Earnings release
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RNS Number : 0815PSabre Insurance Group PLC04 August 2026 Half-Year Results 2026 Confidence in Ambition 2030 supported by strong growth andconfirmed full-year guidance Sabre Insurance Group plc (the "Group" or "Sabre"), one of the UK's leading motor insurance underwriters, reports its half-year results for the six months ended 30 June 2026. Key financial and operational highlights - Grew and embedded Sabre Direct motorcycle as first target for Ambition 2030 - Other Ambition 2030 initiatives on-track for completion in-line with our expected timeline - Gross written premium up over 15% year-on-year - Full-year guidance, for a profit slightly ahead of 2025, net insurance margin within our target range of 18% to 22% and premium growth, confirmed - Business continues to be written at target margins, fully covering claims inflation - Interim dividend of 4.1p underpinned by strong organic capital generation and demonstrates confidence in full-year financial performance - Profit before tax of £23.9m, expected to accelerate in H2 Summary of results 30 June 2026 30 June 2025 31 December 2025 Gross written premium (1) £116.0m £100.3m £202.9m Net insurance margin (1) 15.7% 19.0% 19.2% Net loss ratio (1) 55.7% 54.9% 54.1% Expense ratio (1) 29.9% 27.7% 28.2% Combined operating ratio (1) 85.6% 82.6% 82.3% Profit before tax £23.9m £25.5m £51.0m Profit after tax £17.9m £18.9m £37.9m Interim dividend per share 4.1p 3.4p 3.4p Final ordinary and special dividend per share n/a n/a 10.1p Solvency coverage ratio (pre-dividend) (1) (2) 175.9% 194.3% 198.7% Solvency coverage ratio (post-dividend) (1) (2) 161.4% 180.9% 161.5% (1) Alternative performance metrics are reconciled to the IFRS reported figures in the Financial Reconciliation section. (2) 30 June solvency coverage ratios include the impact of share buybacks, which have received regulatory approval. The solvency coverage ratios at 31 December 2025 do not include the impact of share buybacks as regulatory approval was pending. Geoff Carter, Chief Executive Officer of Sabre, commented: "I am very pleased with the Group's performance so far this year. We have delivered strong growth, with total premium up over 15% year-on-year and are well on track to deliver on our existing guidance - a profit
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slightly higher than 2025. Looking into the performance in a little more detail, it is especially pleasing that Motor Vehicle premiums are up by more than 18% whilst we have maintained our strict underwriting discipline and focus on writing business at our target margins. This growth has been delivered in what continued to be a relatively soft market in H1 2026, throughout which we maintained a cautious approach to claims inflation, with an unchanged mid-single digit claims inflation assumption. Reported profit and margins for the period do not fully reflect the strength of our performance. We continue to write business at our target margins and the reported net insurance margin of 15.7% at the half year simply reflects the normal timing difference between premium written and premium earned, together with the inherent volatility of a six-month reporting period. The strong, profitable, premium growth delivered in the first half will "earn through" during H2, driving an improved expense ratio and returning the reported net insurance margin to within our 18% to 22% target range by full year. The premium growth achieved in H1 2026 therefore strongly underpins our confidence in delivering on our full-year guidance. Whilst there is early evidence of some growth in market pricing in 2026 we, along with industry experts, believe meaningfully more market-wide increases are required as prices continue to lag inflation. We anticipate that this will provide additional momentum to our growth. Additionally, progress towards our Ambition 2030 plans continues well. The early proof points for this are now emerging in the growth of the Sabre Direct motorcycle product, with premium up over 50% across Motorcycle, the majority relating to our direct product. As part of our strategy, we are fully embracing the opportunities presented by AI across the business - from pricing sophistication to operational efficiency - and I will update on the implementation of these in future reports. I look forward to reporting on good growth and increased profit for the full year, and as ever would like to thank all my colleagues for their contribution to our continuing success." Performance in 2026 - Gross written premium up by 15.7% year-on-year - Net insurance margin below target at the half-year stage, expected to increase to within target range for the full-year - Expense ratio strain in the period due to lower earned premium reflecting 2025 volumes, expected to reverse in H2 2026 - Loss ratio reflects strong prior-year reserve releases set against normal caution in the current year given the uncertainty attached to new claims and our continued cautious view of claims inflation Shareholder returns - Continued strong solvency position of 175.9% pre-dividend, 161.4% post-dividend, reflecting our robust underwriting performance, which continues to generate capital - Interim dividend of 4.1p per share (2025: 3.4p per share) - £5m share buyback commenced on 2nd June 2026 Outlook - Continue to expect year-on-year growth in Gross Written Premium. The rate of growth will be influenced by how quickly the wider market moves to cover claims inflation - Continue to anticipate profit slightly ahead of 2025 underpinned by sustained pricing discipline during ongoing competitive market conditions and progressive earn-through of premium growth achieved during 2026 to date - Expect strong undiscounted net insurance margins in 2026, within our target 18% to 22% range Strategic initiatives - Continued progress with Ambition 2030 strategy, with initial deliverable of the Sabre Direct motorcycle product growing well and testing of the differentiated pricing approach across our Motor Vehicle product
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in-line with the timetable set out in our last full-year results - AI being embedded in a controlled way throughout the business, and anticipated to drive further pricing sophistication and operational efficiencies in future periods - Optimising growth opportunities whilst ensuring margins are protected through a close focus on emerging claims inflation Market trends - Evidence that market prices have stabilised and initial increases are feeding through, but with more expected in order to keep up with claims inflation - Global conflicts currently having a limited impact on supply chains and costs, but with some level of impact possible in future periods Legal and regulatory environment - Relatively clear regulatory horizon following the conclusion of recent regulator and government working parties - Sabre remains able to evolve and adapt should the regulatory landscape change There will be a call for analysts and investors at 0930hrs on Tuesday, 4 August 2026. For details, please contact sabre@teneo.com or find the registration link HERE Enquiries Sabre Insurance Group 0330 024 4696 Geoff Carter, Chief Executive Officer Adam Westwood, Chief Financial Officer Teneo 020 7260 2700 James Macey White/Ffion Dash sabre@teneo.com Dividend calendar 2026 Interim Dividend Payment Dates Ex-dividend date: 20 August 2026 Record date: 21 August 2026 Payment date: 23 September 2026 This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014. The Sabre Insurance Group plc LEI number is 2138006RXRQ8P8VKGV98. Forward-looking statements disclaimer Cautionary statement This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. Forward- looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Sabre's current view with respect to future events and are subject to risks relating to future events
