes controlling the access to data
by our employees and the implementation of sophisticated monitoring systems.
The Group utilises expert third-party companies and software to ensure data is always
protected, and has implemented comprehensive security awareness training for
employees, deployed multi-factor authentication (MFA) to access accounts and uses
email filtering tools and system monitoring to reduce the risk of a phishing attack.
Finance and Capital continued
Principal Risks and Uncertainties continued
31Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Principal Risks and Uncertainties continued
Regulatory, Governance and Compliance
Risk Description Mitigation
Non-compliance
with governance and
compliance regulations
Change from prior year
Link to strategy
2
4
The Group is subject to a number of regulatory regimes, including prudential
regulation by the Prudential Regulation Authority (“PRA”) and conduct
regulation by the Financial Conduct Authority (“FCA”) and governance
regimes, including The UK Corporate Governance Code, the Senior Managers’
and Certificate Regime (“SMCR”), GDPR, Solvency II Rules and Consumer Duty.
Failure to comply fully with prevailing regulation can lead to reputational
damage and monetary or other sanctions which may impair the Group’s
ability to function.
The Group has an extremely low appetite for accepting any risk other than that which relates
to the underwriting of its insurance policies, and therefore its decision making reflects this in
relation to conduct risk and other regulatory and governance matters. The Group operates
a risk management framework which is approved by the Board to control the Group’s risks.
The Group monitors governance and regulatory developments in the UK and closely monitors
its exposure to regulatory and governance risks. The Group culture ensures the interests
of our customers and the delivery of good outcomes are paramount. The Group’s Head
of Compliance reviews and monitors operational activity to ensure regulatory requirements
are adhered to. The Group engages with both regulators on all relevant consultations.
Breach of legislation
Change from prior year
Link to strategy
2
4
The Group operates within the UK and is therefore primarily subject to the
requirements of UK law. Further to those regulatory and data protection laws
(discussed separately), the Group is exposed to employment law,
Companies Act legislation and tax law. Non-compliance with laws can
result in financial sanctions or impair the Group or the Group’s Directors’
ability to operate effectively.
The Group has established a robust risk management framework (including controls)
and sets clear objectives to minimise the risk of non-compliance with all relevant laws
and regulations. A review of all new material contracts is undertaken.
Risks associated
with ESG
Change from prior year
Link to strategy
2
4
Sabre could fail to meet its key stakeholder expectations, or legislative or
regulatory requirements related to ESG. Also, Sabre sees risks attached to
societal factors relating to ESG such as a lack of diversity.
The Group has a strategy regarding its customers, people, community, partners and
environment. ESG remains on the Board’s agenda and the Chief Financial Officer is
the Board Director responsible for ESG. Further information on this can be found in the
Responsibility and Sustainability section of this report on pages 44 to 64.
32 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
People
Risk Description Mitigation
People and culture
Change from prior year
Link to strategy
4
The quality of our employees is central to the success of Sabre, and the
potential loss of employees or the inability to recruit quality employees may
have an adverse impact on the performance of the Group.
Sabre seeks to create a positive and collaborative working environment and
endeavours to attract, retain and develop its employees by creating a hardworking
and enjoyable work environment, induction and on-the-job training, annual appraisals
and pay reviews, offering benefits and discounts and running wellbeing initiatives.
Sabre has an appointed Non-executive Director who is responsible for engagement
with employees, runs employee roundtables with the Chief Executive Officer and has
an active Charity and Social Committee, which enables employees to be involved
with the local community.
Further information on this can be found in the Our People section of this report
on pages 47 to 51.
Macro
Risk Description Mitigation
Climate change
Change from prior year
Link to strategy
2
4
The risk of climate change could have a negative impact on the earnings or
financial position of the Group. For example, there could be an impact on the
cost of claims in the long term. Further information on this can be found in the
Responsibility and Sustainability section of this report on pages 44 to 64.
The Board has appointed the Chief Financial Officer to oversee the management of
this risk and its impact on the Group is reviewed at least annually at the Group’s Risk
Committee. We have sought to integrate the consideration of climate risks within
the Group’s decision-making processes and continue to improve the clarity and
usefulness of our disclosures around climate change. Further information on the
Group’s considerations relating to the environment and climate change can be
found on pages 55 to 64 of this report.
Inflation and interest
rate increases
Change from prior year
Link to strategy
1
2
3
Cost inflation remains high across the UK and global economy. In general,
the costs related to insurance claims have experienced inflation above
wider economic inflation, which peaked at over 12% in 2022 and has
remained high by recent historic standards. We expect claims inflation will
continue to increase pressure on claims costs and that there will be some
residual impact of high inflation on the Group’s overall cost base.
In setting insurance premiums and in calculating the expected cost of claims used
for setting the Group’s insurance liabilities, Sabre uses an up-to-date assessment of the
current claims and wider inflationary environment. We expect market pricing to adapt
to this increasing cost base and therefore any price rises applied should have a low
impact on our competitiveness in the medium term. We will continue to monitor and
model the changes in costs and adjust our prices accordingly.
Geo-political instability
Change from prior year
Link to strategy
2
3
4
At the time of writing the report, there was heightened global tension,
including the conflict in the Middle East and the war in Ukraine.
Although Sabre is a UK-based business, global issues such as these
can have a significant impact on the Group.
The Group reviewed the impact of these events and have updated their ratings where
impacted, notably its supply chain on both claims and general expenses, impact of
inflation and energy costs. The Group continues to monitor the exposure and impact
of these events.
Principal Risks and Uncertainties continued
33Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Viability Statement
Assessing viability
In making its assessment, the Board took into account the
potential impact of the principal risks that could prevent the
Group from achieving its strategic objectives. The assessment
was based on the Group’s ORSA process, which brings
together management’s view of current and emerging risks,
with scenario-based analysis and reverse stress testing to
form a conclusion as to the financial stability of the Group.
Consideration was also given to a number of other individual
risks and events. In the Board’s estimation these events
would not plausibly occur to a level of materiality that would
endanger the Group’s viability. The assessment also included
consideration of any scenarios which might cause the
business to breach its solvency requirements which are not
otherwise covered in the risk-based scenario testing.
Viability statement
Based on the consolidated financial impact of the sensitivity
analysis and associated mitigating internal controls and risk
management actions, as described in detail for each principal
risk, the Directors concluded that they have a reasonable
expectation that the Group will be able to operate within
its solvency capital appetite and maintain sufficient liquid
investments and cash reserves to meet its funding needs over
the three-year period ending 31 December 2027.
Going concern
The Directors also considered it appropriate to prepare the
financial statements on the going concern basis, as explained
in the Basis of preparation paragraph in Note 1 to the
Financial Statements.
The impact of inflation
The current economic environment is continuing to recover
from a period of unexpectedly high inflation. Persistency
remains uncertain and investment markets are vulnerable to
increased levels of volatility. Interest rates remain materially
higher than in the few years preceding 2022.
The Group and its operating entity have considered various
stress scenarios related to inflation. These risk scenarios indicate
that the current economic environment will not change the
viability status of the Group and its operating subsidiary. The
Group trades from a robust capital position and is expected
to remain well capitalised under all reasonable financial and
operational stress scenarios.
The impact of climate change
We discuss the impact of climate change in detail on pages
55 to 64 of this report. We have assessed the short, medium
and long-term risks associated with climate change. Given the
geographical diversity of the Group’s policyholders within the
UK and the Group’s reinsurance programme, it is highly unlikely
that a climate event will materially impact Sabre’s ability to
continue trading. More likely is that the costs associated with
the transition to a low-carbon economy will impact the Group’s
indemnity spend, as electric vehicles are currently relatively
expensive to fix. We expect that this is somewhat, or perhaps
completely, offset by advances in technology reducing the
frequency of claims, in particular bodily injury claims which
are generally far more expensive than damage to vehicles.
These changes in the costs of claims are gradual and, as
such, reflected in our claims experience and fed into the
pricing of our policies. However, if the propensity to travel by
car decreases overall this could impact the Group’s income in
the long term, but this is not expected to be material within the
viability period of three years. We do not consider it plausible
that such a decrease would be as severe as the scenarios that
we have modelled as part of our viability testing exercise.
This table shows some of the key scenarios modelled as part
of our viability testing exercise, and the risks category to which
they most closely relate.
The impact of cyber crime
In recent years, cyber crime has become more sophisticated,
more frequent and more dangerous. For these reasons,
it ranks highly amongst our principal risks and warrants
particular consideration with regard to the viability assessment.
The Board considers the Group’s financial
status and viability on a regular basis as part
of its programme to monitor and manage
risk. In accordance with provision 31of the
UK Corporate Governance Code 2018, the
Directors have assessed the Group’s prospects
and viability for the three-year period to
31 December 2027, taking into account the
Group’s current position and the potential
impact of the principal risks.
The assessment period of three years has
been chosen as it is in line with our business
planning horizon. This is consistent with the
time horizon projected for most scenarios
assessed through the Group’s annual Own Risk
and Solvency Assessment (“ORSA”) report
(a requirement under the UK’s Solvency
regime), which sets out detailed considerations
of the principal risks and uncertainties facing
the Group and also considers the current and
future levels of solvency and liquidity over the
short and medium term with reference to the
Group’s preferred operating capital excess
range of 140% to 160%. The cyclical nature of
the motor insurance market and the nature of
the Group’s business, being writing one-year
or less motor insurance policies, means that
projecting for periods longer than three years
creates material uncertainty; however, we do
review longer-term strategic developments
and emerging risks over longer time periods.
34 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Our modelling now includes a specific ‘cyber attack’ scenario,
which takes an extreme view of business interruption,
expenditure, and reputational damage that can be caused
through a cyber attack. Given the Group’s very strong capital
position, diversified product distribution and sophisticated
control environment, we have concluded that the Group
would remain viable in the event of a severe cyber attack.
Some detail on the types of stresses modelled in each scenario
is given below.
− Cyber attack: Temporary cessation in ability to write
business, large fine, additional expenditure
− One-off major loss event: A significant immediate expense
of unspecified nature
− Inflation: Increase in gross and net reserves, increase in
loss ratio for 12 months, increase in operational expenses,
decrease in premium
− Pricing and reserving errors: Increase in gross and net
reserves, short-term significant increase in loss ratio
− Changing interest rate environment: Decline in bond values
− Reinsurance pricing, availability and exposure: Significant
reinsurance rate increase and failure of a large reinsurer
− Broker failure: Loss of premium from largest broker
foroneyear
− Temporary cessation in ability to write business: Significant
reduction in premium for three months
− Loss of competitiveness: Shrink premium materially
year–on–year
− We have also modelled worst-case scenarios which
combine these events.
Note that each scenario tested assumes that the year-end
dividend is paid as declared, and the proposed £5m share
buyback is executed in 2025.
Cyber attack
Large single
expense
Excess inflation
Pricing and
reserving errors
Changing interest
rate environment
Reinsurance
pricing,
availability
and exposure
Reinsurance –
loss of USP
Broker failure
Temporary
cease business
Loss of
competitiveness
Reasonable
worst case
Extreme
worst case
Insurance
Operations
Finance and
capital
IT and systems
Regulatory,
governance
and compliance
People
Macro risks
Viability Statement continued
35Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Our purpose
To provide motor insurance, available to the widest possible
range of drivers, based upon a fair, risk-based pricing model.
To generate excess capital and return this to shareholders,
or reinvest in the business in order to increase future returns.
Section 172 (1) Statement
This section of the Strategic Report describes how the Directors
have had regard to the matters set out in section 172 (1) (a)
to (f), and forms the Directors’ statement required under section
414CZA of the Companies Act 2006.
Stakeholders and our Board
Sabre aims to provide high-quality motor insurance at a fair
price, while making attractive returns for its shareholders under
any market conditions. This can only be achieved through
engagement with, and consideration of, all stakeholders
including our employees, customers, suppliers and regulators.
Stakeholder engagement
The Board recognises that the needs and relevance of different
groups of stakeholders can vary over time, and, as such, the
Board seeks to understand the needs and priorities of each
stakeholder as part of its decision making. This is integral to the
way the Board operates.
Page 44 of the Strategic Report sets out who our stakeholders are
and how our strategy impacts them. We further discuss how we
engage with our key stakeholders, and our employees, on pages
44 to 64 of the Strategic Report.
Listening to the needs of stakeholders
The Board interacts with stakeholders through direct engagement
as well as through information provided by Management.
Key engagement activities include:
− Appointing a Non-executive Director to be responsible for
direct employee engagement, which involves meeting with
employees throughout the year in order to discuss their
concerns and views on the business.
− Review and assessment of the results of annual employee
surveys.
− Engaging with shareholders: at the regular Management
roadshows, attendance at investor conferences and
through meetings with the Chair.
− The Board and management allow time for informal
discussions with shareholders before and after the Group’s
Annual General Meeting. This is an opportunity to interact
with smaller, non-institutional shareholders.
− Regular supervisory meetings between individual Board
members and the Group’s regulatory supervisory team,
which facilitates wider discussion of the issues facing the
insurance industry, as well as Group-specific matters.
− Reports from management to the Board on customer
service, including complaints root-cause analysis and
whether customer service metrics have been met.
Embedding stakeholder interests within our culture
Through informed discussion at Board level, Sabre’s Executive
Team carry forward stakeholder consideration into and
throughout the business. Sabre operates a culture of openness
and transparency, with management at all levels working among
their teams, ensuring that the tone from the top is well embedded
in the day-to-day operations of the Group.
Section 172 Statement
Fair, risk-
based
pricing
and reliable
returns
36 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Ensuring stakeholder interests are taken into
account
The Board takes its responsibilities under Section 172 of the
Companies Act very seriously. The Board is aware that the
Directors of the Company must act in good faith, and in ways
that promote the success of the Company for the benefit of its
members, and in doing so have regard to:
− The likely consequences of any decision in the long term.
− The interests of the Company’s employees.
− The need to foster the Company’s business relationships
with suppliers, customers and others.
− The impact of the Company’s operations on the
community and the environment.
− The desirability of the Company maintaining a reputation
for high standards of business conduct.
− The need to act fairly as between members of the Company.
This table demonstrates where further information on how the
Board has met these responsibilities is disclosed:
Long-term
results
Our Strategy pages 12 to 13
Chair’s Letter page 67
Market Context pages 8 to 9
CEO’s Review pages 18 to 20
Business Model page 11
KPIs pages 22 to 23
Principal Risks and Uncertainties pages 24 to 33
CFO’s Report pages 40 to 43
Viability Statement pages 34 to 35
Audit Committee Report pages 80 to 83
Risk Committee Report pages 84 to 86
Our people Business Model page 11
CEO’s Review pages 18 to 20
Our People section of the CSR Report pages 47
to 51
Board Principal Decisions page 39
Chair’s Governance Letter page 67
Remuneration Committee Report pages 90
to 93
Directors’ Remuneration Report pages 105
to 117
Employee designated NED page 70
Stakeholders Strategy operations page 13
Strategy distribution page 13
Strategic priorities pages 12 to 13
CEO’s Review pages 18 to 20
Business Model page 11
CSR Report pages 44 to 64
Community
and
environment
CEO’s Review pages 18 to 20
CSR Report pages 44 to 64
Directors’ Report pages 118 to 121
Reputation Strategy Report pages 12 to 13
CEO’s Review pages 18 to 20
Governance Report pages 72 to 79
Fairness for
shareholders
Strategy Report pages 12 to 13
Governance Report pages 72 to 79
Remuneration Committee Report pages 90
to 93
Directors’ Remuneration Report pages 105
to 117
How s.172 is applied across
our stakeholders
Shareholders
Underwriting performance
Delivering consistent and attractive returns on capital.
Risk management
Minimise volatility in result and maximise available capital.
Growth
Increasing value and absolute returns over time.
Operations
Enhancing operational efficiency and minimising cost.
Distribution
A flexible distribution model allows protection of bottom line
throughout the market cycle and responds to emerging
customer demand.
Our people
Underwriting performance
Stable business model allows for long-term, rewarding careers.
Risk management
Job security in a supportive, culturally sensitive environment.
Growth
Over time, internal opportunities to develop and grow with
the business.
Operations
Skills-based operations allow for fulfilling employment.
Conformity with best practice.
Distribution
Broker-led distribution retains technical skills in-house.
Section 172 Statement continued
37Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Customers
Underwriting performance
Providing a quote for almost all potential customers, based
upon the expected cost to us in providing that policy,
irrespective of the individual’s shopping or behavioural habits.
Risk management
Certainty that cover will be honoured and that the Group
will retain the means to settle any claims which fall due.
Comfort that we operate in line with all applicable laws and
regulations.
Growth
Over time, scale benefits allow lower prices without sacrificing
margin.
Operations
Efficient, consistent service from our claims and front-end
administrative units, along with effective operational controls
to allow for fast, accurate transactions.
Distribution
Obtaining a Sabre quote is easy, whether through a broker,
price comparison website or direct through our brands,
meaning almost everyone has access to a Sabre policy.
Partners
Underwriting performance
Cash-positive business makes Sabre a reliable counterparty.
Risk management
Certainty of liquidity to meet debts as they fall due.
Growth
Become an increasingly valuable trading partner over time.
Operations
Make timely, accurate payments to all suppliers.
Distribution
Fair, consistent terms with our distribution partners.
Regulators
Underwriting performance
Only underwriting business that will meet our target margins
and generate appropriate regulatory capital.
Risk management
Maintaining capital headroom. Minimising conduct risk and
ensure full compliance with legal and regulatory landscape.
Growth
Growing when the market allows, without sacrificing profitability
or capital security.
Operations
Ensuring accurate, timely reporting and close monitoring
of regulatory risk areas.
Distribution
Broker audits and on-boarding processes ensure a fully
compliant customer journey.
Society
Underwriting performance
Providing access to insurance to as wide a group as possible,
reducing the risk of uninsured drivers.
Risk management
Financial stability and strong balance sheet present lowest
possible systemic risk.
Growth
Increasing employment in the local community, while
monitoring our impact on the environment.
Operations
Ensuring efficient use of resources and managing the Group’s
impact on our local environment.
Distribution
Making our product available as widely as possible, at a fair
price to all.
Section 172 Statement continued
38 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Key Board decisions during the financial
year ended 31 December 2024
The Board recognises the importance of making decisions in
a manner which ensures that all the Group’s stakeholders are
treated consistently and fairly. This can be demonstrated through
the key decisions made by the Board during the financial year
ended 31 December 2024, as discussed below.
Strategy
During 2024, the Board signed off on the Group’s new medium-
term strategic plan, Ambition 2030, which is discussed on
pages 14 to 17 of this Report.
This strategy underlined the Board’s commitment to driving
profitable, sustainable growth over the medium term without
compromising the Group’s strengths. The plan represents an
evolution of the Group’s core strategy. The Board continually
reviews the Group’s strategy against its best understanding of
the needs of key stakeholders and in respect of Ambition 2030,
considering the benefit to customers of being able to purchase
Sabre policies at more competitive prices, shareholders who
would benefit from growth in the business, and the positive
impact on motivation of all the people within the business.
The Board held two ‘strategy days’ during the year, at which
the strategy was assessed primarily against the needs of
shareholders, customers, employees and the Group’s regulators.
The Board considered whether the Group’s strategic objective
not to sacrifice profitability over growth remained appropriate
and concluded that the current, focused approach was likely
to give the best long-term result for shareholders as well as the
best prices for customers and the best level of customer service.
Distribution of capital
The Group’s existing dividend policy states that an ordinary
dividend will be paid based on 70% of the year’s profit after tax,
with the potential for additional capital to be distributed by way of
a special dividend, as appropriate. The Board assessed whether
to pay a special dividend on an annual basis once the result for
the year is known. This decision is made primarily based upon
the financial position of the Group, as demonstrated through its
solvency coverage ratio, as well as projected capital needs and
the wider economic and market backdrop. The Board considers
this to meet the overriding need of all shareholders, customers,
employees and the Group’s regulators, for the Group to remain
a solvent, viable trading entity under all reasonably foreseeable
circumstances. The Board also makes a secondary consideration
of the expectation of shareholders, understanding that many of
the Group’s investors hold stock in order to benefit from the strong
dividend flow.
During 2024, the Board made the decision to declare a final
ordinary and interim dividend in line with the Group’s policy.
Having reviewed the strength of the balance sheet and detailed
capital modelling prepared by Management, the Board was
satisfied that such a distribution was appropriate and in line
with the expectations of the Group’s stakeholders. The Board
also decided to allow more flexibility in setting the method of
distribution of excess capital, introducing the ability to execute
share buybacks where this is the most effective use of capital,
and to meet the needs of shareholders. The Board made
use of this flexibility in early 2025, declaring the £5m buyback
programme, subject to regulatory approval.
The Board has also reviewed the Group’s dividend policy,
following a review of capital distributions since IPO. This resulted
in a revision to the policy, which increases the maximum ordinary
dividend to 80% of profit after tax, subject to sufficient excess
capital being available, and more specifically references
the optionality to make use of buybacks when appropriate.
The revised policy, effective from 2025 onwards, is:
− Ordinary dividend of 70% to 80% of profit from operations,
net of tax
− Interim dividend of one third of the prior-year ordinary
dividend
− Periodic distribution of surplus capital through either
dividend, share buybacks or a combination of both,
subject to capital not being required for growth
− Target post-dividend solvency coverage ratio of 140%
to 160%
Pricing and inflation
The Board supported Management’s data-led approach
to managing pricing through a period of continued high
inflation and low market-price increases. The Board challenged
management’s assessment of inflation and the setting of claims
reserves in the context of continuing economic uncertainty and
ensured that an appropriate balance was being struck between
prudent and fair pricing for customers.
Investment in cyber-security
The Board recognises cyber-security as a key risk to the
business and, as such, has supported management’s plans
to further enhance the Group’s security infrastructure.
This has included the recruitment of a Non-executive Director
with specific skills and experience in this area as well as
investment in a virtual Chief Information Security Officer
(“VCISO”) and dedicating increased resource to data
protection and perimeter security. Cyber security benefits all
stakeholders, in particular customers, who can take comfort
that their personal data is held safely and securely.
Section 172 Statement continued
39Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Gross written premium
£236.4m
2023 | £225.1m
IFRS profit before tax
£48.6m
2023 | £23.6m
Chief Financial Officer’s Review
Delivering top and bottom
line growth while staying
true to our core strengths.”
Adam Westwood
Chief Financial Officer
Highlights
2024 2023
Gross written premium* £236.4m £225.1m
Net insurance margin* 17.6% 10.6%
Net loss ratio* 58.7% 61.6%
Combined operating ratio* 84.2% 91.6%
IFRS profit before tax £48.6m £23.6m
IFRS profit after tax £36.0m £18.1m
Solvency coverage ratio
(pre-dividend)* 216.6% 205.3%
Solvency coverage ratio
(post-dividend)* 171.1% 170.9%
Return on tangible equity* 38.2% 22.7%
* Alternative performance metrics are reconciled to IFRS reported figures
on pages 208 to 212 of the Annual Report and Accounts
40 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Executive summary
Sabre’s financial performance in 2024 represents a strong
return to form, with profit before tax – which remains the
Group’s primary metric and key focus for Ambition 2030 –
having more than doubled since 2023, a result of higher written
premium in 2023 and 2024 earning through and an improved
net insurance margin resulting from stronger underwriting
performance. Overall, we are just a fraction of a percentage
point outside the Group’s recently restated net insurance
margin target of 18%-22%, with the year’s strong improvement
in current-year performance result being slightly offset by a
small increase in prior-year claims costs.
This result is a great stepping-stone towards the Group’s
ambitious medium-term target – to reach a profit before tax
of at least £80m in 2030. Alongside this, Sabre has generated
significant capital and increased the total dividend payout by
44.4% while maintaining a very strong balance sheet, being
well positioned to deal with whatever market conditions prevail
during 2025 and to keep delivering market-leading profitability.
The Group has announced its intention to execute its first share
buyback programme, worth around £5m, in 2025, subject to
regulatory approval. This is an effective use of excess capital
and underlines the Board’s confidence in the Group’s balance
sheet strength and its capital-light strategic plan.
Insurance revenue
2024 2023
Gross written premium £236.4m £225.1m
Movement in unearned element
of liability for remaining coverage £7.2m (£40.6m)
Gross earned premium £243.6m £184.5m
Customer instalment income £4.5m £3.7m
Insurance revenue £248.1m £188.2m
Reinsurance expense (£33.6m) (£28.5m)
Net insurance revenue £214.5m £159.7m
Gross written premium by
product
Motor vehicle £209.9m £199.0m
Motorcycle £9.7m £11. 8 m
Taxi £16.8m £14.3m
Policy counts by product
Motor vehicle (‘000) 217 234
Motorcycle (‘000) 38 44
Taxi (‘000) 11 12
Headline premium growth of 5.0%across 2024 was weighted
towards the first half of the year, with growth being allowed to
slow as market conditions became less favourable from Q2
onwards, representing a cyclical softening of market prices.
Having achieved sufficient growth in the first half, Sabre was
able to avoid chasing market pricing down in the second half,
preserving strong margins across the book while accepting
a dip in premium and policy volumes, exactly in line with the
Group’s strategy.
The Motorcycle business remained healthy during 2024,
withthe last policies written by the Group’s previous distribution
partner having completely run off during the year, the gap
in policies being completely filled by the Group’s other
distribution partner.
The Taxi book remained relatively stable, with further
underwriting enhancements allowing a core of profitable
business to be written, while not yet being ready to accelerate
growth in the product given continued under-pricing in the
Taxisegment.
The ‘unearned’ element of the liability for remaining coverage’
represents the element of written premium covering future
periods, which has the effect of smoothing gross earned
premium (“GEP”) (and therefore insurance revenue) over time,
so where there is a big change in written premium, insurance
revenue will change more slowly. Customer instalment income
reflects the interest income charged on instalment policies
and remains a relatively small percentage of the Group’s total
insurance revenue.
Chief Financial Officer’s Review continued
41Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
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Governance
Chief Financial Officer’s Review continued
Insurance expense
2024 2023
Undiscounted gross claims
incurred £136.4m £127. 6 m
Discounting
(1)
(£6.9m) (£8.2m)
Directly attributable expenses £7.0 m £6.1m
Amortisation of insurance
acquisition costs £18.2m £14.1m
Insurance service expense £154.7m £139.6m
Undiscounted reinsurance
recoveries £42.0m £38.3m
Discounting
(1)
(£8.4m) (£9.8m)
Net insurance expense £188.3m £168.1m
Current-year net loss ratio
(2)
58.2% 64.3%
Prior-year net loss ratio
(2)
0.5% (2.7%)
Financial-year net loss ratio 58.7% 61.6%
Net loss ratio by product
Motor vehicle 56.1% 55.0%
Motorcycle 58.6% 73.3%
Taxi 95.7% 117.1%
Discounted ratios
Discounted financial-year
net loss ratio 55.4% 56.3%
(1) Includes discounting on Period Payment Orders (“PPOs”)
(2) Calculation of undiscounted net loss ratio allows for the impact of
discounting on long-term non-life annuities, Periodic Payment Orders
(“PPOs”), consistent with presentation under IFRS 4
2024 saw a continuation of the strong loss ratio improvement
trends from 2023, with Motor Vehicle continuing to perform at
a loss ratio in line with our target and Motorcycle and Taxi both
improving, albeit from a weaker position in the previous year.
The current year loss ratio, which is a measure of the claims
experience on policies which were in force during the year
has improved across the board, with an overall improvement
of 6.1% The prior year loss ratio has shown a small outward
movement in 2024 – this means that the amount held for
claims on the books at the end of the prior year has increased
a little, whereas in 2023 it decreased (as is usual). This reflects
some adverse experience on open claims within the year and
we expect prior year experience to return to normal negative
loss ratios in future years.
Directly attributable and acquisition costs have increased by
c24.8%, which is primarily driven by a proportionate increase
in insurance revenue, given these costs are mostly broker
commissions and other directly attributable variable costs.
Other operating expenditure
2024 2023
Employee expenses £15.4m £13.9m
IT expenses £6.8m £6.0m
Industry levies £6.0m £5.9m
Policy servicing costs £3.2m £2.5m
Other operating expenses £3.9m £4.4m
Before adjustment for directly
attributable claims expenses £35.3m £32.7m
Reclassification of directly
attributable claims expenses (£7.0 m) (£6.1m)
Total operating expenses £28.3m £26.6m
Expense ratio 25.5% 30.0%
The expense ratio has improved significantly, by 4.5ppts, in 2024.
This is mainly due to the recovery in expense leverage following
a period of low premium in the preceding years. Absolute
expenses have increased by approximately 8.0%, which is in
part due to the impact of variable expenses, such as policy
administration costs, certain data costs and levies. It is also a
consequence of the high levels of inflation during the past three
years, with the impact of high inflation not being felt immediately
as contracts are renewed at staggered intervals.
Total staff costs, which is Sabre’s largest category of expense,
has increased by 10.8% year-on-year. This is partly a function
of a 4.3% increase in average full-time equivalent headcount
and an average pay increase of just over 6.7%. Staff bonuses
were increased by approximately 26% in 2024, returning closer
to ‘normal’ (pre-2022) levels, and executive bonuses, which are
paid from a pool calculated as a proportion of profit before
tax, also increased (see pages 105 to 117 for more details of
executive remuneration).
Other income
2024 2023
Other technical income £0.7m £1.2m
Interest revenue calculated using
the effective interest method £7.9m £3.8m
Insurance finance expense for
insurance contracts issued (£8.4m) (£10.2m)
Reinsurance finance income for
reinsurance contracts held £3.7m £3.6m
Net insurance financial result (£4.7m) (£6.6m)
Other technical income, related to non-insurance revenue
earned such as product fees (excluding instalment interest)
and commissions, remains a very small element of the Group’s
income. Interest revenue reflects the yield achieved across
the Group’s investment portfolio. The significant increase
in interest revenue reflects the higher yield gained through
reinvesting matured assets as well as an increase in the total
assets invested during the year. The Group’s investment strategy
remains unchanged, being invested in a low-risk mix of UK
Government bonds, other government-backed securities and
diversified investment-grade corporate bonds.
Fair value gains and losses are taken through other
comprehensive income and largely reflect market movements
in the yields of risk-free and low-risk assets. We do not expect
to realise any of these market value movements within profit,
as we continue to hold invested assets to maturity.
42 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Insurance and reinsurance finance income/(expense) reflects
the run-off of discounting applied to insurance liabilities under
IFRS 17. As cash flows move towards settlement, the total level
of discounting is reduced and this reduction is reflected here.
The slight reduction in this cost in 2024 reflects the discount
rates applied at the point claims were incurred and is a
function of the run-off patterns applied to claims costs when
they are incurred.
Taxation
In 2024 the Group recorded a corporation tax expense of
£12.6m(2023: £5.5m), with an effective tax rate of 25.9%,
(2023: 23.5%). The increase in effective tax rate is primarily due
to the increase in the UK rate of corporation tax in April 2023.
It is slightly higher than the current 25% UK rate of corporation
tax because of a small (£0.6m) tax charge in respect of
prior periods, related to the implementation of IFRS 17.
The Group has not entered into any complex or unusual
tax arrangements during the year.
Earnings per share
2024 2023
Basic earnings per share 14.48 7.27
Diluted earnings per share 14.37 7.2 0
Basic earnings per share of 14.48p is proportionate to profit
after tax. Diluted earnings per share is similarly proportionate to
profit after tax, taking into account the potentially dilutive effect
of the Group’s share schemes. No shares have been issued or
cancelled during the year.
Cash and investments
2024 2023
Government bonds £112.8m £107. 0 m
Government-backed securities £103.3m £81.9m
Corporate bonds £95.1m £75.7m
Cash and cash equivalents £31.3m £35.1m
Total cash and investment holdings have increased given the
growth in the business across 2024. The level of cash retained
reflects Sabre’s normal liquidity requirements and there has
been no change in the overall investment strategy, with gilts
and government-backed assets remaining the majority of the
portfolio, with c.30% of invested assets held in investment-grade
corporate bonds.
Insurance liabilities
2024 2023
Gross insurance liabilities £ 397.9m £374.8m
Reinsurance assets (£160.8m) (£166.7m)
Net insurance liabilities £2 37.1m £208.1m
The Group’s net insurance liabilities continue to reflect
the underlying profitability and volume of business written.
Generally, the gross insurance liabilities are more volatile and
impacted by the receipt and settlement of individually large
claims. The level of net insurance liabilities held remains broadly
proportionate to the volume of business written along with the
inflation applied to claims costs.
Leverage
The Group continues to hold no external debt. All of the Group’s
capital is considered Tier 1 under the UK regulatory regime.
The Directors continue to hold the view that this allows the
greatest operational flexibility for the Group.
Dividends and solvency
2024 2023
Interim ordinary dividend (paid) 1.7p 0.9p
Final ordinary dividend
(proposed) 8.4p 4.2p
Total ordinary dividend
(paid and proposed) 10.1p 5.1p
Special dividend (proposed) 2.9p 3.9p
Total dividend for the year
(paid and proposed)
13.0p 9.0p
The dividend proposed is in line with the Group’s current policy
to pay an ordinary dividend of 70% of profit after tax, and to
consider passing excess capital to shareholders by way of a
special dividend.
Along with these financial results, the Group has announced
an increase in the maximum ordinary dividend to 80% of
profit after tax, effective from 2025 onwards. This allows for an
ordinary dividend much closer to historical levels of distribution.
Excluding the capital required to pay this dividend, the Group’s
SCR coverage ratio at 31 December 2024 is 171.1%.
We have announced this year that the Group intends to
operate its first share buyback programme in 2025, distributing
around £5m of excess capital, subject to regulatory approval.
The Group’s year-end SCR coverage ratio, excluding the capital
required to fund this buyback, is 163.1%.
Adam Westwood
Chief Financial Officer
17 March 2025
Chief Financial Officer’s Review continued
43Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Responsibility and Sustainability
Operating Sabre as a responsible and sustainable
business is a key element of our long-term strategy.
We have developed a framework for our actions
which forms an important reference point when
directing the Group’s activities. We are committed
to our part in building a sustainable future.
A responsible
and sustainable
business
Our
Customers
Our
Partners
Our
People
Our
Shareholders
Our
Community
Our
Environment
go to page 45 go to page 46 go to pages 47-51 go to page 52 go to pages 53-54 go to pages 55-64
44 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Pricing
We price all of our policies based upon our estimate of the
ultimate cost to us of providing that policy, including paying
claims, administrative expenses and taking a consistent margin
regardless of the premium level. Each uniquely priced policy is
based upon our view of the risks presented by it, considering
both the person and the vehicle insured. This assessment is
based on our bespoke fully-automated pricing model, using
our experience represented by many years of claims data.
We have generated a deep pool of data, which allows us
to provide the best possible, risk-adjusted prices.
Customer experience
We strive to ensure an easy, efficient service to all of our
customers however they reach us. This could be through our
extensive broker network, or directly to us through our own
brands, GoGirl and Insure2Drive. This includes providing
a straightforward sales process and a knowledgeable,
well-staffed UK-based call centre.
Claims
Most of our business is sold online or through our network of
brokers, which means our first contact with customers is often
when they make a claim. We understand this can be a stressful
process and seek to make it as easy as we can, to provide
a ‘no hassle’ service for honest customers and third parties.
Where we believe individuals are making false or exaggerated
clams we will defend our position robustly to allow us to
continue offering competitive premiums to all of our customers.
We engage with excellent partners, with whom we agree a
strong suite of service-level parameters, which are monitored
regularly, to ensure customers receive great service at all touch
points – whether by our own team or our outsourced partners.
Our
Customers
Responsibility and Sustainability continued
Sabre’s business is built around
the customer, with a goal to provide
access to fairly priced motor
insurance for almost everyone.
We want our customers to
experience high-quality customer
service and peace of mind.
Financial
Statements
Strategic
Report
Governance
45Annual Report and Accounts 2024Sabre Insurance Group plc
Suppliers
Suppliers are selected based on operational and financial
resilience, compliance, economic terms, and governance.
Customers are foremost in our decision making to ensure
we select a supplier which will support them. Ongoing due
diligence is performed to ensure suppliers continue to deliver
the services and meet our expectations.
Commercial terms with our suppliers are negotiated to deliver
the best value to our shareholders, while also ensuring partners
can earn a reasonable profit and sustain a mutually beneficial
ongoing relationship.
Brokers
Approximately 60%of our premium income was sourced through
brokers in 2024. Our philosophy when entering into business with
brokers is simple: we will provide a fair and sustainable price,
available to as many of their customers as possible. In return,
they commit to treating their customers fairly, to collect the correct
premium from the customer and pass it to us, and to make best
efforts to ensure that the policy details provided to us are correct.
We aim to offer fair terms to all brokers, reflecting their long-term
profitability to us. We therefore do not offer scheme discounts or
other incentives, which might demonstrate preferential treatment
in favour of a particular broker.
Our broker on-boarding and audit processes give us the
comfort that our brokers are providing customers with a good
quality of service while adhering to our high standards.
Outsourced operations
We engage in several key outsourcing arrangements. In each
case, we have developed a fair set of measurable service
levels and fee structures designed to deliver best value for
both parties. We conduct regular reviews of our key outsourced
operations to ensure that they reach the expected levels
of employee and customer welfare as well as meeting any
regulatory requirements.
Our
Partners
Our relationships with partners
are designed to be mutually
beneficial, fair, and in the best
interests of all stakeholders.
Responsibility and Sustainability continued
46 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Our People
Our people are core to the success of the
Group, and we seek to create a positive
and collaborative working environment for
all our employees. Sabre’s culture provides
our employees with an open, honest and
professional working environment which
recognises the importance of a healthy
work/life balance.
Responsibility and Sustainability continued
47Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
The Group operates from a single site in Dorking, Surrey and as
of 31 December 2024 employed 167 people. We are pleased to
say that over 47% of our employees have been with the Group
for ten or more years, which is an increase from last year of 2.3%.
Communication with employees
Sabre encourages internal communication through a two-
way dialogue between the Leadership Team and employees.
Throughout the year we have done this through:
− Regular ‘CEO lunches’, where Geoff Carter hosts a lunch
with teams across the Group
− ‘Listen & Learn’ sessions, where Karen Geary, the Non-
executive Director responsible for employee engagement
hosted Q&A sessions with employees
− ‘Lunch & Learn’ sessions with senior management and
employees
− Continued use of ‘Ask Sabre’, an email facility which allows
employees to raise questions regarding the business
− An employee Happiness Survey which is a facility to post
comments anonymously
− An Employee Satisfaction Survey, which is sent annually to
employees to allow them a safe space to provide feedback
anonymously to the Leadership Team
− Presentations at Full Year and Half Year to update employees
on the Group’s financial results and answer any questions
they may have in relation to the announcements
− Appraisals twice a year for all employees
− The Head of HR attends Remuneration and Nomination
Committee meetings where the CEO and Non-executive
Directors are provided with an update on our people
and culture
− Non-executive Directors meet with managers outside
of Board meetings
Number of Mental Health First Aiders
2
2023 | 2
Number of Mental Health Champions
7
2023 | 9
In addition to this, the Group has a dedicated Whistleblowing
Hotline through which employees can report any concerns
anonymously. Annual training and regular reminders are
provided to all employees regarding whistleblowing.
Employee policies and Code of Conduct
Policies are in place to support and develop the Group’s
employees, all of which are subject to regular review. Examples
of these include policies addressing equal opportunities,
acceptable behaviour, anti-sexual harassment, flexible
working, and health and safety. The policies and practices are
consistent with the Group’s values and support the long-term
success of the business through supporting its employees.
During 2024, all employee policies were reviewed to ensure that
they are fair and inclusive by outlining the responsibilities of
both the Group and our employees. All employee policies are
available through the Employee Portal which allows for easier
access for the employee as well as transparency.
Our People continued
Responsibility and Sustainability continued
48 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
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Governance
Responsibility and Sustainability continued
The Company has a Code of Conduct, which outlines
expected behaviours of employees. It further requires all
employees to understand the definition of, and the harms
related to, harassment. Training related to expected employee
conduct is required to be completed annually, and by all
new joiners.
We have enhanced maternity and paternity pay and
introduced paid leave for those who have babies requiring
neo-natal care. We also introduced a Carers Leave policy
which allows for leave to be taken for those who have
a caring responsibility.
Sabre also supports working parents through shared
parental leave and where possible embraces flexible working
for our employees.
Salaries
During the year, the Company reviewed and increased the
starting salaries for trainees, and the Company confirms that
at the least the Real Living Wage is paid to all employees.
As in prior years, in 2024 the Company gave employees pay
rises. For our people who were rewarded pay rises through our
annual pay review process, before any individual performance
adjustments, the average pay rise was 6.7%, with individual pay
rises between 5.0% and 8.9%. A Christmas bonus of £1,250 was
also paid to all eligible employees.
Employee share plans
Save As You Earn
In 2024, the Group launched its seventh Save As You Earn
(“SAYE”) grant, allowing employees to purchase shares in
the Group at a reduced rate. The Group allows employees to
contribute a maximum monthly contribution of £500, in line
with the maximum allowed under the Plan, and provides the
maximum discount of 20% when the option price is set. The
2024 SAYE grant saw 20% of employees participate. As of
31 December 2024, 46% of employees were participating in
one of the Company’s SAYE grants.
Share Incentive Plan
Throughout 2024, all permanent employees were able to
contribute towards a Share Incentive Plan (“SIP”). This scheme
allows employees to make a monthly contribution of up to
£150 or a yearly contribution of no more than £1,800. For every
three shares purchased a further free share is given. This scheme
is subject to the shares being held for five years.
Benefits
The Company operates a generous benefits package, including
enhanced holiday leave, matched pension contributions,
private health care, eye tests, annual flu jabs, mini health
MOTs, life assurance, daily breakfasts, weekly fruit deliveries,
and support towards professional qualifications. We also have
an Employee Portal, provided by Salary Extras, which provides
additional benefits, such as savings when shopping and
cashback. A number of social events are provided by the Group
for all employees.
Sabre has a formal hybrid working model whereby all employees
can work from home for a maximum of two days per week. This
allows employees to retain the benefits of working from home,
while maintaining a collaborative, primarily office-based culture.
As part of Sabre’s commitment to contributing towards a greener
environment, the Group offers an Electric Car Scheme. Electric
cars do not release direct emissions into the environment,
resulting in a greener and cheaper way to commute to the
workplace. There is a further benefit of purchasing an electric
vehicle through a salary sacrifice scheme as it generates tax
savings for the employee. To date, seven electric vehicles have
been ordered through the scheme. The Group also offers a
cycle to work scheme to all employees, which has a tax saving
benefit to the employee and can save on the cost of a bike
and accessories.
Training
The Group offers ongoing training to all employees and
external courses for newly promoted employees where
appropriate. During 2024, the Group provided development
training for our aspiring future management. All of these
employees were provided with bespoke training focusing
on soft skills and self-development.
The Group operates a compulsory annual compliance
e-training programme for all employees, which includes
topics such as anti-bribery and corruption, whistleblowing,
Consumer Duty and modern slavery.
During 2024, the Group provided a workshop hosted by Carers
UK for practical tips and advice as well as signposting on
where to turn to for support. It also offered financial wellbeing
sessions for all employees.
Our People continued
49Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
During 2024, the Company supported employees with the
following qualifications:
− Foundation Insurance Test, Chartered Insurance Institute
− Foundation Certificate in People Management,
Chartered Institute of Personnel and Development
− Chartered Management Accountant Qualification,
Chartered Institute of Management Accountants
− Advanced Diploma, Chartered Insurance Institute
− CIPD Level 5 Associate Diploma in Organisational
Learning & Development
− Mental Health Champions, St John Ambulance
− Mental Health First Aider, St John Ambulance
− First Aid Qualification, St John Ambulance
− Certified Data Protection Officer (“CDPO”)
− A to Z of Negotiating
− Drafting IT contracts
All these qualifications are paid for by the Group, and we also
support employees’ study by providing study leave and the
costs of professional memberships.
