Annual Report and Accounts (sabre insurance group annual report 2025)

Annual Report and Accounts 2025

‌Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

Governance

Financial Statements

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 aided by a diverse, multi-channel distribution strategy.

01-67 | Strategic Report

01 | Highlights 02 | At a Glance 03 | Our Business

04 | The Sabre Journey 05 | Investment Case 06 | Our Strategy

07 | Our Business Model 08 | Ambition 2030

1. | Our Values

2. | Market Context

15 | Chair's Letter

16 | Chief Executive Officer's Review

20 | Key Performance Indicators

22 | Principal Risks and Uncertainties

31 | Viability Statement

33 | Section 172 Statement

37 | Chief Financial Officer's Review

41 | Responsibility and Sustainability

67 | FCA Consumer Duty

68-125 | Governance

69 | Chair's Governance Letter

70 | Board of Directors

74 | Governance Report

82 | Audit Committee Report

86 | Risk Committee Report

89 | Nomination & Governance Committee Report

92 | Remuneration Committee Report

96 | Directors' Remuneration Policy

107 | Annual Report on Directors' Remuneration 121 | Directors' Report

125 | Statement of Directors' Responsibilities

126-221 | Financial Statements

127 | Independent auditor's report

134 | Consolidated Profit or Loss Account

135 | Consolidated Statement of Comprehensive Income

136 | Consolidated Statement of Financial Position

137 | Consolidated Statement of Changes in Equity

138 | Consolidated Statement of Cash Flows

139 | Notes to the Consolidated Financial Statements

204 | Parent Company Statement of Financial Position

205 | Parent Company Statement of Changes in Equity

206 | Parent Company Statement of Cash Flows

207 | Notes To The Parent Company Financial Statements 212 | Financial Reconciliations

217 | Glossary of Terms

219 | Shareholder Information 221 | Company Information

Strategic Report

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Financial Statements

1. ‌Sabre Insurance Group plc Annual Report and Accounts 2025‌

   Highlights

   Strong profitability maintained and margin improved through a sustained period of low market pricing, demonstrating robust cycle management and a business model that works throughout changing market conditions.

   Ambition 2030 - Sabre has set out a medium-term plan to

   
   
   
   
   

   increase profit before tax to at least £80m

   in 2030

   - We are expanding our competitive footprint without compromising our underwriting discipline or margin on existing business

   IFRS profit before tax

   £51.0m

   2024 | £48.6m

   Undiscounted combined

   operating ratio1

   82.3%

   2024 | 84.2%

   Total dividend

   13.5p

   2024 | 13.0p

   Financial highlights

   For more information go to pages 08 to 11

   Launch of Sabre Direct

   For more information go to pages 08 to 10

   In 2025, we launched our new online-only Motorcycle insurance product,"Sabre Direct". This increases our access to customers while allowing for greater levels

   of insight and flexibility - a key stepping-stone in achieving our Ambition 2030 target.

   
   
   
   
   

   Moving forward

   - We are growing our presence in the motorcycle market through our direct brand and further broker relationships

   Gross written premium1

   £202.9m

   2024 | £236.4m

   Pre-dividend solvency coverage ratio1

   198.7%

   2024 | 216.6%

   Post-dividend solvency coverage ratio1

   161.5%

   2024 | 171.1%

   1 Alternative performance measure. For reconciliations to alternative performance measures, see pages 212 to 216

   For more information

   On track to expand footprint in core motor

   For more information go to pages 08 to 10

   In late 2025, we began testing our differentiated rating structure, which will allow us to enhance competitiveness for a wider range of potential customers, accelerating growth in our core Motor Vehicle business.

   
   
   
   
   

   sabreplc.co.uk

2. ‌Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

   Governance

   Financial Statements

   At a Glance

   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 Ambition

   To grow absolute profit over the medium term whilst maintaining leading underwriting performance and smart management of the motor insurance pricing cycle.

   Our values

   Fair to customers Fair to our people Fair to the planet Fair to partners

   Focused on our strategy

   For Our values

   go to page 12

   
   
   
   
   

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3. ‌Sabre Insurance Group plc Annual Report and Accounts 2025‌

   Our Business

   Our products

   c.249k

   In-force policies

   2024 | c.266k

   Motor vehicle

   80.7%

   Motorcycle

   Taxi

   3.2%

   16.1%

   
   
   

   Sabre provides multiple products across a diverse range of distribution channels, providing resilience whilst maintaining focus on high-quality motor underwriting.