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and other risks, uncertainties and assumptions relating to Sabre's business, results of operations, financial position, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, Sabre disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement. Financial and business review Highlights 30 June 2026 30 June 2025 31 December 2025 Gross written premium (1) £116.0m £100.3m £202.9m Net insurance margin (1) 15.7% 19.0% 19.2% Net loss ratio (1) 55.7% 54.9% 54.1% Combined operating ratio (1) 85.6% 82.6% 82.3% IFRS profit before tax £23.9m £25.5m £51.0m IFRS profit after tax £17.9m £18.9m £37.9m Solvency coverage ratio (pre-dividend) (1) (2) 175.9% 194.3% 198.7% Solvency coverage ratio (post-dividend) (1) (2) 161.4% 180.9% 161.5% (1) Alternative performance metrics are reconciled to the IFRS reported figures in the Financial Reconciliation section. (2) 30 June solvency coverage ratios include the impact of share buybacks, which have received regulatory approval. The solvency coverage ratios at 31 December 2025 do not include the impact of share buybacks as regulatory approval was pending. The first half of 2026 was dominated by strong growth across both of Sabre's Motor Vehicle and Motorcycle products. This was supported by a solid profit performance, notwithstanding the expected impact of lower premium written in 2025 earning through in the period, together with continued but manageable expense inflation and the cost of recruitment in anticipation of further growth. The Group's profit before tax for H1 2026 was £23.9m, a reduction of 6.3% on H1 2025, but well within expectations. The reduction in profit reflects the timing effect of lower premium volumes written in the latter part of 2025 earning through during H1 2026 rather than any long-term deterioration in underwriting performance. Underwriting margins on policies written in H1 remain in line with expectations and the premium growth of 15.7% achieved during H1 2026 is expected to support increased profit as it earns through during the remainder of the year. Overall, the first-half result demonstrates the resilience of the Group's business model and the continued effectiveness of its disciplined approach to pricing, risk selection and capital management. The strong written premium performance provides a positive platform for the remainder of the year. With the benefit of recent growth expected to earn through progressively in the second half, the Group remains focused on maintaining underwriting quality, operational control and attractive returns for shareholders. The Group remains strongly capitalised, supporting continued investment in Ambition 2030 alongside shareholder distributions through dividends and the ongoing share buyback. Insurance revenue 30 June 2026 30 June 2025 31 December 2025 Gross written premium £116.0m £100.3m £202.9m Movement in unearned element of liability for remaining coverage (£12.2m) £10.2m £11.7m
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Gross earned premium £103.8m £110.5m £214.6m Customer instalment income £1.3m £1.9m £3.4m Insurance revenue £105.1m £112.4m £218.0m Reinsurance expense (£10.6m) (£13.3m) (£23.9m) Net insurance revenue £94.5m £99.1m £194.1m Gross written premium by product Motor vehicle £103.4m £87.4m £180.1m Motorcycle £8.9m £5.9m £10.6m Taxi £3.7m £7.0m £12.2m Policy counts by product Motor vehicle ('000) 232 199 201 Motorcycle ('000) 40 39 40 Taxi ('000) 6 10 8 In the first half of 2026 gross written premium is up by more than 15% overall, with core Motor Vehicle premium up by more than 18%. Growth in Motor Vehicle was principally driven by increased volumes of business written, with the policy count having risen by more than 15% since 31 December 2025. This performance was achieved despite market pricing continuing to lag claims and expense inflation, demonstrating the strength of Sabre's underwriting discipline and ability to identify attractive opportunities at target returns. Despite the increase in gross written premium, gross earned premium is down 6.1% year-on-year which reflects the lower levels of premium written during 2025, while the higher premium written in the first half of 2026 is expected to earn through progressively during the second half of the year. This lower earned premium in H1 2026 translates to lower insurance revenue in the period, which we expect to increase meaningfully in H2, with consequent benefits to earnings and expense ratio. Motorcycle written premium increased by more than 50% in comparison to the first half of 2025, reflecting continued growth in the Sabre Direct brand and further progress in developing this product. Taxi premium remained subdued, reflecting the Group's continued cautious approach to this sector in light of unfavourable market pricing conditions. The 'unearned' element of the liability for remaining coverage represents the element of written premium covering future periods, which has the effect of smoothing the gross earned premium (and therefore insurance revenue) over time, so where there is a significant increase or decrease in written premium, the increase or decrease in insurance revenue will lag. Customer instalment income reflects the interest income charged on instalment policies and remains a relatively small percentage of the Group's total insurance revenue, with the year-on-year reduction reflecting a small change in interest rates charged to customers. Insurance expense 30 June 2026 30 June 2025 31 December 2025 Undiscounted gross claims incurred £73.1m £84.1m £173.8m Discounting (1) (£16.3m) (£8.8m) (£23.3m) Directly attributable expenses £3.7m £3.8m £7.2m Amortisation of insurance acquisition costs £8.0m £8.5m £16.8m Insurance service expense £68.5m £87.6m £174.5m Undiscounted reinsurance recoveries (£21.2m) (£30.7m) (£70.6m) Discounting (1) £11.1m £5.3m £16.0m
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Net insurance expense £58.4m £62.2m £119.9m Current-year net loss ratio (2) 66.5% 61.2% 59.6% Prior-year net loss ratio (2) (10.8%) (6.3%) (5.5%) Financial-year net loss ratio 55.7% 54.9% 54.1% Net loss ratio by product Motor vehicle 52.0% 48.1% 50.5% Motorcycle 120.9% 104.2% 70.0% Taxi 48.2% 111.1% 88.0% Discounted ratios Discounted financial-year net loss ratio 50.1% 51.3% 50.4% (1) Includes discounting on Periodic 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. The undiscounted net loss ratio of 55.7% reported for the first half of 2026 is c.0.8ppts higher than the comparative period in 2025 but continues Sabre's record of reporting loss ratios far better than industry averages. The net loss ratio is made up of a current-year net loss ratio of 66.5% and a prior-year net loss ratio of minus 10.8%. The latter reflects the run-off of explicit margins on prior-year claims reserves along with reductions in the total ultimate expected cost of claims incurred prior to the start of the year, resulting from experience during the period. The current-year loss ratio is in line with our expectations at the half-year stage, given the normal volatility and uncertainty associated with early-year claims development, with no unexpected adverse trends in either claims frequency or severity. As is typical at this stage of the underwriting year, ultimate loss expectations will continue to develop as claims mature. This is not fully representative of the ultimate loss ratio we expect for the 2026 accident year. We continue to write business to our target margins. The smaller Motorcycle and Taxi product lines have shown the usual degree of volatility, which is particularly pronounced at the half-year stage given the relatively modest level of earned premium in those products and in the case of Motorcycle, the impact of individually large claims at an early stage of development along with normal seasonality. Other operating expenditure 30 June 2026 30 June 2025 31 December 2025 Employee expenses £9.8m £8.9m £18.2m IT expenses £3.7m £3.5m £6.9m Industry levies £2.8m £3.1m £5.7m Policy servicing costs £1.3m £0.8m £2.1m Other operating expenses £2.2m £2.1m £4.2m Before adjustment for directly attributable claims expenses £19.8m £18.4m £37.1m Reclassification of directly attributable claims expenses (£3.7m) (£3.8m) (£7.2m) Total operating expenses £16.1m £14.6m £29.9m Expense ratio 29.9% 27.7% 28.2% The increase in the expense ratio to 29.9% was expected, reflecting the dip in net earned premium resulting from volumes written in 2025. On an absolute basis, operational expenses remain well controlled, with