Employee wellbeing
The Group recognises the importance of mental health and
has an employee wellbeing committee and a group of trained
mental health champions and mental health first aiders.
Their roles are to promote positive mental health and to
signpost relevant support and help, where appropriate.
The Group also has an employee assistance programme with a
24-7-365 telephone service which can aid discussions on work,
marital, financial or family problems, health information as well
as providing up to six sessions of employee counselling per
year if required.
The employee wellbeing committee introduced initiatives
throughout the year such as biweekly pilates sessions which
are held on site by a local pilates instructor, these sessions are
free to all employees. A ‘quiet’ room has been provided as an
alternative to the lunchroom, where there are several books as
well as subscriptions to women’s and men’s health magazines.
The introduction of free sanitary and personal hygiene
products in all restrooms has been welcomed by employees.
Inclusivity, diversity and equality
The Group is fully committed to the elimination of unlawful and
unfair discrimination and values the differences that a diverse
workforce brings to our organisation. We encourage inclusivity,
diversity and equality among our workforce, while eliminating
unlawful discrimination, and operate an Equality, Diversity and
Inclusivity Policy.
Sabre’s Equality, Diversity and Inclusivity Policy aims to:
− promote equality, fairness and respect for all our
employees;
− ensure that the Group does not discriminate against an
individual, specifically due to their age, disability, gender
reassignment, marriage and civil partnership, pregnancy
and maternity, race, religion or belief, sex and sexual
orientation; and
− avoid all forms of unlawful discrimination.
Sabre provides compulsory diversity and inclusiveness training
annually to all employees. There is an assessment at the end of
each training session, which must be passed before completion,
thus ensuring a level of understanding is reached. These
modules are designed to help employees and enable them to
understand how their attitudes and behaviour towards each
other can have a negative or positive impact on the workforce.
The Group operates a Religious Holidays Policy, for employees
who wish to observe special religious holidays or festivals. All
employees, whatever their religion or belief, will be treated
equally in this and all respects.
During the recruitment and interview process we ensure fair,
non-discriminatory and consistent processes are followed,
and Sabre has a policy of advertising all roles internally
(where practical) to allow employees to progress and develop.
Sabre also supports working parents through shared parental
leave, enhanced maternity and paternity leave and,
where possible, embraces flexible working for our employees.
During 2024, we have had eleven internal secondments which
allows for further training and development within specialist
areas. We also had eight internal promotions supporting Sabre’s
ethos of internal development within the Group,
Our People continued
Responsibility and Sustainability continued
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Diversity and inclusion:
New Listing Rule LR9.8.6R (9-11)
The requirements of the new Listing Rule are:
− At least 40% of the Board are woman.
− At least one senior Board position (Chair, CEO, CFO, SID) is held by a woman.
− At least one member of the Board is a non-white ethnic minority (based on ONS categories).
− Publish gender and ethnicity data of their Executive Management (the FCA has defined Executive Management as: the Executive
Committee or most Senior Executive or managerial body below the board (or where there is no such formal committee or body,
the most senior level of managers reporting to the Chief Executive), including the Company Secretary but excluding administrative
and support staff).
The Group operates a Diversity & Inclusion Policy for the Board and is compliant with the Listing Rules relating to diversity
and inclusion. 43% of the Board are women, the Chair position is held by a woman, and one member of the Board
is a non-white ethnic minority.
Number of Board
members % of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID & Chair)
Number in
executive
management
% of executive
management
Men 4 57% 3 2 100%
Women 3 43% 1 0 0%
Other categories n/a n/a n/a n/a n/a
Not specified/prefer not to say n/a n/a n/a n/a n/a
Number of Board
members % of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID & Chair)
Number in
executive
management
% of executive
management
White British or other white
(incl. minority white groups) 6 86% 3 2 100%
Mixed/multiple ethnic groups – – – – –
Asian/Asian British – – – – –
Black/African/Caribbean/Black British 1 14%
–
– –
Other ethnic group including Arab – – – – –
Not specified/prefer not to say – – – – –
Gender pay gap
While Sabre has fewer than 250 employees, and therefore is
not required to submit a formal statement on its gender pay
gap, Sabre has committed to publishing its Gender Pay Gap
Report on an annual basis. Sabre believes that by publishing
this information, the Group is ensuring accountability regarding
gender pay. Sabre’s Gender Pay Gap Report is available on
the Group’s website:
https://www.sabreplc.co.uk/about-us/corporate-governance/
gender-pay-gap-report/
Sabre has reviewed employee salaries and can confirm that
those employees with the same job titles and similar length of
service are paid similar amounts, as illustrated in the Group’s
Gender Pay Gap report.
Sabre’s approach to data protection
Sabre is committed to handling data responsibility and
complying with data protection legislation.
Sabre has an appointed Data Protection Officer, who reports
directly to the Board.
We regularly review our policies, procedures and IT security
to ensure data is protected, processed correctly and that we
are transparent with our customers and staff about how we
manage their data.
We have dedicated resources to respond to data subject rights.
Regular training is provided to all employees, ensuring they
understand their responsibilities.
Employees are trained, at least annually, on data protection
legislation and the Group’s requirements when handling
data. This includes online training courses, which include a
marked assessment on completion to ensure understanding.
Additional ad hoc training is provided to update on any
specific changes or points of interest.
Our People continued
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Our Shareholders
We aim to operate a responsible and sustainable
business, while continuing to deliver our
core strategy. We engage frequently with our
shareholders, who support our efforts to operate
a fair and inclusive workspace while minimising
any negative impact on our environment.
Over recent years, shareholder expectations have increased
significantly as to the level of disclosure required in this
area, and a move from passively reporting our status to
actively evolving the business in order to show continuous
improvement across all areas. In order to achieve this,
we appointed the Chief Financial Officer to establish our
ESG framework, and to ensure that sufficient, accurate and
timely information is provided to stakeholders.
Responsibility and Sustainability continued
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Our Community
Since 2019, Sabre has operated a Charity and
Social Committee (the “Committee”) to prioritise
and plan fundraising and social events. The
Committee is run by employees and during the
year had a change of Chair and increased
committee members to 12, compared to 10 in
2023. It consists of employees from across Sabre
with varying lengths of tenure.
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Charities supported
St Catherine’s Hospice
St Catherine’s Hospice offers both physical and emotional
support to those living with a terminal illness whose families live
in Sussex and East Surrey. Further information on St Catherine’s
Hospice can be found here: https://www.stch.org.uk/.
The Children’s Trust
The Children’s Trust delivers rehabilitation, education and
community services through skilled teams who work with children
and young people who have brain injuries and their families.
Further information on The Children’s Trust can be found here:
https://www.thechildrenstrust.org.uk/.
Other charities supported during the year were:
− African Revival
− Dorking Foodbank
− Macmillan Cancer Support
− The UK Charity for TNBC
− Save The Children
− Friends of St Paul’s Association
− Sands
Charity events during the year
The Committee arranged for employees to take part in a
number of charity events, including: the St Catherine’s Hospice
Dragon Boat Race, The Children’s Trust Golf Day, Sabre Charity
football match and quiz, bake sales and raffles as well as
sponsoring The African Revival Annual Ball and The Children’s
Trust Annual Elf Run.
Give a Day Away
In addition, Sabre continued its Give a Day Away Scheme,
where employees can take time out of their working day
to volunteer for charities. During the year, employees took
part in leaflet dropping for St Catherine’s Hospice and The
Children’s Trust Shop Challenge which saw employees helping
at two different locations in their charity shops to compete
against each other for the best window display and the best
sales figures. A total of 17 employees from the Claims, Policy
Operations and e-Commerce departments volunteered and
gave up a total of 90 hours of their time. The employees really
enjoyed participating in these events and we look forward to
supporting them to take part in these events next year.
By the end of the financial year, Sabre and its employees
had raised £12.4k for St Catherine’s Hospice and £8.9k for
The Children’s Trust. The total donations by the Group and its
employees amounted to £34.2k, of which £7.3k was raised
by employees (2023: £10.9k) and £26.9k donated by Sabre
(2023: £21.6k).
Raised for St Catherine’s Hospice
£12.4k
Raised for The Children’s Trust
£8.9k
Responsibility and Sustainability continued
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Our Environment
Our consideration of the environment falls
into two, equally important, categories. Firstly,
we must assess, and, where possible, mitigate
the risks of the changing environment on
our business. Secondly, we must consider
the impact of our business, both directly and
indirectly, on the environment, in particular the
impact of greenhouse gas emissions and their
contribution to climate change.
Responsibility and Sustainability continued
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We recognise that stakeholders are increasingly interested in both
of these issues and, as such, we look to ensure that we continually
review and enhance our efforts and disclosures in these areas,
with particular reference to guidance and rules issued by our
stakeholders, including the recommendations of the Task Force
on Climate-related Financial Disclosures (“TCFD”) and various
statements made by our regulators, and the Streamlined Energy
and Carbon Reporting (“SECR”) requirements.
During 2024, we continued to work with Forvis Mazars to assist with
our carbon footprint analysis and climate-related risk assessment.
Governance over climate change
The Board takes the ultimate responsibility for identifying,
assessing and mitigating risks in relation to climate change, and
in minimising the Group’s negative impact on the environment.
The Board will consider the impact on the Group’s carbon
footprint and any other climate-related factors when assessing
material strategic or tactical decisions, such as whether or not to
shift the insured footprint towards ‘green vehicles’ and approving
the office refurbishment. In setting its ‘Ambition 2030’, the Board
elected not to set a specific climate-related underwriting target,
in-line with the Group’s core philosophy to provide a fair price
for all risks. A member of the Board, Adam Westwood (CFO),
has been tasked with taking responsibility for the climate-related
strategy and subsequent implementation and reporting.
Adam has received training from a specialist team at Forvis
Mazars, to assist him in this role. He has held this responsibility
since 2019 and has overseen the implementation of TCFD
disclosure, enhanced carbon reporting and a significant
enhancement in the Group’s climate risk identification,
assessment and monitoring. Climate-related risks and
opportunities is a standing agenda item for both the
Board and Risk Committee and, where appropriate, will
include updates as to goals and targets set within our
net zero roadmap and any other relevant metrics as they
are developed. In particular, since the last report, the Risk
Committee have noted key internal metrics in assessing
climate risk including those ‘relevant metrics and targets’ noted
in the table below. Further detail on the activities of the Board
and Risk Committee can be found in the Governance section
of this report on pages 66 to 122.
The Management Team takes a collegiate approach to the
implementation of the Group’s climate goals, with the CFO taking
responsibility for leading the overall project. Climate-related
targets, including progress towards the Group’s net zero target,
which exist chiefly to manage the Group’s climate-related risks
and opportunities, are included within management’s (including
Executive Directors’) performance objectives, which feed directly
into remuneration. More detail can be found in the Remuneration
Report on pages 105 to 117. The CFO is assisted by the Group’s
Head of Facilities in monitoring and improving the Group’s
operational carbon footprint.
Information about climate change is disseminated throughout
the Group through the Sustainability Forum, an employee-run
Group responsible for assisting the CFO in developing and
implementing climate initiatives.
The Group’s Environmental Policy forms part of the core induction
pack and additional training is delivered as and when necessary.
Strategy for climate change
Climate-related risks and opportunities have been identified
and, where appropriate, incorporated into the Group’s risk
register. The short, medium, and long-term aspects of each risk
have been considered. These risks are summarised in the table
on pages 57 to 60.
Each of these risks has a varying impact over the long, medium,
and short term. We define long-term risks as those impacting
beyond a five-year time horizon, (i.e, those which exist outside
of the Group’s normal planning horizon), medium- term one to
five years and short-term anything impacting within one year.
Although most risks apply from now, with increasing likelihood
and severity across subsequent time horizons, we have noted
where we believe there may be a more significant step-up in
the risk.
When considering climate-related risks and opportunities, the
associated materiality is considered by management and the
Risk Committee. All risks are assigned a ‘likelihood’ and ‘impact’
assessment, which is aligned to the wider risk management
framework. The resultant ‘inherent’ risk is noted below.
Materiality – How we decide what to measure
Our disclosures are designed to provide information that we
consider will be useful and relevant to stakeholders. We aim
to identify the issues that are most important to them and
consequently also matter to our own business. Sabre’s risk
framework applies ‘inherent’ and ‘residual’ (i.e. before and after
the impact of controls) risk rating to all risk across the business.
By nature, a climate risk with a high likelihood or impact is
considered material. Our Management Team, with appropriate
Board Committee oversight, choose what we measure and
publicly report in this section. ’Materiality’ is considered to be
the threshold at which issues become sufficiently important
to our investors and other stakeholders that they should be
publicly reported.
We are also informed by stock exchange listing and disclosure
rules. We know that what is important to our stakeholders
evolves over time and we plan to continue to assess our
approach to ensure we remain relevant in what we measure
and publicly report.
The resilience of the Group’s strategy with respect to climate-
related risks has been assessed, with the assistance of a
specialist team from Forvis Mazars.
Sabre’s exposure to risks associated with climate change has
been quantified and stressed under several different scenarios,
covering the exposure from investments and insurance
liabilities, the outcome of this is discussed in the table on
pages 57 to 60.
Responsibility and Sustainability continued
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Our Environment continued
Responsibility and Sustainability continued
Scenarios used in quantitative analysis
A quantitative analysis of physical risk exposure is expected to be carried out once every three years and was last carried out in 2022. This will be revisited on an ad-hoc basis if Management
consider the relevant circumstances to have changed materially.
We considered this in the context of three Shared Socioeconomic Pathways (“SSP’s”), being:
− SSP1 ‘sustainability pathway’, generally the best- case scenario where warming is below 1.5
o
C by the end of the century after a brief overshoot. This is consistent with the Paris Agreement target.
− SSP2 ‘middle of the road pathway’ approximately in-line with Nationally Determined Contribution emissions levels, thereby representing our current path.
− SSP5 ‘fossil fuelled development pathway’, generally the worst-case scenario from a physical risk perspective with emission levels and warming projected to be very high.
Across the UK, there is a clear upward trend for all extreme heat indicators. Compared to baseline results, for both heatwave frequency and duration, the initial increase is slow before rapidly
increasing towards 2090. Heatwave frequency increases consistently across all postcodes covered. Extreme precipitation indicators show less consistent trends across the UK, with fluctuations under
SSP2 and SSP5 particularly evident.
Risk Description
Physical operational
Primary time horizon: medium-term
Risk rating: low
The physical risks generated by climate change relate to a changing weather system prevailing over the environment in which we operate. This could include
an increase in temperature but is more likely to manifest in an increase in the number and severity of extreme weather events, such as flooding, windstorms,
snow and hail.
Operational impact
Such a change in the weather could impact the ability of employees to attend the office or for the office or other equipment to be able to be used in the
‘normal’ way.
There is the related risk of failure of key IT infrastructure due to extreme weather events in the vicinity of the related hardware. We have assessed this risk under
a number of scenarios and concluded there is a low probability of such events occurring until at least 2090. We do not consider any of our key locations to be
exposed to high-impact weather-related events and therefore no preventative action is required.
Relevant quantitative analysis
We have considered the exposure of the Group’s head office, outsourced customer service location and two key data centres to heatwaves, heavy
precipitation and a rise in sea levels. For Sabre’s four operational sites, only one is at risk from sea-level rise, albeit at ‘moderate’ risk by the year 2100.
This analysis has confirmed that there is no raised level of short or medium-term operational risk in respect to climate change, and has highlighted that
exposure to climate-related events should be considered when making long-term decisions about the Group’s operational structure.
Relevant metrics and targets
While the analysis described above occurs on a three-year cycle, we monitor any incidence of climate-related operational outage. During 2024, no such
outage occurred. We expect this to remain at zero, given the Group’s low exposure. Our target is for zero climate-related outages.
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Risk Description
Physical liability
Primary time horizon: medium-term
Risk rating: low
It appears clear that an increased number of unpredictable extreme weather events will increase the overall cost of claims. While this is expected to have
a lower potential to have a material impact than in, for example, home insurance, nonetheless this could have a bearing on the cost of claims over time.
Financial impact
An increase in the frequency of adverse weather events is likely to increase the total cost of claims, although we consider this would be immaterial in the short
term, with pricing action taken to address increased costs in the medium term. The impact of one-off individually material events is mitigated by our reinsurance
programmes.
Our base case scenario is that such events will increase in frequency, but this increase will be slow and over a long period of time, and hence will be reflected
in policy pricing across the market in the same way as any other inflationary factor. The likelihood of a material increase in claims being sufficiently rapid not
to be compensated by re-pricing is considered to be very low. The more significant risk is that of a more immediate, unexpected and un-priced weather
event (such as extreme hail), which could cause significant damage very quickly. We primarily manage this risk through our insurance pricing mechanisms,
including short feedback loops between our claims and pricing teams.
Relevant quantitative analysis
Along with the exposure of physical operations to climate risk as noted above, we have considered our insured risks by postcode. This assessment has
considered the same sustainability pathways. 62 of our insured postcodes were included in the ‘severe’ sea level rise category, however the percentage risk
category varies greatly. It confirmed that there is no immediate concern regarding concentration risk of insured vehicles within high-risk zones.
Sabre’s insurance portfolio is a core part of our profit before tax. Sabre provides cover for numerous perils and the key perils exposed to the risk of climate
change risk are flood and windstorm. Over the past 10 years windstorm and flood claims have been less than 0.27% of Sabre’s GEP. Insurance policies are
annual contracts that can be repriced as the understanding of risks develops. If a policy generates high claims in one year, Sabre can intervene by declining
a renewal or increasing the premium for the next year. Sabre’s portfolio carries some climate-related risk; however, historically, claims from climate-related perils
have been low and the risk can be managed by monitoring loss ratios. Therefore, Sabre’s risk from climate-related perils on our insurance portfolio is low.
Relevant metrics and targets
Sabre’s flood capital requirement makes up less than 7.4% of our total base SCR, before any correlation effect. If Sabre’s flood SCR was uplifted by 100%,
this would cause less than a 2.2% increase in Sabre’s total SCR. Therefore, Sabre’s SCR could tolerate considerable increase in climate capital requirements.
Sabre targets a solvency coverage ratio over 140% in all reasonably foreseeable circumstances.
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Risk Description
Transitional market reduction
Primary time horizon: long-term
Risk rating: low
The transitional risks (i.e. the impact of moving to a low-carbon economy) are complex. We see the transition as impacting the Group in the following ways:
– An increase in the number of vehicles powered by electricity (or other alternative fuels) as opposed to traditional internal combustion engines
– The move away from cars towards mass-transit
– A move to car-sharing or using cars for a smaller number of journeys
– The introduction of low/ultra-low/no emission zones
– Increased social stigma attached to using a petrol/diesel car
– Increased costs of traditional fuel
– Introduction of additional carbon taxes
– Change to the costs in repairing electric vehicles as compared to petrol cars
We expect that the number of private cars which require insurance (and hence Sabre’s core market) will reduce over time.
Financial and operational Impact
This could inhibit the Group’s ability to grow and hence requires strategic consideration. Sabre’s competitiveness and policy count are monitored
by management and shifts in types of insured vehicle are closely monitored by the pricing team.
Relevant metrics and targets
We monitor the number of insurance policies sold in the UK, as reported by the ABI and other industry sources. We also measure our competitiveness within the
UK insurance market, and consider whether transitional market trends have impacted. Overall, the UK motor insurance market increased by 1.6% over the past
five years, and increased by 1.0% in the past year, in terms of cars insured. This suggests that the market has not entered a declining state as a result of climate
transition. The Group has set out growth targets in its ‘Ambition 2030’ and therefore must continue to grow its market share across the next 5 years, although this
will not be linear. The Group will never set out specific policy count or premium targets over the short-term as this would be contrary to the overall strategy set
out in Ambition 2030.
Transitional market change
Primary time horizon: medium-term
Risk rating: medium
The transition from internal combustion engine personal transport to other methods and technologies will change the types of vehicles insured and potentially
the nature and volume of insurance purchased.
We note that the developments of potential new markets presents both a risk and an opportunity.
Financial impact
We expect that the cost profile of repairs will change, and hence there is a potential liability cost related to transitional market change.
Operational impact
We expect that there will be a greater demand for policies which appeal specifically to owners of electric vehicles (the transitional market change risk).
Relevant metrics and targets
We monitor the proportion of non-combustion engine vehicles Sabre insures and consider whether we are under or over exposed relative to the market.
This information is commercially sensitive and, as such, is not disclosed here.
Our Environment continued
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Risk Description
Litigation
Primary time horizon: long-term
Risk rating: medium
There is a chance that the transition to a low-carbon economy or the occurrence of physical risks could lead to litigation risk. For a Group such as Sabre,
which could be seen as ‘contributing’ to the climate problem, we could find ourselves directly litigated against for those impacted negatively by, for example,
rising sea levels. Perhaps more likely (but still unlikely) is that litigation is taken in order to stop us being able to undertake our normal course of business.
There is also a potential litigation risk attached to investments which could generate valuation downgrades. While there is little direct mitigation available,
the Management Team ensures that they remain up to date with regard to legal and regulatory developments in this area.
Financial impact
Litigation can be costly, regardless of the outcome. While we consider direct litigation against Sabre to be highly unlikely, industry-wide litigation could impact
the Group indirectly.
Operational impact
Industry-wide disruption due to the consequences of undetermined future legislation has the potential to impact on the Group’s ability to sell policies
to customers. Direct litigation against the Group would cause significant distraction for management.
Relevant metrics and targets
We monitor whether Sabre or the UK insurance industry, or any other relevant industries, are subject to material litigation focused on climate change.
At the time of writing, no such litigation has been tabled.
Investments
Primary time horizon: long-term
Risk rating: low
Sabre has an investment portfolio spread across corporate bonds, gilts and government-backed assets. Each individual investment is exposed in some way
to the physical and transitional risks related to climate change. Each investment is also an indirect exposure to the carbon footprint of the counterparty.
The Board takes climate-related risks and opportunities into consideration when considering the allocation of capital. ESG credentials are considered within
the Group’s investment portfolio, although given the short-term nature of investments held this is relatively light-touch in respect of investments currently held,
with greater consideration given to the evolution of the portfolio towards the Group’s net-zero target.
Financial impact
Given the short-term nature of our investments (average duration c. two years) the risks attached are far lower than they may be within other large investors.
Nonetheless, we must consider the risk attached to each investment as we enter into it in order to remain alert to our true exposure to climate-related risks.
We have designed our investment guidelines to limit exposure to particularly damaging industries.
Relevant quantitative analysis
Sabre’s investments are in cash or short-term (less than five years) fixed interest bonds. Cash carries very little risk from climate change as it is liquid and is not
tied up with carbon-intensive activities. Assuming these bonds are held to maturity, then the key investment risk that Sabre carries is if one of the issuers of the
bonds default. Sabre’s portfolio is well diversified, and all securities are with carriers with credit rating BBB or above. Furthermore, Sabre’s portfolio is not materially
exposed to the key sectors exposed to the largest degree of direct climate change risk. In summary we do not believe that Sabre’s investment portfolio is
materially exposed to the risk of climate change.
Relevant metrics and targets
We monitor the weighted average carbon intensity (“WACI”) of our investment portfolio. As at 31 December 2024, this was 25.5 TCO
2
/$M
(31 December 2023: 34.0 TCO
2
/$M). Sabre targets a zero WACC investment portfolio by 2050 as part of its target for investments under its net-zero roadmap.
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Whilst the disclosure above has focussed on the risks presented
by climate change, Sabre remains alert to the opportunities
presented, some of which are noted below. Note that Sabre
does not necessarily intend to exploit all of these opportunities
in the near term.
− Provision of insurance products and services tailored
towards alternative modes of transport.
− Collecting sufficient data to provide competitively priced
traditional insurance for electric vehicles and vehicles
powered by other new technologies.
− Reducing overall costs to the business by making use
of cheap, sustainable energy sources.
The impact of climate-related risks and opportunities on
Sabre’s business, strategy and financial planning has been
assessed and understood, as outlined above.
Strategic decision making takes potential future climate-related
risks and opportunities into account, along with the wider
stakeholder considerations outlined elsewhere in this report.
Managing climate-related risks
A formal risk management process, including a risk register,
is in place which fully considers climate-related risks and
opportunities. The risk register is updated regularly with climate-
related risks being included as a standing agenda item during
2024 for the monthly Management Risk and Compliance Forum.
Where relevant, the Group’s policies are adapted to reflect
climate-related risks. Identified climate-related risks are integrated
into the Group’s overall risk register and risk management
process. Further information on the Group’s risk management
processes is provided in the Principal Risks and Uncertainties
section of this report on pages 24 to 33. Recent climate-related
issues considered by those charged with governance include
progression of the office refurbishment project, which included
installation of more efficient climate control systems and more
energy-efficient windows, and assessment as to the continued
suitability of climate-risk analysis as disclosure in this report.
Our investments
When Sabre diversified from gilts into corporate bonds,
we introduced a ‘climate-friendly’ term to our investment
agreement whereby ‘green’ assets should be purchased in
favour of less ‘green’ assets where the assets provide similar
returns and profiles. In 2022, we introduced a further restriction
on investment into certain organisations whose activities were
not consistent with our ESG outlook. The Company’s Investment
Committee monitors the ‘green’ credentials of the investment
portfolio through regular reporting by our investment manager,
Goldman Sachs Asset Management.
Our influence over entities in which we hold corporate bonds
is limited, and we do not hold any equity investments in any
entities not directly controlled by the Group. As such, we
can exert influence only through our investment choices as
described above.
Our product
The provision of motor insurance, our core operation, is generally
environmentally light on a direct basis i.e. excluding any
consideration of the environmental impact of the vehicles we
insure. Clearly, motor vehicles are a material source of carbon
emissions and we are aware that Sabre’s products enable
the use of such vehicles. Most of our policies are sold online,
and administered remotely. However, there are elements of our
product offering which can generate a positive impact on the
environment. Importantly, we underwrite a significant number of
policies for electric and hybrid vehicles. We are happy to take
these policies on, and believe that in having done so historically
we are able to better price these risks accurately.
Our Environment continued
Responsibility and Sustainability continued
Our metrics and targets
The Group uses its suite of pricing and policy performance
information to monitor the impact of climate risks on the
business, such as sales volumes, types of vehicles insured,
claims frequency and severity and the incidence of severe
weather events (which remain immaterial). The primary physical
liability risks are therefore monitored and addressed through
our normal pricing and reserving processes, while longer-term
transitional risks are addressed through monitoring the volumes
of our product sold and projecting these volumes into the future.
These targets are therefore in line with our wider corporate
objectives of maintaining our combined operating ratio within
our target range through an appropriate response to liability
risks while growing the business across the insurance cycle.
61Annual Report and Accounts 2024Sabre Insurance Group plc
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Metrics and targets relevant to individual climate risks are
discussed in the table on pages 57 to 60.
Emissions are contextualised with reference to the Group’s
employee numbers and gross written premium. We have also
taken the opportunity to enhance the accuracy of previously
reported figures where possible, and derive a consistent basis
for year-on-year comparison.
The greenhouse gas (“GHG”) emissions data for the Group is
set out adjacent, alongside prior years. We are pleased to see
the continued decline in our GHG emissions.
We believe our operational activities are consistent with a
scenario well below 2˚C, however we have not fully aligned
with science-based targets at this stage. We have not set
out specific targets with regard to our activities as a holder
of invested assets beyond the long-term goal of net-zero
emissions across the portfolio by 2050. We expect to reduce
emissions across the portfolio in a controlled manner over time,
but must remain somewhat reactive to the net-zero aspirations
of investee (and potential investee) entities.
The emissions data is measured in tonnes of carbon dioxide
equivalent (“tCO
2
e”) and covers:
i. Scope 1 emissions, being direct emissions resulting from
combustion of fuel and operation of facilities
ii. Scope 2 emissions, being indirect emissions from
purchased grid electricity and other energy for own use
iii. Scope 3 emissions, being all other indirect emissions which
occur in the Group’s value chain
Tonnes of CO
2
e/year 2024 2023 2022
Scope 1 197 130 –
Scope 2 (Location-based) 34 32 43
Scope 2 (Market-based) 7.8 – –
Operational footprint
(Market-based) 205 162 43
Scope 3, excluding
insured emissions 12,741 20,937 19,902
Total footprint (Market-
based), excluding insured
emissions** 12,946 21,099 19,945
Number of FTE* employees 158 162 154
Operational footprint
(Market-based) per
employee 1.30 1.0 0 0.28
Insurance revenue £248m £188m £181m
Operational footprint
(Market-based) per £m of
insurance revenue 0.83 0.86 0.25
Building energy usage
(KWh) 151,780 143,147 200,237
* Full-time equivalent (“FTE”)
* When calculating totals, where Scope 2 is included e.g. total operational
footprint or total footprint, note that the Market-based Scope 2 figure
takes into account Sabre’s renewable energy procurement, whereas
Location-based does not
The footprint is calculated in accordance with the GHG
Protocol on calculating organisational footprints. Activity data
has been converted into carbon emissions using published
emissions factors or appropriate estimation techniques.
Management has obtained external quality assurance for the
GHG data presented here.
All relevant and measurable emissions have been included
in these calculations. Specifically: Scope 1 – ‘F gas’; Scope
2 – electricity; Scope 3: Category 1 – Purchased goods and
services, Category 2 – Capital goods, Category 3 – Fuel and
energy-related activities, Category 4 – Upstream transportation
and distribution, Category 5 – Waste generated in operations,
Category 6 – Business travel, Category 7 – Employee commuting,
Category 15 – Investments (including insured emissions).
Separately, we report an estimated footprint related to our
insurance operations, in line with the Partnership for Climate
Accounting Financials (“PCAF”) guidelines. This is not currently
included within our assessment of Scope 3 emissions.
The total relevant carbon emissions across our insured vehicles
is estimated to be 72,151 tCO
2
e/yr as at 31 December 2024
(2023: 68,443 tCO
2
e/yr).
GHG emissions have been reported by the three WBCSD/WRI
Scopes. Scope 1 includes direct GHG emissions from sources
that are owned or controlled by the Company such as natural
gas combustion and Company-owned vehicles. Scope 2
accounts for GHG emissions from the generation of purchased
electricity, heat and steam generated off-site. Scope 3 includes
all other indirect emissions such as waste disposal, business
travel and staff commuting. The most significant element
within Scope 3 emissions is the investment portfolio, which
contributed 10,061 tCO
2
e/yr to 2024 emissions (2023: 11,165
tCO
2
e/yr). The weighted average carbon intensity across the
portfolio was 25.3 tCO
2
e/$MM as at 31 December 2024 (2023:
34.0 tCO
2
e/$MM).
Our Environment continued
Responsibility and Sustainability continued
62 Annual Report and Accounts 2024Sabre Insurance Group plc
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Responsibility and Sustainability continued
All emission sources have been reported on as required
under the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 (as amended).
The reporting period is in line with the Company’s financial
year, which is the same as the calendar year. In order to
provide the most accurate estimate of our GHG emissions,
primary (actual) data has been used where it is available,
up to date and geographically relevant. Secondary data in
the form of estimates, extrapolations and industry averages
has been used when primary data is not available.
We expect that, as we and our counterparties improve the
quality of record-keeping and reporting on GHG emissions,
the use of primary data will increase. Given that secondary
data is calculated with a considerable degree of conservatism,
we expect that increased quality of reporting will reduce the
reported levels of GHG emissions.
Our route to net zero
We have continued to adjust our ways of working and our
working environment to minimise our negative impact on
our environment.
The Group has assessed its carbon footprint and concluded
that it is appropriate to set a target for net zero emissions.
The target has been set having considered the Group’s
current footprint along with an assessment of the level of
influence held by the Group and expected societal trends.
The Group has defined net zero in line with Science-Based
Targets initiative’s net zero standard framework.
We have set a more immediate goal of 31 December 2030
for the Group to report operational carbon neutrality. This,
effectively, is the reduction of the Group’s Scope 1 and 2
emissions to zero or, where this is not possible, temporary use
of targeted carbon offsetting. We have set out our net zero
roadmap, which is published on the Group’s website https://
www.sabreplc.co.uk/wp-content/uploads/2024/10/2024_
Roadmap_to_Net_Zero_202409.pdf. Management targets set
for 2024 and beyond include the achievement of specific
activities in relation to this plan. Our baseline position against
which the roadmap has been set is 2019, the last full year
not impacted by COVID-19 and related disruption to normal
working practice. In our last Annual Report and Accounts,
we detailed a number of actions which had been carried
out since 2019.
In 2024, we made further progress through:
− Engaged with our main suppliers and brokers to learn
about their own sustainability policies, emissions and
progress towards net zero.
− Fully completed the transfer of our office estate to a fully
renewable energy supplier.
− Continued progress within the employee-led Sustainability
Forum to improve sustainability in the office, including
providing all staff with reuseable, sustainably sourced
waterbottles.
The costs associated with these initiatives are largely immaterial
to the Group as a whole; however, the Board remains open to
the approval of appropriate additional expenditure in relation
to climate-related initiatives as and when required.
Our roadmap is a live document, which will constantly
evolve as we continue to interrogate our activities and the
available solutions.
Statement of consistency with TCFD
recommendations
In preparing the Responsibility and Sustainability section of the
Annual Report, we have made disclosures consistent with those
recommended by the TCFD. All of the relevant disclosures are
made within this section of the Annual Report. The Group has
considered the consistency of these disclosures against the
TCFD’s Guidance for All Sectors and Supplemental Guidance
for Insurance Companies, and considers them to be consistent.
The Group remains on a journey with respect to gaining a
full understanding of the impact of climate change on the
business. Steps have been taken to ensure that consideration
of both the effects of climate change and the Group’s impact
on the environment is embedded within the Group’s culture
at all levels. As such, we expect our understanding and the
related disclosure to evolve over the coming years.
Our Environment continued
63Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
The table below lists the TCFD’s 11 recommendations and where they are addressed within this report.
Recommendation Where addressed and whether consistent with TCFD requirements
1. Governance
a. Describe the board’s oversight of climate-related risks
and opportunities.
Risk Committee Report, pages 84 to 86
Consistent
b. Describe management’s role in assessing and managing
climate-related risks and opportunities.
Managing Climate-Related Risks, pages 57 to 60
Consistent
2. Strategy
a. Describe the climate-related risks and opportunities the organisation
has identified over the short, medium, and long term.
Strategy for Climate Change, page 56
Consistent
b. Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial planning.
Strategy for Climate Change, page 56
Consistent
c. Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a 2°C
or lower scenario.
Strategy for Climate Change, page 56
Consistent
3. Risk management
a. Describe the organisation’s processes for identifying and assessing
climate-related risks.
Managing Climate-Related Risks, pages 57 to 60
Consistent
b. Describe the organisation’s processes for managing
climate-related risks.
Managing Climate-Related Risks, pages 57 to 60
Consistent
c. Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organisation’s overall risk
management.
Managing Climate-Related Risks, pages 57 to 60
Consistent
4. Metrics and targets
a. Disclose the metrics used by the organisation to assess climate-
related risks and opportunities in line with its strategy and risk
management process.
Our Metrics and Targets, page 61
Consistent
b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse
gas (“GHG”) emissions and the related risks.
Our Metrics and Targets, page 61
Consistent
c. Describe the targets used by the organisation to manage climate-
related risks and opportunities and performance against targets.
Our Metrics and Targets, page 61
Consistent
Note that we have also ensured that the Supplemental
Guidance for Insurance Companies has been followed,
specifically:
− Strategy (b) Describe the potential impacts of climate-
related risks and opportunities on core products and
services – Strategy for Climate Change, page 56
− Strategy (c) Disclose certain information where climate-
related scenario analysis is performed – detailed climate-
related analysis is not performed across the portfolio
given the nature of the risks insured, therefore additional
disclosure is not required
− Risk Management (a) Describe processes for identifying
and assessing climate-related risks on portfolios –
Managing Climate-Related Risks, pages 57 to 60
− Risk Management (b) Describe key tools or instruments
related to climate-related risks in relation to product
development or pricing – Managing Climate-Related Risks,
pages 57 to 60
− Metrics and Targets (a) Provided aggregated exposure to
weather-related catastrophes – Exposure is negligible due
to nature of insurance products sold
− Metrics and Targets (v) Disclose weighted-average carbon
intensity emissions associated with commercial property
and speciality lines – Not applicable
Our Environment continued
Responsibility and Sustainability continued
64 Annual Report and Accounts 2024Sabre Insurance Group plc
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FCA Consumer Duty
The FCA regulatory requirements for Consumer Duty came into
force on 31 July 2023. This regulation sets the standard of care
that firms should give to customers in retail financial markets.
It is designed to ensure firms put consumers at the heart of
their business and focus on delivering good outcomes for
customers. The Consumer Duty consists of a new Principle,
three cross-cutting rules and four outcomes.
Governance
Sabre has put in place a robust governance process:
− Karen Geary, Independent Non-executive Director, is the
Consumer Duty Champion.
− The Head of Compliance meets individually each month
with the Consumer Duty Champion and the Chair of the
Risk Committee.
− Consumer Duty is reported on at the Company’s
Leadership, Executive, and Risk Committees during the year.
− the Head of Compliance regularly provides reports to the
Board on Consumer Duty.
− A framework has been built that provides the Board with
assurance that customers will be receiving good outcomes.
− The Annual Consumer Duty Board Report is reviewed and
approved by the Board.
Management information
Regulatory requirements apply to new and existing products.
A thorough ongoing programme is in place:
− Our products are designed to meet the demands and
needs of our target market and deliver fair value to the end
consumer.
− A monthly Consumer Duty MI Dashboard is produced by
the First Line of Defence and is subsequently reviewed and
challenged by the Second Line.
− A robust set of key performance indicators are used to
assess performance against each of the four outcomes.
Monitoring
Monitoring and training will be key to assuring customers are
receiving good outcomes:
− All employees will complete annual mandatory training
on Consumer Duty and this along with existing training in
other key regulatory areas will support the delivery of good
customer outcomes.
− The Head of Compliance is responsible for ensuring the
regulatory requirements are fully adhered to.
Sabre recognises the
importance of a firm’s
culture and purpose in
its ability to be able to
deliver good outcomes
for customers.
65Annual Report and Accounts 2024Sabre Insurance Group plc
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Corporate
Governance
67 | Chair’s Governance Letter
68 | Board of Directors
72 | Governance Report
80 | Audit Committee Report
84 | Risk Committee Report
87 | Nomination & Governance Committee Report
90 | Remuneration Committee Report
94 | Directors’ Remuneration Policy
105 | Annual Report on Directors’ Remuneration
118 | Directors’ Report
122 | Statement of Directors’ Responsibilities
66 Annual Report and Accounts 2024Sabre Insurance Group plc
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Chair’s Governance Letter
Dear Shareholders,
On behalf of the Board, I present Sabre’s Governance Report
for the financial year ended 31 December 2024. This report
explains Sabre’s governance framework, how Sabre applies
the provisions of the UK Corporate Governance Code (the
’’Code’’) and includes the committee reports from the Audit, Risk,
Nomination & Governance and Remuneration Committees.
The Board is responsible to shareholders for the strategic direction,
management and control of the Group’s activities and is
committed to the highest standards of corporate governance
in delivering in these areas. The Group’s strategy and culture
are aligned and are discussed at Board meetings. With regard to
compliance with the Code, the Board considers that appropriate
corporate governance standards were in place throughout 2024,
except for those set out on page 78.
As at the year ended 31 December 2024, the Board consisted
of seven Directors who had the appropriate balance of skills,
experience, independence and knowledge of the Group to
oversee the strategy, review management performance and
to set the Group’s values and standards to ensure that its
obligations to its shareholders and other stakeholders are met.
Further information about our Directors and the experience
they bring to the Group is set out on pages 68 to 71 of this
Annual Report.
During the year, we welcomed Ian Chapple to the Board as a
Non-executive Director. Ian was subsequently appointed to the
Remuneration, Audit and Nomination & Governance Committees.
Further information regarding the process for Ian’s appointment
can be found in the Nomination & Governance Committee
Report, on pages 87 to 89.
With effect from May 2023, Ian Clark was no longer independent
(as defined by the UK Corporate Governance Code). However,
due to Ian’s significant contribution to the Group over the last ten
years and his knowledge of the insurance industry, the Group
asked him to remain on the Board as a Non-executive Director
until he left the Board on 22 May 2024. I would like to thank Ian for
his valuable contributions to the Board and to wish him well in his
future endeavours.
Diversity remains a key consideration in the Board’s succession
planning. As at 31 December 2024, I am pleased to note that the
Board was compliant with the Listing Rule requirements, with over
40% of the Board being women, that at least one senior Board
position is held by a female and that one of the Board members
is from an ethnic minority. Further information on the Group’s
Diversity Policy and its application can be found on pages
50 to 51.
Sabre’s Annual General Meeting provides shareholders with
the opportunity to vote on the resolutions put to them and,
for those shareholders who attend, to ask questions of the
Directors, including the Chairs of each Committee. The Notice
of Meeting will be sent to shareholders and the result of
the Annual General Meeting votes on all resolutions will be
published on the Group’s website.
We look forward to engaging with you and to meeting
shareholders at our forthcoming Annual General Meeting,
which will be held at 9:30 am on Thursday 22 May 2025 at the
Group’s offices at Old House, 142 South Street, Dorking, RH4 2EU.
Rebecca Shelley
Group Chair
17 March 2025
67Annual Report and Accounts 2024Sabre Insurance Group plc
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Board of Directors
As at 31 December 2024
Directors’ skills and experience matrix
Skill and experience Number of
Directors
% of the
Board
Boardroom (outside of Sabre) 5/7 71.4%
Communications (internal/external) 6/7 85.7%
Compliance & regulatory 6/7 85.7%
Customer 4/7 57.1%
Cyber security/IT/data 2/7 28.5%
ESG incl. sustainability 3/7 42.8%
Financial 3/7 42.81%
HR incl. remuneration 5/7 71.4%
Insurance (outside of Sabre) 4/7 57.1%
Legal 1/7 14.2%
Marketing 2/7 28.5%
Operations 3/7 42.8%
Risk management 3/7 42.8%
3-6 years
1/5 (20%)
2023 | 2/6 (33.3%)
6+ years
1/5 (20%)
2023 | 2/6 (33.3%)
<3 years
3/5 (60%)
2023 | 2/6 (33.3%)
Chair and Non-executive Directors’ tenure
White British or other
white (including
minority-white groups)
6/7 (85.7%)
2023 | 7/8 (87.5%)
Black/African/
Caribbean/Black British
1/7 (14.3%)
2023 | 1/8 (12.5%)
Board ethnicity disclosure
Male
4/7(57.1%)
2023 | 5/8 (62.5%)
Female
3/7(42.9%)
2023 | 3/8 (37.5%)
Board gender disclosure
68 Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
Appointment
Rebecca Shelley was appointed a Non-executive Director of Sabre
Insurance Group plc in October 2017 and became Chair in April
2024, following her appointment as acting Chair in November 2023.
Skills and experience
Rebecca brings extensive commercial and financial services
experience to the Board, as well as her background of market-
facing roles at listed companies. Having been Investor Relations and
Corporate Communications Director at Norwich Union plc from 1998
to 2000, Rebecca moved to Prudential plc in 2000, starting as Investor
Relations Director, and then became Group Communications Director
with a seat on their Group Executive Committee. From 2012 to 2016,
Rebecca was the Group Communications Director of Tesco plc and
a member of their Executive Committee. During this time, she held
positions on the board of the British Retail Consortium and was a
trustee of the Institute of Grocery Distribution. Most recently, Rebecca
spent three years at TP ICAP plc as Group Corporate Affairs Director
and was a member of the Global Executive Committee.