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increases in staff costs reflecting inflationary pay increases and targeted investment in additional capability ahead of the growth expected in the business over the next few years. Whilst the Group maintains a high proportion of variable costs, in particular acquisition costs which are reported under Insurance Expense, this reduces rather than removes the impact of volume-based leverage on the expense ratio. As written premium growth earns through over the coming months, the Group expects the expense ratio to improve, supporting stronger profitability in H2. Having allowed gross written premium to drop in 2025 in order to protect the loss ratio, there is a consequential and expected increase in expense ratio for a limited period, with the value benefit being fully realised when the more recent growth earns through in H2 and beyond. Other income 30 June 2026 30 June 2025 31 December 2025 Interest revenue calculated using the effective interest method £6.6m £5.7m £11.7m Other technical income £0.4m £0.3m £0.6m Total interest and other income £7.0m £6.0m £12.3m 30 June 2026 30 June 2025 31 December 2025 Insurance finance expense from insurance contracts issued (£5.9m) (£5.1m) (£10.0m) Reinsurance finance income from reinsurance contracts held £2.8m £2.1m £4.2m Net insurance financial result (£3.1m) (£3.0m) (£5.8m) Interest revenue Interest revenue reflects the yield achieved across the Group's investment portfolio. The increase in interest revenue reflects the higher yield gained through reinvesting matured assets. 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 recognised through Other Comprehensive Income and largely reflect market movements in the yields of risk-free and low-risk assets. The Group does not expect to realise any material market value movements within profit. Other technical income Other 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. Net insurance finance result Net insurance finance result 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. We generally expect the overall impact of IFRS 17 discounting (the net of the discounting credit on claims and the insurance finance expense) to be immaterial in the context of the overall Group result. Taxation
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In the first half of 2026, the Group recorded a corporation tax expense of £6.0m (HY 2025: £6.5m), representing an effective tax rate of 25% (HY 2025: 26%). This is in line with the current UK corporation tax rate of 25%. The Group has not entered into any complex or unusual tax arrangements during the period. Earnings per share 30 June 2026 30 June 2025 31 December 2025 Basic earnings per share 7.33 7.64 15.37 Diluted earnings per share 7.22 7.55 15.26 Basic earnings per share of 7.33p 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. The £5m share buyback programme announced at the Group's year-end results is underway, which we expect to enhance earnings per share relative to profit after tax. As at 30 June 2026, 1,051,134 shares had been cancelled under the programme. Cash and investments 30 June 2026 30 June 2025 31 December 2025 Government bonds £118.3m £114.4m £124.8m Government-backed securities £94.1m £100.3m £100.7m Corporate bonds £93.5m £91.7m £100.2m Cash and cash equivalents £47.4m £35.6m £25.5m The level of cash retained reflects the Company's normal liquidity requirements and there has been no change in the overall investment strategy, with UK Government bonds and other government-backed assets remaining the majority of the portfolio, with c.30% of invested assets held in investment-grade corporate bonds. Insurance liabilities 30 June 2026 30 June 2025 31 December 2025 Gross insurance liabilities £467.6m £421.6m £460.7m Reinsurance assets (£211.0m) (£178.4m) (£216.4m) Net insurance liabilities £256.6m £243.2m £244.3m 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. The Group continues to maintain a consistent reserving approach. Prior-year reserve development during the period was favourable and reflected both expected levels of run-off and positive experience on open claims during the period. 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
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30 June 2026 30 June 2025 31 December 2025 Interim ordinary dividend (proposed) 4.1p 3.4p 3.4p Final ordinary dividend (paid) - - 8.9p Total ordinary dividend (paid and proposed) 4.1p 3.4p 12.3p Special dividend (paid) - - 1.2p Total dividend (paid and proposed) 4.1p 3.4p 13.5p The interim dividend of 4.1p per share proposed is in line with the Group's current policy to pay an ordinary interim dividend equal to one third of the prior-year's ordinary dividend. Excluding the capital required to pay this interim dividend, the Group remains strongly capitalised with an SCR coverage ratio at 30 June 2026 of 161.4%, with the impact of the current share buyback fully reflected. The Group has received regulatory approval for the £5m buyback programme announced at the full-year results and is proceeding with the programme as planned. The programme is expected to be completed well in advance of its end-date of 31 December 2026. The impact on share capital is disclosed in Note 11 of the Condensed Consolidated Financial Statements. Condensed Consolidated Profit or Loss Account For the six months ended 30 June 2026 30 June 2026 30 June 2025 31 December 2025 Notes £'k £'k £'k Insurance revenue 105,091 112,406 217,990 Insurance service expense (68,586) (87,560) (174,491) Insurance service result before reinsurance contracts held 36,505 24,846 43,499 Reinsurance expense (10,552) (13,292) (23,872) Amounts recoverable from reinsurers for incurred claims 10,136 25,392 54,552 Net (expense)/income from reinsurance contracts held (416) 12,100 30,680 Insurance service result 36,089 36,946 74,179 Interest income on financial assets using effective interest rate method 4.4 6,604 5,743 11,719 Net (losses)/gains on derecognition of debt securities measured at FVOCI 4.5 - (9) 7 Total investment income 6,604 5,734 11,726 Insurance finance expense from insurance contracts issued (5,917) (5,061) (9,968) Reinsurance finance income from reinsurance contracts held 2,786 2,108 4,236 Net insurance financial result (3,131) (2,953) (5,732) Net insurance and investment result 39,562 39,727 80,173 Other income 6 421 336 637 Other operating expenses 7 (16,081) (14,598) (29,850) Profit before tax 23,902 25,465 50,960 Income tax expense 8 (5,965) (6,546) (13,045)
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Profit for the period attributable to ordinary shareholders 17,937 18,919 37,915 Basic earnings per share (pence per share) 7.33 7.64 15.37 Diluted earnings per share (pence per share) 7.22 7.55 15.26 Condensed Consolidated Statement ofComprehensive Income For the six months ended 30 June 2026 30 June 2026 30 June 2025 31 December 2025 Notes £'k £'k £'k Profit for the period attributable to ordinary shareholders 17,937 18,919 37,915 Items that are or may be reclassified subsequently to Profit or Loss Unrealised fair value (losses)/gains on debt securities 4.5 (1,791) 4,025 5,525 Realised losses/(gains) on derecognition of debt securities reclassified to Profit or Loss 4.5 - 9 (7) Tax credit/(charge) 448 (1,006) (1,381) Debt securities at fair value through other comprehensive income (1,343) 3,028 4,137 Insurance finance income/(expense) from insurance contracts issued 3,358 (2,750) (5,808) Reinsurance finance (expense)/income from reinsurance contracts held (2,317) 1,534 2,856 Tax (charge)/credit (260) 304 738 Net insurance financial result 781 (912) (2,214) Total other comprehensive income for the period, net of tax (562) 2,116 1,923 Total comprehensive income for the period attributable to ordinary shareholders 17,375 21,035 39,838 Condensed Consolidated Statement ofFinancial Position As at 30 June 2026 30 June 2026 30 June 2025 31 December 2025 Notes £'k £'k £'k Assets Cash and cash equivalents 4.1 47,396 35,626 25,475 Debt securities at fair value through other comprehensive income 4.2 305,921 306,436 325,752 Receivables 4.3 4 50 41 Current tax assets 1,143 - 209 Reinsurance contract assets 3.1 211,029 178,396 216,382