She holds a BA (Hons) in Philosophy and Literature from the
University of Warwick and has an MBA in International Business
and Marketing from Cass Business School. Rebecca is also a
Non-executive Director at Conduit Holdings Limited, Hilton Food
Group and Liontrust Asset Management.
* On appointment as Group Chair
Rebecca Shelley
Group Chair
Appointment
Geoff Carter was appointed Director and Chief Executive Officer of
Sabre Insurance Group plc in September 2017 (when the Company
was incorporated) and has been a Director of Sabre Insurance
Company Limited since 2015, when he joined as Chief Operating
Officer, and became Chief Executive Officer in May 2017.
Skills and experience
Prior to joining the Group, Geoff was Chief Executive Officer of Tesco
Underwriting Limited and has over 20 years’ experience in managing
insurance operations. Prior to that, Geoff was employed by Ageas
Insurance UK as Managing Director of Ageas Insurance Solutions
Limited and spent seven years at Churchill Insurance/Direct Line
Group. He is a Chartered Insurer and holds a Master of Business
Administration from Sheffield Business School and a Postgraduate
Diploma in Marketing from the Chartered Institute of Marketing.
Geoff is also a Director of the Motor Insurance Bureau and active
in ABI committees.
Geoff Carter
Chief Executive Officer
N I
Board of Directors continued
*
Committee key:
Chair of
Committee
A
Audit
Committee
N
Nomination &
Governance Committee
R
Remuneration
Committee
RI
Risk Committee
S
Senior Independent
Director
I
Independent
Director
E
Non-executive Director responsible
for Employee Engagement
69Annual Report and Accounts 2024Sabre Insurance Group plc
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I I
Appointment
Ian was appointed as Independent Non-executive Director
in September 2024.
Skills and experience
Ian brings more than 30 years of industry expertise to Sabre’s
Board and has a strong track record in digital, technology, and
data. He has successfully delivered IT strategy, transformation, and
cybersecurity programmes for several large businesses within and
outside of the insurance sector and currently holds the position
of Group Chief Information Officer at Odeon Cinemas Group.
Prior to this, he served as a Director in Deloitte’s Financial Services
division. Ian has extensive experience across the financial services
industry, including general insurance, life assurance, pensions,
and investment management. During his career, he has acted
as Chief Information Officer at Swinton Insurance, Head of Digital
at Tesco Bank, and IT Director for the UK life division of Aviva.
Ian Chapple
Non-executive Director
Appointment
Karen Geary was appointed as Non-executive Director of
Sabre Insurance Group plc in December 2020 and is the
Non-executive Director responsible for employee engagement
and the Board’s Consumer Duty Champion and Chair of the
Remuneration Committee.
Skills and experience
Karen brings over 20 years of executive leadership experience across
start-up and listed blue-chip organisations, as well as international
HR and business transformation experience across a variety of
industries, particularly in Europe and the US. Karen is a former FTSE
100 HR director with an extensive track record in the technology
industry. Between 1998 and 2013, Karen was with The Sage Group
plc, where she built and led the HR function as Group HR Director
and from 2004 was a member of the Executive Committee.
Subsequent to this, Karen held senior positions with a US-based
software business, followed by a FTSE 100 software company
which she originally joined as Non-executive Director and Chair
of the Remuneration Committee.
In addition to her role at Sabre, Karen holds external appointments
as Senior Independent and Non-executive Director of Mobico Group
plc and as a Non-executive Director and Chair of the Remuneration
Committee of PageGroup plc. Her previous non-executive roles
include MicroFocus plc and ASOS plc.
Karen Geary
Non-executive Director
RI
Appointment
Adam Westwood was appointed Director and Chief Financial
Officer of Sabre Insurance Group plc in September 2017 (when
the Company was incorporated), has been a Director and Chief
Financial Officer of Sabre Insurance Company Limited since
September 2016, and joined as Financial Controller in 2014.
Skills and experience
Adam is a qualified chartered accountant, having joined Ernst
& Young LLP’s insurance audit team in 2006 and qualified as a
chartered accountant in 2009. Adam has over 15 years’ experience
of the insurance sector and holds a BSc (Hons) degree in Physics
and Business Studies from the University of Warwick.
Adam Westwood
Chief Financial Officer
Board of Directors continued
70 Annual Report and Accounts 2024Sabre Insurance Group plc
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A R N
R E
N
I
Appointment
Bryan Joseph was appointed a Non-executive Director of Sabre
Insurance Group plc in June 2023, and is Chair of the Risk
Committee. Bryan was appointed as Sabre’s Senior Independent
Director in May 2024.
Skills and experience
Bryan brings more than 40 years of industry experience to Sabre’s
Board and has worked in a number of senior actuarial roles
throughout his career, spanning the insurance and reinsurance
industry internationally. Bryan is currently a partner with Vario
Partners LLP, where he is one of the founding partners of that
business. Prior to this, Bryan led the PwC actuarial practice
globally and was a member of the firm’s insurance leadership
team. Bryan was Chair of the Board of XL Insurance Company SE
and was an Independent Non-executive Director of XL Re Europe
SE and of AXA XL Insurance Company UK Limited and AXA
Underwriting Agencies Limited, chairing the audit committees
of the UK entities. Bryan has been appointed as an Independent
Non-executive Director on the Boards of Lancashire Holdings
Limited and Lancashire Syndicates Limited.
Bryan Joseph
Non-executive Director
Appointment
Alison Morris was appointed as Non-executive Director of Sabre
Insurance Group plc in May 2022, and is Chair of the Audit
Committee.
Skills and experience
Alison is a chartered accountant and brings extensive recent and
relevant experience of the financial services sector as well as a
detailed and specialist knowledge of accounting and auditing
practice and the audit market. Alison was a partner in PwC’s financial
services audit practice from 1994 until the end of 2019. She has
led external audits and internal audit projects across the financial
services sector in the FTSE 100 and FTSE 250 and held a number
of leadership roles within PwC, including sitting on the executive
management team which led their audit practice.
She is a Non-executive Director and Audit Committee Chair of
Paragon Banking Group plc where she is the SID. She is a Non-
executive Director of Quilter plc. Until recently she was a Non-executive
Director and Audit Committee Chair of M&G Group Limited, part of
the M&G plc group and of Vanquis Bank Limited, part of Vanquis
Banking plc. Alison holds a MA in Economics with International Studies
from the University of St Andrews.
Alison Morris
Non-executive Director
Changes during the year:
Ian Clark left the Board with effect 22 May
2024. His biography can be found in the
Annual Report and Accounts for the financial
year ending 31 December 2023.
A
Board of Directors continued
71Annual Report and Accounts 2024Sabre Insurance Group plc
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A R N
Ri
S
INRi
Chief Executive Officer
Responsible for the day-to-day running of the Group’s business and performance, and the development and implementation of strategy.
Executive Team
Supporting the Chief Executive in developing the Group’s strategy and its implementation.
Board Committees
The terms of reference of each Committee are documented and agreed by the Board. The Committees’ terms of reference are reviewed annually
and are available in the Governance section of Sabre’s corporate website at www.sabreplc.co.uk.
The key responsibilities of each Committee are set out below.
Audit Committee
To monitor the integrity of the
Group’s accounts, and the
adequacy and effectiveness of
the systems of internal control.
To monitor the effectiveness and
independence of the internal and
external auditors.
Risk Committee
To monitor and review the
effectiveness of the risk
management and compliance
framework and internal controls.
Nomination & Governance
Committee
To keep under review the
composition, structure and size of,
and succession to, the Board and its
Committees. To provide succession
planning for the Executive Team
and the Board, leading the process
for all Board appointments.
To evaluate the balance of skills,
knowledge, experience and
diversity on the Board.
Remuneration Committee
To set remuneration for all
Executive Directors and the Chair,
including pension rights and
any compensation payments.
To oversee remuneration and
workforce policies and practices
and take these into account when
setting the policy for Directors’
remuneration. Oversight of wider
employee reward policies.
Governance Report
Shareholders
Chair
The Chair is responsible for the leadership of the Sabre Insurance Group plc Board and for ensuring
that it operates effectively through productive debate and challenge.
The Board
The Board is responsible for providing leadership to the Group. It does this by setting strategic priorities and overseeing their delivery in a way that is
aligned with Sabre’s culture and enables sustainable long-term growth, while maintaining a balanced approach to risk within a framework of effective
controls and taking into account the interests of a diverse range of stakeholders. There are certain matters which are reserved for the Board’s decision.
Governance
Framework
For the Audit Committee Report
go to pages 80 to 83
For the Risk Committee Report
go to pages 84 to 86
For the Nomination and
Governance Committee Report
go to pages 87 to 89
For the Remuneration Committee
Report
go to pages 90 to 93
72 Annual Report and Accounts 2024Sabre Insurance Group plc
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Statements
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Governance
Governance Report continued
The Board and leadership
The Group Directors and details of their experience and the date
of their appointment are set out on pages 68 to 71.
As at 31 December 2024, the Board consisted of seven Directors:
The Group Chair, two Executive Directors and four Non-executive
Directors. The independence of the Non-executive Directors is
reviewed annually in accordance with the criteria set out within
Provision 10 of the Code, and it is confirmed that all of the
Group’s Non-executive Directors remained independent as at
31 December 2024.
The Board of Directors recognises the need for and the
importance of acting with integrity and do so in their roles
as Directors of the Group. All of the Directors bring strong
judgement to the Board’s deliberations. During the year, the
Board was of sufficient size and diversity that the balance of
skills and experience was considered to be appropriate for the
requirements of the business.
Board meetings
The Board meets at least six times a year with supplementary
ad hoc meetings as required. There is a planned cycle of
activities, managed through the Schedule of Matters and Matters
Reserved for the Board, and a formal agenda is prepared for
each Board and Committee meeting. Minutes and a follow-up
list of matters arising from each Board and Committee meeting
are maintained and reviewed at every meeting. In addition to this,
verbal updates are provided by each Committee Chair at the
following Board meeting.
Company Secretary
The Company Secretary acts as Secretary to the Board and to its
Committees, apart from the Risk Committee which is minuted by
another member of the Company Secretariat. The appointment
or removal of the Company Secretary is a matter for the Board
as a whole. The Company Secretary assists the Chair in ensuring
that the Board and the Group have the appropriate policies,
processes, information, time and resources they need to fulfil their
duties and to function effectively and efficiently. Anneka Kingan
has been the Group’s Company Secretary since 2018.
The Board is collectively responsible for setting Sabre
Insurance Group and its subsidiaries’ (the “Group”) strategic
aims and providing the leadership team to put those into
effect through the management of the Group’s business
within a governance framework. It does this by setting the
Group’s strategy and ensuring that appropriate standards,
controls and resources are in place for the Group to
meet its obligations, and by reviewing management’s
performance. This includes ensuring that the Group has
a Code of Conduct, which sets out the Group’s policy of
conducting all business affairs in a fair and transparent
manner and maintaining high ethical standards in dealings
with all relevant parties. The Code of Conduct is available at
www.sabreplc.co.uk/about-us/code-of-conduct.
In order to ensure there is a clear division of responsibilities
between the Board and the running of the business,
the Board has a formal Schedule of Matters and Matters
Reserved for the Board, which confirms what decisions
are reserved for the Board. These documents are reviewed
on an annual basis and include the Group’s strategic
aims; objectives and commercial strategy; governance
and regulatory compliance; structure and capital;
financial reporting and controls; internal controls and risk
management; major capital commitments; major contracts
and agreements; shareholder engagement; remuneration of
senior executives; material corporate transactions; and any
changes to the Schedule of Matters and Matters Reserved
for the Board.
73Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
Non-executive Directors
Along with the Chair and Executive Directors, the Non-executive
Directors are responsible for ensuring the Board and its
Committees fulfil their responsibilities. It is the Non-executive
Directors’ role to provide constructive challenge, strategic
guidance, offer their respective specialist advice and hold
management to account. The Non-executive Directors combine
broad business and commercial experience, in particular in the
financial services and insurance sectors, with independent and
objective judgement and they provide independent challenge
to the Executive Directors. The balance between Non-executive
and Executive Directors enables the Board to provide clear and
effective leadership across the Group’s business.
Chair Senior Independent Director Chief Executive Officer
– Sets the Board agenda primarily focusing on strategy,
performance, value creation, culture and stakeholders
– Ensures the Board has an effective decision-making
process, demonstrating objective judgements and
constructive challenge
– Ensures the Board has an appropriate balance of skills,
knowledge, experience and diversity
– Leads the induction and development plans for new
and existing Board members
– Communicates with major shareholders and ensures
the Board understands their views
– Ensures the Board receives accurate, timely and
clear information
– Leads the annual Board evaluation
– Supports the Chair in the delivery of their objectives
– Acts as a sounding board for the Chair and serves as an
intermediary for the other Directors
– Is available to shareholders if they have concerns that cannot
be resolved through the normal channels
– Works with the Chair and other Directors and shareholders
to resolve significant issues where necessary
– Leads the annual performance evaluation of the Chair
– Runs the Group’s business and delivers its commercial objectives
– Proposes and develops the Group’s strategy, in close
consultation with the Executive Team, the Chair and the Board
– Implements the decisions of the Board and its Committees
– Ensures operational policies and practices drive appropriate
behaviour, in line with the Group’s culture
– Leads the communication programme with key stakeholders,
including employees and customers
– Ensures management provides the Board with appropriate
information and necessary resources
Division of responsibilities
The Chair is primarily responsible for leading the Board, setting
its agenda, promoting a culture of openness and debate and
monitoring its effectiveness. The Chair is supported by the Senior
Independent Director, who acts as a sounding board and serves
as an intermediary for the other Directors. Neither the Chair nor
the Senior Independent Director are involved in the day-to-day
management of the Group. Save for the Schedule of Matters
and Matters Reserved for the Board, the Chief Executive Officer
(with the support of management) is responsible for proposing
the strategy to be adopted by the Group, running the business
in accordance with the strategy agreed by the Board and
implementing Board decisions. The Board has approved the clear
division of responsibilities between the Chair, Chief Executive
Officer and Senior Independent Director, as shown in the table
below. The division of responsibilities is reviewed annually.
Governance Report continued
74 Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance Report continued
Board and Committee meetings
The attendance of Directors at Board and Committee
meetings held in the financial year ended 31 December 2024
is illustrated in the table across the page. During the year,
the Board reviewed and amended the membership of its
Committees. As a consequence of this review, no changes to
the Committees’ membership was made. However, following
his appointment, Ian Chapple joined the Audit Committee, the
Nomination & Governance Committee and the Remuneration
Committee, and Rebecca Shelley left the Audit and
Remuneration Committees. Details of the membership of each
Committee as at 31 December 2024 can be found in each
relevant Committee Report.
The activities of the Board during the year are set out across
the page and the reports from each of these Committees
are set out on pages 80 to 93 of this Annual Report.
During the financial year ended 31 December 2024, the Board
scheduled and formally met six times, during which it reviewed,
discussed and approved:
− the financial performance of the Group;
− the 2023 Annual Report and Accounts, including
the Committee reports, Viability and Going Concern
Statements and the RNS of the results for the financial
year which ended on 31 December 2023;
− the Notice of Meeting and Proxy Form for the 2024 Annual
General Meeting;
− the 2024 Half Year Results, AGM Trading Statement and
Q3 Trading statement;
− the Group’s strategy;
− the payment of dividends, including the final dividend for
the financial year which ended on 31 December 2023,
and an interim dividend for the financial year which ended
on 31 December 2024;
− the results of the Group’s 2023 Board Effectiveness Review;
and
− the 2025 budget.
In addition, the Board and the Committees regularly received
updates, reports and presentations from other senior
employees, including the Chief Actuary, the Claims Director,
the Chief Risk Officer, the Company Secretary, the Head of IT,
the Head of Compliance and the Head of HR.
During the financial year ended 31 December 2024, the Board
met an additional five times as a Committee to discuss the
Half Year Trading Update and Half Year Results, to sign off
the AGM Trading Statement and Q3 2024 statements and
to sign off work related to compliance with the Operational
Resilience Regulations.
Board Committees
In order to provide effective oversight and leadership, the Board
has delegated certain aspects of its responsibilities to the
following committees of the Board (“Committees”):
− The Audit Committee
− The Risk Committee
− The Nomination & Governance Committee
− The Remuneration Committee
The terms of reference of these Committees are reviewed and
approved by the Board annually and are available on the
Group’s website at https://www.sabreplc.co.uk/about-us/
corporate-governance/.
The Committee Reports are set out on pages 80 to 93 of this
Annual Report.
Attendance by Directors at scheduled Board and Committee meetings
(number attended/number required to attend)
Director
Board
(scheduled
meetings)
Board
Committee
meetings &
unscheduled
meetings Audit Committee Risk Committee
Nomination &
Governance
Committee
Remuneration
Committee
Geoff Carter 6/6 5/5 – – – –
Ian Chapple* 2/2 2/2 1/1 – 1/1 2/2
Ian Clark** 3/3 – – – – –
Karen Geary 5/6 5/5 – 6/6 4/4 5/5
Bryan Joseph 6/6 3/3 5/5 6/6 3/3 3/4
Alison Morris 6/6 5/5 5/5 6/6 3/3 –
Rebecca Shelley*** 6/6 4/5 2/2 – 4/4 4/4
Adam Westwood 6/6 4/5 – – – –
* Joined the Board, Audit, Nomination & Governance and Remuneration Committees with effect from September 2024
** Left the Board with effect from May 2024
*** Joined the Audit Committee with effect from May 2024 and left both the Audit and Remuneration Committees with effect from September 2024
75Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
The ongoing professional development of the Directors has been
reviewed by the Board and its Committees. The Chair reviews
and agrees the training and development needs with each of
the Directors during each year. Directors have the opportunity to
highlight specific areas where they feel their skills or knowledge
would benefit from development as part of the Board evaluation
process, and are encouraged to continue their own professional
development through attendance at seminars and conferences.
Directors confirm annually that they have received sufficient
training to fulfil their duties.
Information and advice
Directors are provided with appropriate documentation usually
a week in advance of each Board and Committee meeting.
The Group uses an online platform to distribute its Board and
Committee papers securely and efficiently, which maximises
information security and has minimal environmental impact.
All Directors have access to the advice and services of the
Company Secretary for information and guidance, and she
is responsible for ensuring that all Board procedures have
been complied with. Directors may also obtain independent
professional advice at the Group’s expense if they believe it is
required in the furtherance of their duties. No such advice was
sought by any Director during the year.
Time commitment
As part of the appointment process and their annual review,
the Non-executive Directors each confirm that they are able
to allocate sufficient time to the Group to discharge their
responsibilities effectively and Directors are expected to attend
all scheduled Board meetings, relevant Committee meetings, the
Annual General Meeting and any general meeting of the Group.
The other public company commitments of the Chair and the
other Directors are as indicated in their biographies on pages 68
to 71. Each Director is required to seek permission from the Chair
and the Board before accepting additional commitments.
This is to ensure that additional appointments are not a conflict
of interest and that the Director will have sufficient time to
devote to their continued role at Sabre. The Board is satisfied
that the Chair and each Non-executive Director can allocate
sufficient time to enable them to discharge their duties and
responsibilities effectively.
Performance evaluation
The Board recognises the importance of evaluating annually
the performance and effectiveness of the Board, its Committees,
the Chair and individual Directors. During the year, a formal
annual review of the performance of the Board, its Committees,
the Chair and individual Directors was completed. Having
carried out an external Board effectiveness review in 2022,
this year an exercise sponsored by the Chair and assisted by
the Company Secretary was completed. The questionnaire
used as part of the process consisted of questions covering
the Board, the Committees and the Chair’s performance
and was completed by all the Directors of the Group and
Sabre Insurance Company Limited (the Group’s operating
subsidiary). The results of this review were discussed at
the Board meeting in February 2025. The annual Board
Effectiveness Review concluded that the Board is effective.
It found that the Board works well, with a healthy balance of
discussion, challenge and support. There is a good relationship
between the Executive Team and the Non-executive Directors,
with the business being open and transparent with the
Non-executive Directors about its strategy, performance and
challenges. As we look forward, the Board will ensure it focuses
on tracking the delivery of the Group’s Ambition 2030 strategy
through regular updates at Board meetings, and ensure the
two strategy events in the year focus on the Group’s longer-
term ambition and growth initiatives, as well as the structure,
capabilities, talent and succession planning which needs to
be in place to deliver that.
Appointment of Directors
The Articles provide that Directors may be appointed by
the Board or by the Group by ordinary resolution. A Director
appointed by the Board may only hold office until the next Annual
General Meeting of the Group following their appointment and is
then eligible for election by the shareholders. The Board, through
the Nomination & Governance Committee, has reviewed and
adopted the Code recommendation that all Directors should be
subject to annual re-election (in compliance with Code Provision
18). During 2024, all the Directors apart from Ian Clark stood for
election or re-election at the Annual General Meeting and were
successful in their appointment or re-appointment.
Diversity
The Board recognises the importance of being diverse in its
make-up to ensure creative and innovative thinking, improved
decision making and that this leads to better outcomes for
the Group. Diversity is a key factor in reviewing the Board’s
composition and recommending appointments. When recruiting,
the Board requires that executive search agencies provide
diverse shortlists and ensures that all Board appointments
are based on merit. As at 31 December 2024, the Board had
three female Directors out of seven, which is equivalent to
42.9% of the Board being female, thus meeting the 40% female
representation target set by the FTSE Women Leader’s Review,
and has at least one senior Board position that is held by a
female. The Board also meets the Parker Review target that
at least one member of the Board is from an ethnic minority
background. Further information on Sabre’s approach to diversity
and inclusion can be found on pages 50 to 51 of this report.
Effectiveness
The Board is structured to provide the Group with an appropriate
balance of skills, experience, knowledge and independence to
enable it to discharge its duties and responsibilities effectively.
Given the nature of the Group’s business, insurance, actuarial
and accounting experience as well as experience of the financial
services sector is clearly of benefit and this is reflected in the
composition of the Board and its Committees. Decisions at Board
meetings are taken by a majority vote of the Directors and in the
case of an equality of votes the Group’s Articles of Association
(“Articles”) provide that the Chair has a second or casting vote.
The Board considers that no single Director can dominate or
unduly influence decision making. During the year, the Chair and
the Non-executive Directors met without the Executive Directors,
and the Non-executive Directors met without the Chair present.
Induction and ongoing professional development
The Board has a thorough induction programme for Directors
to participate in upon joining the Board. This programme is
monitored by the Chair and is the responsibility of the Company
Secretary. Depending upon their qualifications and experience,
the programme includes presentations and briefings, meetings
with Board Directors, senior management, external advisers,
and visits to the Group’s office in Dorking, Surrey.
Governance Report continued
76 Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
Further details regarding the terms of appointment and
remuneration for the Executive Directors and Non-executive
Directors are set out in the Annual Report on Directors’
Remuneration on pages 105 to 117 and their service contracts
and terms of appointment are available for inspection in
accordance with the Code at the Group’s office and at the
Group’s Annual General Meeting.
Conflicts of interest
All Directors have a duty to avoid conflicts of interest and must
declare any conflict of interest that could interfere with their ability
to act in the best interests of Sabre. The Board has established
a procedure to deal with Directors’ conflicts of interest which
complies with the Group’s Articles and the provisions in section
175 of the Companies Act 2006. Schedules of a Director’s actual
or potential conflicts are compiled based on disclosures made by
the Director. These are updated and reviewed on an annual basis
in addition to conflicts or potential conflicts being considered
at the beginning of Board meetings.
Accountability
The Board, through the Audit Committee, reviews the Group’s
financial and business reporting and maintains the Group’s
relationship with its auditors, the details of which are set out in
the Audit Committee Report on pages 80 to 83. Through the Risk
Committee, the Board receives reports regarding the Group’s risk
management, compliance and internal control systems and
the effectiveness of these. Further details are set out in the Risk
Committee Report on pages 84 to 86.
Anti-bribery and corruption
As part of Sabre’s commitment to preventing bribery and
corruption, the Group has an Anti-Bribery and Corruption Policy,
which is reviewed and approved annually by the Risk Committee.
Further details are set out in the Risk Committee Report on pages
84 to 86.
Modern slavery
Sabre annually considers the 2015 Modern Slavery Act. Sabre has
a zero-tolerance approach to any form of slavery and human
trafficking and confirms to the best of its knowledge that there
is no slavery or human trafficking within its supply chain. The
Group’s Modern Slavery Statement is reviewed and approved by
the Board on an annual basis and can be found on the Group’s
website https://www.sabreplc.co.uk/about-us/corporate-
governance/modern-slavery-statement/.
Whistleblowing arrangements
The Group has a Whistleblowing Policy, which enables and
encourages employees to report in confidence any possible
improprieties in either financial reporting or other matters to an
external hotline. The Group’s Whistleblowing Policy is reviewed
and approved by the Audit Committee on an annual basis.
Remuneration
Details of the Directors’ remuneration and the work of the
Remuneration Committee as required by the Large and
Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended) can be found in the Annual
Report on Directors’ Remuneration on pages 105 to 117. Although
the Group does not formally engage with its employees on
executive remuneration, the Board engages with employees
via the designated Non-executive Director for workforce
engagement, Karen Geary, who is appointed to represent
employee opinions at the Board. Karen leads on ensuring
effective engagement with employees and regularly feeds back
to the Remuneration Committee and the Board following her
meetings with employees. This process does not currently include
an active two-way dialogue with the employees on executive
pay but this approach is being kept under review.
Relations with shareholders
Through this Annual Report and, as required, through other
periodic announcements, the Board is committed to providing
shareholders with a clear assessment of the Group’s position and
prospects. The Board recognises the importance of engaging
constructively with shareholders and, during the year, the Chief
Executive Officer and the Chief Financial Officer continued
to engage with shareholders through investor presentations,
conferences and roadshows, ensuring they are up to date with
their views. These views are regularly shared with the Board,
and the Chair and the Senior Independent Director remain
available to meet shareholders separately to discuss any issues
or concerns they may have. In addition to this, during the
year, Rebecca Shelley also met with a number of the Group’s
shareholders. In addition to these meetings, the Group keeps
shareholders informed primarily by way of the Annual Report, Half
Year Results, Trading Statements and the Annual General Meeting.
This information and other significant announcements of the
Group will be released to the London Stock Exchange and will be
available on the Group’s website https://www.sabreplc.co.uk/
investors/regulatory-news/.
Major shareholders
The holdings of our major shareholders can be found on page
120 of this Annual Report.
Share register
The share register is managed on the Group’s behalf by Equiniti,
who can be contacted at Aspect House, Spencer Road, Lancing,
West Sussex BN99 6DA or by telephone on 0371 384 2030 or,
if dialling internationally, on +44 121 415 7047.
Annual General Meeting (”AGM”)
Notice of the Group’s AGM for the 2025 financial year will be
sent to shareholders at least 21 clear days before the meeting.
The AGM will provide shareholders with the opportunity to
vote on the resolutions put to shareholders and, for those
shareholders who attend, to ask questions of the Board of
Directors, including the Chairs of the Committees. The result
of the voting on all resolutions proposed at the AGM will be
published on the Group’s website, post the conclusion of the
meeting. Further information on the Group’s AGM can be
found on page 121.
Governance Report continued
77Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
Statement of Corporate Governance
Compliance with Code provisions
The Board is committed to high standards of corporate governance across the Group and supports the principles laid down in the UK Corporate Governance Code (the ”Code”), as issued by
the Financial Reporting Council. The Board considers that the Group was compliant with most of the principles and provisions of the Code during the financial year ended 31 December 2024.
The Board notes that it did not engage with employees regarding executive remuneration pay levels, and therefore is not compliant with Provision 41 of the Code but notes that the Board does
regularly engage with employees through the appointment of a Non-executive Director responsible for employee engagement, who meets regularly with employees and provides feedback to the
Board on employee views. It would be this mechanism that the Group would use to seek engagement with employees regarding executive remuneration pay levels. Whilst awaiting regulatory approval
of Rebecca Shelley as Chair of the Group and Bryan Joseph as Senior Independent Director, the Group did not have a Senior Independent Director as required by Provision 12 of the Code.
To ensure the Group remains compliant with the principles of the Code, the Board reviews and addresses its training and development needs by attending various seminars and teach-ins from advisers
at Board meetings, and in 2024 completed an internal Board Effectiveness Review, which evaluated the performance of the Board, its Committees and the Group Chair. Further information on the Board
Effectiveness Report for the financial year ended 31 December 2024 can be found on page 76.
Principles of the Code
Board leadership and company purpose Section of the Annual Report
A. A successful Company is led by an effective and entrepreneurial Board, whose role is to promote the long-term sustainable success of the
Company, generating value for shareholders and contributing to wider society.
Governance Report (pages 72 to 79)
B. The Board should establish the Company’s purpose, values and strategy, and satisfy itself that these and its culture are aligned. All Directors
must act with integrity, lead by example and promote the desired culture.
Strategic Report (pages 1 to 65)
C. The Board should ensure that the necessary resources are in place for the Company to meet its objectives and measure performance
against them. The Board should also establish a framework of prudent and effective controls, which enable risk to be assessed and
managed.
Directors’ Remuneration Policy (pages 94 to 104)
Principal Risks and Uncertainties (pages 24 to 33)
D. In order for the Company to meet its responsibilities to shareholders and stakeholders, the Board should ensure effective engagement with,
and encourage participation from, these parties.
Governance Report (pages 72 to 79)
E. The Board should ensure that workforce policies and practices are consistent with the Company’s values and support its long-term
sustainable success. The workforce should be able to raise any matters of concern.
Responsibility and Sustainability (pages 44 to 64)
Division of responsibilities Section of the Annual Report
F. The Chair leads the Board and is responsible for its overall effectiveness in directing the Company. They should demonstrate objective
judgement throughout their tenure and promote a culture of openness and debate. In addition, the Chair facilitates constructive Board
relations and the effective contribution of all Non-executive Directors, and ensures that Directors receive accurate, timely and clear
information.
Governance Report (pages 72 to 79)
G. The Board should include an appropriate combination of executive and Non-executive (and, in particular, independent Non-executive)
Directors, such that no one individual or small group of individuals dominates the Board’s decision making. There should be a clear division
of responsibilities between the leadership of the Board and the executive leadership of the Company’s business.
Governance Report (pages 72 to 79)
Governance Report continued
78 Annual Report and Accounts 2024Sabre Insurance Group plc
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Division of responsibilities continued Section of the Annual Report
H. Non-executive Directors should have sufficient time to meet their Board responsibilities. They should provide constructive challenge,
strategic guidance, offer specialist advice and hold management to account.
Governance Report
(pages 72 to 79)
I. The Board, supported by the Company Secretary, should ensure that it has the policies, processes, information, time and resources
it needs in order to function effectively and efficiently.
Governance Report (pages 72 to 79)
Composition, succession and evaluation Section of the Annual Report
J. Appointments to the Board should be subject to a formal, rigorous and transparent procedure, and an effective succession plan should be
maintained for Board and senior management. Both appointments and succession plans should be based on merit and objective criteria
and, within this context, should promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths.
Governance Report (pages 72 to 79)
Nomination & Governance Committee Report
(Pages 87 to 89)
K. The Board and its Committees should have a combination of skills, experience and knowledge. Consideration should be given to the length
of service of the Board as a whole and membership regularly refreshed.
Governance Report (pages 72 to 79)
L. Annual evaluation of the Board should consider its composition, diversity and how effectively members work together to achieve objectives.
Individual evaluation should demonstrate whether each Director continues to contribute effectively.
Governance Report (pages 72 to 79)
Audit, risk and internal control Section of the Annual Report
M. The Board should establish formal and transparent policies and procedures to ensure the independence and effectiveness of internal and
external audit functions and satisfy itself on the integrity of financial and narrative statements.
Audit Committee Report (pages 80 to 83)
N. The Board should present a fair, balanced and understandable assessment of the Company’s position and prospects. Audit Committee Report (pages 80 to 73)
O. The Board should establish procedures to manage risk, oversee the internal control framework and determine the nature and extent of the
principal risks the Company is willing to take in order to achieve its long-term strategic objectives.
Principal Risks and Uncertainties (pages 24 to 33)
Risk Committee Report (pages 84 to 86)
Remuneration Section of the Annual Report
P. Remuneration policies and practices should be designed to support strategy and promote long-term sustainable success. Executive
remuneration should be aligned to Company purpose and values, and be clearly linked to the successful delivery of the Company’s
long-term strategy.
Remuneration Committee Report (pages 90 to 93)
Q. A formal and transparent procedure for developing policy on executive remuneration and determining Director and senior management
remuneration should be established. No Director should be involved in deciding their own remuneration outcome.
Remuneration Committee Report (pages 90 to 93)
R. Directors should exercise independent judgement and discretion when authorising remuneration outcomes, taking account of Company
and individual performance, and wider circumstances.
Remuneration Committee Report (pages 90 to 93)
The Group has reviewed the changes to the revised Code which the Financial Reporting Council published in January 2024 and intends to be compliant with the revised Code in the 2025 Annual Report
and Accounts to be published in 2026.
Governance Report continued
79Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
Audit Committee Report
The Audit Committee (the “Committee”)
The Committee comprises at least two Non-executive Directors of
the Group, who are considered to be free of any relationship that
would affect their impartiality in carrying out their responsibilities
and are independent as required under Provision 17 of the UK
Corporate Governance Code (the “Code”). Members of the
Committee are appointed by the Board, on the recommendation
of the Nomination & Governance Committee and the Chair of
the Committee. The Committee is to be chaired by an individual
who has significant, recent and relevant financial experience.
The Chair, Chief Executive Officer, Chief Financial Officer and
Chief Actuary are invited to attend meetings, unless they have
a conflict of interest. In addition, the External Audit Partner, the
Internal Audit Partner, the Company Secretary and Head of
Internal Audit are invited to attend part or all of the Committee
meetings, providing there is no conflict of interest. Other relevant
people from the Group may also be invited to attend all or part of
a meeting to provide deeper insight into the Group and its issues.
The Board considers that membership of the Audit Committee is
appropriate and has skills and competencies relevant to the role
of the Committee and the insurance sector.
The Committee regularly meets privately with either the External
Audit Partner or the Internal Audit Partner. These private meetings
alternate at each meeting and give the external parties access
to the Committee members. The Committee Chair also meets
regularly with both Internal and External Audit Partners outside
of the Committee meetings and is available to shareholders
at the Group’s Annual General Meeting. The Committee is kept
up to date with relevant developments in Accounting Standards
and regulatory requirements through updates from the Chief
Financial Officer, Chief Actuary, Company Secretary, Internal Audit
and External Audit, as and when it is appropriate. Additionally, it is
expected that Committee members keep their knowledge up to
date by attending relevant external or internal training sessions.
The Chair of the Committee reports to subsequent meetings of
the Board and the Company Secretary acts as Secretary to the
Committee. Annually, the Committee reviews its effectiveness.
Committee meetings in 2024
5
* Left with effect from September 2024
Committee members
The membership as at the date
of this report together with such
members’ appointment dates and
attendance record for the year
ended 31 December 2024 are set
out below:
Committee
members
Date
appointed to
Committee
Attendance
Alison Morris
(Chair)
May 2022 5/5
Ian Chapple
September
2024
1/1
Bryan Joseph June 2023 5/5
Rebecca
Shelley*
May 2024 2/2
Committee meetings in 2024
JAN FEB MAR APR MAY JUN
X X X
JUL AUG SEP OCT NOV DEC
X X
80 Annual Report and Accounts 2024Sabre Insurance Group plc
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Governance
− Internal Audit – during the year, the Committee outsourced
the Internal Audit function to Deloitte LLP. The Committee
reviews and approves the Internal Audit plan and receives
updates on the Internal Audit activity. Internal Audit
reports are made available to the Committee, the Chief
Executive Officer, Chief Financial Officer, Chief Risk Officer,
the Company Secretary, and relevant members
of Management.
The primary objective of the function is to systematically
and objectively assess:
i. The effectiveness of the business controls over the
Group’s operations, financial reporting, risk and
compliance areas.
ii. The adequacy of these systems of control to manage
business risk and safeguard the Group’s assets and
resources.
− Internal controls – this includes reviewing the effectiveness
of the Group’s system of internal controls and ensuring timely
action is taken by Management to address matters arising
from the Internal Audit reports.
− Reserves review – the establishment of insurance liabilities
in respect of reported and unreported claims is the
most significant area of judgement within the financial
statements. The Committee maintains oversight of the
reserving process and assumptions used in setting the level
of insurance liabilities, which are assessed by the Group’s
actuaries on a quarterly basis.
− Whistleblowing – reviewing arrangements by which
employees may in confidence raise concerns about
possible improprieties regarding financial reporting
and other matters. The Committee receives an annual
whistleblowing report and reports matters to the Board
as appropriate.
Roles and responsibilities
The Committee, in line with its terms of reference, meets at least
three times a year, and as and when required. The terms of
reference of the Committee can be found on the Group’s website
www.sabreplc.co.uk/about-us/corporate-governance and are
reviewed by the Committee on an annual basis.
In accordance with its terms of reference the Board has
delegated to the Committee responsibility for overseeing key
areas of responsibility which include the following:
− External Audit – this includes considering and making
recommendations to the Board on the appointment of the
external auditor (including approving the remuneration
and terms of appointment) as well as reviewing the
external auditor’s annual audit plan and the results
therefrom, reviewing the quality and effectiveness of
the audit, approving the policy on non-audit services
carried out by the external auditors and reviewing auditor
independence. The Committee is responsible for managing
the relationship with the Group’s external auditor, PwC, on
behalf of the Board. The effectiveness of the external audit
process is dependent upon communication between the
Group and the auditor, which allows each party to raise
potential accounting and financial reporting issues as and
when they arise, rather than limiting this exchange to only
during regularly scheduled meetings.
− Financial and narrative reporting – this area of
responsibility includes monitoring the integrity and
compliance of the Group’s financial statements and for
providing effective governance over the Group’s financial
reporting, as well as reviewing significant financial reporting
issues and judgements made in connection with them.
2024 and the Committee
The Committee was in place throughout the financial year
ended 31 December 2024 and met five times during the period.
The Audit Committee was chaired by Alison Morris. Rebecca
Shelley joined the Audit Committee with effect May 2024 and left
the Committee with effect September 2024 and in September
2024 Ian Chapple joined the Committee. There were no further
changes to the make-up of the Committee during the year and
the Board is comfortable that the make-up of the Committee
ensures that it is fully able to fulfil its duties. The Board considers
that Alison has the appropriate financial expertise, as she is a
qualified accountant with significant financial services audit
experience, and therefore meets Provision 24 of the UK Corporate
Governance Code. All members of the Committee attended
all of the meetings they were eligible to attend.
The Chief Executive Officer, Chief Financial Officer and the Chief
Actuary attended all the Committee meetings, as did the External
Audit and Internal Audit Partners. All meetings were minuted by
the Company Secretary. The Committee Chair also held regular
individual meetings with members of Management, the Group’s
External and Internal Audit Partners, and the Company Secretary
and Head of Internal Audit.
Audit Committee Report continued
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Audit Committee Report continued
Key matters considered by the Committee
during the year:
The Committee pays particular attention to matters it considers
to be important by virtue of their impact on the Group’s results,
the internal control environment or the level of complexity, and
matters of judgement or estimation involved in their application
to the Consolidated Financial Statements. The main areas of
focus in relation to the Group’s financial statements for the year
ended 31 December 2024 were:
1. Valuation of insurance liabilities
The Committee reviewed the Chief Actuary’s annual and
quarterly reserving reports and challenged the appropriateness
of the process, key judgements and assumptions supporting
the projection of the best estimate claims and loss adjustment
expenses. The Committee reviewed management’s rationale for
the level of risk adjustment recorded within the claims reserves.
The Committee also discussed such matters with the Group’s
external auditor. The Committee Chair met with the Chief Actuary
without other members of management present. The Committee
noted the inherent uncertainty associated with the estimation
of claims costs, in particular with reference to the changes
in the legal environment and the impact of historically high
levels of claims inflation. The Committee concluded that the
insurance liabilities presented in the financial statements were
fairly stated. This includes all key judgements in respect of IFRS 17,
including disclosure within the financial statements, application of
discounting to reserves and the calculation of the risk adjustment.
The Committee agreed with management’s assessment that
the most significant area of estimation within the financial
statements continues to be the estimation of insurance
liabilities. This comprises an estimate of the ultimate cost of
claims incurred at the date of the Statement of Financial
Position, both reported and not yet reported, along with
an estimate of the associated reinsurance recoveries.
The Committee reviewed the Group’s policy to hold sufficient
reserves to meet insurance liabilities as they fall due, plus a risk
adjustment reflective of the uncertainty within such calculation.
The Committee specifically considered the impact of recent
high levels of inflation on the level of insurance liabilities held.
2. Implementation of accounting standards
The Committee reviewed and reflected upon the first full-year
implementation and key judgements associated with the
implementation of IFRS 17, including consideration of the
classification and measurement of insurance assets, liabilities
and transactions. The Committee considered the appropriate
level of disclosure required in the 2024 Annual Report and
Accounts related to the implementation of the standard and in
doing so has considered points raised in correspondence from
the Financial Reporting Council following their thematic review
of IFRS 17 reporting.
3. Internal controls
During the year, the Committee reviewed the adequacy and
effectiveness of the controls that underpin the Group’s financial
reporting control framework, which is part of the wider internal
controls system and addresses financial reporting risks. The key
procedures which the Directors have established include: an
annual budgeting process with periodic forecasting; reporting
financial and solvency capital information to the Board
monthly; reporting on specific matters, including updated key
risks, investments and taxation; and liquidity monitoring.
The Committee considered the second line of defence review
of controls and reports from Internal Audit. Any control
weaknesses that these procedures identify are monitored
and addressed in the normal course of business.
4. Going concern and viability
The Committee considered the going concern assumptions and
viability statement in the 2024 Annual Report and Accounts.
In assessing the viability of the Group, the Committee considered
the liquidity and capital position of the Group over the period
to 31 December 2027 under a range of scenarios which had
been selected to reflect the key risks faced by the Group. Further
information on this can be found in the Viability Statement
on pages 33 to 35. In assessing the going concern of the Group,
the Committee considered the financial forecasts and liquidity
for a period of one year from the date of the approval of this
Annual Report.
During the financial year ended 31 December 2024,
the Committee reviewed:
− The accounting issues and significant judgements related
to the financial statements, including the adequacy of
insurance liabilities;
− The appropriateness of the Group’s accounting policies;
− The process and stress testing undertaken to support the
Group’s viability and going concern statements;
− The external audit plan, which included key areas of scope,
significant risks in the financial statements, confirmation of the
external auditor’s independence and the proposed audit fee;
− The effectiveness of the external auditor;
− The Group’s system of controls and its effectiveness using
information drawn from a number of different sources,
including Management, and independent assurance
provided by Internal Audit and the external auditor;
− Reports from the Group’s outsourced Internal Audit function
including reviewing and approving their fees; and
− The Committee’s annual effectiveness report responses
and concluded that the Committee was effective.