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Property, plant and equipment 4,185 4,144 4,278 Deferred tax assets 61 - 82 Other assets 2,447 2,565 799 Goodwill 156,279 156,279 156,279 Total assets 728,465 683,496 729,297 Liabilities Payables 5 11,536 12,291 7,048 Current tax liability - 223 - Insurance contract liabilities 3.1 467,630 421,582 460,682 Deferred tax liability - 270 - Other liabilities 3,754 2,792 3,705 Total liabilities 482,920 437,158 471,435 Equity Issued share capital 11 246 250 247 Own shares (1,713) (3,354) (3,354) Other reserves 48,529 48,525 48,525 FVOCI reserve (270) (36) 1,073 Insurance/Reinsurance finance reserve 2,173 2,694 1,392 Share-based payments reserve 2,494 2,359 3,495 Retained earnings 194,086 195,900 206,484 Total equity 245,545 246,338 257,862 Total liabilities and equity 728,465 683,496 729,297 Condensed Consolidated Statement of Changes inEquity For the six months ended 30 June 2026 Share capital Own shares Other reserves (1) FVOCI reserve Insurance/ Reinsurance finance reserve Share- based payments reserve Retained earnings £'k £'k £'k £'k £'k £'k £'k Balance as at 31 December 2024 250 (3,112) 48,525 (3,064) 3,606 2,620 209,521 2 Profit for the period attributable to ordinary shareholders - - - - - - 18,919 Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss - - - 3,028 (912) - - Total comprehensive income for the period - - - 3,028 (912) - 18,919 Share-based payment expense - - - - - (261) 451 Net movement in own shares - (242) - - - - - Share buyback (2) - - - - - - (5,000) Dividends paid - - - - - - (27,991) ( Balance as at 30 June 2025 250 (3,354) 48,525 (36) 2,694 2,359 195,900 2 Profit for the period attributable to ordinary shareholders - - - - - - 18,996
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Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss - - - 1,109 (1,302) - - Total comprehensive income for the period - - - 1,109 (1,302) - 18,996 Share-based payment expense - - - - - 1,136 (1) Share buyback (2) (3) - - - - - (64) Dividends paid - - - - - - (8,347) Balance as at 31 December 2025 247 (3,354) 48,525 1,073 1,392 3,495 206,484 2 Profit for the period attributable to ordinary shareholders - - - - - - 17,937 Total other comprehensive income for the period, net of tax: Items that are or may be reclassified subsequently to Profit or Loss - - - (1,343) 781 - - Total comprehensive income for the period - - - (1,343) 781 - 17,937 Share-based payment expense - - - - - (1,001) (583) Net movement in own shares - 1,641 - - - - - Share buyback (2) (1) - 4 - - - (5,003) Dividends paid - - - - - - (24,749) (2 Balance as at 30 June 2026 246 (1,713) 48,529 (270) 2,173 2,494 194,086 2 (1) Other reserves as at 30 June 2026 includes capital redemption reserve of £4k and merger reserve of £48,525k (2) On 2 June 2026, Sabre Insurance Group plc entered into an irrevocable agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a liability of £5m has been recorded in the balance sheet with a corresponding amount in equity. As at 30 June 2026, 1,051,134 of shares had been acquired under the programme (see Note 11 for further information). Condensed Consolidated Statement of Cash Flows For the six months ended 30 June 2026 30 June 2026 30 June 2025 31 December 2025 £'k £'k £'k CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax for the period 23,902 25,465 50,960 Adjustments for: Depreciation of property, plant and equipment 114 73 179 Share-based payment - equity-settled schemes 1,178 1,006 2,142 Investment return (6,030) (5,089) (10,589) Expected credit loss - - 3 Operating cash flows before movements in working capital 19,164 21,455 42,695 Movements in working capital: Change in receivables 37 (18) (9) Change in reinsurance contract assets 3,036 (16,104) (52,768) Change in other assets (1,648) (1,787) (21) Change in payables 1,255 296 53 Change in insurance contract liabilities 10,306 20,908 56,950 Change in other liabilities 49 246 1,159
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Cash generated from operating activities before investment of insurance assets 32,199 24,996 48,059 Taxes paid (6,690) (5,493) (12,717) Net cash generated from operating activities before investment of insurance assets 25,509 19,503 35,342 Interest and investment income received 4,824 4,262 8,484 Proceeds from the sale and maturity of invested assets 72,896 43,903 93,465 Purchases of invested assets (53,648) (34,283) (100,412) Net cash generated from operating activities 49,581 33,385 36,879 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (22) (13) (253) Net cash used by investing activities (22) (13) (253) CASH FLOWS FROM FINANCING ACTIVITIES Net cash used in acquiring and disposing of own shares (1,122) (1,069) (1,069) Options exercised under share option schemes - - 9 Share buyback (1,767) - (5,067) Dividends paid (24,749) (27,991) (36,338) Net cash used by financing activities (27,638) (29,060) (42,465) Net increase/(decrease) in cash and cash equivalents 21,921 4,312 (5,839) Cash and cash equivalents at the beginning of the period 25,475 31,314 31,314 Cash and cash equivalents at the end of the period 47,396 35,626 25,475 Notes to the Condensed Consolidated FinancialStatements For the six months ended 30 June 2026 1. General information The Condensed Consolidated Interim Financial Statements comprise the results and balances of the Group for the six-month period ended 30 June 2026, the comparative period for the six months ended 30 June 2025 and the year ended 31 December 2025. The information in the Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in s.434 of the Companies Act 2006. The independent auditor's report on the Group accounts for the year ended 31 December 2025 is unqualified, does not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and does not include a statement under s.498(2) or (3) of the Companies Act 2006. 2. Accounting policies 2.1. Basis of preparation The Condensed Consolidated Interim Financial Statements have been prepared and approved by the Directors in accordance with UK-adopted International Accounting Standard 34 ('Interim Financial Reporting'). As required by the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority, these Condensed Consolidated Interim Financial Statements have been prepared applying the accounting policies and presentation that will be applied in the preparation of the Annual Financial Statements of the Group and will be prepared in accordance and fully comply with UK- adopted international accounting standards, comprising International Accounting Standards ('IAS') and
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International Financial Reporting Standards ('IFRSs'). The Annual Financial Statements were 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 accounting policies applied in the preparation of the Condensed Consolidated Interim Financial Statements are consistent with those accounting policies applied in the preparation of the 31 December 2025 Annual Report and Accounts, except for those referred to in 2.3 below. The Condensed Consolidated Interim Financial Statements values are presented in Pounds Sterling (£) rounded to the nearest thousand (£'k), unless otherwise indicated. The Group does not consider it is exposed to material seasonal volatility in its financial results. 2.2. Going concern The Condensed Consolidated Interim Financial Statements have been prepared on a going concern basis. Having assessed the Group's forecasts, projections and principal risks of the Group over the full duration of the planning cycle, the Directors have a reasonable expectation that the Group will continue in operation for at least 12 months from the date the Directors approved these Condensed Consolidated Financial Statements and that therefore it is appropriate to adopt a going concern basis for the preparation of these Condensed Consolidated Interim Financial Statements. The Group's Principal Risks and Uncertainties are outlined in the Strategic Report of the 31 December 2025 Annual Report and Accounts and have not changed since the last reporting date. The principal risks are: - Insurance - Operations - Finance and Capital - IT and Systems - Regulatory, Governance and Compliance - People - Macro risks - Climate change - Risks associated with ESG - Inflation and interest rate increases - Geo-political instability 2.3. New and amended standards and interpretations adopted by the Group Amendments to IFRS The following amended standards became effective for the year ended 31 December 2026: - Annual improvements to IFRS - Volume 11 - Amendment to IFRS 9 and IFRS 7 The amendments have not had a material impact on the Group. 2.4. New and amended standards and interpretations not yet effective in 2026 A number of new standards and interpretations adopted by the UK which are not mandatorily effective, as well as standards' interpretations issued by the IASB but not yet adopted by the UK, have not been applied in preparing these financial statements. The Group does not plan to adopt these standards early; instead, it expects to apply them from their effective dates as determined by their dates of UK endorsement. The Group is reviewing the upcoming standards to determine their impact: - IFRS 18 "Presentation and Disclosure in Financial Statements" - Effective 1 January 2027, with retrospective application - IFRS 18, which replaces IAS 1 "Presentation of Financial Statements", introduces new requirements for presentation and disclosure in the financial statements, with a focus on the Profit or Loss Account. Items in the Profit or Loss Account will be classified into one of five categories: operating, investing, financing, income taxes and discontinued operations, of which the first three are new. It also requires the disclosure of newly defined management-derived performance measures, how