Furthermore, the Committee approved:
− The external audit fees and the policy on non-audit
services conducted by the Group’s external auditor;
− For recommendation to the Board the Group’s Annual
Report and Accounts;
− For recommendation to the Board, which agreed to
recommend to shareholders, the re-appointment of
PwC as the Group’s external auditor. It is noted that the
shareholders of the Group approved the re-appointment
of PwC at the Annual General Meeting held in May 2024;
− The Committee’s terms of reference and confirmed that
the Committee had sufficient resources to enable it to
complete its responsibilities; and
− Confirmed to the Board that the Annual Report and
Accounts, taken as a whole, are fair, balanced and
understandable and provide the necessary information
for the shareholders to assess the Group’s position and
performance and its business model and strategy.
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5. Fair, balanced and understandable
The Committee reviewed and concluded that the Annual
Report and Accounts taken as a whole, were fair, balanced and
understandable and provided sufficient information to enable
the reader to assess the Group’s position, performance, business
model and strategy.
6. Task Force for Climate-related Financial
Disclosures (“TCFD”)
The Committee reviewed the disclosures made in accordance
with the TCFD recommendations as part of its review of the
Annual Report and Accounts.
7. Valuation of investment in subsidiaries
The Committee reviewed management’s valuation of the
investment in subsidiary held by the Group’s Parent Company.
The Committee considered the assumptions made in the
discounted cash flow model used to support the valuation
within the accounts, as well as the disclosures made on page
204 of the financial statements.
External auditor’s appointment
PwC were appointed as external auditor, following a
competitive tender process, with effect from the year ended
31 December 2022. The financial year ended 31 December
2024 is the third year reported on by PwC and there is therefore
no requirement to undertake an audit tender process. Philip
Watson is the PwC Audit Partner, and this is his third year
as engagement partner. Resolutions regarding the re-
appointment of PwC and their remuneration were contained
in the Notice of Meeting for the 2024 Annual General Meeting
and both resolutions were approved by 99.5% and 100%
shareholders respectively. Resolutions to re-appoint PwC and
to approve their remuneration will also be contained in the
Notice of Meeting for the 2025 Annual General Meeting.
External audit effectiveness
The Committee has considered the effectiveness of the
external auditor and conducted a formal review by use
of a questionnaire sent to senior management and Audit
Committee members. The results of this questionnaire were
discussed at the Audit Committee without the external
auditor present. The evaluation was also discussed with the
external auditor as appropriate. As a result of this review, it
was concluded that the external audit was independent
and objective, and that the process was effective. The Audit
Committee noted that the external auditors appeared to
demonstrate appropriate professional scepticism with respect
to key risk areas, for example by providing challenge on the
estimates and judgements applied in calculating the Group’s
insurance liabilities.
Non-audit work conducted by external auditor
The Committee reviewed and approved a policy regarding
non-audit work and fees which requires all non-audit work
proposed to be carried out by the external auditor to be pre-
authorised by the Committee or, if required urgently between
Committee meetings, the Chair of the Committee, in order
to ensure that the provision of non-audit services does not
impair the external auditor’s independence or objectivity.
The non-audit fee cap for the year ended 31 December 2024
was £358k (2023: £337k) being 70% of the average audit fees
billed to the Group by the external auditor in the past three
years, or fewer if appointed within the past three years. During
the financial year ended on 31 December 2024, PwC charged
the Group £458k (2023: £636k for audit services and £89k
(2023: £105k) for audit-related non-audit assurance services.
A summary of fees paid to the external auditor is set out in
Note 8 to the Consolidated Financial Statements.
Committee effectiveness
Annually, the Committee reviews its effectiveness. For the
year ended 31 December 2024, the Committee completed
a self-assessment questionnaire which was co-ordinated by
the Company Secretary. The results of the questionnaire were
discussed by the Committee, and the Committee concluded
that it had performed effectively during the year and has
sufficient resources to enable it to complete its responsibilities.
On behalf of the Audit Committee
Alison Morris
Chair of the Audit Committee
17 March 2025
Audit Committee Report continued
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Risk Committee Report
The Risk Committee (the “Committee”)
The Committee comprises at least two Non-executive Directors of
the Group, who are considered to be free of any relationship that
would affect their impartiality in carrying out their responsibilities
and are considered independent as required under Provision 17
of the Corporate Governance Code (the “Code”), or, in the case
of the Group’s Chair, considered independent on appointment.
Members of the Committee are appointed by the Board, on the
recommendation of the Nomination & Governance Committee
and the Chair of the Committee.
The Chief Executive Officer and the Chief Risk Officer are invited
to attend meetings, unless they have a conflict of interest.
In addition, the Chief Financial Officer, the Head of Compliance
and the Data Protection Officer are invited to attend part or
all of the meeting, providing there are no conflicts of interest.
Other employees of the Group may also be invited to attend
all or part of a meeting to provide deeper insights into the
Group and the issues within the Committee’s scope.
The Committee has regular private meetings with the Chief Risk
Officer and the Head of Compliance. These private meetings
alternate at each meeting and give the Chief Risk Officer and
the Head of Compliance access to Committee members. The
Committee Chair also meets regularly with these individuals,
the Chief Actuary and the Data Protection Officer outside of
the Committee meetings and is available to shareholders at
the Group’s Annual General Meeting.
The Chair of the Committee provides an update of the
Committee’s activities at subsequent meetings of the Board.
A member of the Risk Team acts as Secretary to the Committee,
as the Company Secretary is also the Chief Risk Officer.
The Committee reviews and reports on its effectiveness annually
to the Board.
Committee meetings in 2024
6
Committee members
The membership as at the date
of this report together with such
members’ appointment dates and
attendance record for the year
ended 31 December 2024 are set
out below:
Committee
members
Date
appointed to
Committee
Attendance
Bryan Joseph
(Chair)
June 2023 6/6
Alison Morris May 2022 6/6
Karen Geary
January
2022
6/6
Committee meetings in 2024
JAN FEB MAR APR MAY JUN
X X X
JUL AUG SEP OCT NOV DEC
X X X
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− Risk controls – these are in place and are designed to
mitigate the risks that the Group faces, rather than to
eliminate the risk of failure to achieve business objectives.
The Risk Committee ensures timely action is taken by
management to address matters arising from the risk and
compliance assessments.
− Principal risks and uncertainties – details of the Group’s
principal risks and uncertainties are set out on pages 24 to
33 together with information about the management and
mitigation of such risks.
− Compliance – reviewing the Group’s compliance policies
and procedures to ensure that the Group complies with
relevant regulatory and legal requirements.
− Data protection – the appointment and removal of
the Group’s Data Protection Officer, reviewing how the
Group meets its obligations under the Data Protection
Act, reviewing all reports from the Data Protection Officer
and management’s responses to the findings and
recommendations.
− Risk and remuneration alignment – the Committee
provides input to the Remuneration Committee regarding
the weightings to be applied to performance objectives
relating to the Executive Team’s management of risk
throughout the year.
2024 and the Committee
The Committee was in place throughout the financial year
ended 31 December 2024, and met six times through the
period. All Committee meetings were minuted.
The Chief Executive Officer and the Chief Risk Officer attended,
partially or fully, all of the Committee’s meetings. The Chief
Financial Officer, the Head of Compliance, Data Protection Officer
and the Head of IT attended certain meetings during the year.
The Committee Chair also held regular individual meetings with
the Chief Risk Officer, the Data Protection Officer and the Head
of Compliance. The Board is comfortable that the make-up
of the Committee ensures that it is fully able to fulfil its duties.
Role and responsibilities
The Committee has a planned cycle of activities, managed
through a schedule of matters, to ensure that it addresses its
responsibilities in the current financial year. The terms of reference
of the Committee can be found on the Group’s website at
www.sabreplc.co.uk/about-us/corporate-governance and are
reviewed by the Committee and the Board on an annual basis.
The Committee meets at least three times a year, in line with its
terms of reference, and as and when required.
The Board has delegated to the Committee responsibility for
ensuring that the Group has robust processes and procedures in
place for the identification and management of risk. This includes
monitoring and reviewing the Group’s risk management and
compliance framework and ensuring that there are adequate
processes for the identification, evaluation and mitigation of the
risks faced by the Group. The Committee reviews the effectiveness
of the Group’s risk management, compliance management and
internal control systems, and reports to the Board on these areas.
In conducting its reviews, the Committee focuses on material
risks, including the determination of the nature and extent of the
principal risks, and controls in the context of reports it receives
regarding risk management. These include reports from the Chief
Risk Officer, the Head of Compliance, the Data Protection Officer
and the Head of IT.
The Committee leads the process for:
− Risk management – this includes reviewing and monitoring
the effectiveness of the procedures for the identification,
assessment and reporting of risk as well as setting, and
monitoring adherence to, a risk appetite that defines the
nature and extent of the risks that the Group is facing
and should be willing to accept in achieving its strategic
objectives. It also includes oversight of the processes by
which risk-based capital requirements, and the Group’s
solvency position, are determined and monitored. The
Committee further advises the Board on the Group’s
overall risk appetite, tolerance and strategy, and oversees
and advises the Board on its risk strategy and current risk
exposures. In addition to this, the Committee is responsible
for the appointment and removal of the Group’s Chief Risk
Officer and reviewing their reports and management’s
responses to the findings and recommendations.
During the year, the Committee addressed its responsibilities by:
− Confirming that management had fulfilled their obligations
regarding the management of the Group’s risks;
− Reviewing reports from the Chief Risk Officer regarding risk
management, including the procedures and plan relating
to the management of risk across the Group;
− Reviewing and approving the risk management framework
and risk appetite framework, the corporate risk registers and
the Group’s principal risks and uncertainties;Approving the
implementation and use of an online risk management tool;
− Reviewing reports from the Head of Compliance regarding
compliance across the Group, including progress against
the Compliance Monitoring Plan;
− Reviewing reports from the Group’s Data Protection Officer;
− Confirming that the Chief Risk Officer, Head of Compliance
and Data Protection Officer had fulfilled their obligations
regarding their roles;
− Reviewing regulatory correspondence;
− Reviewing and recommending to the Board the Group’s
ORSA;
− Reviewing the Committee’s terms of reference;
− Reviewing the annual Committee’s evaluation responses
and concluded that the Committee was effective; and
− Confirming that the Committee had sufficient resources to
enable it to complete its responsibilities.
Risk Committee Report continued
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Risk Committee Report continued
Financial crime and anti-bribery
Annually, the Committee reviews the Group’s Anti-Bribery and
Corruption Policy. The policy covers: the main areas of liability
under the Bribery Act 2010; the responsibilities of the Directors,
employees and associated persons acting for, or on behalf of,
the Group; and the consequences of any breaches of the policy.
The Policy is designed to prevent and prohibit bribery, in line with
the Bribery Act 2010. The Group will not tolerate any form of bribery
by, or of, its Directors, Officers, employees, agents or consultants
or any person or body acting on its behalf, and no such incidents
occurred in the 2024 financial year. In addition, the Group has
a Financial Crime and Fraud Policy which outlines how Sabre
ensures its compliance with all applicable UK legislation and the
controls it has in place to detect and prevent Financial Crime.
Committee effectiveness
Annually, the Committee reviews its effectiveness. For the
year ended 31 December 2024, the Committee completed
a self-assessment questionnaire which was co-ordinated by
the Company Secretary. The results of the questionnaire were
discussed by the Committee and the Committee concluded
that it had performed effectively during the year and has
sufficient resources to enable it to complete its responsibilities.
On behalf of the Risk Committee
Bryan Joseph
Chair of the Risk Committee
17 March 2025
Specific discussions were had by the Committee on:
− Monitoring and reviewing the Group’s top risks across
its risk universe, emerging risks, issues and breaches;
− Cyber security;
− Inflation and interest rates, including the impact of cost
of living on customers and employees;
− Operational resilience;
− PRA and FCA Discussion papers, consultation papers
and policy statements;
− FCA Consumer Duty – for further information on this,
please see page 65;
− Complaints; and
− Climate change and its impact on Sabre’s business
and operations.
Sabre’s approach to data protection
Sabre is committed to handling data responsibility and
complying with data protection legislation. Sabre has an
appointed Data Protection Officer, who reports directly to
the Board and Directors, via the Risk Committee.
We regularly review our policies, procedures and IT security to
ensure data is protected and processed correctly, and that we
are transparent with our customers and staff about how we
manage their data. We have dedicated resource to respond to
data subject rights. Regular training is provided to all employees,
ensuring they understand their responsibilities.
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Nomination & Governance Committee Report
The Nomination & Governance Committee
(the “Committee”)
The Committee comprises at least three Non-executive Directors
of the Company, all of whom are to be considered to be free of
any relationship that would affect their impartiality in carrying
out their responsibilities and were independent as required
under Provision 17 of the UK Corporate Governance Code
(the “Code”). For the financial year ended 31 December 2024,
all the Independent Non-executive Directors of the Group sat on
the Committee. The Committee is chaired by the Group Chair,
unless there is a conflict of interest.
The Chief Executive Officer, Company Secretary and Head of HR
may also be invited to attend meetings, unless this presents a
conflict of interest. The Committee Chair meets regularly with the
Chief Executive Officer outside of the Committee meetings and
is available to answer shareholder questions at the Company’s
Annual General Meeting.
The Chair of the Committee reports to subsequent meetings of
the Board and the Company Secretary acts as the Secretary to
the Committee.
Roles and responsibilities
The Committee has a planned cycle of activities, managed
through a schedule of matters, to ensure that it addresses its
responsibilities in the current financial year. The terms of reference
of the Committee can be found on the Company’s website at
www.sabreplc.co.uk/about-us/corporate-governance and are
reviewed by the Committee on an annual basis. The Committee
meets at least twice a year, in line with its terms of reference,
and as and when required.
Committee meetings in 2024
4
Committee members
The membership as at the date
of this report together with such
members’ appointment dates and
attendance record for the year
ended 31 December 2024 are set
out below:
Committee
members
Date
appointed to
Committee
Attendance
Rebecca
Shelley (Chair)
October
2017
4/4
Ian Chapple
September
2024
1/1
Karen Geary
December
2020
4/4
Bryan Joseph
September
2023
3/3
Alison Morris
October
2022
3/3
Committee meetings in 2024
JAN FEB MAR APR MAY JUN
X X X
JUL AUG SEP OCT NOV DEC
X
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a combination of these diversity factors, but also the needs
and requirements of the Board, to ensure a sufficient skillset
and knowledge base. The Board believes that a range of views,
experience, and background supports good decision making,
which is of benefit to the Group’s shareholders, customers and
other stakeholders. In support of this, when the Board seeks to
appoint a new position to the Board or the Leadership Team,
it expects to be provided with a diverse range of candidates,
notably long lists which are gender and ethnically diverse by
at least 40%.
2024 and the Committee
The Committee was in place throughout the financial year ended
31 December 2024 and met four times. All Committee members
attended all the meetings they were eligible to attend. The Chief
Executive Officer attended, partially or fully, all the Committee’s
meetings, the Company Secretary attended and minuted each
meeting, and the Head of HR presented at two of the meetings.
In September 2024, Ian Chapple joined the Committee following
his appointment to the Board. There were no further changes to
the make-up of the Committee during the year and the Board is
comfortable that the make-up of the Committee ensures that it
is fully able to fulfil its duties.
During the financial year which ended on 31 December 2024,
the Committee:
− Approved the Nomination & Governance Committee
Report in the Annual Report for the year ended
31 December 2023;
− Reviewed and recommended to the Board, the election
and re-election of Directors at the Company’s 2024 Annual
General Meeting;
− Reviewed and recommended to the Board the
appointment of the Senior Independent Director;
− Discussed the balance of skills and experience on
the Board and its committees, their structure, and
considered if any changes were necessary, and made
recommendations to the Board for their implementation;
− Reviewed the talent development and succession and
training plans for the Executive Team and senior managers;
The Committee leads the processes for:
− Reviewing the size, structure and composition of the Board;
− Overseeing succession planning for the Directors and
other senior executives, considering the challenges and
opportunities facing the Group, and the skills and expertise
needed on the Board in the future;
− Reviewing the leadership needs of the organisation, both
executive and non-executive, with a view to ensuring the
continued ability of the organisation to compete effectively
in the marketplace;
− Reviewing strategic issues and commercial changes
affecting the Group and the market in which it operates;
− Reviewing the Group’s policy on diversity, setting
measurable objectives for Board diversity and preparing
a policy on how to promote Board diversity;
− Identifying, evaluating and recommending candidates
to join the Board;
− Making recommendations to the Board regarding
the make-up of the Company’s Committees and the
appointment of the Senior Independent Director; and
− Making recommendations regarding the election and
re-election of the Directors by shareholders.
Diversity and inclusion
The Committee recognises the benefits of, and values the
importance of, an inclusive and diverse Board and maintains an
Inclusivity and Diversity Policy to support this. This Policy is reviewed
at least annually by the Committee, and further information on
the Policy can be found on pages 50 to 51. Sabre believes that
this is not only fair, but that it ensures optimal decision making
and successful execution of the Group’s strategy. Therefore,
inclusivity and diversity of its Board and its employees is a priority
of the Group. In addition to this, the Group is fully committed to
the elimination of unlawful and unfair discrimination.
Sabre believes that membership of its Boards and Committees
should reflect diversity and seeks diversity relating to age, gender,
ethnicity, sexual orientation, disability, education, professional
and socio-economic backgrounds. Appointment of individuals
to the Board is based on merit, and consideration is given to
Nomination & Governance Committee Report continued
− Reviewed and approved the Committee’s terms of
reference and schedule of matters, and the Group’s
Diversity and Inclusion Policy;
− Reviewed the annual Committee’s evaluation responses
and concluded that the Committee was effective;
− Confirmed that the Committee had sufficient resources
to enable it to complete its responsibilities;
− Discussed environmental, social, governance and diversity
issues faced by the Group; and
− Agreed that an additional Non-executive Director should
be appointed to the Board.
Further information on topics the Nomination & Governance
Committee have discussed are:
Committee effectiveness
Annually, the Committee reviews its effectiveness. For the
year ended 31 December 2024, the Committee completed
a self-assessment questionnaire which was co-ordinated by
the Company Secretary. The results of the questionnaire were
discussed by the Committee and the Committee concluded that
it had performed effectively during the year and has sufficient
resources to enable it to complete its responsibilities.
Succession planning
The Nomination & Governance Committee deemed during its
effectiveness review in 2023 that it should make improvements
to succession and development plans. The improvements have
included a skills matrix of all Non-executive Directors, showing
when certain skills will be lost and a rising star matrix for senior
managers and the Leadership Team.
Composition of Committees
The Nomination & Governance Committee continually reviews
the composition of the Board Committees. As at the year ended
31 December 2024 the Board comprised seven Directors: the
Chair, two Executive Directors and four independent Non-
executive Directors. The Committee reviews the committee
memberships to ensure that the balance of skills and knowledge
is appropriately spread.
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Appointment of an additional
Non-executive Director
During the year, the Committee agreed to appoint an
additional Non-executive Director to the Board.
Following the process detailed below, the Committee
recommended to the Board that Ian Chapple be appointed
as Non-executive Director with effect 1 September 2024.
Ian will stand for election to the Board at the Annual
General Meeting in 2025.
Process of appointment The search process for the new
Non-executive Director was led by the Chair, with the
Committee reviewing the potential candidates and several
Board Directors interviewing the final shortlist of potential
candidates.
Candidate requirements The Committee reviewed the
experience and skills of the existing Board Directors and
considered what additional skills would be beneficial for
the Board to enable it to drive the business forward, provide
good corporate governance and strengthen knowledge
on the Board. From this a list of skills criteria for the role
was completed.
Appointment of an external search agency Several external
search agencies were considered, and the Committee
appointed Sainty Hird and Partners, an independent external
search agency, with no other connection to the Group,
to find the suitable candidates. It was felt Sainty Hird
and Partners’ experience of the industry was strong and
therefore they were the most appropriate agency to use
for the appointment.
Search process Sainty Hird and Partners produced a long
list of candidates, which was reviewed by members of the
Committee, and a short list of candidates was interviewed
by several Board Directors, including the Chair, the Senior
Independent Director and the Chief Executive Officer.
Appointment of Non-executive Director All interviewers
provided feedback on the candidates to the Committee,
which discussed the merits of each candidate against
the skills criteria list. From this discussion, the Committee
proposed to the Board that Ian be appointed to the Board,
noting his significant IT and cyber experience. Following Ian’s
acceptance of the appointment, the Committee reviewed
which Committees it would be appropriate for him to join,
and subsequently appointed Ian to the Remuneration,
Nomination & Governance and Audit Committees with
immediate effect from his appointment.
Non-executive Director induction Upon appointment, newly
appointed Non-executive Directors take part in a thorough
induction process which is co-ordinated by the Company
Secretary. The induction includes individual meetings with
the other Non-executive Directors, Executive Directors,
members of the Leadership team as well as both Internal
and External Audit Partners and visits to the Company’s office
in Dorking, Surrey. These meetings follow an agenda to cover
key areas of the business to assist the new Non-executive
Directors with necessary information to carry out their role
effectively. In addition, the newly appointed Non-executive
Director is provided with a directory of documents, including
Committee Schedule of Matters and Terms of Reference,
Code, Regulatory and Listing Rules and Group policies
and procedures.
Electing and re-electing Directors
The Nomination & Governance Committee has reviewed and
adopted the Code recommendation that all Directors should
be subject to annual re-election (in Compliance with Code
Provision 18) and, as set out in the Articles of Association, that all
Directors will be submitting themselves for election or re-election
by shareholders at the forthcoming AGM.
On behalf of the Nomination & Governance Committee
Rebecca Shelley
Chair of the Nomination & Governance Committee
17 March 2025
Nomination & Governance Committee Report continued
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Remuneration Committee Report
On behalf of the Board, I am pleased
to present to you the Remuneration
Committee’s Report for the year ended
31 December 2024.
The results for 2024 demonstrate the effectiveness of the Sabre’s
Executive Team’s rigorous application of its “profitability is the
target, volume is output” approach. By maintaining underwriting
discipline in prior years Sabre was able to take advantage of
attractive market conditions as many peers were forced to
reprice their portfolios in H1 2024. This led to strong growth and
a doubling of profits in 2024.
Importantly the Executive Team have maintained strong
foundations for future growth both by allowing growth to
moderate in H2 2024 as market conditions weakened, and
communicating the medium term growth orientated “Ambition
2030” strategy.
This report has been prepared in accordance with the Directors’
Remuneration Reporting Regulations for UK incorporated
companies set out in Schedule 8 of the Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations
2008 (as amended) and the principles of the UK Corporate
Governance Code.
The report is presented in the following sections:
− Remuneration Committee Report
− Group’s Directors’ Remuneration Policy (the “Policy”)
− Annual Report on Remuneration
Committee meetings in 2024
5
* Left the Committee in September 2024
Committee members
The membership as at the date
of this report together with such
members’ appointment dates and
attendance record for the year
ended 31 December 2024 are set
out below:
Committee
members
Date
appointed to
Committee
Attendance
Karen Geary
(Chair)
December
2020
5/5
Ian Chapple
September
2024
2/2
Bryan Joseph March 2024 3/4
Rebecca
Shelley*
October
2017
4/4
Committee meetings in 2024
JAN FEB MAR APR MAY JUN
X X X
JUL AUG SEP OCT NOV DEC
X X
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Roles and responsibilities
The Committee, in line with its terms of reference, meets at least
twice a year, and as and when required. The terms of reference
of the Committee can be found on the Group’s website
www.sabreplc.co.uk/about-us/corporate-governance and are
reviewed by the Committee on an annual basis. The Committee
has a planned cycle of activities, managed through a schedule
of matters, to ensure that it addresses its responsibilities in each
financial year.
The Board has delegated to the Committee responsibility for
ensuring that the Executive Team is appropriately incentivised
to deliver sustainable growth to shareholders over the long
term. The Committee supports this objective by structuring and
deploying remuneration in a cost-effective manner, embedding
a clear link between pay and performance in the Group’s
remuneration framework. The Committee is responsible for
setting the Remuneration Policy for the Executive Directors, the
Executive Team and the Group’s Chair, including pension rights
and any compensation payments. It is also responsible for
reviewing all share incentive plans and setting and approving
the achievement of their performance conditions, as well as
reviewing all employee pay arrangements periodically. The fees
of the Non-executive Directors are approved by the Group Chair
and the Executive Directors.
The Remuneration Committee
(the “Committee”)
The Committee comprises at least two Non-executive Directors
of the Group, all of whom are considered to be free of any
relationship that would affect their impartiality in carrying out
their responsibilities and are independent as required under
Provision 17 of the UK Corporate Governance Code (the ”Code”).
Members of the Committee are appointed by the Board, on the
recommendation of the Nomination & Governance Committee
and the Chair of the Committee. Members of the Committee do
not have any personal interests in the topics discussed at the
Committee, except as shareholders in the Group. No Director
is involved in the decisions setting their own remuneration.
The Group Chair and the Chief Executive Officer are invited
to attend meetings, unless they have a conflict of interest, for
example the discussion of their own remuneration. All meetings
are minuted by the Company Secretary, unless there is a conflict
of interest. Other relevant people from the Group may also be
invited to attend all or part of a meeting to provide deeper insight
into the Group and its issues.
The Committee Chair meets regularly with the Chief Executive
Officer and the Company Secretary outside of the Committee
meetings and is available to shareholders to answer their
questions at the Group’s Annual General Meeting. The Chair of
the Committee reports to subsequent meetings of the Board,
and the Company Secretary acts as Secretary to the Committee.
Annually, the Committee reviews its effectiveness.
Committee advisers
For the financial year ended on 31 December 2024, the
Committee appointed Deloitte LLP (“Deloitte”) to provide advice
regarding remuneration. Advisers from Deloitte may attend the
Committee meetings as appropriate, and provide advice on
executive remuneration, best practice and market updates.
Annually, the Committee evaluates the support provided
by its advisers. During the year, the Committee reviewed the
performance of Deloitte, who were subsequently re-appointed
to advise the Committee for a further year. Deloitte is a founding
member of the Remuneration Consultants Group and voluntarily
operates under their Code of Conduct in relation to executive
remuneration consulting in the UK. As such, the Committee is
satisfied that the advice provided by Deloitte is independent
and objective.
The total fees paid to Deloitte in relation to the remuneration
advice provided to the Committee during the year were £7.6k
excluding VAT (2023: £37.7k). Fees were charged on a time
and materials basis. During the year, the wider Deloitte firm also
provided corporate tax advisory and internal audit services to the
Group. The fees paid for this work are not included in these totals.
2024 and the Committee
The Committee was in place throughout the financial year ended
31 December 2024 and met five times through the period.
The Committee was chaired by Karen Geary. During the year,
both Bryan Joseph and Ian Chapple joined the Committee,
and Rebecca Shelley left the Committee in September 2024.
There were no further changes to the make-up of the Committee
during the year and the Board is comfortable that the make-up
of the Committee ensures that it is fully able to fulfil its duties.
Each meeting was minuted by the Company Secretary. The Chief
Executive Officer, the Company Secretary and the Head of HR
either partially or fully attended all of the Committee meetings.
The Committee Chair also held regular individual meetings with
the Chief Executive Officer and the Company Secretary.
Remuneration Committee Report continued
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Remuneration Committee Report continued
During the year, the Committee addressed its responsibilities by:
− Reviewing and approving the 2024 Remuneration
Policy, including consulting with major shareholders
on remuneration proposals;
− Approving the 2023 Directors’ Remuneration Report;
− Reviewing and approving the payment of bonuses under
the 2023 Short Term Incentive Plan (“STIP”), including
approving 50% of the vested award being deferred to the
Group’s Deferred Bonus Plan;
− Setting the award levels and the financial, non-financial
and individual performance conditions for the awards
made under the 2024 STIP;
− Setting the grant levels and underpins for the awards under
the 2024 LTIP;
− Reviewing and approving any changes to the salaries
of the Executive Team;
− Reviewing remuneration across the Group to ensure that
arrangements continue to align with our strategy, and our
key principles around remuneration and culture;
− Reviewing and approving the fees of the Chair;
− Reviewing the Group’s SAYE and SIP employee
contribution levels;
− Approving the Group’s SAYE 2024 grant;
− Reviewing and approving the Committee’s terms
of reference and schedule of matters; and
− Reviewing and publishing the Group’s Gender Pay
Gap Report.
Committee effectiveness
Annually, the Committee reviews its effectiveness. For the
year ended 31 December 2024, the Committee completed
a self-assessment questionnaire, which was co-ordinated by
the Company Secretary. The results of the questionnaire were
discussed by the Committee and the Committee concluded that
it had performed effectively during the year and has sufficient
resources to enable it to complete its responsibilities.
Implementation of a new Directors’ Remuneration
Policy
We were pleased that shareholders supported the New
Remuneration Policy, with over 91% voting in favour at the Group’s
Annual General Meeting in May 2024. It is the intention of the
Committee that this policy remains in force for three years from
1 January 2024. The policy can be found on pages 94 to 104 and
was in operation for the LTIP and STIP awards made and granted
in 2024.
Executive remuneration in 2024
The Group has a well-defined strategy, whereby the profitability
of business written is prioritised under all market conditions. In
2024 the success of this strategy has been clearly demonstrated,
following an extended period where market-wide premium
increases continued to lag claims costs inflation, and when many
competitors re-priced their portfolio or left the market completely.
As a consequence of Sabre’s consistent approach of pricing for
profitability and not volume, during the recent market correction
Sabre has enjoyed very strong premium growth, leading to
a significant improvement in profitability and providing the
foundation for further improvement in 2025.
The Remuneration Committee discussed and approved the
remuneration outcomes in respect of 2024 shortly after the year end
and made no amendments to the predetermined performance
conditions for the annual bonus award or the outstanding
LTIP awards. The annual bonus for 2024 under the Group’s STIP
was based on a bonus pool funding approach, calculated as
1.5% of PBT, subject to the achievement of a minimum level of
10% ROTE. The PBT for the year ended 31 December 2024 was
£48.6m and a ROTE of 38.2% was achieved, and therefore the
aggregate profit pool potentially available for distribution to the
Chief Executive Officer and Chief Financial Officer for the year
was £728k. In addition to the financial performance conditions
linked to the bonus, 30% of the awards were subject to additional
Group-wide objectives and individual performance targets. Strong
performance was delivered against these objectives and the
Committee’s full assessment is outlined on page 109. Following this
assessment, resulting bonuses were £473k (92.6% of salary) for the
Chief Executive Officer and £248k (79.6% of salary) for the Chief
Financial Officer. Full details of the bonus outturn are on page 105.
Awards made under the Long Term Incentive Plan (”LTIP”) in 2022
were made in the form of restricted shares. These LTIP awards were
subject to the following underpins:
− Maintaining a solvency ratio in excess of 140%
− Achieving a return on tangible equity in excess of 10%
− No material regulatory censure (relating to the Executive
Director’s time in office)
− Overall Committee discretion
As these underpins were met, the Committee approved the
vesting of the 2022 LTIP awards at 100% and therefore the Chief
Executive Officer and the Chief Financial Officer received the
full number of shares granted to them in 2022, which was the
equivalent of 75% and 60% of salary, respectively. These awards
vest post the release of the 2024 Financial Results, when the
Executive Directors will be able to sell shares to cover the tax
liability, and the remaining shares are subject to a further two-year
holding period. Further information on the 2022 LTIP can be found
on page 110.
Overall, the Committee considered that the outcomes under
the 2024 STIP and the 2022 LTIP are a fair reflection of the overall
performance of the Group and the Executive Directors and are
considered appropriate in the context of the broader stakeholder
experience. As such, the Committee is satisfied that the Policy
operated as intended during the financial year and did not
exercise discretion in respect of the Policy or its operation during
the year.
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Wider considerations regarding reward
When considering the remuneration arrangements for the
Executive Directors, the Committee continues to consider
remuneration throughout the Group and regularly examines the
average employee salary, pension and share plan contributions.
The Committee is aware of the importance of having an
engaged, motivated and fairly paid workforce. To support this,
the Committee receives regular updates on remuneration of the
Group’s employees.
During the year, the Group reviewed and increased the starting
salaries for trainees, and the Group confirms that the Real
Living Wage is paid to all full-time employees, as a minimum.
As in prior years, the Group gave employees pay rises during
the year, within a range of 5% and 8.7% (excluding special pay
rises) and at an average of 6.5% (excluding specials), paid
an employee performance bonus to all employees, and a
Christmas bonus of £1,250. In addition, the Group continues to
provide free private health insurance to its employees, which
also provides discounted gym memberships, dietary advice,
and free workshops promoting a healthier lifestyle and good
mental health.
The Group continues to operate a Save As You Earn (“SAYE”)
Plan where employees can make a monthly contribution of
up to £500, and a Share Incentive Plan (“SIP”) where, for every
three shares an employee purchases the Group matches with
one free share. It is the Committee’s intention that both the
SAYE Plan and SIP will remain in place for the financial year
ending 31 December 2025.
While the Group currently has fewer than 250 employees and so
is not required to submit a formal statement on its gender pay
gap, the Board’s intention is to be transparent. As such, in 2019
the Committee made a commitment to publish the Group’s
Gender Pay Gap Report. The Committee ensures that the report
is updated annually, and it is available on the Group’s website
https://www.sabreplc.co.uk/about-us/corporate-governance.
Statement of shareholder voting
The following table shows the results of shareholder voting relating
to the approval of the Remuneration Policy at the 2024 Annual
General Meeting and the approval of the Remuneration Report
at the 2024 Annual General Meeting.
2024 Annual General Meeting resolution to approve
the Directors’ Remuneration Policy
Total number
of votes % of votes cast
For (including discretionary) 199,640,587 91.3
Against 18,992,339 8.7
Total votes cast (excluding
withheld votes) 218,632,921 100.0
Votes withheld 4,424 n/a
Total votes cast (including
withheld votes) 218,637,345 n/a
2024 Annual General Meeting resolution to approve
the Directors’ Remuneration Report
Total number
of votes % of votes cast
For (including discretionary) 199,646,266 91.3
Against 18,986,655 8.7
Total votes cast (excluding
withheld votes) 218,632,921 100.0
Votes withheld 4,424 n/a
Total votes cast (including
withheld votes) 218,637,345 n/a
Shareholder engagement
Sabre and the Remuneration Committee are committed to
maintaining an ongoing dialogue with shareholders on issues
of remuneration to ensure an open and transparent dialogue.
We continue to welcome any feedback you may have, via the
Company Secretary, who can be contacted at
anneka.kingan@sabre.co.uk.
I look forward to your support on the resolutions relating to
remuneration at the Group’s Annual General Meeting in
May 2025.
On behalf of the Remuneration Committee
Karen Geary
Chair of the Remuneration Committee
17 March 2025
Remuneration Committee Report continued
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Directors’ Remuneration Policy
The Directors’ Remuneration Policy (the “Policy”)
Sabre Insurance Group’s Directors’ Remuneration Policy as set
out in this report (the “2024 Directors Remuneration Policy”)
was approved by shareholders at the Group’s Annual General
Meeting on 23 May 2024, with a vote of 91.31% in favour.
The Committee intended that the Policy is simple and clear,
links the Group’s strategy and performance with the Directors’
remuneration, reflecting the insurance industry’s cyclical nature,
and is compliant with corporate governance best practice.
In line with the requirement to seek approval of the Policy every
three years, it is our intention that we will be seeking shareholder
approval of a new Policy at the 2027 AGM.
The Remuneration Policy was developed taking into account the
Committee’s requirements that it:
− Is simple and transparent;
− Rewards performance against a balanced mix of financial
and non-financial performance metrics, which reflect the
interests of all stakeholders;
− Reflects that, although the business is cyclical in nature, the
focus of the Executive Team is to protect the profitability of
business underwritten and to deliver attractive returns to
shareholders. Accordingly, a Policy that offers, relative to the
broader market, a narrower, but more predictable, range
of performance and reward outcomes is better aligned to
Sabre’s positioning as an ‘income stock’;
− Closely aligns the remuneration of the Executive Team
with the business’s profit generation at different parts of
the insurance cycle, rather than achievement against the
annual budget;
− Encourages long-term share ownership and aligns with the
creation of shareholder value;
− Mitigates risk by ensuring the Committee has the ability
to apply discretion to ensure that award levels are
appropriate, and that the Committee has the ability to
apply malus and/or clawback if required; and
− Complies with remuneration regulations under Solvency II
and corporate governance best practice.
In designing the Group’s Remuneration Policy, the Committee has
been guided by the three following principles:
1. Cost-effectiveness
Sabre intends to pay no more than is necessary to attract, retain
and incentivise high-calibre management, while also aligning
the interests of employees with those of shareholders and, where
appropriate, other key stakeholders.
2. Pay for performance
Performance-related pay will, potentially, make up a significant
proportion of the Executive Directors’ remuneration packages
and will be assessed based on stretching targets.
3. Long-term alignment
There will be an appropriate balance of remuneration to the
delivery of longer-term performance targets. In determining the
Group’s Remuneration Policy, the Committee has taken into
account the relevant regulatory and governance principles.
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The following table summarises how, in designing the Group’s Remuneration Policy and its implementation, the Committee has addressed the principles set out in Provision 40 of the UK Corporate
Governance Code.
Principle How the Committee has addressed this
Clarity
Remuneration arrangements should be transparent and
promote effective engagement with shareholders and
the workforce.
The Committee is committed to providing clear and transparent disclosure of Sabre’s executive remuneration arrangements.
As part of the Remuneration Policy review, we consulted with shareholders in order to ensure their feedback was fully considered.
Further information – Karen Geary was appointed as the designated Non-executive Director for employee engagement during
2022. Karen actively engages with employees and feeds back to the Committee and the Board on her meetings in order to
provide insight on employees’ views.
Simplicity
Remuneration structures should avoid complexity and their
rationale and operation should be easy to understand.
In designing the remuneration framework, the Committee sought to avoid complexity by ensuring compensation arrangements
are straightforward and easily understood.
Sabre’s remuneration framework comprises fixed pay, an annual bonus and a LTIP and is well understood by both participants
and our key stakeholders.
Risk
Remuneration arrangements should ensure reputational and
other risks from excessive rewards, and behavioural risks that
can arise from target-based incentive plans, are identified
and mitigated.
The Committee is satisfied that the remuneration structure does not encourage excessive risk taking and incorporates a number
of features that align remuneration outcomes with risk. These include deferral under the bonus plan, the two-year post-vesting
holding periods under the LTIP and personal shareholding guidelines that apply both in employment and post employment.
Furthermore, the Committee has the discretion to reduce variable pay outcomes where appropriate, and malus and clawback
provisions apply to both the annual bonus and LTIP awards.
Further information – the Risk Committee reviews the Executive Team’s management of risk during the year and advises the
Remuneration Committee as appropriate, prior to the Committee approving any awards of payment of bonuses.
Predictability
The range of possible values of rewards to individual Directors
and any other limits or discretions should be identified and
explained at the time of approving the policy.
The Remuneration Policy outlines the threshold, target and maximum levels of pay that Executive Directors can earn in any given
year over the three-year life of the approved Remuneration Policy.
Actual incentive outcomes will vary depending upon the level of achievement against specific performance measures
and underpins.
Proportionality
The link between individual awards, the delivery of strategy
and the long-term performance of the Group should be clear.
Outcomes should not reward poor performance.
The Committee is comfortable that the Remuneration Policy does not reward poor performance and that the range of potential
payouts are appropriate and reasonable.
The Committee has discretion to adjust incentive outcomes where they are not considered to appropriately reflect underlying
performance. Furthermore, payments made under the incentive plans are subject to the achievement of performance measures
and underpins which are directly linked to the Group’s strategy and KPIs.
Alignment of culture
Incentive schemes should drive behaviours that are consistent
with Group purpose, values and strategy.
The performance measures for the annual bonus and the award of RSAs are directly linked to the Group’s strategy, objectives
and values.
Directors’ Remuneration Policy continued
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Directors’ Remuneration Policy continued
Remuneration Policy Table
The Executive Directors’ remuneration consists of five main components: a base salary, benefits, employer pension contributions, a performance-related annual bonus (“STIP”) and Restricted Share Awards
made under the Group’s Long Term Incentive Plan (“LTIP”). Directors are also entitled to participate in both the all-employee share plans on the same basis as other Group employees.
Salary
To attract, incentivise and retain Executive Directors of a high calibre, and to reflect their responsibilities and experience.
Operation Maximum opportunity Performance measures
Base salaries will be reviewed at least annually, taking into account
the scope and requirements of the role, the performance and
experience of the Executive Director and the individual’s total
remuneration package.
Account will also be taken of remuneration arrangements
at Sabre’s peer companies (and other companies of an
equivalent size and complexity), for other Group employees,
and the impact of any base salary increases on the total
remuneration package.
Any salary increases are normally effective from 1 April each
year, in line with the broader workforce.
The Committee has decided not to set an overall maximum
monetary opportunity or increase. However, the Committee
intends that Executive Directors’ salary increases will normally
be no greater than salary increases offered to the wider
employee population.
There are specific circumstances in which the Committee
could award increases outside this range which may include:
– A change in the Executive Director’s role and/or
responsibilities
– Performance and/or development in role of the Executive
Director
– A significant change in the Group’s size, composition
and/or complexity
– A significant change in market practice. Where an Executive
Director has been appointed to the Board at a below-market
starting salary, larger increases may be awarded as their
experience develops, if the Committee considers such
increases to be appropriate
n/a
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Benefits
To provide a benefits package to recruit and retain Executive Directors of a high calibre and to promote the wellbeing and health of the Directors, enabling them to focus on the Group’s performance.
Operation Maximum opportunity Performance measures
The Committee’s policy is to provide Executive Directors with
competitive levels of benefits, taking into consideration the
benefits provided to Sabre’s employees and the external market.
Benefits currently include (but are not limited to) life insurance
and private medical insurance.
If an Executive Director is required to relocate as a result of his/
her duties, the Group may provide the Executive Director with
additional benefits such as assistance with relocation, travel,
accommodation or education allowances or professional tax
advice, along with any associated tax liabilities.
As the costs of benefits are dependent on the Executive
Director’s individual circumstances, the Committee has not
set a maximum monetary value.
However, in approving the benefits paid, the Committee
will ensure that they do not exceed a level which is, in the
Committee’s opinion, appropriate given the Executive Director’s
particular circumstances.
n/a
Pension
To provide a pension package for the Executive Directors.
Operation Maximum opportunity Performance measures
The Group may make employer pension contributions to
a registered pension plan (or such other arrangement the
Committee considers has the same economic effect) set
up for the benefit of each of the Executive Directors.
Alternatively, an Executive Director may be awarded some/all
of the contribution as an equivalent cash allowance in lieu of
pension contributions.
The maximum pension contribution for Executive Directors is
aligned with the most prevalent rate available to employees.
n/a
Directors’ Remuneration Policy continued
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Directors’ Remuneration Policy continued
Long Term Incentive Plan (“LTIP”) – Restricted Share Awards (“RSA”)
To incentivise and reward delivery of the Group’s longer-term strategic objectives for the business and ensure alignment with shareholders.
Operation Maximum opportunity Performance measures
Awards are structured as conditional rights or nil-cost awards
or nil-cost options, to receive free shares on vesting.
Shares will normally vest after three years, subject to continued
employment and the Remuneration Committee’s assessment,
with an additional two-year holding period, meaning that shares
are not normally released until five years from award grant.
If the Group does not meet one or more of the underpins at the
date of vesting, then the Committee would review whether or
not it was appropriate to reduce the number of shares that vest
under the award.
The Committee’s general discretion to adjust vesting levels,
depending on performance and unforeseen circumstances,
and any other appropriate reason will also apply.
Malus and clawback provisions will apply (see page 101).
The maximum awards are 75% of base salary for the
Chief Executive Officer and 60% of base salary for the
Chief Financial Officer.