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these are calculated and why these provide useful information, reconciled to the IFRS reporting. As a presentation and disclosure standard, the implementation of IFRS 18 will not affect the Group's results. The Group is currently working to identify all impacts the amendments will have on the primary financial statements and notes to the financial statements. - IFRS 19 "Subsidiaries without Public Accountability: Disclosures" - Effective 1 January 2027. This new standard reduces the disclosure requirements for subsidiaries while maintaining the usefulness of the information for users of their financial statements. Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS in their consolidated financial statements. As the principal subsidiary of the Group is a public interest entity, the Group does not expect any significant impact from IFRS 19. - IAS 21 "Translation to a Hyperinflationary Presentation Currency" (Amendments to IAS 21) - Effective 1 January 2027, with early application permitted. The amendments clarify the translation requirements where a non-hyperinflationary functional currency is translated into a hyperinflationary presentation currency and introduces additional disclosure requirements. As the Company prepares its financial statements in GBP and does not operate in hyperinflationary economies, the Company does not expect the amendments to have any impact on its financial statements. - IFRS 20 "Regulatory Assets and Regulatory Liabilities" - Effective 1 January 2029, with early application permitted. IFRS 20 introduces requirements for the recognition, measurement, presentation and disclosure of regulatory assets and regulatory liabilities arising from specified rate-regulated activities. The standard is intended to improve the relevance and comparability of financial information provided by entities subject to rate regulation. As the Company is not subject to rate-regulated activities within the scope of IFRS 20, the Company does not expect the standard to have any impact on its financial statements. 3. Insurance liabilities and reinsurance assets CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS There have been no significant changes to the principles, estimates and judgements used in applying the Group's accounting policies during the period. Full details of these critical accounting estimates and judgements are disclosed on pages 154 to 156 of the Group's Annual Report and Accounts 2025. Discount rates Discount rates applied for discounting future cash flows are listed below: 30 June 2026 1 year 3 years 5 years 10 years Motor insurance 4.15% 4.18% 4.23% 4.54% 30 June 2025 1 year 3 years 5 years 10 years Motor insurance 4.05% 3.84% 3.91% 4.29% 31 December 2025 1 year 3 years 5 years 10 years Motor insurance 3.78% 3.77% 3.91% 4.29% Risk adjustment for non-financial risk The Group has estimated the risk adjustment using a methodology which targets a confidence level (probability of sufficiency) approach between the 80th and 90th percentile. At 30 June 2026, the net risk margin applied equates to an approximate confidence interval of 80.6% (30 June 2025: 82.2% / 31 December
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2025: 81.4%). That is, the Group has assessed its indifference to uncertainty for all product lines (as an indication of the compensation that it requires for bearing non-financial risk) as being equivalent to the 80th to 90th percentile confidence level less the mean of an estimated probability distribution of the future cash flows. 3.1. Composition of the Statement of Financial Position An analysis of the amounts presented on the Statement of Financial Position for insurance contracts is included in the table below. 30 June 2026 30 June 2025 31 December 2025 Notes £'k £'k £'k Insurance contract liabilities Insurance contract liabilities Motor Vehicle insurance 374,290 335,289 362,019 Motorcycle insurance 45,442 37,935 41,200 Taxi insurance 56,514 56,584 65,252 Asset for insurance acquisition cash flows Motor Vehicle insurance 3.3 (7,143) (6,174) (6,184) Motorcycle insurance 3.3 (982) (1,107) (906) Taxi insurance 3.3 (491) (945) (699) Total insurance contract liabilities 3.2.1 467,630 421,582 460,682 Reinsurance contracts assets Motor Vehicle insurance 158,824 133,571 157,554 Motorcycle insurance 20,233 16,224 20,469 Taxi insurance 31,972 28,601 38,359 Total reinsurance contract assets 3.2.2 211,029 178,396 216,382 3.2. Movement in insurance and reinsurance contract balances 3.2.1. Insurance contracts issued 30 June 2026 30 June 2025 31 December 2025 £'k £'k £'k Opening insurance contract liabilities 460,682 397,924 397,924 Insurance revenue (105,091) (112,406) (217,990) Insurance service expenses 68,586 87,560 174,491 Incurred claims and other directly attributable expenses 79,119 85,777 162,520 Changes that relate to past service - changes in the FCF relating to the LIC (18,561) (6,691) (4,782) Amortisation of insurance acquisition cash flows 8,028 8,474 16,753 Insurance service result (36,505) (24,846) (43,499) Insurance finance expense recognised in Profit or Loss Account 5,917 5,061 9,968 Insurance finance (income)/expense recognised in Other Comprehensive Income (3,358) 2,750 5,808 Total changes in Comprehensive Income (33,946) (17,035) (27,723) Cash flows
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Premiums received 108,578 100,927 205,082 Claims and other insurance services expenses paid (58,829) (52,006) (98,531) Insurance acquisition cash flows (8,855) (8,228) (16,070) Total cash flows 40,894 40,693 90,481 Closing insurance contract liabilities 467,630 421,582 460,682 3.2.2. Reinsurance contracts held 30 June 2026 30 June 2025 31 December 2025 £'k £'k £'k Opening reinsurance contract assets 216,382 160,758 160,758 Net (expense)/income from reinsurance contracts held (416) 12,100 30,680 Reinsurance expense (10,552) (13,292) (23,872) Incurred claims recovery 16,852 25,161 47,411 Changes that relate to past service (6,716) 231 7,141 Reinsurance finance income recognised in Profit or Loss Account 2,786 2,108 4,236 Reinsurance finance (expense)/income recognised in Other Comprehensive Income (2,317) 1,534 2,856 Total changes in Comprehensive Income 53 15,742 37,772 Cash flows Premiums paid 4,695 6,106 23,924 Recoveries received (10,101) (4,210) (6,072) Total cash flows (5,406) 1,896 17,852 Closing reinsurance contract assets 211,029 178,396 216,382 3.3. Assets for insurance acquisition cash flows £'k Balance as at 31 December 2024 8,472 Amounts incurred during the period 8,228 Amounts derecognised and included in measurement of insurance contracts (8,474) Balance as at 30 June 2025 8,226 Amounts incurred during the period 7,842 Amounts derecognised and included in measurement of insurance contracts (8,279) Balance as at 31 December 2025 7,789 Amounts incurred during the period 8,855 Amounts derecognised and included in measurement of insurance contracts (8,028) Balance as at 30 June 2026 8,616 3.4. Insurance revenue and expenses - Segmental disclosure An analysis of insurance revenue, insurance service expenses and net income/(expense) from reinsurance contracts held is included in the tables below.