RSAs are subject to one or more underpins, normally over a
period of three financial years commencing with the year in
which the awards are granted. These underpins are designed
to ensure that an acceptable threshold level of performance is
achieved and that vesting is therefore warranted. The underpins
applying to each award will be determined by the Committee
each year and the Committee may use different performance
underpins for each award, if deemed appropriate. Underpins will
be set taking into account the business strategy and to ensure
that failure is not rewarded. Underpins may include financial
measures such as the maintaining of a minimal solvency ratio
or a capital return measure. Non-financial measures may also
be used, including those related to risk or regulatory matters.
Vesting of awards will also be subject to overarching
Committee discretion.
Short Term Incentive Plan (“STIP”) including Deferred Bonus Plan (“DBP”)
To incentivise and reward the delivery of short-term corporate and/or individual financial and non-financial targets, and to align the interests of Executive Directors with shareholders through the
deferral of a portion of the bonus into shares.
Operation Maximum opportunity Performance measures
STIP outcomes will be determined by the Committee after the
end of each financial year.
The Committee may use its discretion to adjust the formulaic
outcome of the performance targets to reflect corporate and
individual performance during the year.
The Committee may defer a proportion of any bonus award
into a share award under the DBP. Usually this will be 50% of the
bonus award, reducing to 25% of the bonus award in the event
that an individual’s minimum shareholding requirement has
been met under the shareholding guidelines. DBP awards will
normally vest on the second anniversary of grant (or such other
date as the Committee determines on grant).
Malus and clawback provisions will apply (see page 101).
The maximum bonus opportunity for Executive Directors is 150%
of base salary.
Usually operated via a bonus pool funding approach with
the bonus pool capped at 2% of PBT (in addition to the
maximum individual opportunity), subject to achievement of an
appropriate financial hurdle which may include PBT or ROTE.
Usually 70% of the bonus will be based on financial objectives,
with 30% based on non-financial objectives. Performance
assessment will usually be in respect of the full financial year
although the Committee retains discretion, in exceptional
circumstances, to assess performance over an alternative period.
98 Annual Report and Accounts 2024Sabre Insurance Group plc
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All-employee share plans
To align the Executive Directors with the wider workforce.
Operation Maximum opportunity Performance measures
Executive Directors are eligible to participate in any all-employee
share plans in place, which are operated in line with HMRC
requirements.
These are currently a share acquisition and free share plan,
known as the UK Share Incentive Plan (“SIP”), and a savings-
related share option plan, known as the Save As You Earn
(“SAYE”) Plan.
Participation in the Group’s all-employee share plans will be
subject to any applicable maximum limits as set by HMRC.
n/a
Shareholding guidelines
To align the interests of the Executive Directors and shareholders to the success of the Group.
Operation Maximum opportunity Performance measures
The Executive Directors are expected to build and maintain a
shareholding equivalent to at least 200% of their base salary.
This should be achieved within a reasonable timeframe from
their appointment.
Shares which may be used to satisfy this requirement include all
beneficially owned shares and vested share awards subject to
a holding period.
To support the implementation of this measure, Executive Directors
are required to retain at least 50% of any share awards vesting
(after settling any tax liability) until the 200% requirement is met.
The Remuneration Committee will review progress towards the
guidelines on an annual basis and has the discretion to adjust
the guidelines in what it feels are appropriate circumstances.
Post-cessation of employment, the Executive Directors are
expected to maintain a minimum shareholding of 200%
(or their actual shareholding if lower) for a period of two years.
This arrangement will be administered through a nominee
account. The post-employment guideline applies to vested
shares from incentive awards that were granted from the date
of the 2021 AGM. The Committee retains discretion to waive or
amend this guideline if it is not considered appropriate in the
specific circumstances.
n/a n/a
Directors’ Remuneration Policy continued
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Non-executive Directors’ fees
To attract Non-executive Directors of an appropriate calibre and with sufficient experience to ensure the effective management of the Group.
Operation Maximum opportunity Performance measures
Fee levels will be reviewed (though not necessarily increased)
annually. Fees will be set with reference to the time commitment
and responsibilities of the position, and any increases will
usually be reflective of any increases given to the wider
employee population.
Additional fees may be paid for additional responsibilities
(such as chairing a Board Committee, membership of a
Committee, or acting as the Senior Independent Director),
or for an increased time commitment during the year.
The fee for the Chair will be determined by the Committee.
Fees for Non-executive Directors will be determined by the
Chair and the Executive Directors.
There is no prescribed maximum fee or annual increase.
Total fees will not exceed the limit set out in the Group’s Articles
of Association.
n/a
Prior arrangements
The Board reserves the right to make any remuneration payments and/or payments for loss of office (including exercising any discretions available to it in connection with such payments) notwithstanding
that they are not in line with the Policy set out on the prior pages where the terms of the payment were agreed (i) before the Policy set out above came into effect, provided that the terms of payment were
consistent with the shareholder-approved Policy in force at the time they were agreed; or (ii) at a time when the relevant individual was not a Director of the Group and, in the opinion of the Committee, the
payment was not in consideration for the individual becoming a Director of the Group. For these purposes ‘payments’ includes the Committee satisfying awards of variable remuneration and, in relation to
an award over shares, the terms of the payment are ‘agreed’ at the time the award is granted.
Selection of performance conditions
For the STIP, the Committee believes that a mix of financial and non-financial targets is most appropriate. Strategic and personal objectives may be included where appropriate to ensure delivery of key
business milestones. Targets are set by the Committee taking into account internal and external forecasts.
For the LTIP, awards of restricted shares will be subject to performance underpins. The underpins selected by the Committee will be based on measures considered to be most reflective of the overall
financial stability and performance of the Group, and therefore aligned with shareholder value creation.
Directors’ Remuneration Policy continued
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Terms common to the DBP and LTIP
Awards under the DBP and LTIP may:
− Be granted as conditional share awards or nil-cost options or in such other form that the
Committee determines has the same economic effect;
− Be settled in shares or, exceptionally, in cash;
− Have any performance conditions applicable to them amended or substituted by the
Committee if an event occurs which causes the Committee to determine that, in respect
of the relevant event, an amended or substituted performance condition would be more
appropriate and not materially less difficult to satisfy; and
− Incorporate the right to receive an amount (in cash or additional shares) equal to the value
of dividends which would have been paid on the shares under an award that vests up to
the time of vesting (or, where the award is subject to a holding period, the end of that holding
period). This amount may be calculated assuming that the dividends have been reinvested
in the Group’s shares on a cumulative basis and may be settled in cash at the Committee’s
discretion and be adjusted in the event of any variation of the Group’s share capital or any
demerger, delisting, special dividend or other event that may materially affect the current or
future value of the Group’s shares.
Malus and clawback
Malus and clawback provisions apply to all awards granted under the STIP and LTIP. These provisions
may be invoked at the Committee’s discretion at any time prior to the third anniversary of the grant
of a cash bonus or DBP award, or to the fifth anniversary of the grant of an LTIP award. In these
circumstances, the Committee may reduce or impose additional conditions on an award or require
that the participant returns some or all of the value acquired under the award.
The Committee has the discretion to invoke these provisions where there has been:
− A material misstatement of any Group or its subsidiaries’ audited accounts;
− A corporate failure;
− Material intervention from a regulator;
− An error in assessing the relevant performance conditions or the information or assumptions
on which the award was granted or vested;
− Misconduct on the part of the Executive Director; and
− Serious reputational damage to, or a material failure of risk management by, a member or
business unit of the Group.
Within the period beginning on:
− In the case of LTIP awards, from the grant of the award and ending on the fifth anniversary
of the date of grant; and
− In the case of STIP (cash bonus and DBP awards), the start of the financial year in respect
of which the award is granted and ending on the third anniversary of the date of grant.
The Board will retain the discretion to calculate the amount to be recovered, including whether
or not to claw back such amount gross or net of any tax or social security contributions applicable
to the award.
Remuneration scenario charts
The following charts illustrate the potential remuneration for each of the Executive Directors,
using a range of assumptions, for the forthcoming year. The charts show the potential value
of the current Executive Directors’ remuneration under four scenarios: minimum, on-target,
maximum and maximum plus share price growth (which assumes a 50% increase in share
price over the LTIP vesting period).
The following assumptions have been made in creating the charts below:
Pay scenario Basis of calculation
Minimum Fixed pay only, consisting of salary, benefits and pension
On-target Fixed pay, plus the relevant mid-performance payout from the
bonus pool and Restricted Share Award
Maximum Fixed pay, plus the maximum performance payout from the
bonus pool (capped at 150%) and Restricted Share Award
Maximum plus share price
growth
Fixed pay, plus the maximum performance payout from the bonus
pool (capped at 150%) and restricted share awards plus share
price growth of 50% over the Restricted Share Award vesting period
Directors’ Remuneration Policy continued
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Remuneration Policy for new Executive Directors
The Committee intends to set any new Executive Director’s remuneration package in line with the
Policy outlined earlier in this section. In an individual’s first year, the Committee may set different
performance measures and targets for incentive awards to those of the other Executive Directors,
depending on the timing and scope of any appointment.
When determining the design of the total package in a recruitment scenario, the Committee will
consider the size and scope of the role, the candidate’s skills and experience and the market
rate for such a candidate, in addition to the importance of securing the preferred candidate.
In some circumstances, the Board may be required to take into account common remuneration
practices in another country and, if applicable, may consider awarding payments in respect
of relocation costs. Flexibility is also retained for the Group to pay for legal fees and other costs
incurred by the individual in relation to their appointment. In line with the Policy, in relation to
annual bonus and LTIP awards, maximum variable remuneration will not exceed 225% for the
Chief Executive Officer and 210% for the Chief Financial Officer as a percentage of salary. In
the event that another Executive Director role is created by the Group, the maximum variable
opportunities (expressed as a percentage of salary for the new position) under the STIP and LTIP
would not exceed the percentages shown for the Chief Executive Officer in the Policy.
In the event that Sabre wishes to hire a candidate with unvested incentives accrued at a previous
employer or other compensation arrangements, which would be forfeited on the candidate leaving
that company, the Committee retains the discretion to make a one-off buyout award. In doing
so, the Committee will take account of all relevant factors, including any performance conditions
attached to incentive awards, the likelihood of those conditions being met, the proportion of the
vesting/performance period remaining and the form of the award (e.g., cash or shares).
The overriding principle will be that any buyout award should be of comparable commercial
value to the compensation which has been forfeited. The LTIP Rules have been drafted to permit the
grant of recruitment awards on this basis to an individual (which will not be counted towards the
annual LTIP limit and which will be subject to such vesting schedules and performance conditions
(if any) as the Committee may determine). If it is not possible or practical to grant recruitment awards
under the LTIP, the Committee may rely on the provisions of Listing Rule 9.4.2 to grant the awards.
For internal candidates, incentives granted in respect of the prior role would be allowed to vest
according to their original terms, or adjusted if appropriate to take into account the appointment.
For the appointment of a new Chair or Non-executive Director, the fee would be set in accordance
with the Policy. The length of service and notice periods would be set at the discretion of the
Committee, taking into account market practice, corporate governance considerations and
the skills and experience of the particular candidate at that time. In the event that the Chair or
a Non-Executive Director is required to temporarily take on the role of an Executive Director, their
remuneration may include any of the elements listed in the Policy Table for Executive Directors.
Directors’ Remuneration Policy continued
Chief Executive Officer’s remuneration package:
2024 2025
0
250
500
750
1000
1250
1500
1750
2000
Minimum
On-target
Maximum
Maximum + SP
Minimum
On-target
Maximum
Maximum + SP
538
559
1,377
1,436
1,747
1,945
1,647
1,838
Chief Financial Officer’s remuneration package:
2024 2025
0
200
400
600
800
1000
1200
Minimum
On-target
Maximum
Maximum + SP
Minimum
On-target
Maximum
Maximum + SP
Fixed (inc pension) Short-term incentive plans Long-term incentive plans
324
337
750
783
1,015
1,111
954
1,047
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Service agreements and exit payment policy
In line with the UK Corporate Governance Code Provision 18, all Directors are subject to re-election
annually at the Group’s Annual General Meeting.
Director
Date of
appointment Notice period
Geoff Carter 21/11/2017 12 months
Adam Westwood 21/11/2017 12 months
Ian Chapple 01/0 9/2024 3 months
Karen Geary 07/12/2020 3 months
Bryan Joseph 01/0 6/2023 3 months
Alison Morris 01/0 5/2022 3 months
Rebecca Shelley 04/10/2017 3 months
Shareholders may inspect the Executive Directors’ contracts or the Non-executive Directors’ letters
of appointment at the Group’s registered office, and these contracts and letters of appointment
are also available for shareholders to review at the Group’s Annual General Meeting. Both Geoff
Carter and Adam Westwood have written service contracts with the Group with no fixed end date,
but which are capable of being terminated by either the Group or the Executive Director on not less
than 12 months’ notice.
In the event notice is given to terminate an Executive Director’s contract, the Group may make a
payment in lieu of notice equal to the value of the Executive Director’s salary for the notice period.
Any such payments may be made, at the Committee’s discretion, as a lump sum or in instalments,
subject to mitigation by the Executive Director. It is the Committee’s intention that the service
contracts for any new Executive Directors will contain equivalent provisions. In the event that an
Executive Director leaves the Group, entitlement they have to any variable pay will be determined
in accordance with the relevant incentive plan rules.
The Chair and each of the independent Non-executive Directors have a notice period of three
months and may receive fees in respect of any notice period.
Short Term Incentive Plan (“STIP”) including Deferred Bonus Plan (“DBP”)
Executive Directors will not have any automatic entitlement to a bonus for the financial year in which
they leave the Group. Where an Executive Director leaves the Group, as a result of their ill-health,
injury, disability or redundancy, or their employing company or business is sold out of the
Group (known as “Good Leaver Reasons”) or in such other circumstances as the Committee
determines (but excluding gross misconduct), the Executive Director will typically remain eligible
for their annual bonus award, which will normally be time prorated to reflect the proportion of
the financial year served. In determining the level of bonus to be paid, the Committee may, at its
discretion, take into account performance up to the date of cessation or over the financial year as
a whole based on appropriate performance measures as determined by the Committee. Any such
bonus may be paid out in such proportions of cash and share awards as the Committee considers
appropriate. For other leavers, rights to awards under the annual bonus will be forfeited.
Unvested DBP awards will normally lapse when an Executive Director leaves the Group. However, if an
Executive Director’s departure is a Good Leaver Reason, as set out above, their award will normally
vest on the original vesting date, although the Committee has the discretion to allow awards to vest
earlier if the Committee considers it appropriate.
Long Term Incentive Plan (“LTIP”) – Restricted Share Awards (“RSA”)
Unvested LTIP awards will normally lapse when an Executive Director leaves the Group. However, if the
Executive Director’s departure is as a result of a Good Leaver Reason, their LTIP awards will normally
vest (and be released from any applicable holding period) on the original timetable set, although
the Committee has the discretion to accelerate the vesting and release of awards.
The extent to which unvested LTIP awards vest in these circumstances will be determined by the
Committee, taking into account the extent to which the relevant performance conditions or
underpins have, in its opinion, been satisfied (over the original performance period, where the
vesting of the award is not being accelerated) and, unless the Committee determines otherwise,
the proportion of the performance period that has elapsed at the time the Executive Director leaves.
If an Executive Director leaves the Group holding vested LTIP awards which are subject to a holding
period, these awards will normally be released at the end of the original holding period, unless the
Committee allows the holding period to be shortened. However, if the Executive Director is dismissed
for gross misconduct, all his or her LTIP awards will lapse.
If an Executive Director dies, their DBP and LTIP awards will normally vest (and be released from any
holding periods) as soon as reasonably practicable after their death. The extent to which unvested
LTIP awards vest in these circumstances will be determined by the Committee in the same way as for
other Good Leaver Reasons described above.
Directors’ Remuneration Policy continued
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Pay for performance – Many full-time and part-time Group employees are eligible to participate
in some form of share-based incentive. Key individuals below Board level have been invited to
participate in the LTIP, in order for there to be alignment between senior management and the
Executive Directors’ objectives.
Long-term alignment – In line with our philosophy of encouraging our workforce to be investors
in the Group, all eligible employees were offered an award of free shares under the SIP. The Group
operates both a SAYE Plan and a SIP to further facilitate employee investment in the Group and their
long-term alignment.
Although the Committee did not formally engage with the workforce on the alignment of executive
remuneration with the wider company pay policy, the Board engages with the Group’s employees
via the designated Non-executive Director responsible for employee engagement. Karen Geary was
appointed to this position by the Board during 2022 and leads on ensuring effective engagement
with the workforce and regularly feeds back to the Committee and the Board following her meetings
with employees. This process does not currently include an active two-way dialogue with the
workforce on executive pay but this approach is being kept under review.
The Committee appreciates the importance of an appropriate relationship between the
remuneration levels of the Executive Directors, the Executive Team, managers and other employees
within the Group. As such, when reviewing and determining pay for Executive Directors, the
Committee takes into account the level and structure of remuneration, as well as salary budgets,
for other employees in the Group. Moreover, as a result of the implementation of the all-employee
share plans referred to above, many of the Group’s employees are Sabre shareholders and therefore
have the opportunity to express their views through the same means as any other shareholder.
The Committee reserves the right to make any other payments in connection with a Director’s
cessation of office or employment where the payments are made in good faith in discharge of
an existing legal obligation (or by way of damages for breach of such an obligation) or by way of
settlement of any claim arising in connection with the cessation of a Director’s office or employment.
Any such payments may include, but are not limited to, paying any fees for outplacement
assistance and/or the Director’s legal and/or professional advice fees in connection with his
cessation of office or employment. In some cases, they may receive a modest leaving gift.
Change of control
In the event of a change of control of the Group, LTIP and DBP awards will normally vest and be
released early. The proportion of any unvested LTIP awards which vest will be determined by the
Committee, taking into account the extent to which it determines that any performance conditions
and underpins have been satisfied at the time, and, unless the Committee determines otherwise,
the proportion of the performance period that has elapsed. DBP awards will normally vest in full.
Alternatively, the Board may permit an Executive Director to exchange their awards for equivalent
awards of shares in a different company (including the acquiring company). If the change of
control is an internal reorganisation of the Group or in other circumstances where the Committee
considers it appropriate, Executive Directors may be required to exchange their awards.
If other corporate events occur such as a winding-up of the Group, demerger, delisting, special
dividend or other event which, in the opinion of the Committee, may materially affect the current
or future value of the Group’s shares, the Committee may determine that awards will vest and be
released on the same basis as for a change of control.
Consideration of shareholder views and employment conditions
The Committee will consult with major shareholders prior to any significant changes to the Policy
and will continue to value their views when deciding on future executive remuneration strategy.
In developing and reviewing the Remuneration Policy, the Committee was mindful of the views
of the Group’s shareholders and remuneration arrangements for employees. The Committee
proactively sought feedback from shareholders when developing the Policy and seeks
feedback from shareholders when considering any significant changes to remuneration for the
Executive Directors.
In setting the Policy, the Committee was led by the same principles which determined all employee
remuneration: cost-effectiveness, pay for performance and long-term alignment. These principles
evidence themselves in all employee remuneration as follows:
Cost-effectiveness – As with the Directors, in setting compensation across the Group, Sabre intends
to pay no more than is necessary to attract, retain and incentivise high-calibre individuals, setting
remuneration competitively but not excessively.
Directors’ Remuneration Policy continued
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Annual Report on Directors’ Remuneration
Single figure of remuneration (audited)
The table below sets out the total remuneration received by Executive Directors and Non-executive Directors in respect of the financial year ended
31 December 2024.
£’000s
Salary/fees
Taxable
benefits
1
Pension
2
Total fixed pay
Short Term
Incentive
Plan
3
Long Term
Incentive
Plan
4,5
Other
6
Total variable
pay
7
Total
remuneration
8
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Executive Directors
Geoff Carter 504 477 5 4 33 31 542 512 480 229 232 212 1 19 713 460 1,255 972
Adam Westwood 308 292 3 2 21 20 332 314 252 120 113 100 - 10 365 230 697 544
Executive Director total 812 769 8 6 54 51 874 826 732 349 345 312 1 29 1,078 690 1,952 1,516
Non-executive Directors
Ian Chapple
9
23 – – – – – 23 – – – – – – – – – 23 –
Ian Clark
10
28 72 – – – – 28 72 – – – – – – – – 28 72
Karen Geary 83 69 – – – – 83 69 – – – – – – – – 83 69
Bryan Joseph
11
88 42 – – – – 88 42 – – – – – – – – 88 42
Alison Morris 80 76 – – – – 80 76 – – – – – – – – 80 76
Rebecca Shelley
12
171 95 – – – – 171 95 – – – – – – – – 171 95
Non-executive Director total 473 354 – – – – 473 354 – – – – – – – – 473 354
Total 1,285 1,123 8 6 54 51 1,347 1,180 732 349 345 312 1 29 1,078 690 2,425 1,870
1 Taxable benefits include private medical insurance and participation
in a Group Life Policy
2 As an element of pension is received as cash in lieu, the amount
awarded is reduced below the allowed percentage to reflect the
additional National Insurance cost borne by the Group
3 Awards made under the Short Term Incentive Plan (“STIP”) are paid for
performance over the relevant financial year. Details of the performance
targets and performance against the targets for the 2024 STIP awards
are detailed on pages 106 to 108. Details of the performance targets and
performance against the targets for the 2023 STIP awards are detailed
in the Annual Report and Accounts for the year ended 31 December
2023. Consistent with the terms of the 2024 Remuneration Policy, 50% of
the bonus earned in relation to the financial year ended 31 December
2024 is deferred into the Group’s shares for two years, with the balance
payable in cash. These shares will be held in the Sabre Group Employees’
Share Trust and are not subject to any further performance conditions.
Dividend equivalents were paid in relation to deferred shares equal to
£6,991 for Geoff Carter, and £3,529 for Adam Westwood
4 Awards made under the Long Term Incentive Plan (“LTIP”) are restricted share
awards subject to underpin performance conditions assessed over the
period 1 January 2022 to 31 December 2024. The underpins were satisfied
as detailed on page 109 and the awards fully vest. Awards are valued in the
single figure table at £1.3588 per share, being the average share price in the
final quarter of 2024. Dividend equivalents were paid in relation to deferred
shares equal to £33,533 for Geoff Carter, and £15,780 for Adam Westwood
5 The LTIP values for the financial year ended 31 December 2023 have
been restated using the share price on the vesting date of 21 May 2024
at £1.67336. A total of 126,539 vested for Geoff Cater and 59,548 for
Adam Westwood. The total remuneration for the financial year ended
31 December 2023 has been updated accordingly
6 The Group operates a SIP which is open to all employees. ‘Other’ is the
value of matching SIP shares attributable to the year. The Group offers
a 1:3 match for Partnership Shares purchased by employees. In 2024,
Geoff Carter participated in the SIP up to the maximum extent permitted
by HMRC. The calculation for value is based on the shares bought by
the Group on behalf of the individual and the share price as at 31
December 2024 of £1.380. In 2023, Geoff Carter participated in the SIP
up to the maximum extent permitted by HMRC. The calculation for value
is based on the shares bought by the Group on behalf of the individual
and the share price as at 31 December 2023 of £1.514
7 Comprising STIP, LTIP and any other relevant variable remuneration
8 Comprising total fixed pay and total variable pay and other
remuneration as set out in Footnote 6
9 Ian Chapple joined the Board with effect from 1 September 2024. His fee
was prorated in line with the time served in the position during the 2024
financial year
10 Ian Clark left the Board on the 22 May 2024 and his fee is prorated in line
with the time served in the position during the 2024 financial year
11 Bryan Joseph became Senior Independent Director with effect from
May 2024. His fee was prorated in line with the time served in the position
during the 2024 financial year
12 Rebecca Shelley was appointed Interim Chair in late 2023, prior to this
she received fees as Non-executive Director, Chair of the Remuneration
Committee, and the Senior Independent Director. Upon her appointment
as Interim Chair, these fees were replaced with the Chair’s fee. Rebecca
was appointed as Chair in 2024, and was paid as such throughout the
financial year ending 31 December 2024
This section of the Directors’ Remuneration
Report sets out the remuneration paid to
Sabre’s Directors in respect of the year which
ended on 31 December 2024 (the “2024
financial year”). In line with the Large and
Medium-sized Companies and Groups
(Accounts and Reports) Regulations
2008 (as amended in 2013), the following
parts of the Annual Report on Directors’
Remuneration are audited:
− The single total figure of remuneration
for each Director, including pension
entitlements, STIP and LTIP outcomes
for the financial year ended
31 December 2024
− Share plan awards granted during the
financial year ended 31 December 2024
− Payments to past Directors and
payments for loss of office
− Directors’ shareholdings and share
interests
All other parts of the Annual Report on
Directors’ Remuneration are unaudited.
105Annual Report and Accounts 2024Sabre Insurance Group plc
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Base salary
The annual salary paid to the Executive Directors with effect from
1 April 2024, is shown in the table below.
In late 2023, the Committee reviewed Executive Director salaries
for the 2024 financial year, taking into account the individual’s role
and experience and pay for the broader employee population.
The Committee decided to increase Geoff Carter and Adam
Westwood’s 2024 salaries by 5.5%, which was below the average
increase of 6.7% given to employees across the Group. Details of
the salaries that will apply in 2025 are provided on page 115.
Base salary Annual salary (£) with effect 1 April 2024
Geoff Carter £510,317
Adam Westwood £311,647
Pension
During the 2024 financial year, Geoff Carter and Adam Westwood
received cash in lieu of pension contributions of 7.5% of their
base salaries respectively, which is below the average employee
rate. Details of the pension contributions that will apply in 2025 are
provided on page 115.
Short Term Incentive Plan (“STIP”)
Framework and outcomes for the financial year
ended 31 December 2024
For the financial year ended 31 December 2024, the Executive
Directors were eligible to participate in the Group’s STIP, which
was based on a bonus pool funding approach, calculated as
1.5% of PBT, subject to a minimum hurdle of 10% ROTE being
achieved. For 2024, the maximum annual bonus opportunity
within this structure was capped at 150% of salary for Geoff Carter
and Adam Westwood. The STIP was based 70% on achievement
against financial targets (PBT) and 30% achievement against
non-financial targets, split equally between non-financial Group-
wide objectives (including strategy, customer, ESG, people,
development of the business and risk and compliance) and
individual non-financial objectives.
Performance measure Weighting
Profit before tax 70%
Non-financial Group-wide objectives, including
strategy, customer and partners, ESG, people,
development of business and risk and
compliance 15%
Non-financial objectives relating to the
individual 15%
ROTE performance for the 2024 financial year was 38.2% meaning
that the hurdle was satisfied. PBT performance was £48.56m and
therefore the profit pool available for distribution to the Executive
Directors was £728k (being 1.5% of PBT). Based on the allocation
formula, the Chief Executive Officer is entitled to a maximum
of 65.6% of the pool (£477k), and the Chief Financial Officer
is entitled to a maximum of 34.4% of the pool (£250k). Each
Director’s share of the bonus pool is agreed provisionally at the
start of the performance year, based primarily on that individual’s
base salary and maximum bonus potential.
As noted above, 30% of each individual’s share of the bonus pool
is subject to an additional adjustment for personal and Group
performance. The non-financial targets set for the Group, the non-
financial individual personal targets for Geoff Carter and Adam
Westwood and the Committee’s assessment of their performance
against them are detailed on the following page, with as
much clarity as possible while protecting Group competitive
advantages and respecting contractual confidentiality.
The non-financial targets for the Group were determined by the
Committee to have been achieved at 95%, and the non-financial
individual performance objectives detailed below for both Geoff
Carter and Adam Westwood were determined by the Committee
to have been achieved at 98% and 98% respectively.
Following this assessment, resulting bonuses were £473k
(92.62% of salary) for the Chief Executive Officer and £248k
(79.62% of salary) for the Chief Financial Officer.
Annual Report on Directors’ Remuneration continued
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Non-financial Group-wide objectives
The Committee believes that responsibility for the wider business objectives is shared equally among the Executive Team, and a consistent score will be given unless specific examples of over/under
performance by any one individual are identified. Taken holistically, the Committee considered a score of 95% against these objectives to be appropriate.
Non-financial measure
Weighting as a
% of total bonus
opportunity Performance Commentary on performance
Actual bonus
payable as a %
of total bonus
opportunity
Strategic focus
Optimise volume and profitability as the market evolves following
inflationary pressures and high price increases in 2023.
15% 95%
The Executive Team continued to perform strongly in 2024, driving both short-term success and
laying out clear plans for the medium-term development of the business. Positive feedback
on the business has been received from investors and analysts throughout the year as well as
being confirmed in Chair meetings with larger investors.
14.25%
Customers and partners
Maintain a high-quality service in direct and outsourced processes,
ensure customers are treated fairly, and in line with regulatory
expectations, as cost of living pressures continue to impact.
The business delivered a record level of GWP, and a doubling of profit. This is clear evidence of
having successfully managed the upswing in market conditions in early 2024. In later 2024 the
team have continued to follow the underpinning strategy of focusing on profitability, not volume,
and have therefore allowed volumes to moderate. Alongside the business-as-usual activities
the business published its revised “Ambition 2030” strategy, outlining an ambitious medium term
growth plan supported by well-planned initiatives.
Environmental, social and governance
Continue to enhance our approach to ESG requirements, with an
increased focus on environmental impacts and stakeholder expectations.
Progress the business towards the goals outlined in the Group’s
net-zero roadmap.
The motorcycle product was profitable in 2024, in line with plans. Taxi was near profitable,
with further improvements anticipated as rating action earns through in 2025. Whilst there
is considerable regulatory and Government focus on the motor insurance industry Sabre
continues to be well positioned in this regard. The Management team have ensured that the
business continues to deliver for customers, by maintaining wide quotability, consistent margin
requirements and a customer focused approach across the business. This includes fair claims
processes (for example total loss approach) and consistent margin requirements across the
core and ancillary products.
People
Maintain Sabre’s position as a great place to work, ensuring colleagues
have an appropriate work/life balance, while ensuring focus on Group
objectives.
The business has placed significant focus on the evolving risk and governance requirements.
All deliverables around consumer duty and operational resilience were delivered on schedule
and to a high standard. Where required the team drew on expert external support to ensure
requirements were being met. Further investment was also made into the Risk and IT security
functions. Several development initiatives with external partners were reviewed during the
year. Ultimately the conclusion was that, at this stage, there a stronger payback potential from
focusing in internal developments.
Development of the business
Ensure that the developing product areas (Motorcycle and Taxi) deliver
target profitability. Utilize the opportunities generated by the roll-out of new
IT capabilities.
The business continued to enhance its attractiveness to new and existing employees. Some
specific examples during the year include targeted training and development of employees,
wellbeing initiatives, an investment into our chosen charities, social activities, enhanced policies
and employee benefits.
Risk and compliance
Comply with existing and emerging regulatory requirements, successfully
manage risk and compliance across the Group, and ensure the business
is positioned appropriately for operational resilience requirements.
Finally, continued progress has been made on ESG. Fuller details will be contained in the report and
accounts, with initiatives including the embedding of the sustainability committee, replacement
of disposable water cups with drinking bottles and on-going liaison with specialist consultants.
It is considered that the Executive Team have performed extremely well, balancing short term
financial performance, longer term growth and maintaining a tight focus on risk and governance.
Annual Report on Directors’ Remuneration continued
107Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Non-financial objectives relating to the individual
Geoff Carter
Weighting as a
% of personal/
strategic bonus
opportunity Commentary on performance
Actual
performance
Objectives
Ensure progress of the agreed strategic initiatives,
with a specific focus on optimising the benefits
from the new IHP system and enhancing efficiency
of the direct operations.
20%
All strategic projects have progressed in line with agreed timelines and budgets. IHP
is now live and is rolling out through the broker distribution network. Direct motorcycle
is due to launch on schedule in Q1 2025.
A renewed focus on direct business is starting to yield results, including increased
usage of webchat and self-service customer portal
98%
Ensure Executive Team continued effectiveness
and positive engagement with the Board.
20%
The Board effectiveness review confirmed that both the Executive Team and NEDS d
felt this relationship worked well. Specifically appropriate constructive challenges were
raised by the Board and were responded to positively by the Executive Team
Review emerging opportunities and progress those
which meet business requirements. Ensure new
developments do not distract from maximizing the
opportunity from the existing portfolio.
20%
The Capital Markets Day outlined the opportunities that are now being progressed
– direct operations effectiveness, competitive market expansion and increased
motorcycle distribution.
A high hurdle has been maintained on other opportunities to ensure successful
delivery of the near term agreed initiatives
Ensure positive relationships are maintained with
key stakeholders, specifically including the PRA,
FCA, covering analysts and key investors.
20%
The relationship with regulators is felt to be positive, with constructive discussions
evident during the year. Independent research by corporate brokers and Financial PR
advisor, in addition to Chair discussions with major investors, has confirmed positive
relationships are in place.
Ensure successful embedding of new Chair and
SID into the business.
20%
The Board effectiveness reviews confirmed that both the Chair and SID are operating
highly effectively, and have strong relationships with fellow NED’s and the Executive Team.
Total % of personal/strategic objectives 100% 98%
Adam Westwood
Objectives
Continue to enhance the efficiency and resilience
of financial reporting.
40%
Financial reporting has continued to evolve well during the year. Reporting has been
demonstrably faster during the year, with no loss of accuracy. The year end process
has been highly efficient, validated by both internal and external stakeholders.
98%
Continue the development of a fully effective ESG
roadmap for the Group, which includes a staged
transition and ambitious yet achievable targets.
30%
The ESG roadmap is now well established, and several initiatives have progressed
well with a string ESG focus. These range from the scope of the Head Office building
refurbishment to the replacement of disposable water cups with re-usable bottles
for all staff.
Ensure successful implementation of agreed
strategic projects with a specific focus on
implementation of Agile.
30%
Projects to support the “Ambition 2030” have progressed to plan, whilst embedding
Agile as a new way of working into the business. This has included the recruitment
of specialist colleagues and the establishment of new Agile committees.
Total % of personal/strategic objectives 100% 98%
Annual Report on Directors’ Remuneration continued
Committee Chair’s
commentary on Executive
Directors’ personal
performance
As outlined elsewhere in this report,
2024 was a successful year for Sabre,
delivering strong top line and bottom-
line growth as well as shareholder
returns through dividends and a share
buyback program.
In addition, the company set-out an
ambitious but well underpinned growth
strategy that aims to materially increase
absolute profits in the medium term.
Sabre remains a predominantly
technical underwriting and claims
management business. The Group
strategy is therefore centred on seeking
to achieve a long-term margin in
the range of 18 to 22% in all market
conditions, and to treat volume as an
output not a target. The recently revised
strategy focuses on a stronger medium
term growth plan, whilst fully maintaining
underwriting discipline. This means
growth will not be linear and underwriting
performance/profitability will continue to
be the key measure of success.
The Committee were pleased to observe
both strong short term delivery in 2024
and the formulation of an evolved
longer-term growth plan, fully reflecting
the execution of a robust strategy. The
Committee therefore believes that the
annual bonus outcomes are a fair
reflection of the Group’s performance
in the year and the overall shareholder
experience,
and therefore has not exercised its
discretion to adjust the awards.
108 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Granting of awards under the LTIP in the financial year ended 31 December 2024 (audited)
Geoff Carter and Adam Westwood were granted awards (75% and 60% of salary respectively) under the Group’s LTIP during the financial year ended
31 December 2024. The awards were granted in the form of restricted share awards (as conditional awards) and, in line with the Remuneration Policy,
the awards will vest after three years from the date of grant, followed by an additional holding period of two years from the date of vesting.
Awards were made subject to the following underpins:
− Maintaining a solvency ratio in excess of 140%
− Achieving a return of tangible equity in excess of 10%
− No material regulatory censure – relating to the Executive Director’s time in office
− Overall Committee discretion
If the Group does not meet one or more of the underpins at the date of vesting, the Committee will review whether or not it would be appropriate
to reduce the number of shares, including to zero, that vest under the award. Vesting of awards will also be subject to the Committee’s overarching
discretion in order to ensure that outcomes reflect the underlying performance of the Group and the broader stakeholder experience.
Details of the LTIP awards granted on 30 May 2024:
Executive Director Basis of award
Face value
(£)
Shares
over which
conditional
awards
were
granted
1
Performance underpin Period over which underpin assessed
Geoff Carter 75% of salary 382,738 224,558 Subject to the underpins detailed above 1 January 2024 to 31 December 2026
Adam Westwood 60% of salary 186,988 109,709 Subject to the underpins detailed above 1 January 2024 to 31 December 2026
1 The number of shares granted was calculated on the average share price of the five working days immediately preceding the date of grant of £1.704 as conditional awards
External appointments
Neither of the Executive Directors currently holds a paid external appointment. All appointments must first be agreed by the Board and must not
represent a conflict with their current role.
Payments to past Directors and payments for loss of office (audited)
No payments were made to past Directors or in respect of loss of office during the year.
Sourcing of shares and dilution limits
The terms of the Group’s share plans set limits on the number of newly issued shares that may be issued to satisfy awards. In accordance with guidance
from the Investment Association, these limits restrict overall dilution under all plans (the LTIP, the DBP, the SAYE Plan, the SIP and any other employee share
scheme adopted by the Group) to under 10% of the Group’s issued share capital over a ten-year period. Furthermore, the LTIP and DBP set a further
limitation that not more than 5% of the Group’s issued share capital may be issued in any ten-year period on discretionary plans. As at 31 December 2024,
Sabre was operating within these limits.
Long Term Incentive Plan (“LTIP”)
Vesting of awards under the LTIP in the
financial year ended 31 December 2024
Geoff Carter and Adam Westwood were
granted awards (75% and 60% of salary
respectively) under the Group’s LTIP during the
financial year ended 31 December 2022. The
awards were granted in the form of restricted
share awards (as conditional awards) and, in
line with the Remuneration Policy, the awards
vested after three years from the date of grant
and are subject to an additional holding period
of two years from the date of vesting.
The awards were subject to the following
underpins:
− Maintaining a solvency ratio in excess
of 140%
− Achieving a return of tangible equity in
excess of 10%
− No material regulatory censure – relating
to the Executive Director’s time in office
− Overall Committee discretion
The Committee reviewed the application of
the underpins and agreed that they had been
met (including average return of tangible
equity of 26% and solvency ratio in excess of
140% throughout the period), discussed the
underlying performance of the Group and
the broader stakeholder experience, and
agreed that the LTIP awards vesting in relation
to the financial year ended 31 December
2024 should vest at 100% of the maximum
opportunity. It is noted that the vested awards
are subject to an additional holding period of
two years from the date of vesting.
Annual Report on Directors’ Remuneration continued
109Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Vested share awards and outstanding share awards granted during the 2024 financial year (audited)
Details of awards granted during the year are detailed below.
Long Term Incentive Plan (“LTIP”)
Director
Holding on
1 January
2024
Granted
during the
year
Option
price (£)
Exercised
during the
year Lapsed
Market price
at exercise
date (£)
Holding on
31 December
2024 Date of grant
Share price on
date of grant (£) Vesting date
Gain on
vesting (£)
Geoff Carter 2021 126,539 0 n/a 126,539 0 1.673 0 21 May 2021 2.613 (118,947)
2022 145,802 0 n/a n/a 0 n/a 145,802 07 April 2022 2.359 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2024 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
2023 314,371 0 n/a n/a 0 n/a 314,371 06 April 2023 1.154 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2025 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
2024 0 224,558 n/a n/a 0 n/a 224,558 30 May 2024 1.704 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2026 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
Total 272,341 538,929 n/a 126,539 0 n/a 684,731
Adam
Westwood
2021 59,548 0 n/a 59,548 0 1.673 0 21 May 2021 2.613 (55,975)
2022 71,216 0 n/a n/a 0 n/a 71,216 7 April 2022 2.359 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2024 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
2023 153,587 0 n/a n/a 0 n/a 153,587 06 April 2023 1.154 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2025 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
2024 0 109,709 n/a n/a n/a n/a 109,709 30 May 2024 1.704 At a date agreed by the Committee, which is after the
release of the results for the year ended 31 December
2026 and the third anniversary of grant. An additional
two-year holding period applies to these awards, once
vested. These are conditional share awards.
n/a
Total 130,764 263,296 n/a 59,548 0 n/a 334,512
Annual Report on Directors’ Remuneration continued
110 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Deferred Bonus Plan (“DBP”)
Director
Holding on
1 January 2024
Granted during
the year
Option price
(£)
Exercised during
the year Lapsed
Market price at
exercise date
(£)
Holding as at
31 December
2024 Date of grant
Share price on
date of grant
(£) Vesting date
Gain on
exercise
(£)
2022 47, 5 57 0 n/a 47,5 57 0 1.7786 0 7 April 2022 2.359 8 April 2024 (27,6 0 3)
Geoff Carter 2023 0 0 n/a 0 0 n/a 0 n/a n/a n/a n/a
2024 0 64,919 n/a 0 0 n/a 64,919 11 April 2024 1.762 11 April 2026 n/a
Total 47,557 64,919 47,5 57 0 64,919
2022 24,008 0 n/a 24,008 0 1.7786 0 7 April 2022 2,359 8 April 2024 (13,934)
Adam Westwood 2023 0 0 n/a 0 0 n/a 0 n/a n/a n/a n/a
2024 0 34,082 n/a 0 0 n/a 34,082 11 April 2024 1.762 11 April 2026 n/a
Total 24,008 34,082 24,008 0 34,082
Save As You Earn (“SAYE”) Plan
Director
Holding on
1 January 2024
Granted during
the year
Option price
(£)
Exercised during
the year Lapsed
Market price at
exercise date
(£)
Holding as at
31 December
2024 Date of grant
Share price on
date of grant
(£) Exercisable period
Gain on
exercise
(£)
Geoff Carter 2023 21,151 0 0.851 0 0 n/a 21,151 18 April 2023 0.85
1 July 2026 to
31 December 2026 n/a
Total 21,151 0 0 0 21,151
Adam Westwood 2023 21,151 0 0.851 0 0 n/a 21,151 18 April 2023 0.85
1 July 2026 to
31 December 2026 n/a
Total 21,151 0 0 0 21,151
Share Incentive Plan (“SIP”)
Director
Purchased
during the
year
Granted during the
year in the form
of matching and
dividend shares
Total gained
during the
year
Exercised
during the
year Lapsed
Granted in
prior years
Holding
as at 31
December
2024 Vesting date
Gain on
exercise
(£’000)
Geoff Carter 1,183 822 2,005 n/a n/a 6,496 8,501 Shares can be exercised with effect from the third anniversary of their grant n/a
Adam Westwood 0 133 133 n/a n/a 2,202 2,335 Shares can be exercised with effect from the third anniversary of their grant n/a
During the period between 31 December 2024 and 17 March 2025, being the latest practicable date prior to publication of this Annual Report, the following changes to the above table occurred:
Geoff Carter purchased an additional 343 shares under the Share Incentive Plan (“SIP”) and was awarded an additional 114 shares in the form of matching shares, taking the number of unvested shares
not subject to performance as at 17 March 2025 to 8,958.
Annual Report on Directors’ Remuneration continued
111Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Directors’ shareholdings and share interests (audited)
To further align Executive Directors with shareholders, Executive Directors are required to build up substantial interests in the Group. Executive Directors are expected to build and hold a shareholding with
a value of at least 200% of their base salary. To support the implementation of this measure, Executive Directors are required to retain 50% of any share awards vesting (after settling any tax liability) until
the 200% requirement is met. The Executive Directors have both met their respective shareholding requirements. Post-cessation of employment, Executive Directors are expected to maintain a minimum
shareholding of 200% of their base salary (or their actual shareholding, if lower) for a period of two years. To enforce this requirement, vested shares are held in a nominee account.
Shareholding requirements and the number of shares held by Directors during the year and as at 31 December 2024 are set out in the table below:
Director
Number of unvested
shares subject
to performance/
underpins as at
31 December 2024
Number of unvested
shares not subject to
performance as at
31 December 2024
1
Number of shares held
under the Deferred
Bonus Plan as at
31 December 2024
Number of
shares held as at
31 December 2024
Number of shares
held as at
31 December 2023
Shareholding
requirement
as a % of salary
Shareholding as a % of
salary achieved at
31 December 2024
2
Current Directors
Geoff Carter 684,731 29,652 64,919 1,719,714 1,645,340 200% 465%
Adam Westwood 334,512 23,486 34,082 725,562 686,267 200% 321%
Ian Chapple n/a n/a n/a 0 n/a n/a n/a
Karen Geary n/a n/a n/a 0 0 n/a n/a
Bryan Joseph n/a n/a n/a 57,5 61 6,10 5 n/a n/a
Alison Morris n/a n/a n/a 9,282 9,282 n/a n/a
Rebecca Shelley n/a n/a n/a 29,628 17,271 n/a n/a
Directors who served during the year, but are no longer on the Board
Ian Clark n/a n/a n/a n/a 303,006 n/a n/a
1 These awards relate to share options and share awards under the Group’s SIP and SAYE Plans
2 Calculated using a share price of £1.3800 (as at 31 December 2024)
During the period between 31 December 2024 and 17 March 2025, being the latest practicable date prior to publication of this Annual Report, the following changes to the above table occurred:
− Geoff Carter purchased an additional 343 shares under the Share Incentive Plan (“SIP”) and was awarded an additional 114 shares in the form of matching shares, taking the number of
unvested shares not subject to performance as at 17 March 2025 to 8,958.
Annual Report on Directors’ Remuneration continued
112 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Annual Report on Directors’ Remuneration continued
Percentage change in remuneration of Directors and employees
The table below shows the percentage change in salary, taxable benefits and annual bonus for the Directors who served on the Board compared to an average employee of the Group against the prior
year for the financial years 2023 and 2024.
2023 to 2024 2022 to 2023 2021 to 2022 2020 to 2021 2019 to 2020
Salary/
fees
Taxable
benefits
Annual
bonus
Salary/
fees
Taxable
benefits
Annual
bonus
Salary/
fees
Taxable
benefits
Annual
bonus
Salary/
fees
Taxable
benefits
Annual
bonus
Salary/
fees
Taxable
benefits
Annual
bonus
Geoff Carter 5.2% 32.8% 107% 5.1% 41.9% n/a 3.3% 11.8% -100.0% 1.6% 34.2% -63.2% 3.2% 0% 0%
Adam Westwood 5.2% 29.7% 107% 6.1% 38.2% n/a 6.4% 25.1% -100.0% 1.6% 59.9% -71.0% 4.2% 0% 103.1%
Ian Chapple
1
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Ian Clark
2
-1.5% n/a n/a -10.9% n/a n/a 11. 0 % n/a n/a 3.2% n/a n/a -11.6% n/a n/a
Karen Geary
3
19.1% n/a n/a 8.1% n/a n/a 6.7% n/a n/a 1,371.7% n/a n/a n/a n/a n/a
Bryan Joseph
4
21.9% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Alison Morris
5
5.2% n/a n/a 12.9% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Rebecca Shelley
6
80.4% n/a n/a 14.9% n/a n/a 2.5% n/a n/a 9.1% n/a n/a 4.8% n/a n/a
Average of all employees 6.3% 15.2% 30.8% 6.9% 2.5% 126.3% 0.3% 102.4% 0.3% 2.1% 8.1% -27.6% 2.2% -1.4% 15.4%
2017 2018 2019 2020 2021 2022 2023 2024
150
120
90
60
30
0
Sabre Insurance Group plc FTSE 250 (Excluding investment trusts)
Group performance – relative total shareholder return (“TSR”)
The graph below shows Sabre’s relative TSR performance from Admission to 31 December 2024 against the TSR performance of the FTSE 250 Index (excluding investment trusts). This is a broad equity market
index which the Committee considers to be the most appropriate comparator.
1 Ian Chapple was appointed to the Board during the 2024 financial year,
and therefore no figures are included
2 Ian Clark’s fees in 2023 to 2024 reflect him no longer being the Risk
Committee Chair in 2023 and leaving the Board in May 2024. Changes
in Ian Clark’s fees in 2021 to 2022 reflect him being appointed as Audit
Committee Chair in January 2022 for an interim period and stepping
down with effect from April 2022 as the Non-executive Director responsible
for employee engagement
3 Karen Geary’s fees in 2023 to 2024 reflect her becoming Remuneration
Committee Chair in 2023. The change in Karen Geary’s fees reflect her
being appointed as the Non-executive Director responsible for employee
engagement in April 2022. Karen Geary was appointed to the Board
during the year which ended on 31 December 2020, and the annualised
basis of her salary change from 2020 to 2021, was 0%
4 Bryan Joseph’s fees in 2023 to 2024 reflects his appointment as Senior
Independent Director in May 2024. Bryan was appointed to the Board
during the 2023 financial year, and therefore no figures for 2021 to 2022,
2020 to 2021, and 2019 to 2020 are included
5 Alison Morris was appointed to the Board during the 2022 financial year,
and therefore no figures for 2020 to 2021 and 2019 to 2020 are included.
On an annualised basis, Alison Morris’ fees changed by 0% between 2022
and 2023
6 Rebecca Shelley’s fees in 2023 to 2024 reflects her appointment as Chair.
The change in salary for Rebecca Shelley from 2020 to 2021 is due to her
completing a whole financial year in the position as Senior Independent
Director, which she was appointed to in 2020
113Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Arrangements for the wider workforce
The Committee seeks to align the remuneration of the Executive Directors and senior management
with consistency in reward practices throughout the Group. During 2024, all employees received a
salary at or above the Real Living Wage and were eligible to receive a performance-related bonus.
In addition to this, the Group paid a Christmas bonus to all employees (apart from the Executive
Directors), of a net value of £1,250.
Chief Executive Officer’s single figure of remuneration
The following table shows the Chief Executive Officer’s remuneration for current and prior years:
2024
(£)
2023
(£)
2022
(£)
2021
(£)
2020
(£)
2019
(£)
2018
(£)
2017
(£)
Single figure of remuneration 1,2 5 5 k 947k 496k 733k 1,110 k 821k 760k 251k
Annual bonus payout (as a % of
maximum opportunity) 61.7% 31.5% 0% 33.9% 62.2% 63.1% 73.0% n/a
LTIP vesting – performance share
awards (as a % of maximum
opportunity) n/a n/a 0% 0% 50% n/a n/a n/a
LTIP vesting – RSA awards (as a % of
maximum opportunity) 100% 100% n/a n/a n/a n/a n/a n/a
Chief Executive Officer’s ratio
The ratio compares the total remuneration of Geoff Carter, the Chief Executive Officer, as set out in
the Directors’ Remuneration Report, against the remuneration of the median full-time equivalent
(“FTE”) employee, as well as FTE employees in the lower and upper quartiles. We will build up our
reporting of these figures over time to cover a ten-year rolling basis. The ratios are calculated using
the Option A methodology, which uses the pay and benefits of all UK FTE employees. This method
is consistent with the historical approach taken by the Group since 2019. The Group has chosen
Option A as it uses the full-time equivalent pay and benefits for all UK employees during the year
and is therefore a more accurate representation of employee pay. The employee pay data used
was based on the total remuneration of all of Sabre’s full-time employees as of 31 December 2024.
The Chief Executive Officer’s pay is as per the single total figure of remuneration for 2024, as disclosed
earlier in this report. Employee full-time equivalent salaries have been calculated by grossing-up the
salary and bonus payments received by employees by the number of hours worked with reference
to a 35-hour week.
Total pay
Chief Executive
Officer’s total
pay
(£’000) 25th percentile 50th percentile 75th percentile
2019
Pay ratio
821
33.3:1 19.2:1 12.3:1
Remuneration values 24,643 42,651 66,846
2020
Pay ratio
1,10 9
42.3:1 25.6:1 16.2:1
Remuneration values 26,196 43,273 68,283
2021
Pay ratio
733
23.9:1 16:1 10.6:1
Remuneration values 30,635 45,927 68,868
2022
Pay ratio
496
16.3:1 11.3:1 7.9:1
Remuneration values 27,9 0 5 40,306 57,5 52
2023
Pay ratio
947
36.0:1 23.7:1 15.7:1
Remuneration values 26,309 39,896 60,459
2024
Pay Ratio
1,255
43.8:1 26.9:1 18.7:1
Remuneration values 28,638 46,593 66,999
Annual Report on Directors’ Remuneration continued
114 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
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Governance
Salary
Chief Executive
Officer’s salary
(£’000) 25th percentile 50th percentile 75th percentile
2024
Pay ratio
504
20.6:1 14.1:1 9. 4:1
Remuneration values 24,499 35,623 53,873
The Committee has considered the pay data and believes that the median pay ratio is consistent
with the pay, reward and progression policies for the Group’s UK employees. The year-on-year
movement in the total remuneration ratio reflects the varying level of payout under the incentive
plans as the value of the Chief Executive Officer’s remuneration arrangements is significantly
determined by the Group’s performance.
Relative importance of spend on pay
The following table illustrates total remuneration for all employees compared to distributions to
shareholders in respect of the last two financial years.
Measure 2024 2023 Change
Total employee remuneration
1
£15.4m £14.4m £1.0m
Shareholder distributions
2
£24.3m £6.5m £17.8m
1 Total employee cost
2 Includes dividends paid during the financial years which ended on 31 December 2023 and 31 December 2024
Implementation of the Policy in 2025
The below sets out how the Committee intends to operate the Remuneration Policy for the year
ending 31 December 2025.
Salaries
The Executive Directors’ salaries were reviewed during the year. The Committee decided to increase
Geoff Carter and Adam Westwood’s 2025 salaries by 3.5%, which was less than the average
employee increase (which was approximately 3.6%, excluding individual one-off salary increases).
The revised salaries, with effect from 1 April 2025, are £528,178 for Geoff Carter, and £322,554 for
Adam Westwood. The Committee was comfortable setting base salaries at these levels given the size
of the roles and the experience and calibre of the individuals, taking into account the experience
of employees across the Group. As per the Policy, the Committee will continue to review salaries
on an annual basis and may make further increases in future years, in line with the Policy.
Salary as at
1 April 2025
Salary as at
31 December
2024 Increase
Geoff Carter £528,178 £510,317 3.5%
Adam Westwood £322,554 £ 311,6 47 3.5%
Benefits
The Executive Directors will continue to receive life insurance and private medical care.
Pension
As of 1 January 2025, the Executive Directors’ pension contributions will be 7.5%, which is below the
average employee rate of 8.2%.
Short Term Incentive Plan (“STIP”)
As in prior years, the Committee will use a bonus pool funding and allocation approach for awards
in 2025 for the STIP.
The pool will continue to be calculated as a percentage of PBT, subject to a minimum level of ROTE
being achieved. For 2025, if 10% Return On Tangible Equity (“ROTE”) is achieved, a pool of 1.5% of PBT
will be available for the Executive Directors subject to a cap of 150% of salary. There will be a second
pool for senior managers separate to the pool available to Executive Directors.
Annual Report on Directors’ Remuneration continued
115Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Awards will be subject to the following performance measures which will provide alignment with key
strategic goals:
Performance measure Weighting
Profit before tax 70%
Non-financial Group-wide objectives, including strategy, customers and partners,
ESG, People, development of business, risk and compliance 15%
Non-financial objectives relating specifically to the individual 15%
Specific performance targets will not be disclosed at this time due to the commercially sensitive
nature of the objectives. Full retrospective disclosure of the targets and performance against them,
will be included in next year’s Annual Report on Directors’ Remuneration.
Long Term Incentive Plan (”LTIP”)
LTIP awards in 2025 will be made under the Group’s LTIP in the form of restricted shares. When
considering grant levels each year, the Committee will take into account share price performance
over the preceding year. The Committee currently intends to award the Chief Executive Officer an
award equivalent to 75% of salary and the Chief Financial Officer will receive an award equivalent to
60% of salary. In line with the Policy awards, these will vest after three years, with an additional holding
period of two years.
Awards granted in 2025 will be subject to the following strategically relevant underpins:
− Maintaining a solvency ratio in excess of 140%
− Achieving a return on tangible equity in excess of 10%
− No material regulatory censure – relating to the Executive Director’s time in office
− Overall Committee discretion
If the Group does not meet one or more of the underpins at the date of vesting, the Committee will
review whether or not it was appropriate to reduce the number of shares, including to zero, that vest
under the award. Vesting of awards will also be subject to the Committee’s overarching discretion
in order to ensure that outcomes reflect the underlying performance of the Group and the broader
stakeholder experience.
Chair and Non-executive Director fees
The Committee reviewed the Chair’s fee in light of the time commitment required of the role and
agreed to increase the fees by 3.5%, which was less than the average employee increase (which
was approximately 3.6%, excluding individual one-off salary increases), with effect 1 April 2025.
The Chair, Chief Executive Officer and Chief Financial Officer reviewed the Non-executive Directors’,
Committee Chair and Senior Independent Director’s fees in light of the time commitment required
of the role and agreed to increase the Non-executive Directors’ fees by 3.5%, which was less than the
average employee increase, with effect 1 April 2025.
The fees which will apply in 2025 are as follows:
Role
Fee (£)
2025
Fee (£)
2024
Chair fee (all-inclusive fee) 179,710 173,6 32
Non-executive Director base fee 71,884 69,453
Senior Independent Director fee 11,981 11,575
Committee Chair fee 11,9 81 11, 575
Designated employee representative Non-executive Director 3,594 3,472
Annual Report on Directors’ Remuneration continued
116 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Annual Report on Directors’ Remuneration continued
The Chair and Non-executive Directors’ fees for the financial year ended 31 December 2025 are
therefore:
Director Reason for fee
Total annual
fee (£)
Rebecca Shelley Group Chair 179,710
Ian Chapple Non-executive Director 71,884
Karen Geary Non-executive Director
87,459
Remuneration Committee Chair
Designated Non-executive Director for employee
engagement
Bryan Joseph Non-executive Director
95,846Senior Independent Director
Risk Committee Chair
Alison Morris Non-executive Director
83,865
Audit Committee Chair
Karen Geary
Chair of the Remuneration Committee on behalf of the Board
17 March 2025
117Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Directors’ Report
Corporate structure and principal activity
Sabre Insurance Group plc is a public company limited by shares
and was incorporated in England and Wales on 21 September
2017 with registered number 10974661. Its registered office and
principal place of business is at Sabre House, 150 South Street,
Dorking, Surrey RH4 2YY. The Group has no branches.
Sabre Insurance Group plc is the holding company of the
Sabre group of companies (the “Group”). Details of the Group’s
subsidiaries are set out in Note 3 of the Parent Company Financial
Statements contained in this Annual Report. The Group’s principal
and only trading subsidiary is a motor insurance underwriter –
Sabre Insurance Company Limited.
Directors
The Directors who served throughout the year are as follows:
Executive Directors
Geoff Carter – Chief Executive Officer
Adam Westwood – Chief Financial Officer
Non-executive Directors
Rebecca Shelley
Ian Chapple – appointed with effect from 1 September 2024
Karen Geary
Bryan Joseph
Alison Morris
Ian Clark – left the Board with effect from 22 May 2024
The members of the Board of Directors, their biographical details
and the dates of their appointment are set out on pages 68 to 71
of this Annual Report.
Directors’ interests in shares
The Directors who held office during the 2024 financial year had
the following interests (including family interests) in the Ordinary
Shares of the Group:
Name of Director
31 December
2024
31 December
2023
Geoff Carter 1,719,714 1,645,340
Ian Chapple 0 n/a
Karen Geary 0 0
Bryan Joseph 57,5 61 6,105
Alison Morris 9,282 9,282
Rebecca Shelley 29,628 17,271
Adam Westwood 725,562 686,267
Ian Clark n/a 306,006
The Executive Directors, as employees and potential
beneficiaries, have an interest in 1,171,382 shares held by
the Sabre Insurance Group Employee Benefit Trust (“EBT”)
(offshore) and the Group’s SIP Trust (onshore) as at
31 December 2024. As at 31 December 2024, the EBT held
1,962,708 Ordinary Shares and the Group’s SIP Trust held
351,538 Ordinary Shares. It is anticipated that these shares,
which have not already been allocated, will be used to satisfy
awards made under the Group’s employee incentive plans.
Further details regarding the Group’s employee incentive plans
can be found in the Annual Report on Directors’ Remuneration
on pages 105 to 117. There were no changes in the interests of
Directors between 31 December 2024 and 17 March 2025 (the
latest practical date, prior to the release of this Annual Report).
The Directors’ Report for the period ended 31 December
2024 (the “2024 financial year”) comprises the report set
out on pages 118 to 121 and the Directors’ and Officers’
Responsibility Statement on page 122 together with the
following sections of this Annual Report:
The Strategic Report
Pages 18 to 64 which comprise:
− The Chief Executive Officer’s Review on pages 18 to 20
− The Principal Risks and Uncertainties on pages 24 to 33
− The Viability Statement on pages 33 to 35
− The Chief Financial Officer’s Review on pages 40 to 43
− The Responsibility and Sustainability Report on pages
44 to 64
The Governance Report
Pages 67 to 121 which comprise:
− The Chair’s Governance Letter on page 67
− The Governance Report on pages 72 to 79
− The Committee Reports on pages 80 to 93
− The Directors’ Report on pages 118 to 121
The Board takes the view that some of the matters required
to be disclosed in the Directors’ Report are of strategic
importance and that these are included in the Strategic
Report. These matters, and the matters listed below, are
incorporated into the Directors’ Report.
Subject Page
Business developments 19
Greenhouse gas emissions, energy
consumption and energy efficiency action 62
Engagement with employees 48
Engagement with stakeholders 44
118 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Appointment and replacement of Directors
The appointment and replacement of Directors is governed by
the Group’s Articles, the Companies Act 2006 (the “Companies
Act”) and related legislation. The Articles provide that Directors
may be appointed by ordinary resolution of the shareholders
or by the Board. The Board has decided to comply with best
corporate governance practice, and all Directors will seek
election or re-election at each Annual General Meeting. Further
information on this can be found on page 121. In addition
to any powers of removal conferred by the Companies Act,
the Group may by special resolution remove any Director
before the expiration of their period of office.
The Nomination & Governance Committee is responsible for
overseeing the recruitment of Directors and recommending
appointments for approval by the Board of Directors. Further
details regarding the appointment and replacement of Directors
are set out in the Governance Report on pages 72 to 79 and the
Nomination & Governance Committee Report on pages 87 to 89.
Executive Directors’ service contracts
Executive Directors are employed under the terms of their service
contracts. Details of the effective dates of the service contracts for
the current Executive Directors as well as their compensation are
set out in the Annual Report on Directors’ Remuneration on pages
105 to 117 and the contracts are available for inspection by
shareholders at the Group’s registered office and at the Group’s
Annual General Meeting.
Non-executive Director appointments
Non-executive Directors are appointed pursuant to a letter
of appointment. Such appointments are for an initial period
of three years, which is renewable. A Non-executive Director’s
appointment is terminable by the Non-executive Director or the
Group by giving written notice. Details of the effective dates of
the letters of appointment for the current Non-executive Directors
as well as their fees are set out in the Annual Report on Directors’
Remuneration on pages 105 to 117 of the Annual Report and
the terms of appointment are available for inspection by
shareholders at the Group’s registered office and at the Group’s
Annual General Meeting.
Powers of the Directors
Subject to the provisions of the Articles, the Companies Act and
related legislation, and any directions given by special resolution
of the shareholders, the business of the Group shall be managed
by the Board, which may exercise all the powers of the Group,
including the Group’s powers to borrow money and to issue
new shares.
Directors’ and Officers’ liability insurance and
Directors’ indemnities
Directors’ and Officers’ liability insurance is provided for all
Directors of the Group.
Each of the Group’s Directors has been granted a qualifying
third-party indemnity pursuant to which the Group agrees to
indemnify the Directors against any liabilities that they may incur
as a result of their office as Director, to the extent permitted by the
Companies Act.
Compensation for loss of office
The Group does not have arrangements with any Director that
would provide compensation for loss of office or employment
resulting from a takeover, except that provisions of the Group’s
share plans may cause options and awards granted under such
plans to vest on a takeover. Further information is provided in the
Annual Report on Directors’ Remuneration on pages 105 to 117
of this Annual Report. No such payments were made during the
financial year ended 31 December 2024.
Articles of association
The Group may alter its Articles by special resolution of the
shareholders at a general meeting. The Articles are available
on the Group’s website at www.sabreplc.co.uk.
Shares
Share capital
The Group has one class of ordinary voting shares in issue.
As at 31 December 2024, the issued share capital of the Group
comprised 250,000,000 Ordinary Shares of £0.001 each, all of
which are fully paid (“Ordinary Shares”).
Rights and obligations attaching to shares
The rights and obligations attached to the Group’s shares
are governed by the Articles and prevailing legislation. Each
Ordinary Share ranks equally and carries the same rights to
receive all shareholder documentation (including notices of
general meetings), attend, speak and vote at general meetings,
and participate in any distribution of income or capital. All
shareholders entitled to attend and vote at a general meeting
may appoint a proxy or proxies to attend, speak and vote in
their place. None of the Ordinary Shares carry any special rights
with regard to control of the Group and there are no specific
restrictions on voting rights, save where the Group is legally
entitled to impose such restrictions (for example, where the
shareholder is in default of an obligation to the Group).
Major shareholders have the same voting rights per share
as all other shareholders.
Restrictions on transfer
There are no restrictions on the transfer or holding of shares in
the Group other than (i) as set out in the Articles and (ii) certain
restrictions which may from time to time be imposed by laws
and regulations and pursuant to the Listing Rules of the Financial
Conduct Authority (the “Listing Rules”) whereby Directors and
certain officers and employees of the Group require approval to
deal in the Ordinary Shares in accordance with the Group’s share
dealing policies and the Market Abuse Regulation.
Directors’ Report continued
119Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Power to allot and purchase shares
By a resolution passed at the Annual General Meeting (the
“Meeting”) of the Group on 23 May 2024, the Group was granted
a general authority to allot Ordinary Shares up to the lower of
(i) an aggregate nominal amount of £83,333 and (ii) 33.33% of
the Group’s Ordinary Share capital. At the Meeting, the Group
was also granted authority to allot shares up to the lower of (i)
an aggregate nominal amount of £166,666 and (ii) 66.67% of
the Group’s Ordinary Share capital by way of a rights issue to
ordinary shareholders in proportion to their existing shareholdings
(with such amount to be reduced to the extent that the general
authority is utilised (if any).
The Group also received authority to allot shares for cash on
a non-pre-emptive basis up to the lower of (i) an aggregate
nominal amount of £25,500 and (ii) 10% of the Group’s Ordinary
Share capital. As at the date of this report, no shares have been
issued under these authorities. These authorities will expire at the
conclusion of the 2025 Annual General Meeting and, accordingly,
the Board is proposing to renew these authorities at that Annual
General Meeting.
The Group was granted authority by its shareholders at the
Meeting to purchase up to the lower of (i) 25,000,000 Ordinary
Shares and (ii) 10% of the Group’s maximum Ordinary Share
capital immediately following the listing. This authority will expire at
the conclusion of the 2025 Annual General Meeting. During 2024,
no shares were bought under this authority.
Major interests in shares
Information on major interests in shares notified to the Group
under the Disclosure Guidance and Transparency Rules
(“DTRs”) of the UK Listing Authority is published via a Regulatory
Information Service and on the Group’s website
https://www.sabreplc.co.uk/investors/regulatory-news/.
At 31 December 2024, the Group had been notified, in
accordance with Chapter 5 of the DTRs, of the following voting
rights in respect of 3% or more of the issued share capital of
the Group.
Company name
Current
shareholdings %
Aberforth Partners 12,915,737 5.17%
Aviva Investors 11,5 47,4 45 4.62%
AXA Framlington Investment
Managers 12,291,762 4.92%
Companies owned by Old Mutal plc 12,870,464 5.14%
Fidelity Management & Research 24,974,961 9.99%
Gresham House Asset
Management 12,704,600 5.08%
M&G Investments 11,867,810 4.74%
Mawer Investment Management 12,793,280 5.11%
Ninety One UK Limited 12,493,014 5.00%
Unicorn Asset Management 12,050,000 4.82%
Wellington Management 11,983, 3 5 0 4.79%
During the period between 31 December 2024 and 17 March 2025,
being the latest practicable date prior to publication of this
Annual Report, there have been no changes to the above table.
Results and dividends
The audited accounts for the year ended 31 December 2024 are
set out on pages 123 to 212. The Group profit after tax for the year
was £36.0m (2023: £18.1m).
The Directors recommend a final dividend of 8.4 pence (2023:
4.2 pence) and a special dividend of 2.9 pence (2023: 3.9 pence).
The total dividend for the 2024 financial year, including the
proposed special dividend and interim dividend paid in 2024,
is 13.0 pence (2023: 9.0 pence). Further information on the
Group’s dividend policy can be found on page 39.
Significant agreements and change of control
The Group is not a party to any material agreements that
would take effect, alter or terminate upon a change of control
of the Group.
Employees and communities
Fewer than 250 individuals were employed by the Group in each
week during the financial year to which this Annual Report relates
(further details regarding the Group’s employees are set out
in the Responsibility and Sustainability section of this report on
pages 44 to 64 of this Annual Report).
Environment and emissions
Information on the Group’s greenhouse gas emissions is set out
in the Responsibility and Sustainability section on pages 44 to 64
of this Annual Report. Adam Westwood is the Executive Director
responsible for environmental, social and governance issues.
Research and development
The Group has carried out some activities in the field of Research
& Development (“R&D”) during the year. This R&D has included
innovative developments in insurance risk analysis and insurer-
hosted pricing, as discussed in the CEO Review on pages 18 to 20.
Financial instruments and risk management
The Group’s financial risk management objective and policies,
including information about its use of financial instruments,
are contained in notes 4.2 to 4.6 of the Consolidated Financial
Statements on pages 167 to 177 of this Annual Report.
Directors’ Report continued
120 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Events after the balance sheet date
Refer to Note 20 of the Consolidated Financial Statements on
page 199 for information on events after the balance sheet date.
Charitable and political donations
The donations made by the Group to the charities referred to
on pages 53 to 54 of this Annual Report amounted, in aggregate,
to £26,908 (2023: £32,476). The Group made no political
donations during the year (2023: £0).
Annual General Meeting
The Annual General Meeting is the Group’s principal forum for
communication with shareholders and the Directors will be
available to answer shareholders’ questions at the meeting.
The 2025 Annual General Meeting will be held at 9:30 am on
Thursday 22 May 2025. Full details about the 2025 Annual General
Meeting, including the venue and explanatory notes, will be
contained in the Notice of Annual General Meeting which will
be sent to shareholders in a separate document. The Notice
of Annual General Meeting will set out the resolutions to be
proposed at the Annual General Meeting and an explanation
of each resolution. All documents relating to the Annual
General Meeting will be available on the Group’s website at
www.sabreplc.co.uk/investors/annual-general-meeting.
Independent auditor
The auditor of the Group, PwC, has indicated their willingness
to continue in office, and resolutions to re-appoint PwC and
to fix their remuneration will be proposed at the 2025 Annual
General Meeting.
Statement of disclosure of information to
the auditor
Each of the Directors who held office at the date of the approval
of this Annual Report confirms that, so far as they are each
aware, there is no relevant audit information of which the Group’s
auditors are unaware, and each Director has taken all the steps
that he or she ought to have taken as a Director in order to
make himself or herself aware of any relevant audit information
and to establish that the Group’s auditors are aware of that
information. This confirmation is given and should be interpreted
in accordance with the provisions of section 418 of the
Companies Act.
Requirements of Listing Rule 9.8.4R
Information to be included in the Annual Report and Accounts
under Listing Rule 9.8.4R can be found as follows:
Listing Rule Description Page
9.8.4 (1) R Interest capitalised by the Group Not applicable
9.8.4 (2) R Unaudited financial information
previously published
Not applicable
9.8.4 (4) R Details of long-term incentive
schemes
109
9.8.4 (5) R Directors’ waivers of emoluments Not applicable
9.8.4 (6) R Directors’ waivers of future
emoluments
Not applicable
9.8.4 (7) R Non pro rata allotments for cash
(issuer)
Not applicable
9.8.4 (8) R Non pro rata allotments for cash
(major subsidiaries)
Not applicable
9.8.4 (9) R Listed company is a subsidiary
of another company
Not applicable
9.8.4 (10) R Contracts of significance
involving a Director
Not applicable
9.8.4 (11) R Contracts of significance
involving a controlling
shareholder
Not applicable
9.8.4 (12) R
9.8.4 (13) R
Details of shareholder dividend
waivers
Not applicable
9.8.4 (14) R Controlling shareholder
agreements
Not applicable
Supplier payment policy
The Group’s policy is to agree payment terms with suppliers
when entering into each transaction to ensure that suppliers
are made aware of the terms of payment and abide by the
terms of payment. Trade creditors of the Group (consolidated)
at 31 December 2024 were 7 days (2023: 14 days) based on the
average daily amount invoiced by suppliers during the year.
Going concern
The Board has considered the business activities of the Group
and the factors likely to affect its future performance as well as the
Group’s principal risks and uncertainties, including the Directors’
statement on the viability of the Group over a three-year period
which is set out in the Strategic Report on page 33 of this Annual
Report. On the basis of these considerations, the Directors have a
reasonable expectation that the Group has adequate resources
to continue in operation for at least 12 months from the date
the Directors approved these financial statements and that it is
appropriate to adopt a going concern basis for the preparation
of the financial statements.
By order of the Board
Anneka Kingan
Company Secretary
17 March 2025
Directors’ Report continued
121Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
The Directors are responsible for preparing the Annual Report and
Accounts 2024 and the financial statements in accordance with
applicable law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have prepared the Group and the Company financial
statements in accordance with UK-adopted international
accounting standards. Under company law, Directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the Group
and Company and of the profit or loss of the Group for that
period. In preparing the financial statements, the Directors are
required to:
− Select suitable accounting policies and then apply them
consistently;
− State whether applicable UK-adopted international
accounting standards have been followed, subject to
any material departures disclosed and explained in the
financial statements;
− Make judgements and accounting estimates that are
reasonable and prudent; and
− Prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Group
and Company will continue in business.
The Directors are responsible for safeguarding the assets of the
Group and Company and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s and Company’s transactions and disclose with
reasonable accuracy at any time the financial position of
the Group and Company and enable them to ensure that
the financial statements and the Directors’ Remuneration
Report comply with the Companies Act 2006. The Directors are
responsible for the maintenance and integrity of the Group’s
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Directors’ confirmations
Each of the Directors, whose names and functions are listed on
pages 68 to 71 of this Annual Report confirm that, to the best of
their knowledge:
− The Group and Company financial statements, which
have been prepared in accordance with UK-adopted
international accounting standards, give a true and fair
view of the assets, liabilities and financial position of the
Group and Company, and of the profit of the Group; and
− The Strategic Report includes a fair review of the
development and performance of the business and the
position of the Group and Company, together with a
description of the principal risks and uncertainties that
it faces.
This Responsibility Statement was approved by the Board of
Directors on 17 March 2025 and is signed on its behalf by:
Geoff Carter
Chief Executive Officer
Adam Westwood
Chief Financial Officer
Statement of Directors’ responsibilities
in respect of the financial statements
122 Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
Statements
Strategic
Report
Governance
Financial Statements
HOW TO NAVIGATE THE
ANNUAL FINANCIAL
STATEMENTS
Primary statements
The primary statements are included at the beginning of the
annual Financials Statements and include note references
to underlying detailed notes.
Notes to the Financial Statements
The notes to the Financial Statements consist of accounting
policies, risk and capital management, insurance-specific and
financial asset-specific notes first, followed by less significant
notes thereafter.
Financial Statements
124 | Independent Auditor’s Report
131 | Consolidated Profit or Loss Account
132 | Consolidated Statement of Comprehensive Income
133 | Consolidated Statement of Financial Position
134 | Consolidated Statement of Changes in Equity
135 | Consolidated Statement of Cash Flows
136 | Notes to the Consolidated Financial Statements
200 | Parent Company Statement of Financial Position
201 | Parent Company Statement of Changes in Equity
202 | Parent Company Statement of Cash Flows
203 | Notes to the Parent Company Financial Statements
208 | Financial Reconciliations
213 | Glossary of Terms
215 | Shareholder Information
217 | Company Information
ACCOUNTING POLICIES
The principal accounting policies applied in the preparation
of the Consolidated and Company Financial Statements
are included in the specific notes to which they relate and
are indicated by a blue border and headings on a shaded
blue background.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are
significant to the Consolidated and Company Financial
Statements, are included in the specific notes to which they
relate and are indicated by a red border and headings on
a shaded red background.
RISK MANAGEMENT
Risk management disclosures are indicated by a purple border
and headings, with a shaded purple background.
123Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Strategic
Report
Governance
Independent auditor’s report
to the members of Sabre Insurance Group plc
OUR AUDIT APPROACH
Overview
Audit scope
− Our audit scope has been determined to provide coverage of all material financial
statement line items; and
− In designing our audit, we have considered the impacts that climate change could have
on the Group, including the physical and transitional risks which could arise. In particular,
we have assessed the impacts on reporting of the commitments related to climate change
which the Group has made.
Key audit matters
− Valuation of insurance contract liabilities (Group)
− Valuation of investment in subsidiaries (Parent)
Materiality
− Overall Group materiality: £2.48m (2023: £1.88m) based on 1% of insurance revenue.
− Overall Company materiality: £4.52m (2023: £4.51m) based on 1% of net assets.
− Performance materiality: £1.86m (2023: £1.41m) (Group) and £3.39m (2023: £3.38m)
(Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most
significance in the audit of the financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. These matters, and any
comments we make on the results of our procedures thereon, were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
In our opinion, Sabre Insurance Group plc’s group financial statements and company financial
statements (the “financial statements”):
− give a true and fair view of the state of the Group’s and of the Company’s affairs as at
31 December 2024 and of the Group’s profit and the Group’s and Company’s cash flows
for the year then ended;
− have been properly prepared in accordance with UK-adopted international accounting
standards as applied in accordance with the provisions of the Companies Act 2006; and
− have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Accounts
2024 (the “Annual Report”), which comprise: the Consolidated and Parent Company Statements
of Financial Position as at 31 December 2024; the Consolidated Profit or Loss Account,
the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company
Statements of Changes in Equity and the Consolidated and Parent Company Statements
of Cash Flows for the year then ended; and the notes to the financial statements,
comprising material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”)
and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’
responsibilities for the audit of the financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard,
as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s
Ethical Standard were not provided.
Other than those disclosed in Note 8.4, we have provided no non-audit services to the Company
or its controlled undertakings in the period under audit.
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Transition to IFRS 17 and associated restatement of comparatives, which was a key audit matter last year, is no longer included because of the key audit matter being solely relevant in the first year of
adoption of the new standard, which occurred last year. Otherwise, the key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Valuation of insurance contract liabilities (Group)
Refer to Note 3 Insurance Liabilities and Reinsurance Assets of the financial statements,
specifically the Liability for incurred claims, Discount rates and Risk adjustment for non-financial
risk sections within Critical Accounting Estimates and Judgements. The valuation of insurance
contract liabilities, specifically the liability for incurred claims, involves a significant degree of
judgement. These liabilities are based on the estimated ultimate cost of all claims incurred but
not settled at 31 December 2024, whether reported or not, together with the related claims
handling costs (together the “best estimate cashflows”), along with a discounting credit and risk
adjustment for non-financial risk. A range of methods may be used to determine these provisions.
Underlying these methods are a number of explicit and implicit assumptions relating to the
expected settlement amount and settlement patterns of claims, including those relating to the
settlement of personal injury lump sum compensation amounts.
In performing our audit work over the valuation of insurance contract liabilities we have used
actuarial specialists to assist us in conducting elements of the testing. Our procedures included:
− Understood management’s process and controls related to insurance contract liabilities;
− Tested the underlying data to source documentation on a sample basis as at 30 September
2024 and 31 December 2024;
− Developed independent point estimates of best estimate cashflows as at 30 September 2024
and performed roll-forward testing to 31 December 2024;
− Performed a methodology and assumptions review of the Periodic Payment Order (‘PPO’)
reserves;
− Developed an independent estimate of the discounted best estimate liabilities in order to
compare to management’s estimate; and
− Performed methodology and key assumptions testing over the risk adjustment.
Based on the work performed and evidence obtained, we consider the methodology and
assumptions used to calculate the insurance contract liabilities to be appropriate.
Valuation of investment in subsidiaries (Parent)
Refer to Note 3.1 Investment in subsidiary undertakings of the Parent Company financial
statements. In the Company’s statement of financial position, investment in subsidiary
undertakings is reported at cost less any impairment. The investment in subsidiary undertakings
is the largest asset on the Parent Company’s statement of financial position. The impairment
analysis involves a significant degree of judgement.
In respect to the carrying value of investment in subsidiary undertakings, our procedures included:
− Assessed investment in subsidiary undertakings for indication of impairment considering our
understanding of the business;
− Challenged and tested management’s valuation of the subsidiary undertakings, including
reviewing the appropriateness of the assumptions, performing sensitivity analysis, and testing
the underlying source data used in management’s valuation; and
− Assessed the disclosures in the financial statements.
Based on the work performed and the evidence obtained, we consider the carrying value of
investment in subsidiary undertakings to be appropriate.
Independent auditor’s report continued
to the members of Sabre Insurance Group plc
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Independent auditor’s report continued
to the members of Sabre Insurance Group plc
Based on our professional judgement, we determined materiality for the financial statements as
a whole as follows:
Financial statements – Group Financial statements – Company
Overall materiality £2.48m (2023: £1.88m). £4.52m (2023: £4.51m).
How we
determined it
1% of insurance revenue 1% of net assets
Rationale for
benchmark
applied
In determining our materiality, we
considered financial metrics which
we believed to be relevant. We
concluded that insurance revenue
was the appropriate benchmark to
use to determine overall materiality
as it provides a stable measure of the
size and performance of the business.
In determining our materiality, we
considered financial metrics which
we believed to be relevant and
concluded that net assets was the
most appropriate benchmark.
For each component in the scope of our Group audit, we allocated a materiality that is less than our
overall Group materiality. The Group consists primarily of one component, Sabre Insurance Company
Limited, to which we allocated materiality of £2.35m.
We use performance materiality to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of our audit and the nature and extent of
our testing of account balances, classes of transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% (2023: 75%) of overall materiality, amounting
to £1.86m (2023: £1.41m) for the Group financial statements and £3.39m (2023: £3.38m) for the
Company financial statements.
In determining the performance materiality, we considered a number of factors – the history
of misstatements, risk assessment and aggregation risk and the effectiveness of controls –
and concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during
our audit above £124,070 (Group audit) (2023: £94,120) and £226,000 (Company audit)
(2023: £225,000) as well as misstatements below those amounts that, in our view, warranted
reporting for qualitative reasons.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account the structure of the Group and
the Company, the accounting processes and controls, and the industry in which they operate.
Based on the output of our risk assessment, along with our understanding of the Sabre Insurance
Group structure, we performed a full scope audit over Sabre Insurance Company Limited and Sabre
Insurance Group plc.
The impact of climate risk on our audit
We have made enquiries of management in order to understand the extent of the impact of climate
change risks and commitments made by the Group in the Group’s financial statements. As part of
this, we have reviewed management’s assessment of climate risk. We have also made enquiries to
understand, and performed a risk assessment in respect of, the commitments made by the Group
and how these may affect the financial statements and the audit procedures that we perform.
We have assessed the risks of material misstatement to the financial statements as a result of climate
change and concluded that for the year ended 31 December 2024, the main audit risks are related
to consistency of disclosure included within the Annual Report and ‘other information’, including the
Task Force on Climate-related Financial Disclosure (‘TCFD’) disclosures. As a result of this assessment,
we concluded that there was no impact on our key audit matters.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine
the scope of our audit and the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.
126 Annual Report and Accounts 2024Sabre Insurance Group plc
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Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The Directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly,
we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report,
any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If we identify an apparent material inconsistency or material misstatement,
we are required to perform procedures to conclude whether there is a material misstatement of the
financial statements or a material misstatement of the other information. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic Report and Directors’ Report, we also considered whether the
disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also
to report certain opinions and matters as described below.
Strategic Report and Directors’ Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the
Strategic Report and Directors’ Report for the year ended 31 December 2024 is consistent with the
financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the Group and Company and their environment
obtained in the course of the audit, we did not identify any material misstatements in the Strategic
Report and Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Annual Report on Directors’ Remuneration to be audited has been
properly prepared in accordance with the Companies Act 2006.
Conclusions relating to going concern
Our evaluation of the Directors’ assessment of the Group’s and the Company’s ability to continue
to adopt the going concern basis of accounting included:
− Obtaining the Directors’ Going Concern assessment and challenged the rationale for the
downside scenarios adopted and material assumptions made using our knowledge of
Sabre’s business performance, review of regulatory correspondence and obtaining further
corroborating evidence;
− Considering management’s assessment of the regulatory solvency coverage and liquidity
position; and
− Considering information obtained during the course of the audit and publicly available
market information to identify any evidence that would contradict management’s
assessment of going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and
the Company’s ability to continue as a going concern for a period of at least 12 months from when
the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a
guarantee as to the Group’s and the Company’s ability to continue as a going concern.
In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are
described in the relevant sections of this report.
Independent auditor’s report continued
to the members of Sabre Insurance Group plc
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In addition, based on the work undertaken as part of our audit, we have concluded that each
of the following elements of the corporate governance statement is materially consistent with
the financial statements and our knowledge obtained during the audit:
− The Directors’ statement that they consider the Annual Report, taken as a whole, is fair,
balanced and understandable, and provides the information necessary for the members
to assess the Group’s and Company’s position, performance, business model and strategy;
− The section of the Annual Report that describes the review of effectiveness of risk
management and internal control systems; and
− The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the Directors’ statement
relating to the Company’s compliance with the Code does not properly disclose a departure from
a relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial
statements, the Directors are responsible for the preparation of the financial statements in
accordance with the applicable framework and for being satisfied that they give a true and fair
view. The Directors are also responsible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Directors either intend
to liquidate the Group or the Company or to cease operations, or have no realistic alternative but
to do so.
Corporate governance statement
The Listing Rules require us to review the Directors’ statements in relation to going concern, longer-
term viability and that part of the corporate governance statement relating to the Company’s
compliance with the provisions of the UK Corporate Governance Code specified for our review.
Our additional responsibilities with respect to the corporate governance statement as other
information are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and we have nothing material to add
or draw attention to in relation to:
− The Directors’ confirmation that they have carried out a robust assessment of the emerging
and principal risks;
− The disclosures in the Annual Report that describe those principal risks, what procedures are
in place to identify emerging risks and an explanation of how these are being managed
or mitigated;
− The Directors’ statement in the financial statements about whether they considered it
appropriate to adopt the going concern basis of accounting in preparing them, and their
identification of any material uncertainties to the Group’s and Company’s ability to continue
to do so over a period of at least 12 months from the date of approval of the financial
statements;
− The Directors’ explanation as to their assessment of the Group’s and Company’s prospects,
the period this assessment covers and why the period is appropriate; and
− The Directors’ statement as to whether they have a reasonable expectation that the
Company will be able to continue in operation and meet its liabilities as they fall due over
the period of its assessment, including any related disclosures drawing attention to any
necessary qualifications or assumptions.