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The Group provides short-term motor insurance to clients, which comprises three lines of business, Motor Vehicle insurance, Motorcycle insurance and Taxi insurance, which are written solely in the UK. The Group has no other lines of business, nor does it operate outside of the UK. The Group does not have a single client which accounts for more than 10% of revenue. 6 months ended 30 June 2026 Motor Vehicles Motorcycle Taxi Total £'k £'k £'k £'k Insurance revenue Insurance revenue from contracts measured under the PAA 93,869 5,920 5,302 105,091 Total insurance revenue 93,869 5,920 5,302 105,091 Insurance service expense Incurred claims and other directly attributable expenses (66,509) (7,605) (5,005) (79,119) Changes that relate to past service - changes in the FCF relating to the LIC 7,115 1,745 9,701 18,561 Amortisation of insurance acquisition cash flows (6,233) (1,155) (640) (8,028) Total insurance service expense (65,627) (7,015) 4,056 (68,586) Net (expense)/income from reinsurance contracts held Reinsurance expenses - contracts measured under the PAA (9,418) (595) (539) (10,552) Incurred claims recovery 15,033 873 946 16,852 Changes that relate to past service - changes in the FCF relating to incurred claims recovery 2,020 (1,157) (7,579) (6,716) Total net (expense)/income from reinsurance contracts held 7,635 (879) (7,172) (416) Total insurance service result 35,877 (1,974) 2,186 36,089 6 months ended 30 June 2025 Motor Vehicles Motorcycle Taxi Total £'k £'k £'k £'k Insurance revenue Insurance revenue from contracts measured under the PAA 99,939 4,311 8,156 112,406 Total insurance revenue 99,939 4,311 8,156 112,406 Insurance service expense Incurred claims and other directly attributable expenses (54,717) (6,681) (24,379) (85,777) Changes that relate to past service - changes in the FCF relating to the LIC 5,576 610 505 6,691 Amortisation of insurance acquisition cash flows (6,397) (1,060) (1,017) (8,474) Total insurance service expense (55,538) (7,131) (24,891) (87,560) Net (expense)/income from reinsurance contracts held Reinsurance expenses - contracts measured under the PAA (11,793) (518) (981) (13,292) Incurred claims recovery 6,272 1,593 17,296 25,161 Changes that relate to past service - changes in the FCF relating to incurred claims recovery 781 319 (869) 231 Total net (expense)/income from reinsurance contracts held (4,740) 1,394 15,446 12,100
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Total insurance service result 39,661 (1,426) (1,289) 36,946 Other than reinsurance assets and insurance liabilities (see Note 3.1), the Group does not allocate, monitor, or report assets and liabilities per business line and does not consider the information useful in the day-to- day running of the Group's operations. The Group also does not allocate, monitor, or report other income and expenses per business line. 12 months ended 31 December 2025 Motor Vehicles Motorcycle Taxi Total £'k £'k £'k £'k Insurance revenue Insurance revenue from contracts measured under the PAA 193,312 9,454 15,224 217,990 Total insurance revenue 193,312 9,454 15,224 217,990 Insurance service expense Incurred claims and other directly attributable expenses (112,244) (12,319) (37,957) (162,520) Changes that relate to past service - changes in the FCF relating to the LIC 3,800 (93) 1,075 4,782 Amortisation of insurance acquisition cash flows (12,679) (2,189) (1,885) (16,753) Total insurance service expense (121,123) (14,601) (38,767) (174,491) Net income from reinsurance contracts held Reinsurance expenses - contracts measured under the PAA (21,133) (1,039) (1,700) (23,872) Incurred claims recovery 15,988 4,185 27,238 47,411 Changes that relate to past service - changes in the FCF relating to incurred claims recovery 6,767 1,829 (1,455) 7,141 Total net income from reinsurance contracts held 1,622 4,975 24,083 30,680 Total insurance service result 73,811 (172) 540 74,179 4. Financial assets The Group's financial assets are summarised below. 30 June 2026 30 June 2025 31 Decem Notes £'k £'k Cash and cash equivalents 4.1 47,396 35,626 25 Debt securities held at fair value through Other Comprehensive Income 4.2 305,921 306,436 325 Receivables 4.3 4 50 Total 353,321 342,112 351 4.1. Cash and cash equivalents 30 June 2026 30 June 2025 31 Decem £'k £'k Cash at bank and on hand 16,673 20,084 14 Money market funds 30,723 15,542 10
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Total 47,396 35,626 25 Cash held in money market funds has no notice period for withdrawal. The carrying value of cash and cash equivalents approximates fair value. The full value is expected to be realised within 12 months. 4.2. Debt securities held at fair value through Other Comprehensive Income The Group's debt securities held at fair value through Other Comprehensive Income are summarised below. 30 June 2026 30 June 2025 31 December 2025 £'k % holdings £'k % holdings £'k % holdings Government bonds 118,350 38.6% 114,398 37.4% 124,798 38.3% Government-backed securities 94,086 30.8% 100,345 32.7% 100,717 30.9% Corporate bonds 93,485 30.6% 91,693 29.9% 100,237 30.8% Total 305,921 100.0% 306,436 100.0% 325,752 100.0% 4.2.1. Fair value Fair value measurements are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Group's view of market assumptions in the absence of observable market information. IFRS 13 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement. Disclosure of fair value measurements by level is according to the following fair value measurement hierarchy: - Level 1: fair value is based on quoted market prices (unadjusted) in active markets for identical instruments as measured on reporting date - Level 2: fair value is determined through inputs, other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (prices) or indirectly (derived from prices) - Level 3: fair value is determined through valuation techniques which use significant unobservable inputs Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the Statement of Financial Position date. A market is regarded as active if quoted prices are readily and regularly available from the stock exchange or pricing service, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the closing bid price. These instruments are included in Level 1 and comprise only debt securities classified as fair value through other comprehensive income. Level 2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant input required to fair value an instrument is observable, the instrument is included in Level 2. The Group has no Level 2 financial instruments. Level 3 If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3. The Group has no Level 3 financial instruments. The following table summarises the classification of financial instruments:
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Level 1 Level 2 Level 3 T At 30 June 2026 £'k £'k £'k Assets held at fair value Debt securities held at FVOCI 305,921 - - 305 Total 305,921 - - 305 Level 1 Level 2 Level 3 T At 30 June 2025 £'k £'k £'k Assets held at fair value Debt securities held at FVOCI 306,436 - - 306 Total 306,436 - - 306 Level 1 Level 2 Level 3 T At 31 December 2025 £'k £'k £'k Assets held at fair value Debt securities held at FVOCI 325,752 - - 325 Total 325,752 - - 325 Transfers between levels There have been no transfers between levels during the period (30 June 2025: no transfers / 31 December 2025: no transfers). 4.3. Receivables The Group's receivables comprise of: 30 June 2026 30 June 2025 31 Decem £'k £'k Other debtors 4 50 Total 4 50 The estimated fair values of receivables are the discounted amounts of the estimated future cash flows expected to be received. The carrying value of receivables approximates fair value. The provision for expected credit losses is based on the recoverability of the individual receivables. The Group has calculated ECL on receivables and has concluded that it is wholly immaterial and such further disclosure has not been included. 4.4. Investment income 30 June 2026 30 June 2025 31 Decem £'k £'k Interest income on financial assets using effective interest rate method Interest income from debt securities 6,030 5,098 10 Interest income from cash and cash equivalents 574 645 1 Total 6,604 5,743 11
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4.5. Net gains/(losses) from fair value adjustments on financial assets 30 June 2026 30 June 2025 31 Decem £'k £'k Profit or Loss Net (losses)/gains on derecognition of debt securities measured at FVOCI - (9) Realised fair value losses on debt securities reclassified to Profit or Loss - (9) Other Comprehensive Income Unrealised fair value (losses)/gains on debt securities (1,791) 4,025 5 Realised losses/(gains) on derecognition of debt securities reclassified to Profit or Loss - 9 Expected credit loss - - Unrealised fair value (losses)/gains on debt securities through Other Comprehensive Income (1,791) 4,034 5 Net (losses)/gains from fair value adjustments on financial assets (1,791) 4,025 5 5. Payables 30 June 2026 30 June 2025 31 Decem £'k £'k Trade and other creditors 619 787 Other taxes (1) 7,684 6,504 6 Other financial liabilities (2) 3,233 5,000 Total 11,536 12,291 7 (1) Other taxes consist of Insurance Premium Tax and VAT payable to HM Revenue & Customs (2) On 2 June 2026, Sabre Insurance Group plc entered into an irrevocable agreement to acquire £5m of ordinary shares for cancellation. Accordingly, a liability of £5m has been recorded in the balance sheet with a corresponding amount in equity. As at 30 June 2026, the ongoing share buyback has reduced the liability to £3.2m. Refer Note 11 for further information on the share buyback. Trade and other creditors are carried at amortised cost. 6. Other income 30 June 2026 30 June 2025 31 Decem £'k £'k Administration fees 184 153 Brokerage and other fee income 237 183 Total 421 336 Brokerage and other fee income relates to auxiliary products and services.