Our review of the Directors’ statement regarding the longer-term viability of the Group and
Company was substantially less in scope than an audit and only consisted of making
inquiries and considering the Directors’ process supporting their statement; checking that the
statement is in alignment with the relevant provisions of the UK Corporate Governance Code;
and considering whether the statement is consistent with the financial statements and our
knowledge and understanding of the Group and Company and their environment obtained
in the course of the audit.
Independent auditor’s report continued
to the members of Sabre Insurance Group plc
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There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to
events and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number
of items for testing, rather than testing complete populations. We will often seek to target particular
items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on
the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a
body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose.
We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of
non-compliance with laws and regulations related to regulatory principles, such as those governed
by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), and we
considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the
financial statements such as Companies Act 2006. We evaluated management’s incentives and
opportunities for fraudulent manipulation of the financial statements (including the risk of override
of controls), and determined that the principal risks were related to management bias in
accounting estimates and judgemental areas of the financial statements as shown in the
‘Key Audit Matters’, and posting of inappropriate journals. Audit procedures performed by the
engagement team included:
− Discussions with the Board, management, and Internal Audit function, including
consideration of known or suspected instances of non-compliance with laws and regulation
and fraud;
− Understanding management’s controls designed to prevent and detect irregularities;
− Reviewing relevant meeting minutes, including those of the Board of Directors, Audit, Risk,
Nomination and Remuneration Committees;
− Identifying and testing journal entries based on risk criteria;
− Challenging assumptions and judgements made by management in their significant
accounting estimates, for example, in relation to the valuation of the liability for incurred
claims, and the investment in subsidiary;
− Designing audit procedures to incorporate unpredictability around the nature, timing or
extent of our testing; and
− Attendance at Audit Committee meetings.
Independent auditor’s report continued
to the members of Sabre Insurance Group plc
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OTHER MATTERS
In due course, as required by the Financial Conduct Authority Disclosure Guidance and
Transparency Rule 4.1.14R, these financial statements will form part of the ESEF-prepared annual
financial report filed on the National Storage Mechanism of the Financial Conduct Authority in
accordance with the ESEF Regulatory Technical Standard (“ESEF RTS”). This auditors’ report provides
no assurance over whether the annual financial report will be prepared using the single electronic
format specified in the ESEF RTS.
The Company is required by the Financial Conduct Authority Disclosure Guidance and
Transparency Rules to include these financial statements in an annual financial report prepared
under the structured digital format required by DTR 4.1.15R – 4.1.18R and filed on the National
Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no assurance
over whether the structured digital format annual financial report has been prepared in
accordance with those requirements.
Philip Watson (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
17 March 2025
OTHER REQUIRED REPORTING
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
− we have not obtained all the information and explanations we require for our audit; or
− adequate accounting records have not been kept by the Company, or returns adequate
for our audit have not been received from branches not visited by us; or
− certain disclosures of Directors’ remuneration specified by law are not made; or
− the Company financial statements and the part of the Annual Report on Directors’
Remuneration to be audited are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the Directors on
25 May 2022 to audit the financial statements for the year ended 31 December 2022 and subsequent
financial periods. The period of total uninterrupted engagement is three years, covering the years
ended 31 December 2022 to 31 December 2024.
Independent auditor’s report continued
to the members of Sabre Insurance Group plc
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2024 | 2023 | ||
Notes | £'k | £'k | |
Insurance revenue | |||
Insurance service expense | ( | ( | |
Insurance service result before reinsurance contracts held | |||
Reinsurance expense | ( | ( | |
Amounts recoverable from reinsurers for incurred claims | |||
Net (expense)/income from reinsurance contracts held | ( | ||
Insurance service result | |||
Interest income on financial assets using effective interest rate method | 4.5 | ||
Total investment income | |||
Insurance finance expense from insurance contracts issued | 3.8 | ( | ( |
Reinsurance finance income from reinsurance contracts held | 3.8 | ||
Net insurance financial result | ( | ( | |
Net insurance and investment result | |||
Other income | 7 | ||
Other operating expenses | 8 | ( | ( |
Profit before tax | |||
Income tax expense | 10 | ( | ( |
Profit for the year attributable to ordinary shareholders | |||
Basic earnings per share (pence per share) | 19 | ||
Diluted earnings per share (pence per share) | 19 |
The attached notes on pages 136 to 199 form an integral part of these financial statements.
Consolidated Profit or Loss Account
For the year ended 31 December 2024
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Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
2024 | 2023 | ||
Notes | £'k | £'k | |
Profit for the year attributable to ordinary shareholders | |||
| Items that are or may be reclassified subsequently to profit or loss | |||
Unrealised fair value gains on debt securities | 4.5 | ||
Tax charge | ( | ( | |
Debt securities at fair value through other comprehensive income | |||
Insurance finance income/(expense) from insurance contracts issued | 3.8 | ( | |
Reinsurance finance (expense)/income from reinsurance contracts held | 3.8 | ( | |
Tax credit | |||
Net insurance financial result | ( | ||
| Items which will not be reclassified to profit or loss | |||
Revaluation gains/(losses) on owner-occupied properties | 9 | ( | |
Income tax relating to items that will not be reclassified | ( | ||
( | |||
Total other comprehensive income for the year, net of tax | |||
Total comprehensive income for the year attributable to ordinary shareholders |
The attached notes on pages 136 to 199 form an integral part of these financial statements.
132 Annual Report and Accounts 2024Sabre Insurance Group plc
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Consolidated Statement of Financial Position
As at 31 December 2024
2024 | 2023 (1) | ||
Notes | £'k | £'k | |
| Assets | |||
Cash and cash equivalents | 4.1 | ||
Debt securities at fair value through other comprehensive income | 4.2 | ||
Receivables | 4.3 | ||
Current tax assets | |||
Reinsurance contract assets | 3.1 | ||
Property, plant and equipment | 9 | ||
Deferred tax assets | 11 | ||
Other assets | 13 | ||
Goodwill | 14 | ||
Total assets | |||
| Liabilities | |||
Payables | 5 | ||
Insurance contract liabilities | 3.1 | ||
Other liabilities | |||
Total liabilities | |||
| Equity | |||
Issued share capital | 15 | ||
Own shares | 16 | ( | ( |
Merger reserve | |||
FVOCI reserve | ( | ( | |
Insurance/Reinsurance finance reserve (1) | |||
Share-based payments reserve | |||
Retained earnings (1) | |||
Total equity | |||
Total liabilities and equity |
(1) Opening balance has been restated – Refer to Note 3.9
The attached notes on pages 136 to 199
form an integral part of these financial
statements.
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Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
| Insurance/ | |||||||||
| Reinsurance | Share-based | ||||||||
| Share | Own | Merger | FVOCI | Revaluation | finance | payments | Retained | Total | |
| (1) | (1) | ||||||||
| capital | shares | reserve | reserve | reserve | reserve | reserve | earnings | equity | |
£'k | £'k | £'k | £'k | £'k | £'k | £'k | £'k | £'k | |
Balance as at 31 December 2022, as previously reported | ( | ( | |||||||
Discounting model refinements (1) | ( | ||||||||
Restated balance as at 1 January 2023 (1) | ( | ( | |||||||
Profit for the year attributable to the owners of the Company | |||||||||
Total other comprehensive income for the year, net of tax: Items that are or may be reclassified subsequently to Profit or Loss | ( | ||||||||
| Total other comprehensive income for the year, net of tax: Items | |||||||||
which will not be reclassified to Profit or Loss | ( | ( | |||||||
Total comprehensive income/(expense) for the year | ( | ( | |||||||
Share-based payment expense | |||||||||
Net movement in own shares | ( | ( | |||||||
Dividends paid | ( | ( | |||||||
Restated balance as at 31 December 2023 (1) | ( | ( | |||||||
Profit for the year attributable to the owners of the Company | |||||||||
Total other comprehensive income for the year, net of tax: Items that are or may be reclassified subsequently to Profit or Loss | |||||||||
Total comprehensive income/(expense) for the year | |||||||||
Share-based payment expense | ( | ||||||||
Net movement in own shares | |||||||||
Dividends paid | ( | ( | |||||||
Balance as at 31 December 2024 | ( | ( |
(1) Opening balance has been restated – Refer to Note 3.9
The attached notes on pages 136 to 199 form an integral part of these financial statements.
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Consolidated Statement of Cash Flows
For the year ended 31 December 2024
2024 | 2023 | ||
Notes | £'k | £'k | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
Profit before tax for the year | |||
| Adjustments for: | |||
Depreciation of property, plant and equipment | 9 | ||
Share-based payment – equity-settled schemes | 16 | ||
Investment return | ( | ( | |
Expected credit loss | 4.4 | ||
Impairment loss on owner-occupied buildings | |||
Operating cash flows before movements in working capital | |||
| Movements in working capital: | |||
Change in receivables | ( | ||
Change in reinsurance contract assets | ( | ||
Change in other assets | ( | ||
Change in payables | ( | ||
Change in insurance contract liabilities | |||
Change in other liabilities | ( | ||
Cash generated from operating activities before investment of insurance assets | |||
Taxes paid | ( | ( | |
Net cash generated from operating activities before investment of insurance assets | |||
Interest and investment income received | |||
Proceeds from the sale and maturity of invested assets | |||
Purchases of invested assets | ( | ( | |
Net cash generated from operating activities | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | 9 | ( | |
Net cash used by investing activities | ( | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net cash used in acquiring and disposing of own shares | ( | ( | |
Dividends paid | 12 | ( | ( |
Net cash used by financing activities | ( | ( | |
Net (decrease)/increase in cash and cash equivalents | ( | ||
Cash and cash equivalents at the beginning of the year | |||
Cash and cash equivalents at the end of the year |
The attached notes on pages 136 to 199 form
an integral part of these financial statements.
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CORPORATE INFORMATION
1. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these Consolidated and Company Financial Statements are included in the
specific notes to which they relate. These policies have been consistently applied to all the years presented, unless otherwise indicated.
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
1. ACCOUNTING POLICIES CONTINUED
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Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2. RISK AND CAPITAL MANAGEMENT CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2. RISK AND CAPITAL MANAGEMENT CONTINUED
| As at 31 December | ||
2024 | 2023 | |
£'k | £'k | |
Share capital | 250 | 250 |
Own shares | (3 ,112) | (3,121) |
Merger reserve | 48,525 | 48,525 |
FVOCI reserve | (3,064) | (5,894) |
Insurance/Reinsurance finance reserve | 3,606 | 2,239 |
Share-based payments reserve | 2,620 | 2,686 |
Retained earnings | 209,521 | 197,727 |
Total | 258,346 | 242,412 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2. RISK AND CAPITAL MANAGEMENT CONTINUED
| As at 31 December | ||
2024 | 2023 | |
£'k | £'k | |
Total tier 1 capital – pre-dividend | 134,695 | 121,099 |
SCR | 62,199 | 58,998 |
Solvency coverage ratio (%) – pre-dividend | 216.6% | 205.3% |
| As at 31 December | ||
2024 | 2023 | |
£'k | £'k | |
Total tier 1 capital – pre-dividend | 134,695 | 121,099 |
Less: Final dividend declared | (28,250) | (20,250) |
Total tier 1 capital – post-dividend | 106,445 | 100,849 |
SCR | 62,199 | 58,998 |
Solvency coverage ratio (%) | 171.1% | 170.9 % |
| As at 31 December | ||
2024 | 2023 | |
£'k | £'k | |
IFRS net assets | 258,346 | 242,412 |
Less: Goodwill | (156,279) | (156,279) |
Adjusted IFRS net assets | 102,067 | 86,133 |
Remove IFRS liability: Liability for remaining coverage (unearned premium element) | 117, 2 4 5 | 124,448 |
Remove IFRS asset: Insurance acquisition cash flow asset | (8,472) | (8,733) |
Remove IFRS liability: Risk adjustment | 14,304 | 12,255 |
Add Solvency II liability: Risk margin | (6,975) | (5,904) |
Add Solvency II liability: Premium provision | (74,613) | (76,441) |
Changes in valuation differences of technical reserves between IFRS and Solvency II | 2,015 | 996 |
Change in deferred tax liability due to difference in net asset position | (10,876) | (11,6 5 5) |
Solvency II net assets | 134,695 | 121,099 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2. RISK AND CAPITAL MANAGEMENT CONTINUED
| As at 31 December | |||
2024 | 2023 | ||
Notes | £'k | £'k | |
Interest rate risk | 5,289 | 4,655 | |
Equity risk | – | – | |
Property risk | 900 | 900 | |
Spread risk | 3,109 | 2,739 | |
Currency risk | 584 | 1,058 | |
Concentration risk | – | – | |
Correlation impact | (3,226) | (3,192) | |
Market risk | 6,656 | 6,160 | |
Counterparty risk | 3,325 | 3,098 | |
Underwriting risk | 6 8 ,011 | 63,720 | |
Correlation impact | (6,678) | (6,219) | |
Basic SCR | 71,314 | 66,759 | |
Operating risk | 8,714 | 7, 6 50 | |
Loss-absorbing effect of deferred taxes | (17,829) | (15,411) | |
Total SCR | 62,199 | 58,998 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2. RISK AND CAPITAL MANAGEMENT CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
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ACCOUNTING POLICY continued
Product classification | Measurement model | |
| Insurance contracts issued | ||
Motor insurance | Insurance contracts issued | Premium Allocation Approach (“PAA”) |
| Reinsurance contracts held | ||
Motor insurance – excess of loss reinsurance | Reinsurance contracts held | Premium Allocation Approach (“PAA”) |
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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ACCOUNTING POLICY continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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AMOUNTS RECOGNISED IN THE STATEMENT OF PROFIT OR LOSS
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
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31 December 2024 | 31 December 2023 | |||||||
1 year | 3 years | 5 years | 10 years | 1 year | 3 years | 5 years | 10 years | |
Motor insurance | 4.70% | 4.39% | 4.28% | 4.31% | 5.05% | 3.98% | 3.67% | 3.67% |
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
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| As at December | ||||||
2024 | 2023 | |||||
Notes | £'k | £'k | ||||
| Insurance contract liabilities | ||||||
| Insurance contract liabilities | ||||||
Motor Vehicle insurance | 334,767 | 321,720 | ||||
Motorcycle insurance | 34,321 | 32,370 | ||||
Taxi insurance | 37, | 30 8 | 29,482 | |||
| Asset for insurance acquisition cash flows | ||||||
Motor Vehicle insurance | 3.3 | (6,488) | (6,933) | |||
Motorcycle insurance | 3.3 | (880) | (867) | |||
Taxi insurance | 3.3 | (1,104) | (933) | |||
Total insurance contract liabilities | 374,839 | 397,924 | ||||
| Reinsurance contracts assets | ||||||
Motor Vehicle insurance | 143,364 | 133,974 | ||||
Motorcycle insurance | 13,502 | 15,018 | ||||
Taxi insurance | 9,860 | 11,76 | 6 | |||
Total reinsurance contract assets | 166,726 | 160,758 | ||||
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
2024 | 2023 | ||||||||
| Liabilities for | Liabilities for | ||||||||
| Remaining | Remaining | ||||||||
| Coverage | Liabilities for Incurred Claims | Coverage | Liabilities for Incurred Claims | ||||||
| ("LRC") | ("LIC") | Total | ("LRC") | ("LIC") | Total | ||||
| Estimates of | Risk | Estimates of | Risk | ||||||
| present value | adjustment for | present value | adjustment for | ||||||
| of future cash | non-financial | of future cash | non-financial | ||||||
| In £’k | flows | risk | flows | risk | |||||
Opening insurance contract liabilities | 63,008 | 258,358 | 53,473 | 374,839 | 47,8 36 | 221,651 | 44,854 | 314,341 | |
Insurance revenue | (248,131) | – | – | (248,131) | (188,246) | – | – | (188,246) | |
Insurance service expenses | 18,166 | 132 ,011 | 4,484 | 154,661 | 14,057 | 116,821 | 8,619 | 139,497 | |
Incurred claims and other directly attributable expenses | – | 127,787 | 14,988 | 142,775 | – | 110,0 57 | 13,605 | 123,662 | |
Changes that relate to past service – changes in the FCF relating to the LIC | – | 4,224 | (10,504) | (6,280) | – | 6,764 | (4,986) | 1,778 | |
Amortisation of insurance acquisition cash flows | 18,166 | – | – | 18,166 | 14,057 | – | – | 14,057 | |
Insurance service result | (229,965) | 13 2 ,011 | 4,484 | (93,470) | (174,189) | 116,821 | 8,619 | (48,749) | |
Insurance finance expense recognised in Profit or Loss Account | – | 8,392 | – | 8,392 | – | 10,170 | – | 10,170 | |
Insurance finance (income)/expense recognised in Other Comprehensive Income | – | (6,852) | – | (6,852) | – | 12,436 | – | 12,436 | |
Total changes in Comprehensive Income | (229,965) | 133,551 | 4,484 | (91,930) | (174,189) | 139,427 | 8,619 | (26,143) | |
| Cash flows | |||||||||
Premiums received | 254,389 | – | – | 254,389 | 20 6,189 | – | – | 20 6,189 | |
Claims and other insurance services expenses paid | – | (121,469) | – | (121,469) | – | (102,720) | – | (102,720) | |
Insurance acquisition cash flows | (17,9 0 5) | – | – | (17,90 | 5) | (16,828) | – | – | (16,828) |
Total cash flows | 236,484 | (121,469) | – | 115,015 | 189,361 | (102,720) | – | 86,641 | |
Closing insurance contract liabilities | 69,527 | 270,440 | 57,957 | 397,924 | 63,008 | 258,358 | 53,473 | 374,839 | |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
2024 | 2023 | |||||||||
| Assets for | Assets for | |||||||||
| remaining | remaining | |||||||||
coverage | Assets for incurred claims | TOTAL | coverage | Assets for incurred claims | TOTAL | |||||
| Estimates of | Risk | Estimates of | Risk | |||||||
| present value | adjustment for | present value | adjustment for | |||||||
| of future cash | non-financial | of future cash | non-financial | |||||||
| In £’k | flows | risk | flows | risk | ||||||
Opening reinsurance contract assets | 2,075 | 123,433 | 41,218 | 166,726 | 5,675 | 97,9 96 | 33,283 | 136,954 | ||
Net (expense)/income from reinsurance contracts held | (33,617) | 10,591 | 2,435 | (20,591) | (28,506) | 23,597 | 7,935 | 3,026 | ||
Reinsurance expense | (33,617) | – | – | (33,617) | (28,506) | – | – | (28,506) | ||
Incurred claims recovery | – | 10,233 | 9,205 | 19,438 | – | 16,738 | 9,103 | 25,841 | ||
Changes that relate to past service | – | 358 | (6,770) | (6,412) | – | 6,859 | (1,168) | 5,691 | ||
Reinsurance finance income recognised in Profit or Loss Account | – | 3,714 | – | 3,714 | – | 3,588 | – | 3,588 | ||
Reinsurance finance (expense)/income recognised in Other Comprehensive Income | – | (5,880) | – | (5,880) | – | 5,432 | – | 5,432 | ||
Total changes in Comprehensive Income | (33,617) | 8,425 | 2,435 | (22,757) | (28,506) | 32,617 | 7,935 | 12,046 | ||
| Cash flows | ||||||||||
Premiums paid | 34,992 | – | – | 34,992 | 24,906 | – | – | 24,906 | ||
Recoveries received | – | (18,203) | – | (18,203) | – | (7,180) | – | (7,18 | 0) | |
Total cash flows | 34,992 | (18,203) | – | 16,789 | 24,906 | (7,18 | – | 0) | 17,726 | |
Closing reinsurance contract assets | 3,450 | 113 ,6 55 | 43,653 | 160,758 | 2,075 | 41,218 | 123,433 | 166,726 | ||
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
| £’k | ||
Balance as at 1 January 2023 | 5,962 | |
Amounts incurred during the year | 16,828 | |
Amounts derecognised and included in measurement of insurance contracts | (14,057) | |
Balance as at 31 December 2023 | 8,733 | |
Amounts incurred during the period | 17,90 | 5 |
Amounts derecognised and included in measurement of insurance contracts | (18,166) | |
Balance as at 31 December 2024 | 8,472 |
| £’k | |
| 31 December 2024 | |
Less than one year | 8,410 |
More than one year | 62 |
| 8,472 | |
| 31 December 2023 | |
Less than one year | 8,032 |
More than one year | 701 |
| 8,733 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Accident year 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total | ||||
£’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | ||||
| Estimates of undiscounted gross cumulative claims | ||||||||||||||
At the end of the accident year | 103,599 | 111,518 | 165,707 | 120,077 | 126,981 | 101,965 | 89,233 | 136,811 | 133,334 | 146,677 | ||||
– One year later | 90,133 | 100,935 | 131,803 | 108,089 | 122,663 | 97,95 | 3 | 93,309 | 131,433 | 134,785 | ||||
– Two years later | 82,537 | 94,294 | 123,651 | 107,9 | 8 8 | 127,225 | 93,390 | 90,941 | 121,909 | |||||
– Three years later | 79,845 | 91,336 | 122,674 | 113,257 | 131,254 | 88,192 | 95,294 | |||||||
– Four years later | 77,0 95 | 90,789 | 124,128 | 118,6 0 0 | 135,173 | 89,574 | ||||||||
– Five years later | 77,038 | 92,629 | 137,472 | 125,038 | 138,777 | |||||||||
– Six years later | 77,4 69 | 101,655 | 137,6 6 0 | 132,657 | ||||||||||
– Seven years later | 77,729 | 101,124 | 135,674 | |||||||||||
– Eight years later | 77,0 40 | 102,797 | ||||||||||||
– Nine years later | 76,922 | |||||||||||||
Current estimate of cumulative claims | 76,922 | 102,797 | 135,674 | 132,657 | 138,777 | 89,574 | 95,294 | 121,909 | 134,785 | 146,677 | ||||
Cumulative gross claims paid | (76,061) | (93,893) | (90,207) | (113,70 | 3) | (110,701) | (73,102) | (65,507) | (76,827) | (68,036) | (47,731) | |||
Undiscounted gross liabilities – accident years from 2015 to 2024 | 861 | 8,904 | 45,467 | 18,954 | 28,076 | 16,472 | 29,787 | 45,082 | 66,749 | 98,946 | 359,298 | |||
Undiscounted gross liabilities – accident years from 2014 and before | 32,055 | |||||||||||||
Effect of discounting | (62,956) | |||||||||||||
Total gross liabilities for incurred claims (“LIC”) | 328,397 | |||||||||||||
Liabilities for remaining coverage (“LRC”) | 69,527 | |||||||||||||
Total gross liabilities included in the Statement of Financial Position | 397,924 | |||||||||||||
LIC | LRC | Total | |
Motor Vehicle | 269,652 | 58,628 | 328,280 |
Motorcycle | 30,288 | 3,152 | 33,440 |
Taxi | 28,457 | 7,747 | 36,204 |
Total | 328,397 | 69,527 | 397,92 4 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Accident year 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total | ||||
£’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | ||||
| Estimates of undiscounted net cumulative claims | ||||||||||||||
| At the end of the accident year | 97,2 8 8 | 104,808 | 106,478 | 111,433 | 115,011 | 85,723 | 81,161 | 106,049 | 102,185 | 122,858 | ||||
| – One year later | 85,814 | 93,664 | 96,446 | 99,649 | 111,55 | 0 | 81,882 | 82,487 | 102,066 | 99,913 | ||||
| – Two years later | 81,164 | 87,824 | 91,806 | 98,641 | 111,347 | 80,990 | 80,146 | 100,202 | ||||||
| – Three years later | 77,8 69 | 85,243 | 91,179 | 99,071 | 111,3 42 | 78,353 | 80,579 | |||||||
| – Four years later | 76,409 | 84,995 | 88,545 | 100,893 | 112,156 | 78,193 | ||||||||
| – Five years later | 76,254 | 84,891 | 92,002 | 103,254 | 114,153 | |||||||||
| – Six years later | 76,011 | 86,784 | 92,375 | 103,873 | ||||||||||
– Seven years later | 76,581 | 86,536 | 93,897 | |||||||||||
– Eight years later | 76,425 | 85,464 | ||||||||||||
– Nine years later | 76,445 | |||||||||||||
Current estimate of cumulative claims | 76,445 | 85,464 | 93,897 | 103,873 | 114 ,15 3 | 78,193 | 80,579 | 100,202 | 99,913 | 122,858 | ||||
Cumulative net claims paid | (75,657) | (84,089) | (85,462) | (98,539) | (104,853) | (70,739) | (65,507) | (73,666) | (65,465) | (47,731) | ||||
Undiscounted net liabilities – accident years from 2015 to 2024 | 788 | 1,375 | 8,435 | 5,334 | 9,300 | 7, | 45 4 | 15,072 | 26,536 | 34,448 | 75,127 | 183,869 | ||
Undiscounted net liabilities – accident years from 2014 and before | 8,703 | |||||||||||||
Effect of discounting | (21,483) | |||||||||||||
Total net liabilities for incurred claims (“LIC”) | 171,089 | |||||||||||||
Liabilities for remaining coverage (“LRC”) | 66,077 | |||||||||||||
Total net liabilities included in the Statement of Financial Position | 237,166 | |||||||||||||
LIC | LRC | Total | ||
Motor Vehicle | 138,763 | 55,547 | 194,310 | |
Motorcycle | 15,410 | 3,010 | 18,420 | |
Taxi | 16,916 | 7,52 | 0 | 24,436 |
Total | 171,0 89 | 66,077 | 237,16 6 |
Notes to the Consolidated Financial Statements continued
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Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
2024 | 2023 | |||||||
| Motor | Motor | |||||||
Vehicles | Motorcycle | Taxi | Total | Vehicles | Motorcycle | Taxi | Total | |
£’k | £’k | £’k | £’k | £’k | £’k | £’k | £’k | |
| Insurance revenue | ||||||||
Insurance revenue from contracts measured under the PAA | 222,635 | 10,199 | 15,297 | 248,131 | 158,054 | 15,363 | 14,829 | 188,246 |
Total insurance revenue | 222,635 | 10,199 | 15,297 | 248,131 | 158,054 | 15,363 | 14,829 | 188,246 |
| Insurance service expense | ||||||||
Incurred claims and other directly attributable expenses | (117,752) | (6,873) | (18,150) | (142,775) | (91,688) | (16,087) | (15,887) | (123,662) |
Changes that relate to past service – changes in the FCF relating to the LIC | 1,769 | 188 | 4,323 | 6,280 | (861) | 1,796 | (2,713) | (1,778) |
Amortisation of insurance acquisition cash flows | (14,234) | (1,993) | (1,939) | (18,166) | (10,206) | (1,953) | (1,898) | (14,057) |
Total insurance service expense | (130,217) | (8,678) | (15,766) | (154,661) | (102,755) | (16,244) | (20,498) | (139,497) |
| Net (expense)/income from reinsurance contracts held | ||||||||
Reinsurance expenses – contracts measured under the PAA | (3 0 ,119) | (1,405) | (2,093) | (33,617) | (23,800) | (2,444) | (2,262) | (28,506) |
Incurred claims recovery | 13,223 | 944 | 5,271 | 19,438 | 17,3 67 | 5,947 | 2,527 | 25,841 |
Changes that relate to past service – changes in the FCF relating to incurred claims recovery | (3,803) | 262 | (2 ,871) | (6,412) | 4,758 | (1,184) | 2,117 | 5,691 |
Total net (expense)/income from reinsurance contracts held | (20,699) | (199) | 307 | (20,591) | (1,675) | 2,319 | 2,382 | 3,026 |
Total insurance service result | 71,719 | 1,322 | (162) | 72,879 | 53,624 | 1,438 | (3,287) | 51,775 |
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Notes to the Consolidated Financial Statements continued
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| 3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED | ||||||||
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
| Neither past | Carrying value | ||||
| due nor | Past due | Past due more | Assets that have | in the balance | |
| impaired | 1-90 days | than 90 days | been impaired | sheet | |
At 31 December 2024 | £’k | £’k | £’k | £’k | £’k |
Reinsurance contracts assets (1) | 202,231 | – | – | – | 202,231 |
Insurance receivables (2) | 41,755 | 22 | – | – | 41,777 |
Total | 243,986 | 22 | – | – | 244,008 |
| Neither past | Carrying value | ||||
| due nor | Past due | Past due more | Assets that have | in the balance | |
| impaired | 1-90 days | than 90 days | been impaired | sheet | |
At 31 December 2023 | £’k | £’k | £’k | £’k | £’k |
Reinsurance contracts assets (1) | 197,591 | – | – | – | 197,591 |
Insurance receivables (2) | 54,650 | 62 | – | – | 54,712 |
Total | 252,241 | 62 | – | – | 252,303 |
AAA | AA+ to AA- | A+ to A- | BBB+ to BBB- | BB+ and below | Not rated | Total | |
At 31 December 2024 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
Reinsurance contracts assets (1) | – | 102,138 | 100,093 | – | – | – | 202,231 |
Insurance receivables (2) | – | – | – | – | – | 41,777 | 41,777 |
Total | – | 102,138 | 100,093 | – | – | 41,777 | 244,008 |
AAA | AA+ to AA- | A+ to A- | BBB+ to BBB- | BB+ and below | Not rated | Total | |
At 31 December 2023 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
Reinsurance contracts assets (1) | – | 128,942 | 68,649 | – | – | – | 197,591 |
Insurance receivables (2) | – | – | – | – | – | 54,712 | 54,712 |
Total | – | 128,942 | 68,649 | – | – | 54,712 | 252,303 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
2024 | 2023 | |||||||
| Insurance | Non-insurance | Insurance | Non-insurance | |||||
| related | related | Total | related | related | Total | |||
Notes | £’k | £’k | £’k | £’k | £’k | £’k | ||
| Investment income | ||||||||
| Interest income on financial assets | ||||||||
using effective interest rate method | 4.5 | 7,5 01 | 425 | 7,926 | 3,506 | 269 | 3,775 | |
Amounts recognised in OCI | 4.6 | 3,774 | – | 3,774 | 9,284 | – | 9,284 | |
Total investment income | 11, 275 | 425 | 11,70 | 0 | 12,790 | 269 | 13,059 | |
Insurance finance expenses from insurance contracts issued | ||||||||
Interest accreted | (8,392) | – | (8,392) | (10,170) | – | (10,170) | ||
Effect of changes in interest rates and other financial assumptions | 6,852 | – | 6,852 | (12,436) | – | (12,436) | ||
(1,540) | – | (1,540) | (22,606) | – | (22,606) | |||
Reinsurance finance income from reinsurance contracts held | ||||||||
Interest accreted | 3,714 | – | 3,714 | 3,588 | – | 3,588 | ||
Effect of changes in interest rates and other financial assumptions | (5,880) | – | (5,880) | 5,432 | – | 5,432 | ||
(2 ,166) | – | (2,166) | 9,020 | – | 9,020 | |||
Net insurance finance expense | (3,706) | – | (3,706) | (13,586) | – | (13,586) | ||
Net financial results | 7,569 | 425 | 7,9 94 | (796) | 269 | (527) | ||
| Represented by: | ||||||||
Amounts recognised in Profit or Loss | 2,823 | 425 | 3,248 | (3,076) | 269 | (2,807) | ||
Amounts recognised in OCI | 4,746 | – | 4,746 | 2,280 | – | 2,280 | ||
Total | 7,569 | 425 | 7,9 94 | (796) | 269 | (527) | ||
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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3. INSURANCE LIABILITIES AND REINSURANCE ASSETS CONTINUED
2024 | 2023 | ||
Notes | £’k | £’k | |
Cash and cash equivalents | 4.1 | 31,314 | 35,079 |
Debt securities held at fair value through other comprehensive income | 4.2 | 311,184 | 264,679 |
Receivables | 4.3 | 32 | 87 |
Total | 342,530 | 299,845 |
2024 | 2023 | |
£’k | £’k | |
Cash at bank and on hand | 18,174 | 12,890 |
Money market funds | 13,140 | 22,189 |
Total | 31,314 | 35,079 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
2024 | 2023 | ||||
£’k | % holdings | £’k | % holdings | ||
Government bonds | 112 ,793 | 36.2% | 107,0 4 0 | 40.4% | |
Government-backed securities | 103,267 | 33.2% | 81,942 | 31.0% | |
Corporate bonds | 95,124 | 30.6% | 75,697 | 28.6% | |
Total | 311,18 | 4 | 100.0% | 264,679 | 100.0% |
Notes to the Consolidated Financial Statements continued
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4. FINANCIAL ASSETS CONTINUED
| Government- | ||||||
| Government | backed | Corporate | ||||
| bonds | securities | bonds | Total | |||
At 31 December 2024 | £’k | £’k | £’k | £’k | % holdings | |
United Kingdom | 112 ,79 3 | 3,038 | 31,187 | 147,018 | 47.2% | |
Europe | – | 59,277 | 37,0 02 | 96,279 | 30.9% | |
Northern America | – | 25,761 | 19,863 | 45,624 | 14.7% | |
Oceania | – | – | 4,973 | 4,973 | 1.6% | |
Asia | – | 15,191 | 2,099 | 17,2 90 | 5.6% | |
Total | 112 ,793 | 103,267 | 95,124 | 311,18 | 4 | 100.0% |
| Government- | |||||
| Government | backed | Corporate | |||
| bonds | securities | bonds | Total | ||
At 31 December 2023 | £’k | £’k | £’k | £’k | % holdings |
United Kingdom | 107,0 40 | – | 32,364 | 139,404 | 52.7% |
Europe | – | 50,982 | 28,736 | 79,718 | 30.1% |
Northern America | – | 28,284 | 12,643 | 40,927 | 15.5% |
Oceania | – | – | 1,954 | 1,954 | 0.7% |
Asia | – | 2,676 | – | 2,676 | 1.0% |
Total | 107,0 4 0 | 81,942 | 75,697 | 264,679 | 100.0% |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
Agency | Supranational | Total | |
At 31 December 2024 | £’k | £’k | £’k |
Government-backed securities | 43,921 | 59,346 | 103,267 |
% of holdings | 42.5% | 57. 5% | 100.0% |
Financial | Industrial | Utilities | Total | |
At 31 December 2024 | £’k | £’k | £’k | £’k |
Corporate bonds | 51,698 | 38,873 | 4,553 | 95,124 |
% of holdings | 54.3% | 40.9% | 4.8% | 100.0% |
Agency | Supranational | Total | |
At 31 December 2023 | £’k | £’k | £’k |
Government-backed securities | 40,310 | 41,632 | 81,942 |
% of holdings | 49.2% | 50.8% | 100.0% |
Financial | Industrial | Utilities | Total | |
At 31 December 2023 | £’k | £’k | £’k | £’k |
Corporate bonds | 40,973 | 31,117 | 3,607 | 75,697 |
% of holdings | 54.1% | 41.1% | 4.8% | 100.0% |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
Decrease in profit after tax | Decrease in total equity | |||
2024 | 2023 | 2024 | 2023 | |
At 31 December | £’k | £’k | £’k | £’k |
| Interest rate | ||||
Impact of a 100-basis point increase in interest rates on debt securities at FVOCI | – | – | (3,250) | (2,758) |
Impact of a 200-basis point increase in interest rates on debt securities at FVOCI | – | – | (6,499) | (5,516) |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
Level 1 | Level 2 | Level 3 | Total | |||
At 31 December 2024 | £’k | £’k | £’k | £’k | ||
| Assets held at fair value | ||||||
Debt securities held at FVOCI | 311,184 | – | – | 311,18 | 4 | |
Total | 311,18 | 4 | – | – | 311,184 | |
| Level 1 Level 2 Level 3 Total |
At 31 December 2023 | £’k | £’k | £’k | £’k |
| Assets held at fair value | ||||
Debt securities held at FVOCI | 264,679 | – | – | 264,679 |
Total | 264,679 | – | – | 264,679 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
2024 | 2023 | ||
Notes | £’k | £’k | |
Other debtors | 32 | 87 | |
Total | 32 | 87 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
AAA | AA+ to AA- | A+ to A- | BBB+ to BBB- | BB+ and below | Not rated | Total | ||
At 31 December 2024 | £’k | £’k | £’k | £’k | £’k | £’k | £’k | |
UK government bonds | – | 112 ,793 | – | – | – | – | 112 ,793 | |
Government-backed securities | 98,963 | 4,304 | – | – | – | – | 103,267 | |
Corporate bonds | 1,127 | 20,050 | 57,270 | 16,677 | – | – | 95,124 | |
Receivables | – | – | – | – | – | 32 | 32 | |
Cash and cash equivalents | 13,140 | 51 | 18,123 | – | – | – | 31,314 | |
Total | 113 | ,23 0 | 137,198 | 75,393 | 16,677 | – | 32 | 342,530 |
AAA | AA+ to AA- | A+ to A- | BBB+ to BBB- | BB+ and below | Not rated | Total | |
At 31 December 2023 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
UK government bonds | – | 107,0 40 | – | – | – | – | 107,0 40 |
Government-backed securities | 81,942 | – | – | – | – | – | 81,942 |
Corporate bonds | – | 4,153 | 51,020 | 20,524 | – | – | 75,697 |
Receivables | – | – | – | – | – | 87 | 87 |
Cash and cash equivalents | 22,189 | 51 | 12,839 | – | – | – | 35,079 |
Total | 104,131 | 111,244 | 63,859 | 20,524 | – | 87 | 299,845 |
| Gross carrying | Allowance | ||
| amount | for ECL | Net amount | |
At 31 December 2024 | £’k | £’k | £’k |
Government bonds | 112,793 | (3) | 112 ,79 0 |
Government-backed securities | 103,267 | (4) | 103,263 |
Corporate bonds | 95,124 | (35) | 95,089 |
Receivables | 32 | – | 32 |
Cash and cash equivalents | 31,314 | – | 31,314 |
Total | 342,530 | (42) | 342,488 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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| 4. FINANCIAL ASSETS CONTINUED | |||
2024 | 2023 | |
£’k | £’k | |
| Interest income on financial assets using effective interest rate method | ||
Interest income from debt securities | 6,458 | 3,131 |
Interest income from cash and cash equivalents | 1,468 | 644 |
Total | 7,926 | 3,775 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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4. FINANCIAL ASSETS CONTINUED
2024 | 2023 | |
£’k | £’k | |
| Other comprehensive income | ||
Unrealised fair value gains on debt securities | 3,769 | 9,278 |
Expected credit loss | 5 | 6 |
Unrealised fair value gains on debt securities through Other Comprehensive Income | 3,774 | 9,284 |
Net gains from fair value adjustments on financial assets | 3,774 | 9,284 |
2024 | 2023 | |
£’k | £’k | |
Trade and other creditors | 951 | 2,149 |
Other taxes | 6,044 | 7,5 51 |
Total | 6,995 | 9,700 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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Up to 1 year | 1 – 2 years | 2 – 3 years | 3 – 4 years | 4 – 5 years | Over 5 years | Total | ||
At 31 December 2024 | £’k | £’k | £’k | £’k | £’k | £’k | £’k | |
Cash and cash equivalents (1) | 31,314 | – | – | – | – | – | 31,314 | |
UK government bonds | 11,810 | 32,790 | 19,855 | 30,628 | 17,710 | – | 112 ,79 3 | |
Government-backed securities | 39,740 | 38,861 | 7,92 | 9 | 6,034 | 10,703 | – | 103,267 |
Corporate bonds | 37,5 4 6 | 20,366 | 11,347 | 19,091 | 6,230 | 544 | 95,124 | |
Receivables | 32 | – | – | – | – | – | 32 | |
Reinsurance contract assets | 56,652 | 31,084 | 18,558 | 19,662 | 15,631 | 60,644 | 202,231 | |
Total | 177,0 94 | 123,101 | 57,689 | 75,415 | 50,274 | 61,188 | 544,761 |
Up to 1 year | 1 – 2 years | 2 – 3 years | 3 – 4 years | 4 – 5 years | Over 5 years | Total | |
At 31 December 2023 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
Cash and cash equivalents (1) | 35,079 | – | – | – | – | – | 35,079 |
UK government bonds | 22,008 | 8,513 | 32,136 | 13,374 | 31,009 | – | 107,0 4 0 |
Government-backed securities | 57,722 | 13,914 | 3,327 | 5,601 | 1,378 | – | 81,942 |
Corporate bonds | 8,987 | 37,000 | 12,953 | 10,216 | 6,541 | – | 75,697 |
Receivables | 87 | – | – | – | – | – | 87 |
Reinsurance contract assets | 68,215 | 30,182 | 23,361 | 14,267 | 12,142 | 49,425 | 197,592 |
Total | 192,098 | 89,609 | 71,777 | 43,458 | 51,070 | 49,425 | 497,437 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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6. LIQUIDITY RISK CONTINUED
Up to 1 year | 1 – 2 years | 2 – 3 years | 3 – 4 years | 4 – 5 years | Over 5 years | Total | |
At 31 December 2024 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
Payables | 6,995 | – | – | – | – | – | 6,995 |
Insurance contract liabilities (2) | 88,992 | 74,407 | 42,761 | 34,427 | 25,261 | 77,787 | 343,635 |
Total | 95,987 | 74,407 | 42,761 | 34,427 | 25,261 | 77,787 | 350,630 |
Up to 1 year | 1 – 2 years | 2 – 3 years | 3 – 4 years | 4 – 5 years | Over 5 years | Total | |
At 31 December 2023 | £’k | £’k | £’k | £’k | £’k | £’k | £’k |
Payables | 9,700 | – | – | – | – | – | 9,700 |
Insurance contract liabilities (2) | 83,152 | 65,618 | 45,253 | 26,746 | 19,598 | 60,226 | 300,593 |
Total | 92,852 | 65,618 | 45,253 | 26,746 | 19,598 | 60,226 | 310,293 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2024 | 2023 | |
£’k | £’k | |
Administration fees | 182 | 495 |
Brokerage and other fee income | 558 | 737 |
Total | 740 | 1,232 |
| Brokerage and other fee income relates to auxiliary products and services, including brokerage and administration fees, all relating to the Motor |
2024 | 2023 | ||
Notes | £’k | £’k | |
Employee expenses | 8.1 | 15,426 | 13,869 |
Property expenses | 500 | 689 | |
IT expense, including IT depreciation | 6,756 | 5,961 | |
Other depreciation | 113 | 59 | |
Industry levies | 5,994 | 5,936 | |
Policy servicing costs | 3,153 | 2,491 | |
Other operating expenses | 3,399 | 3,328 | |
Movement in expected credit loss on debt securities | 5 | 6 | |
Impairment loss on owner occupied properties | – | 333 | |
Before adjustment for directly attributable claims expenses | 35,346 | 32,672 | |
| Adjusted for: | |||
Reclassification of directly attributable claims expenses | (7,041) | (6,085) | |
Total operating expenses | 28,305 | 26,587 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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8. OTHER OPERATING EXPENSES CONTINUED
2024 | 2023 | |
£’k | £’k | |
Wages and salaries | 11,332 | 10,079 |
Social security expenses | 1,464 | 1,276 |
Contributions to defined contribution plans | 598 | 557 |
Equity-settled share-based payment | 1,607 | 1,606 |
Other employee expenses | 425 | 351 |
Before adjustment for directly attributable claims expenses | 15,426 | 13,869 |
| Adjusted for: | ||
Reclassification of directly attributable claims expenses | (4,799) | (4,146) |
Employee expenses | 10,627 | 9,723 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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8. OTHER OPERATING EXPENSES CONTINUED
2024 | 2023 | |
Operations | 134 | 129 |
Support | 31 | 28 |
Total | 165 | 157 |
2024 | 2023 | |
£’k | £’k | |
Audit of these financial statements | 205 | 195 |
Audit of financial statements of subsidiaries of the Group | 253 | 251 |
Audit fees in relation to IFRS 17 transition | – | 190 |
Total audit fees | 458 | 636 |
Fees for non-audit services – Audit-related assurance services | 89 | 105 |
Fees for non-audit services – Other non-audit services | – | – |
Total non-audit fees | 89 | 105 |
Total auditor remuneration | 547 | 741 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2024 | 2023 | |
£’k | £’k | |
Owner-occupied property | 3,600 | 3,600 |
Office equipment | 539 | 652 |
IT equipment | 65 | 136 |
Total | 4,204 | 4,388 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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| Owner- | Office | |||
| occupied | equipment | IT equipment | Total | |
£’k | £’k | £’k | £’k | |
| Cost/Valuation | ||||
At 1 January 2024 | 4,358 | 720 | 487 | 5,565 |
Additions/Improvements | – | – | – | – |
Disposals | – | – | – | – |
Revaluation | – | – | – | – |
At 31 December 2024 | 4,358 | 720 | 487 | 5,565 |
| Accumulated depreciation and impairment | ||||
At 1 January 2024 | 758 | 68 | 351 | 1,177 |
Depreciation charge for the year | – | 113 | 71 | 184 |
Disposals | – | – | – | – |
Impairment losses on revaluation | – | – | – | – |
At 31 December 2024 | 758 | 181 | 422 | 1,361 |
| Carrying amount | ||||
At 31 December 2024 | 3,600 | 539 | 65 | 4,204 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
9. PROPERTY, PLANT AND EQUIPMENT CONTINUED
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9. PROPERTY, PLANT AND EQUIPMENT CONTINUED
| Owner- | Office | |||
| occupied | equipment | IT equipment | Total | |
£’k | £’k | £’k | £’k | |
| Cost/Valuation | ||||
At 1 January 2023 | 4,250 | 41 | 409 | 4,700 |
Additions/Improvements | 908 | 679 | 78 | 1,665 |
Disposals | – | – | – | – |
Revaluation | (800) | – | – | (800) |
At 31 December 2023 | 4,358 | 720 | 487 | 5,565 |
| Accumulated depreciation and impairment | ||||
At 1 January 2023 | 425 | 9 | 270 | 704 |
Depreciation charge for the year | – | 59 | 81 | 140 |
Disposals | – | – | – | – |
Impairment losses on revaluation | 333 | – | – | 333 |
At 31 December 2023 | 758 | 68 | 351 | 1,177 |
| Carrying amount | ||||
At 31 December 2023 | 3,600 | 652 | 136 | 4,388 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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9. PROPERTY, PLANT AND EQUIPMENT CONTINUED
The fair value of the owner-occupied properties was derived using the investment method supported by comparable evidence. The significant
non-observable inputs used in the valuations are the expected rental values per square foot and the capitalisation rates. The fair value of the
owner-occupied properties valuation would increase (decrease) if the expected rental values per square foot were to be higher (lower) and the
capitalisation rates were to be lower (higher).