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7. Other operating expenses 30 June 2026 30 June 2025 31 Decem Notes £'k £'k Employee expenses 7.1 9,828 8,897 18 Property expenses 269 200 IT expense, including IT depreciation 3,674 3,505 6 Other depreciation 58 56 Industry levies 2,804 3,062 5 Policy servicing costs 1,296 804 2 Other operating expenses 1,895 1,885 3 Movement in expected credit loss on debt securities - - Before adjustment for directly attributable claims expenses 19,824 18,409 37 Adjusted for: Reclassification of directly attributable claims expenses (3,743) (3,811) (7 Total operating expenses 16,081 14,598 29 7.1. Employee expenses The aggregate remuneration of those employed by the Group's operations comprised: 30 June 2026 30 June 2025 31 Decem £'k £'k Wages and salaries 6,792 6,408 12 Social security expenses 1,250 943 1 Contributions to defined contribution plans 326 303 Equity-settled share-based payment 1,188 1,006 2 Other employee expenses 272 237 Before adjustment for directly attributable claims expenses 9,828 8,897 18 Adjusted for: Reclassification of directly attributable claims expenses (2,878) (2,788) (5 Employee expenses 6,950 6,109 12 8. Income tax expense 30 June 2026 30 June 2025 31 Decem £'k £'k Current taxation Charge for the period 5,739 6,580 13 Charge relating to prior periods 18 134 5,757 6,714 13 Deferred taxation Origination and reversal of temporary differences 208 (168)
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208 (168) Current taxation 5,757 6,714 13 Deferred taxation 208 (168) Income tax expense 5,965 6,546 13 Tax recorded in Other Comprehensive Income is as follows: 30 June 2026 30 June 2025 31 Decem £'k £'k Current taxation - - Deferred taxation (188) 702 (188) 702 Management estimates the Group's effective tax rate to be approximately 25.0% of profit before tax for the year ending 31 December 2026, similar to the corporation tax rate in the UK of 25.0%. This estimate is in line with the prevailing rate of corporation tax in the UK. The income tax expense for the period is recognised based on this estimate. 9. Dividends 30 June 2026 30 June 2025 31 December 2025 pence per share £'k pence per share £'k pence per share £'k Amounts recognised as distributions to equity holders in the period Interim dividend for the current year - - - - 3.4 8,347 Final dividend for the prior year 10.1 24,749 11.3 27,991 11.3 27,991 10.1 24,749 11.3 27,991 14.7 36,338 Proposed dividends Interim dividend in respect of the current year (1) 4.1 10,068 3.4 8,500 (1) Subsequent to 30 June 2026, the Directors declared an interim dividend for 2026 of 4.1p per ordinary share. This dividend will be accounted for as an appropriation of retained earnings in the year ended 31 December 2026 and is not included as a liability in the Statement of Financial Position as at 30 June 2026 The Trustees of the Sabre Insurance Group Employee Benefit Trust waived their entitlement to dividends on shares held in the trust to meet obligations arising on share incentives schemes, which reduced the dividends paid for the period ended 30 June 2026 by £158k (30 June 2025: £259k and 31 December 2025: £337k). 10. Related party transactions There has been no change to the relationships disclosed in Note 18 of the 31 December 2025 Annual Report and Accounts. No related party transactions have taken place in the period ended 30 June 2026 that have materially affected the financial position or the financial performance of the Group.
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11. Share capital 30 June 2026 30 June 2025 31 December 2025 Authorised share capital Number of shares £ Number of shares £ Number of shares £ 250,000,000 Ordinary Shares of £0.001 each 250,000,000 250,000 250,000,000 250,000 250,000,000 250,000 Share capital Issued ordinary share capital (fully paid up) Number of shares £ As at 1 January 2025 250,000,000 250,000 Cancellation of shares under share buyback programme - - As at 30 June 2025 250,000,000 250,000 Cancellation of shares under share buyback programme (3,400,000) (3,400) As at 31 December 2025 246,600,000 246,600 Cancellation of shares under share buyback programme (1,051,134) (1,051) As at 30 June 2026 245,548,866 245,549 Share buyback During the year the Group executed a share buyback programme. Up to 30 June 2026 a total of 1,051,134 ordinary shares (representing 0.43% of Sabre Insurance Group plc's issued share capital at 31 December 2025) had been purchased and cancelled. Since 1 July 2026 and up to 31 July 2026 a further 1,667,589 ordinary shares (representing 0.68% of Sabre Insurance Group plc's issued share capital at 30 June 2026) had been purchased. The total cost of the programme up to 31 July 2026 is £4,755,067 including stamp duty. 12. Events after the balance sheet date Other than the declaration of an interim ordinary dividend as disclosed in Note 9 and the share buyback disclosed in Note 11, there have been no material changes in the affairs or the financial position of the Group and its subsidiaries since the Statement of Financial Position date. Directors' Responsibility Statement We confirm that to the best of our knowledge: The Condensed Consolidated Financial Statements for the six months ended 30 June 2026 have been prepared in accordance with International Accounting Standards 34 ("IAS 34") as adopted by the UK. The interim management report includes a fair review of the information as required by: - DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of the important events that have occurred during the first six months of the current financial year and their impact on the condensed set of Consolidated Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and - DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially impacted the financial position or performance of the Group during the period; and any changes in the related party
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transactions from the Group's Consolidated Financial Statements for the year ended 31 December 2025 that could do so. Signed on behalf of the Board of Directors Geoff Carter Adam Westwood Chief Executive Officer Chief Financial Officer 3 August 2026 3 August 2026 Independent review report to Sabre InsuranceGroup plc Report on the condensed consolidated interim financial statements Our conclusion We have reviewed Sabre Insurance Group plc's condensed consolidated interim financial statements (the "interim financial statements") in the Half-Year Report 2026 of Sabre Insurance Group plc for the 6 month period ended 30 June 2026 (the "period"). Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The interim financial statements comprise: - the Condensed Consolidated Statement of Financial Position as at 30 June 2026; - the Condensed Consolidated Profit or Loss Account and the Condensed Statement of Comprehensive Income for the period then ended; - the Condensed Consolidated Statement of Cash Flows for the period then ended; - the Condensed Consolidated Statement of Changes in Equity for the period then ended; and - the explanatory notes to the interim financial statements. The interim financial statements included in the Half-Year Report 2026 of Sabre Insurance Group plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. BASIS FOR CONCLUSION We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We have read the other information contained in the Half-Year Report 2026 and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements CONCLUSIONS RELATING TO GOING CONCERN Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have
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identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern. RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW OUR RESPONSIBILITIES AND THOSE OF THE DIRECTORS The Half-Year Report 2026, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Half-Year Report 2026 in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Half-Year Report 2026, including the interim financial statements, the directors are responsible for assessing the group'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 to cease operations, or have no realistic alternative but to do so. Our responsibility is to express a conclusion on the interim financial statements in the Half-Year Report 2026 based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. USE OF THIS REPORT This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, 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. PricewaterhouseCoopers LLP Chartered Accountants London 3 August 2026 Financial Reconciliations Gross Written Premium 30 June 2026 30 June 2025 31 Decem £'k £'k Insurance revenue 105,091 112,406 217 Less: Instalment income (1,298) (1,935) (3 Less: Movement in unearned premium 12,168 (10,147) (11 Gross written premium 115,961 100,324 202 Net Loss Ratio 30 June 2026 30 June 2025 31 Decem £'k £'k Insurance service expense 68,586 87,560 174
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Less: Amortisation of insurance acquisition cash flows (8,028) (8,474) (16 Less: Amounts recoverable from reinsurers for incurred claims (10,136) (25,392) (54 Less: Directly attributable claims expenses (3,743) (3,811) (7 Add: Net impact of discounting (1) 5,212 3,512 7 Undiscounted net claims incurred (2) 51,891 53,395 103 Insurance revenue 105,091 112,406 217 Less: Instalment income (1,298) (1,935) (3 Less: Reinsurance expense (10,552) (13,292) (23 Net earned premium 93,241 97,179 190 Net loss ratio 55.7% 54.9% 5 (1) Excludes discounting on Periodic Payment Orders ("PPOs") (2) Calculation of undiscounted net claims incurred allows for the impact of discounting on long-term non- life annuities, Periodic Payment Orders ("PPOs"), consistent with presentation under IFRS 4. Expense Ratio 30 June 2026 30 June 2025 31 Decem £'k £'k Other operating expenses 16,081 14,598 29 Add: Amortisation of insurance acquisition cash flows 8,028 8,474 16 Add: Directly attributable claims expenses 3,743 3,811 7 Total operating expenses 27,852 26,883 53 Insurance revenue 105,091 112,406 217 Less: Instalment income (1,298) (1,935) (3 Less: Reinsurance expense (10,552) (13,292) (23 Net earned premium 93,241 97,179 190 Expense ratio 29.9% 27.7% 2 Combined Operating Ratio 30 June 2026 30 June 2025 31 Decem Net loss ratio 55.7% 54.9% 5 Expense ratio 29.9% 27.7% 2 Combined operating ratio 85.6% 82.6% 8 Discounted Net Loss Ratio 30 June 2026 30 June 2025 31 Decem £'k £'k
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Insurance service expense 68,586 87,560 174 Less: Amortisation of insurance acquisition cash flows (8,028) (8,474) (16 Less: Amounts recoverable from reinsurers for incurred claims (10,136) (25,392) (54 Less: Directly attributable claims expenses (3,743) (3,811) (7 Net claims incurred 46,679 49,883 96 Insurance revenue 105,091 112,406 217 Less: Instalment income (1,298) (1,935) (3 Less: Reinsurance expense (10,552) (13,292) (23 Net earned premium 93,241 97,179 190 Discounted net loss ratio 50.1% 51.3% 5 Discounted Combined Operating Ratio 30 June 2026 30 June 2025 31 Decem Net loss ratio 50.1% 51.3% 5 Expense ratio 29.9% 27.7% 2 Discounted combined operating ratio 80.0% 79.0% 7 Net Insurance Margin 30 June 2026 30 June 2025 31 Decem £'k £'k Net claims incurred 51,891 53,395 103 Total operating expenses 27,852 26,883 53 Total insurance expense 79,743 80,278 156 Insurance revenue 105,091 112,406 217 Less: Reinsurance expense (10,552) (13,292) (23 Net insurance revenue 94,539 99,114 194 Net insurance margin 15.7% 19.0% 1 Solvency Coverage Ratio - Pre-dividend 30 June 2026 30 June 2025 31 Decem £'k £'k Solvency II net assets 121,701 123,514 133 Solvency capital requirement 69,173 63,576 66 Solvency coverage ratio - pre-dividend 175.9% 194.3% 19
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Solvency Coverage Ratio - Post-dividend 30 June 2026 30 June 2025 31 Decem £'k £'k Solvency II net assets 121,701 123,514 133 Less: Interim/Final dividend (10,068) (8,500) (24 Solvency II net assets - post-dividend 111,633 115,014 108 Solvency capital requirement 69,173 63,576 66 Solvency coverage ratio - post-dividend 161.4% 180.9% 16 Glossary of Terms Acquisition cash flows Cash flows arising from the costs of selling, underwriting and starting a group (issued or expected to be issued) that are directly attributable to the portfolio which the group belongs. Such cash flows include cash flows that are not dire 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 operating expenses), and net insurance claims relative to net earned premium percentage. Contractual service margin ("CSM") This represents the unearned profit the entity will recognise as it provides ins under the insurance contracts in the group. It is a component of the carrying liability for a group of insurance contracts. Coverage period The period during which the entity provides insurance contract services. The insurance contract services that relate to all premiums within the boundary o Effective tax rate Effective tax rate is calculated by dividing the tax charge per the Profit or Loss profit before tax. Expense ratio Expense ratio is a measure of total expenses (which comprises commission ex expenses), and claims handling expenses, relative to net earned premium ("N percentage. Fair value through OCI ("FVOCI") Unrealised gains and losses from the remeasurement of the fair value financi the Statement of Other Comprehensive Income ("OCI"). Financial Reporting Council ("FRC") The UK's regulator for the accounting, audit and actuarial professions, promo integrity in business. Fulfilment cash flows ("FCF") An explicit, unbiased and probability-weighted estimate (i.e. expected value) o future cash outflows minus the present value of the future cash inflows that w fulfils insurance contracts, 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 t period. It represents gross written premium ("GWP") adjusted by the unearne the beginning and end of the accounting period, before deduction of reinsura Gross written premium ("GWP") Gross written premium comprises all premiums in respect of policies underw financial year, regardless of whether such policies relate in whole or in part to before deduction of reinsurance expense. IFRS 17 "Insurance Contracts" An accounting standard that addresses the establishment of principles for th measurement, presentation and disclosure of insurance contracts within the
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(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 Ac ("IASB"). Liability for incurred claims ("LIC") An entity's obligation to: a) Investigate and pay valid claims for insured events that have already events that have occurred but for which claims have not been reported, and o expenses; and b) Pay amounts that are not included in (a) and that relate to: i. insurance contract services that have already been p ii. any investment components or other amounts that are not insurance contract services and that are not in the liability for remaini Liability for remaining coverage ("LRC") An entity's obligation to: a) investigate and pay valid claims under existing insurance contracts f have not yet occurred (i.e. the obligation that relates to the unexpired portion coverage); and b) pay amounts under existing insurance contracts that are not include i. insurance contract services not yet provided (i.e. the obligat provision of insurance contract services); or ii. any investment components or other amounts that are not insurance contract services and that have not been transferred to the claims. Net claims incurred Net claims incurred is equal to gross claims incurred less amounts recovered 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, premium expressed as a percentage. Net insurance margin ("NIM") Net insurance margin measures how much net insurance profit is generated insurance revenue. Own Risk and Solvency Assessment ("ORSA") A prospective assessment of the Group's risks and solvency capital requireme Periodic Payment Order ("PPO") A compensation award as part of a claims settlement that involves making a s to a claimant over their remaining life to cover the costs of the care they will r Premium allocation approach ("PAA") Method for measuring insurance contracts under IFRS 17 "Insurance Contrac Return on tangible equity Return on tangible equity is measured as the ratio of the Group's profit after t 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 am cash flows that arises from non-financial risk as the entity fulfils insurance con Solvency coverage ratio The ratio of Own Funds (Solvency II capital) to Solvency Capital Requirement " Solvency Capital Requirement ("SCR") The total amount of capital that the Group must hold to cover the risks under framework. The Group is required to maintain eligible own funds of at least 1 The Group uses the Standard Formula to determine the SCR.
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