The fair value measurement of owner-occupied properties of £3,600k (2023: £3,600k) has been categorised as a Level 3 fair value based on the
non-observable inputs to the valuation technique used.
The following table shows reconciliation to the closing fair value for the Level 3 owner-occupied property at valuation:
2024 | 2023 | |
£’k | £’k | |
At 1 January | 3,600 | 3,825 |
Additions/Improvements | – | 908 |
Revaluation losses | – | (800) |
Impairment losses | – | (333) |
At 31 December | 3,600 | 3,600 |
The fair value of owner-occupied properties includes a revaluation reserve of £NIL (2023: £NIL) (excluding tax impact) and is not distributable.
Revaluation losses are charged against the related revaluation reserve to the extent that the decrease does not exceed the amount held in the
revaluation surplus in respect of the same asset. Any additional losses are charged as an impairment loss in the Profit or Loss Account. Reversal
of such impairment losses in future periods will be credited to the Profit or Loss Account to the extent losses were previously charged to the Profit
or Loss Account.
The table below shows the impact a 15% decrease in property markets will have on the Group’s profit after tax and equity:
Decrease in profit after tax | Decrease In total equity | |||||
2024 | 2023 | 2024 | 2023 | |||
£'k | £'k | £'k | £'k | |||
| Owner-occupied property | ||||||
Impact of a 15% decrease in property markets | (405) | (309) | (405) | (309) |
Historical cost model values
If owner-occupied properties were carried under the cost model (historical costs, less accumulated depreciation and impairment losses),
the value of owner-occupied properties in the balance sheet would have been £3,229k (2023: £3,349k).
Notes to the Consolidated Financial Statements continued
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2024 | 2023 | |
£’k | £’k | |
| Current taxation | ||
Charge for the year | 12 ,157 | 4,444 |
Charge relating to prior periods | 570 | – |
12,727 | 4,444 | |
| Deferred taxation (Note 11) | ||
Origination and reversal of temporary differences | (126) | 1,104 |
(126) | 1,104 | |
Current taxation | 12,727 | 4,444 |
Deferred taxation (Note 11) | (126) | 1,104 |
Income tax expense | 12,601 | 5,548 |
2024 | 2023 | |
£’k | £’k | |
Current taxation | – | 31 |
Deferred taxation | 549 | 599 |
549 | 630 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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10. INCOME TAX EXPENSE CONTINUED
The actual income tax expense differs from the expected income tax expense computed by applying the standard rate of UK corporation tax of
25.0% (2023: 23.5%) as follows:
2024 | 2023 | |
£’k | £’k | |
Profit before tax | 48,562 | 23,613 |
Expected income tax expense | 12,141 | 5,548 |
| Effect of: | ||
Expenses not deductible for tax purposes | (86) | 12 |
Adjustment of deferred tax to average rate of 25% | – | (1) |
Adjustment in respect of prior periods | 570 | – |
Other income tax adjustments | (24) | (11) |
Income tax expense for the year | 12,601 | 5,548 |
Effective income tax rate | 25.9% | 23.5% |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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| Fair value | ||||||
| Provisions and | Depreciation in | movements in | Movement | |||
| other temporary | excess of capital | Share-based | debt securities | in insurance | ||
| differences | allowances | payments | at FVOCI | finance reserve | Total | |
£’k | £’k | £’k | £’k | £’k | £’k | |
At 1 January 2023 | – | (20) | 253 | 4,151 | (1,993) | 2,391 |
(Debit)/Credit to the Profit or Loss | – | (160) | 215 | (6) | (1,153) | (1,104) |
(Debit)/Credit to Other Comprehensive Income | – | – | – | (2,149) | 1,550 | (599) |
At 31 December 2023 | – | (180) | 468 | 1,996 | (1,596) | 688 |
(Debit)/Credit to the Profit or Loss | – | 43 | 88 | (5) | – | 126 |
(Debit)/Credit to Other Comprehensive Income | – | – | – | (944) | 395 | (549) |
At 31 December 2024 | – | (137) | 556 | 1,047 | (1,201) | 265 |
2024 | 2023 | |
£’k | £’k | |
| Per Statement of Financial Position: | ||
Deferred tax assets | 1,603 | 2,464 |
Deferred tax liabilities | (1,338) | (1,776) |
265 | 688 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2024 | 2023 | |||
| pence per | pence per | |||
share | £’k | share | £’k | |
| Amounts recognised as distributions to equity holders in the period | ||||
Interim dividend for the current year | 1.7 | 4,227 | 0.9 | 2,238 |
Final dividend for the prior year | 8.1 | 2 0,122 | 1.7 | 4,228 |
9.8 | 24,349 | 2.6 | 6,466 | |
| Proposed dividends | ||||
Final dividend (1) | 11.3 | 8.1 | 20,250 |
2024 | 2023 | |
£’k | £’k | |
Prepayments and accrued income | 778 | 774 |
Total | 778 | 774 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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2024 | 2023 | ||
£’k | £’k | ||
| Authorised share capital | |||
250,000,000 | Ordinary Shares of £0.001 each | 250 | 250 |
| Issued Ordinary Share capital (fully paid up): | |||
250,000,000 | Ordinary Shares of £0.001 each | 250 | 250 |
| Shares bought/(sold) on open | |||
| market | |||
Number of shares | £ | ||
As at 31 December 2022 | 1,431,576 | 2,809,506 | |
Acquisition of shares by the EBT | 435,758 | 631,940 | |
Disposal of shares by the EBT | – | – | |
Employee share scheme issue | (278,084) | (320,912) | |
As at 31 December 2023 | 1,589,250 | 3,120,534 | |
Acquisition of shares by the EBT | 986,377 | 1,483,654 | |
Disposal of shares by the EBT | – | – | |
Employee share scheme issue | (612,919) | (1,491,750) | |
As at 31 December 2024 | 1,962,708 | 3 ,112 | ,4 3 8 |
In thousands | £’k | ||
31 December 2023 | 3,121 | ||
31 December 2024 | 3,112 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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15. SHARE CAPITAL CONTINUED
16. SHARE-BASED PAYMENTS
The Group operates equity-settled share-based schemes for all employees in the form of a Long Term Incentive Plan (“LTIP”), Deferred Bonus Plan
(“DBP”) and Share Incentive Plans (“SIP”), including Free Shares and Save As You Earn (“SAYE”). The shares are in the ultimate Parent Company,
Sabre Insurance Group plc.
The Group recognised a total expense in the Profit or Loss for the year ended 31 December 2024 of £1,607k (2023: £1,606k), relating to equity-
settled share-based plans.
Long Term Incentive Plan (“LTIP”)
The LTIP is a discretionary share plan, under which the Board may grant share-based awards (“LTIP Awards”) to incentivise and retain eligible
employees.
LTIP Awards – Restricted Share Awards (“RSAs”)
From 2021, the Group no longer issues awards under the LTIP Awards with performance conditions, but instead issues RSAs.
The RSAs are structured as nil-cost rewards, to receive free shares on vesting. Shares will normally vest three years after grant date, subject to
continued employment and the satisfaction of pre-determined underpins. Awards are also subject to an additional two-year holding period,
so that the total time prior to any potential share sale (except to meet any tax liabilities arising from the award) will generally be five years.
The total number of shares awarded under the scheme was 935,780 (2023: 1,244,964) with an estimated fair value at grant date of £1,581k
(2023: £1,484k). The fair value is based on the closing share price on the grant date.
Future dividends are accrued separately and are not reflected in the fair value of the grant.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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16. SHARE-BASED PAYMENTS CONTINUED
The table below details the movement in the RSA:
| Weighted | ||
| Number of | Average | |
| shares | Exercise Price | |
Outstanding at 1 January 2023 | 982,258 | NIL |
Granted | 1,244,964 | NIL |
Forfeited | – | NIL |
Vested | – | NIL |
Outstanding at 31 December 2023 | 2,227,222 | NIL |
Granted | 935,780 | NIL |
Forfeited | (40,863) | NIL |
Vested | (441,684) | NIL |
Outstanding at 31 December 2024 | 2,680,455 | NIL |
The average unexpired life of RSAs is 1.3 years (2023: 1.4 years).
Deferred Bonus Plan (“DBP”)
To encourage behaviour which does not benefit short-term profitability over longer-term value, Directors and some key staff were awarded shares
in lieu of a bonus, to be deferred for two years, using the market value at the grant date. The total number of shares awarded under the scheme
was 218,033 (2023: NIL) with an estimate fair value of £374k (2023: £NIL). Of this award, the number of shares awarded to Directors and Persons
Discharging Managerial Responsibilities (“PDMRs”) was 204,392 (2023: NIL) with an estimated fair value of £351k (2023: £NIL). Fair values are
based on the share price at grant date. All shares are subject to a two-year service period and are not subject to performance conditions.
Future dividends are accrued separately and are not reflected in the fair value of the grant.
The DBP is recognised in the Profit or Loss Account on a straight-line basis over a period of two years from grant date.
Share Incentive Plans (“SIPs”)
The Sabre SIPs provide for the award of free Sabre Insurance Group plc shares, Partnership Shares (shares bought by employees under the
matching scheme), Matching Shares (free shares given by the employer to match partnership shares) and Dividend Shares (shares bought for
employees with proceeds of dividends from partnership shares). The shares are owned by the Employee Benefit Trust to satisfy awards under the
plans. These shares are either purchased on the market and carried at fair value or issued by the Parent Company to the trust.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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16. SHARE-BASED PAYMENTS CONTINUED
Matching Shares
The Group has a Matching Shares scheme under which employees are entitled to invest between £10 and £150 each month through the share
trust from their pre-tax pay. The Group supplements the number of shares purchased by giving employees 1 free matching share for every 3 shares
purchased up to £1,800. Matching shares are subject to a three-year service period before the matching shares are awarded. Dividends are paid
on shares, including matching shares, held in the trust by means of dividends shares. The fair value of such awards is estimated to be the market
value of the awards on grant date.
In the year ended 31 December 2024, 11,464 (2023: 16,017) matching shares were granted to employees with an estimated fair value of £16k
(2023: £24k).
As at 31 December 2024, 48,134 (2023: 40,940) matching shares were held on behalf of employees with an estimated fair value of £66k (2023: £62k).
The average unexpired life of Matching Share awards is 1.5 years (2023: 1.8 years).
Save as You Earn (“SAYE”)
The SAYE scheme allows employees to enter into a regular savings contract of between £5 and £500 per month over a three-year period, coupled
with a corresponding option over shares. The grant price is equal to 80% of the quoted market price of the shares on the invitation date.
The participants of the SAYE scheme are not entitled to dividends and therefore dividends are excluded from the valuation of the SAYE scheme.
Estimated fair value of options at grant date:
SAYE 2022: 40 pence
SAYE 2023: 49 pence
SAYE 2024: 33 pence
The following table lists the inputs to the Black-Scholes model used to value the awards granted in respect of the 2024 SAYE scheme.
2024 | SAYE | |
Share price at grant date | 172 .2 pe nc e | |
Expected term | 3 years | |
Expected volatility (1) | 30.2% | |
Continuously compounded risk-free rate | 1.5% | |
Continuously compounded dividend yield | 6.0% | |
Strike price at grant date | 141.8 pence |
(1) Volatility has been estimated using the historical daily average volatility of the share price of the Group for the year immediately preceding the grant date
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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16. SHARE-BASED PAYMENTS CONTINUED
The table below details the movement in the SAYE scheme:
| Weighted | ||
| Number of | Average | |
| shares | Exercise Price | |
Outstanding at 1 January 2023 | 350,231 | 2.00 |
Granted | 768,616 | 0.85 |
Forfeited | (260,442) | NIL |
Vested | – | NIL |
Outstanding at 31 December 2023 | 858,405 | 1.33 |
Granted | 102,880 | 1.42 |
Forfeited | (49,0 01) | NIL |
Vested | – | NIL |
Outstanding at 31 December 2024 | 912,284 | 0.99 |
The average unexpired life of SAYE scheme is 1.5 years (2023: 1.5 years)
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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17. RESERVES CONTINUED
18. RELATED PARTY TRANSACTIONS
Sabre Insurance Group plc is the ultimate parent and ultimate controlling party of the Group. The following entities included below form the Group.
Name | Principal business | Registered address |
| Entities in which the Group holds | ||
| 100% of the issued share capital | ||
Binomial Group Limited | Intermediate holding company | Sabre House, 150 South Street, Dorking, Surrey, United Kingdom, RH4 2YY |
Sabre Insurance Company Limited | Motor insurance underwriter | Sabre House, 150 South Street, Dorking, Surrey, United Kingdom, RH4 2YY |
| Other controlled entities | ||
Sabre 2017 Share Incentive Plan | Employee Benefit Trust | Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA |
| The Sabre Insurance Group | ||
Employee Benefit Trust | Employee Benefit Trust | Ocorian, 26 New Street, St Helier, Jersey, JE2 3RA |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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18. RELATED PARTY TRANSACTIONS CONTINUED
No single party holds a significant influence (>20%) over Sabre Insurance Group plc.
Both Employee Benefit Trusts (“EBTs”) were established to assist in the administration of the Group’s employee equity-based compensation schemes.
The UK registered EBT holds the all-employee SIP. The Jersey-registered EBT holds the Long Term incentive Plan (“LTIP”) and Deferred Bonus Plan (“DBP”).
While the Group does not have legal ownership of the EBTs and the ability of the Group to influence the actions of the EBTs is limited to a trust
deed, the EBT was set up by the Group with the sole purpose of assisting in the administration of these schemes, and is in essence controlled by
the Group and therefore consolidated.
During the period ended 31 December 2024, the Group donated no shares to the EBTs (2023: NIL).
2024 | 2023 | |
£’k | £’k | |
Remuneration | 3,428 | 2,660 |
Contributions to defined contribution pension scheme | 10 | 9 |
Shares granted under LTIP | 954 | 912 |
Total | 4,392 | 3,581 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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19. EARNINGS PER SHARE
Basic earnings per share
2024 | 2023 | |||
After tax | Per share | After tax | Per share | |
£'k | pence | £'k | pence | |
Profit for the year attributable to ordinary shareholders | 35,961 | 14.48 | 18,065 | 7. 27 |
Diluted earnings per share
| 2024 | |||
| Weighted | |||
After tax | average number | Per share | |
£'k | of shares (000s) | pence | |
Profit for the year attributable to ordinary shareholders | 35,961 | 248,419 | 14.48 |
Net share awards allocable for no further consideration | 1,880 | (0 .11) | |
Total diluted earnings | 250,299 | 14.37 |
| 2023 | |||
| Weighted | |||
After tax | average number | Per share | |
£'k | of shares (000s) | pence | |
Profit for the year attributable to ordinary shareholders | 18,065 | 248,636 | 7. 27 |
Net share awards allocable for no further consideration | 2,201 | (0.07) | |
Total diluted earnings | 250,837 | 7. 20 |
20. EVENTS AFTER THE BALANCE SHEET DATE
Other than the declaration of a final dividend as disclosed in Note 12, there have been no material changes in the affairs or financial position
of the Group and its subsidiaries since the Statement of Financial Position date.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2024
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Parent Company Statement of Financial Position
As at 31 December 2024
2024 2023
Notes £'k £'k
Assets
Cash and cash equivalents 282 23
Receivables 2 27 41
Other assets 11 32
Investments 3 453,213 451,606
Total assets 453,533 451,702
Liabilities
Payables 4 721 –
Other liabilities 109 380
Total liabilities 830 380
Equity
Share capital 250 250
Own shares (3 ,112) (3,121)
Merger reserve 236,949 236,949
Share-based payments reserve 2,620 2,686
Retained earnings 215,996 214,558
Total equity 452,703 451,322
Total liabilities and equity 453,533 451,702
No income statement is presented for Sabre Insurance Group plc as permitted by section 408 of the Companies Act 2006. The profit after tax
of the Parent Company for the period was £25,604k (2023: £7,437k profit after tax).
The attached notes on pages 136 to 199 form an integral part of these financial statements.
The financial statements on pages 200
to 207 were approved by the Board of
Directors and authorised for issue on
17 March 2025.
Signed on behalf of the Board of Directors
by:
ADAM WESTWOOD
Chief Financial Officer
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Parent Company Statement of Changes in Equity
For the year ended 31 December 2024
Share
capital
Own
shares
Merger
reserve
Share-based
payments
reserve
Retained
earnings
Total
equity
£'k £'k £'k £'k £'k £'k
Balance as at 31 December 2022 250 (2,810) 236,949 2,407 212,581 449,377
Profit for the period attributable to the owners of the Company – – – – 7, 437 7, 4 37
Share-based payment expense – – – 279 1,006 1,285
Net movement in own shares – (311) – – – (311)
Dividends paid – – – – (6,466) (6,466)
Balance as at 31 December 2023 250 (3,121) 236,949 2,686 214,558 451,322
Profit for the period attributable to the owners of the Company – – – – 25,604 25,604
Share-based payment expense – – – (66) 183 117
Net movement in own shares – 9 – – – 9
Dividends paid – – – – (24,349) (24,349)
Balance as at 31 December 2024 250 (3 ,112) 236,949 2,620 215,996 452,703
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Parent Company Statement of Cash Flows
For the year ended 31 December 2024
2024 2023
£'k £'k
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax for the year 25,604 7, 4 37
Operating cash flows before movements in working capital 25,604 7, 4 37
Movements in working capital:
Change in receivables 14 (38)
Change in other assets 22 179
Change in payables 721 (1,607)
Change in other liabilities (269) 289
Net cash generated/(used) from operating activities 26,092 6,260
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in acquiring and disposing of own shares (1,484) (632)
Dividends paid (24,349) (6,466)
Net cash generated/(used) by financing activities (25,833) (7,098)
Net increase/(decrease) in cash and cash equivalents 259 (838)
Cash and cash equivalents at the beginning of the year 23 861
Cash and cash equivalents at the end of the year 282 23
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Notes To The Parent Company Financial Statements
For the year ended 31 December 2024
1. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these Consolidated and Company Financial Statements are included in the
specific notes to which they relate. These policies have been consistently applied to all the years presented, unless otherwise indicated.
1.1. Basis of preparation
These financial statements present the Sabre Insurance Group plc Company financial statements for the period ended 31 December 2024,
comprising the Parent Company Statement of Financial Position, Parent Company Statement of Changes in Equity, Parent Company Statement
of Cash Flows, and related notes.
The financial statements of the Company have been prepared in accordance with UK-adopted international accounting standards, comprising
International Accounting Standards (“IAS”) and International Financial Reporting Standards (“IFRS”), and the requirements of the Companies Act
2006. Endorsement of accounting standards is granted by the UK Endorsement Board (“UKEB”).
In accordance with the exemption permitted under section 408 of the Companies Act 2006, the Company’s Profit or Loss Account and related
notes have not been presented in these separate financial statements.
The financial statements are prepared in accordance with the going concern principle using the historical cost basis, except for those financial
assets that have been measured at fair value.
The financial statements values are presented in pounds sterling (£) rounded to the nearest thousand (£’k), unless otherwise indicated.
The accounting policies that are used in the preparation of these separate financial statements are consistent with the accounting policies used
in the preparation of the consolidated financial statements of Sabre Insurance Group plc as set out in those financial statements.
As permitted by section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the Parent Company is not presented.
The additional accounting policies that are specific to the separate financial statements of the Company are set out below.
2. RECEIVABLES
2024 2023
£'k £'k
Due within one year
Amounts due from Group undertakings – 14
Other debtors 27 27
As at 31 December 27 41
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3. INVESTMENTS
The Company’s financial assets are summarised below:
2024 2023
£'k £'k
Investment in subsidiary undertakings 453,213 451,606
Total 453,213 451,606
3.1. Investment in subsidiary undertakings
ACCOUNTING POLICY – INVESTMENT IN SUBSIDIARY UNDERTAKINGS
Investment in subsidiaries is stated at cost less any impairment.
2024 2023
£'k £'k
As at 1 January 451,606 450,000
Additions 1,607 1,606
As at 31 December 453,213 451,606
The only operating insurance subsidiary of the Company is Sabre Insurance Company Limited, from which the value of the Group is wholly
derived, as there are no other trading entities within the Group. The Company performed its annual impairment test as at 31 December 2024
and 31 December 2023. The Company considers the relationship between the Group’s market capitalisation and the book value of its subsidiary
undertakings, among other factors, when reviewing for indicators of impairment. As at 31 December 2024 and 31 December 2023, the Company’s
securities were traded on a liquid market; therefore, market capitalisation could be used as an indicator of value.
Having carried out this assessment, the Board concluded, on the basis of the cautious assumptions outlined below, that the value in use is higher
than the current carrying value of the investment in subsidiary and no impairment is necessary.
Notes To The Parent Company Financial Statements continued
For the year ended 31 December 2024
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Notes To The Parent Company Financial Statements continued
For the year ended 31 December 2024
3. INVESTMENTS CONTINUED
Key assumptions
We have used a dividend discount model to estimate the value in use, wherein dividend payments are discounted to the present value. Dividends
have been estimated, based on forecasted financial information, over a four-year forecast period, with a terminal growth rate applied. The key
assumptions used in the preparation of future cash flows are: plan-period financial performance, dividend payout ratio, long-term growth rates
and discount rate.
The key assumptions used in the calculation for the value in use is set out below:
− Plan period financial performance set in line with the Group’s expectations
− Dividend payout ratio in line with the Group’s strategy
− Long-term growth rate beyond the plan period of 2%
− Discount rate of 8.4%, being a calculated cost of capital using market rate returns of Sabre and comparable insurers
These calculations use post-tax cash flow projections based on the Group’s capital models. As the value in use exceeds the carrying amount,
the recoverable amount remains supportable.
The Group has conducted sensitivity testing to the recoverable amount, in order to understand the relevance of these various factors in arriving
at the value in use.
− Dividend within the plan period – To assess the impact of reasonable changes in performance on our base case impairment analysis and
headroom, we flexed the dividend within the plan period by +10% and -10%. In doing so, the value in use varied by approximately 16% around
the central scenario.
− Long-term growth rate – To assess the impact of reasonable changes in the long-term growth rate on our base case impairment analysis and
headroom, we flexed the long-term growth rate by +1% and -1%. In doing so, the value in use varied by approximately 8% around the central
scenario.
− Discount rate – To assess the impact of reasonable changes in the dividend payout ratio on our base case impairment analysis and headroom,
we flexed the average discount rate by +2% and -2%. In doing so, the value in use varied by approximately 23% around the central scenario.
In all these scenarios there is material headroom over the carrying value of the investment in subsidiary.
Name of subsidiary Place of incorporation Principal activity
Directly held by the Company
Binomial Group Limited United Kingdom Intermediate holding company
Indirectly held by the Company
Sabre Insurance Company Limited United Kingdom Motor insurance underwriter
The registered office of each subsidiary is disclosed within Note 18 of the consolidated Group Financial Statement.
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4. PAYABLES
2024 2023
£'k £'k
Due within one year
Amounts due to Group undertakings 721 –
As at 31 December 721 –
5. SHARE CAPITAL AND RESERVES
Full details of the share capital and the reserves of the Company are set out in Note 15 and Note 17 to the consolidated financial statements.
6. DIVIDEND INCOME
ACCOUNTING POLICY – DIVIDEND INCOME
Dividend income from investment in subsidiaries is recognised when the right to receive payment is established.
7. RELATED PARTY TRANSACTIONS
Sabre Insurance Group plc, which is incorporated in the United Kingdom and registered in England and Wales, is the ultimate parent undertaking
of the Sabre Insurance Group of companies.
The following balances were outstanding with related parties at year end:
2024 2023
£'k £'k
Due (to)/from
Sabre Insurance Company Limited (721) 14
Total (721) 14
The outstanding balance represents cash transactions effected by Sabre Insurance Company Limited on behalf of its Parent Company, and will
be settled within one year.
Notes To The Parent Company Financial Statements continued
For the year ended 31 December 2024
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8. SHARE-BASED PAYMENTS
Full details of share-based compensation plans are provided in Note 16 to the consolidated financial statements.
9. RISK MANAGEMENT
The risks faced by the Company, arising from its investment in subsidiaries, are considered to be the same as those presented by the operations
of the Group. Details of the key risks and the steps taken to manage them are disclosed in Note 2 to the Consolidated Financial Statements.
10. DIRECTORS’ AND KEY MANAGEMENT REMUNERATION
The Directors and key management of the Group and the Company are the same. The aggregate emoluments of the Directors and the
remuneration and pension benefits payable in respect of the highest paid Director are included in the Directors’ Remuneration Report in the
Governance section of the Annual Report and Accounts.
Notes To The Parent Company Financial Statements continued
For the year ended 31 December 2024
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Financial Reconciliations
GROSS WRITTEN PREMIUM
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Insurance revenue 248,131 188,246 181,476
Less: Instalment income (4,493) (3,738) (3,300)
Less: Movement in unearned premium (7,2 03) 40,590 (6,919)
Gross written premium 236,435 225,098 171,257
NET LOSS RATIO
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Insurance service expense 154,661 139,497 126,607
Less: Amortisation of insurance acquisition cash flows (18,16 6) (14,057) (12,942)
Less: Amounts recoverable from reinsurers for incurred claims (13,026) (31,532) (6,304)
Less: Directly attributable claims expenses (7,041) (6,085) (6,210)
Add: Net impact of discounting 6,914 8,201 7,593
Undiscounted net claims incurred 123,342 96,024 108,744
Insurance revenue 248,131 188,246 181,476
Less: Instalment income (4,493) (3,738) (3,300)
Less: Reinsurance expense (33,617) (28,506) (24,958)
Net earned premium 210,021 156,002 153,218
Net loss ratio 58.7% 61.6% 71.0%
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EXPENSE RATIO
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Other operating expenses 28,305 26,587 22,815
Add: Amortisation of insurance acquisition cash flows 18,166 14,057 12,942
Add: Directly attributable claims expenses 7,041 6,085 6,210
Total operating expenses 53,512 46,729 41,967
Insurance revenue 248,131 188,246 181,476
Less: Instalment income (4,493) (3,738) (3,300)
Less: Reinsurance expense (33,617) (28,506) (24,958)
Net earned premium 210,021 156,002 153,218
Expense ratio 25.5% 30.0% 27. 4%
COMBINED OPERATING RATIO
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Net loss ratio 58.7% 61.6% 71.0%
Expense ratio 25.5% 30.0% 27. 4%
Combined operating ratio 84.2% 91.6% 98.4%
Financial Reconciliations continued
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DISCOUNTED NET LOSS RATIO
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Insurance service expense 154,661 139,497 126,607
Less: Amortisation of insurance acquisition cash flows (18,16 6) (14,057) (12,942)
Less: Amounts recoverable from reinsurers for incurred claims (13,026) (31,532) (6,304)
Less: Directly attributable claims expenses (7,041) (6,085) (6,210)
Net claims incurred 116,428 87,823 101,151
Insurance revenue 248,131 188,246 181,476
Less: Instalment income (4,493) (3,738) (3,300)
Less: Reinsurance expense (33,617) (28,506) (24,958)
Net earned premium 210,021 156,002 153,218
Discounted net loss ratio 55.4% 56.3% 66.0%
Financial Reconciliations continued
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DISCOUNTED COMBINED OPERATING RATIO
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Net loss ratio 55.4% 56.3% 66.0%
Expense ratio 25.5% 30.0% 27. 4%
Discounted combined operating ratio 80.9% 86.3% 93.4%
NET INSURANCE MARGIN
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
Net claims incurred 123,342 96,024 108,744
Total operating expenses 53,512 46,729 41,967
Total insurance expense 176,854 142,753 15 0,711
Insurance revenue 248,131 188,246 181,476
Less: Reinsurance expense (33,617) (28,506) (24,958)
Net insurance revenue 214,514 159,740 156,518
Net insurance margin 17.6% 10.6% 3.7%
Financial Reconciliations continued
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RETURN ON TANGIBLE EQUITY
For the year ended 31 December
2024 2023 2022
£’k £’k £’k
IFRS net assets at year end 258,346 242,412 228,988
Less: Goodwill at year end (156,279) (156,279) (156,279)
Closing tangible assets 102,067 86,133 72,709
Opening tangible equity 86,133 72,709 93,797
Average tangible equity 94,100 79,421 83,253
Profit after tax 35,961 18,065 11,078
Return on tangible equity 38.2% 22.7% 13.3%
SOLVENCY COVERAGE RATIO – PRE-DIVIDEND
As at 31 December
2024 2023 2022
£’k £’k £’k
Solvency II net assets 134,695 121,099 91,191
Solvency capital requirement 62,199 58,998 56,516
Solvency coverage ratio – pre-dividend 216.6% 205.3% 161.4%
SOLVENCY COVERAGE RATIO – POST-DIVIDEND
As at 31 December
2024 2023 2022
£’k £’k £’k
Solvency II net assets 134,695 121,099 91,191
Less: Interim/Final dividend (28,250) (20,250) (4,250)
Solvency II net assets – post-dividend 106,445 100,849 86,941
Solvency capital requirement 62,199 58,998 56,516
Solvency coverage ratio – post-dividend 171.1% 170.9% 153.8%
Financial Reconciliations continued
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Fair value through
OCI (“FVOCI”)
Unrealised gains and losses from the remeasurement of the fair
value financial assets are recognised in the Statement of Other
Comprehensive Income (“OCI”).
Financial Reporting
Council (“FRC”)
The UK’s regulator for the accounting, audit and actuarial
professions, promoting transparency and integrity in business.
Fulfilment cash flows
(“FCF”)
An explicit, unbiased and probability-weighted estimate (i.e.
expected value) of the present value of the future cash outflows
minus the present value of the future cash inflows that will arise as
the entity fulfils insurance contacts, including a risk adjustment for
non-financial risk.
Gross earned
premium (“GEP”)
The proportions of premium attributable to the periods of risk that
relate to the current accounting period. It represents gross written
premium (“GWP”) adjusted by the unearned premium provision at
the beginning and end of the accounting period, before deduction
of reinsurance expense.
Gross written
premium (“GWP”)
Gross written premium comprises all premiums in respect of policies
underwritten in a particular financial year, regardless of whether
such policies relate in whole or in part to a future financial year,
before deduction of reinsurance expense.
IFRS 17 “Insurance
Contracts”
An accounting standard that addresses the establishment of
principles for the recognition, measurement, presentation and
disclosure of insurance contracts within the scope of the standard
(Effective 1 January 2023).
IFRS net assets The difference between the Group’s total assets and total liabilities.
Insurance revenue Gross earned premium (“GEP”) plus instalment income.
International
Financial Reporting
Standards (“IFRS”)
Accounting standards issued by the IFRS Foundation and the
International Accounting Standards Board (“IASB”).
Acquisition cash flows Cash flows arising from the costs of selling, underwriting and starting
a group of insurance contracts (issued or expected to be issued)
that are directly attributable to the portfolio of insurance contracts
to which the group belongs. Such cash flows include cash flows
that are not directly attributable to individual contracts or groups
of insurance contracts within the portfolio.
Adjusted IFRS net
assets
Equals the Group’s IFRS net assets, less Goodwill.
Asset for incurred
claims (“AIC”)
The reinsurers’ share of the liability for incurred claims (“LIC”).
Asset for remaining
coverage (“ARC”)
The reinsurers’ share of the liability for remaining coverage (“LRC”).
Combined operating
ratio (“COR”)
The combined operating ratio is the ratio of total expenses
(which comprises commission expenses and operating expenses),
and net insurance claims relative to net earned premium (“NEP”),
expressed as a percentage.
Contractual service
margin (“CSM”)
This represents the unearned profit the entity will recognise as it
provides insurance contract service under the insurance contracts
in the group. It is a component of the carrying amount of the asset
or liability for a group of insurance contracts.
Coverage period The period during which the entity provides insurance contract
services. The period includes the insurance contract services that
relate to all premiums within the boundary of the insurance contract.
Effective tax rate Effective tax rate is defined as the approximate tax rate calculated
by dividing the Group’s profit before tax by the tax charge going
through the Profit or Loss Account.
Expense ratio Expense ratio is a measure of total expenses (which comprises
commission expenses and operating expenses), and claims
handling expenses, relative to net earned premium (“NEP”),
expressed as a percentage.
Glossary of Terms
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Liability for incurred
claims (“LIC”)
An entity’s obligation to:
a) Investigate and pay valid claims for insured events that have
already occurred, including events that have occurred but
for which claims have not been reported, and other incurred
insurance expenses; and
b) Pay amounts that are not included in (a) and that relate to:
i. insurance contract services that have already been provided; or
ii. any investment components or other amounts that are not
related to the provision of insurance contract services and that
are not in the liability for remaining coverage.
Liability for remaining
coverage (“LRC”)
An entity’s obligation to:
a) investigate and pay valid claims under existing insurance
contracts for insured events that have not yet occurred
(i.e. the obligation that relates to the unexpired portion
of the insurance coverage); and
b) pay amounts under existing insurance contracts that are not
included in (a) and that relate to:
i. insurance contract services not yet provided (i.e. the obligations
that relate to future provision of insurance contract services); or
ii. any investment components or other amounts that are not
related to the provision of insurance contract services and that
have not been transferred to the liability for incurred claims.
Net claims incurred Net claims incurred is equal to gross claims incurred less amounts
recovered from reinsurers.
Net earned premium
(“NEP”)
Gross earned premium (“GEP”) less reinsurance expense.
Net insurance
revenue
Insurance revenue less reinsurance expense.
Net loss ratio (“NLR”) Net loss ratio measures net insurance claims, less claims handling
expenses, relative to net earned premium expressed as a percentage.
Net insurance margin
(“NIM”)
Net insurance margin measures how much net insurance profit is
generated as a percentage of net insurance revenue.
Own Risk and
Solvency Assessment
(“ORSA”)
An prospective assessment of the Group’s risks and solvency capital
requirements.
Periodic Payment
Order (“PPO”)
A compensation award as part of a claims settlement that involves
making a series of annual payments to a claimant over their
remaining life to cover the costs of the care they will require.
Premium allocation
approach (“PAA”)
Method for measuring insurance contracts under IFRS 17
“Insurance Contracts”
Return on tangible
equity
Return on tangible equity is measured as the ratio of the Group’s
profit after tax to its average tangible equity over the financial year,
expressed as a percentage.
Risk adjustment for
non-financial risk
The compensation an entity requires for bearing the uncertainty
about the amount and timing of the cash flows that arises from
non-financial risk as the entity fulfils insurance contracts.
Solvency capital ratio The ratio of Own Funds (Solvency II capital) to Solvency Capital
Requirement “SCR”.
Solvency Capital
Requirement (“SCR”)
The total amount of capital that the Group must hold to cover
the risks under the Solvency II regulatory framework. The Group is
required to maintain eligible own funds of at least 100% of the SCR.
The Group uses the Standard Formula to determine the SCR.
Glossary of Terms continued
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Shareholder Information
SHAREHOLDERS
Shareholder profile as at 31 December 2024.
Balance ranges
Total number of
holdings
Percentage of
holders %
Total number of
shares
% issued
capital
1-100 13 4.48 588 0.00
101-1,000 32 11.0 3 16,282 0.01
1,001-10,000 56 19.31 250,950 0.10
10,001-100,000 62 21.38 2,301,624 0.92
100,001-1,000,000 71 24.49 26,366,195 10.54
1,000,001- 999,999,999 56 19.31 221,064,361 88.43
Total 290 100 250,000,000 100
Party type No of holders
% of holders within
type Balance % issued capital
Male 35 12.07 341,168 0.14
Female 16 5.52 48,948 0.02
Nominee 189 6 5.17 200,848,672 80.34
Bank 1 0.34 3,072 0.00
Limited company 24 8.28 39,423,305 15.77
Other organisation 25 8.62 9,334,835 3.73
Total 290 100 250,000,000 100
Party type No of holders
% of holders
within type Balance % issued capital
Private individuals 51 17.59 39 0,116 0.16
Nominee companies 188 6 5.17 200,848,672 80.34
Limited & public limited
companies 24 8.28 39,423,305 15.77
Other organisations
& banks
26 8.96 9,337,9 07 3.73
Total 290 100 250,000,000 100
SHARE PRICE
London Stock Exchange, pence per 0.01 pence share.
Highest 177.3 pence (20 March 2024)
Lowest 128.2 pence (13 November 2024)
Average 151.35 pence
2025 FINANCIAL CALENDAR
Full Year Results 18 March 2025
Trading Update 22 May 2025
Annual General Meeting 22 May 2025
Half Year Results 31 July 2025
Trading Update 16 October 2025
2025 DIVIDEND CALENDAR
2024 Final dividend payment dates*
Ex-dividend date 17 April 2025
Record date 22 April 2025
Payment date 4 June 2025
2025 Interim dividend payment dates**
Ex-dividend date 21 August 2025
Record date 22 August 2025
Payment date 24 September 2025
* Subject to shareholder approval
** Dates and dividend not yet finalised
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Shareholder Information continued
SHAREHOLDER QUERIES
General shareholder queries
Enquiries relating to shareholdings, such as the transfer of shares, change of name or address,
lost share certificates or dividend cheques, should be referred to the Company’s Registrar at:
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA. Shareholder helpline is
+44 (0)371 384 2030 and +44 (0)371 384 2255 (Mini Com). Lines are open 8.30am to 5.30pm,
Monday to Friday, excluding Bank Holidays in England and Wales.
Registrar share dealing service
For telephone share dealing, call 0345 603 7037 between 8.00am and 4.30pm, Monday to Friday.
For internet dealings, log onto www.shareview.co.uk/dealing
Dividend mandates
Shareholders who wish dividends to be paid directly into a bank or building society should contact
the Company’s Registrar, Equiniti Limited, for a dividend mandate form. This method of payment
removes the risk of delay or loss of dividend cheques in the post and ensures that your account
is credited on the due date.
Electronic communications
Shareholders can elect to receive shareholder documents electronically by registering with
Shareview at www.shareview.co.uk. This will save on printing and distribution costs, creating
environmental benefits. When you register, you will be sent an email notification to say when
shareholder documents are available on our website and you will be provided with a link to
that information. When registering, you will need your shareholder reference number which can
be found on your share certificate or proxy form. Please contact Equiniti Limited if you require
any assistance or further information. Equiniti Limited’s shareholder helpline is +44 (0)371 384
2030 and +44 (0)371 384 2255 (Mini Com). Lines are open 8.30am to 5.30pm, Monday to Friday,
excluding Bank Holidays in England and Wales.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report includes statements that are forward-looking in nature. Forward-looking
statements involve known and unknown risks, assumptions, uncertainties and other factors
which may cause the actual results, performance or achievements of the Group to be materially
different from any future results, performance or achievements expressed or implied by such
forward-looking statements. Except as required by the Listing Rules, Disclosure and Transparency
Rules and applicable law, the Company undertakes no obligation to update, revise or change
any forward-looking statements to reflect events or developments occurring on or after the date
of this Annual Report.
WEBSITE
The corporate website address is www.sabreplc.co.uk
The investor section of the website includes:
− Regulatory news
− Share price information
− Financial results announcements
216 Annual Report and Accounts 2024Sabre Insurance Group plc
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PAS2060 standard.
Printed on material from well-managed, FSC™ certified forests and other controlled
sources. This publication was printed by an FSC™ certified printer that holds an
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CBP030044
Company Brokers
Barclays Bank plc
1 Churchill Place, London, E14 5LB
Deutsche Numis
45 Gresham Street, London, EC2V 7BF
Panmure Liberum
25 Ropemaker Street, London, EC2Y 9LY
Principal Bankers
Lloyds Bank plc
25 Gresham Street, London, EC2V 7HN
National Westminster Bank plc
250 Bishopgate, London, EC2M 4AA
Public Relations
Teneo Strategy Limited
The Carter Building, 11 Pilgrim Street,
London,
EC4V 6RN
Solicitors
Dickson Minto W.S.
16 Charlotte Square, Edinburgh, EH2 4DF
Registered office
Sabre House
150 South Street
Dorking
Surrey
RH4 2YY
Registered in England and Wales. Registered number 10974661
Directors, advisers and other information
Directors
Rebecca Shelley – Chair
Geoff Carter
Ian Chapple
Karen Geary
Bryan Joseph
Alison Morris
Adam Westwood
Company Secretary
Anneka Kingan
Auditor
PricewaterhouseCoopers LLP
7 More London Riverside, London, SE1 2RT
Company Information
217Annual Report and Accounts 2024Sabre Insurance Group plc
Financial
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Sabre Insurance Company Limited
150 South Street
Dorking
RH4 2YY
sabreplc.co.uk