   Our channels

   c.60%

   through brokers

   Indirect distribution

   The Group has established a broad network of more than 700 insurance brokers across the UK, meaning that our policies often sit behind well-known household names.

   c.700

   Price comparison websites

   We work with all the major price

   comparison websites ("PCWs"), including Compare The Market, Moneysupermarket. com and GoCompare.

   Insurance brokers across the UK

   Direct distribution

   c.40%

   Almost all of our policies initiate

   on a PCW, whether sold through our direct brands or our network of brokers.

   through direct brands

   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.

   Our people

   172

   Dedicated employees

   Our success in 2025 and confidence about the future is entirely due to the efforts and commitment of all Sabre's people."

   Geoff Carter

   Chief Executive Officer

   For more information

   sabreplc.co.uk

   
   
   
   
   

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4. ‌Sabre Insurance Group plc Annual Report and Accounts 2025‌

   The Sabre Journey

   
   
   How we support our customers

   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, Insure2Drive and Sabre Direct, 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, or fully online for our Sabre Direct product. Our network of brokers operate to the quality expected by some of the UK's largest customer brands.

   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.

   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.

   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

   sabreplc.co.uk

5. ‌Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

   Governance

   Financial Statements

   Investment Case

   Long and medium-term opportunity

   A resilient business

   - Target margin above industry norm, reflecting our niche operating sector and focus on underwriting profitability, means that shareholders have been able to rely on Sabre to deliver an underwriting profit whatever the overarching market conditions.

   • Underwriting discipline and sharp focus drives early pricing action when 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 in the UK. As a specialist provider, primarily in non-standard markets, Sabre has a strong defensive position.

   • The Group holds a significant excess of assets over liabilities and its regulatory requirement, providing a strong balance sheet

   able to withstand the most extreme foreseeable shocks.

   Low-risk and capital-light

   • The Group balances strong, consistent earnings generation with effective risk management, limiting the amount of regulatory capital required.

   • The Group invests in government-backed assets and highly rated corporate bonds. These assets fuel the Group's exceptional target underwriting returns and present very low risk.

   • 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.

     Pre-dividend solvency capital ratio1

     198.7%

     2024 | 216.6%

     Reliable dividend flow

   • 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.

   • In 2025 the Group operated

     its first share buyback scheme, purchasing £5m of Sabre shares, delivering enhanced capital returns to shareholders.

   • Since IPO the Group's dividend payout ratio has remained above 95.0% of earnings.

   Total dividend in respect of 2025

   13.5p

   2024 |13.0p

   Optimised for growth

   - Sabre's market share represents a very small share of the total motor insurance market, 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).

   <1%

   Market share

   Total UK market >28m policies

   IFRS profit before tax

   £51.0m

   2024 | £48.6m

   For more information

   sabreplc.co.uk

   1 Alternative performance measure. For reconciliations to alternative performance measures, see pages 212 to 216

   
   
   

6. ‌Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

   Governance

   Financial Statements

   Our Strategy

   Our clear framework

   Disciplined underwriting

   • 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.

     Controlled growth

   • Sabre will grow the business strongly when market conditions are favourable, and allow growth to slow or reverse when market conditions are poor.

   • Over the medium term, this strategy allows the business to grow whilst maintaining profitability and reducing risk.

   • Growth in profit will be accelerated through the Ambition 2030 initiatives

     described on pages 08 to 11.

     Distribution

   • Brokers accounted for approximately 60% of the gross written premium in 2025, with the remainder being sold through our direct brands, Insure2Drive, GoGirl and Sabre Direct.

   • 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 website data.

     Risk management

     • 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.

       Operating flexibility

   • Non-core operations are outsourced to allow greater scale benefits in purchasing and low fixed cost base.

   • Lower operating leverage allows the business to maintain underwriting discipline.

   • If the Group chooses to slow growth during periods of unfavourable market conditions, the flexible expense base can absorb operating leverage strain.

   Operational expertise

   • Our team consists of talented people making good decisions every day.

   • Sabre operates an inclusive, supportive culture in which its people are proud to work. This allows the Group to retain a significant amount of experience within all levels of the business.

   
   
   
   
   

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7. ‌Sabre Insurance Group plc Annual Report and Accounts 2025

   Our Business Model

   Our inputs How we manage risk Value creation
   
   

   1

   Experienced management and operational teams

   1. Proprietary data

      U

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   2. Strong broker relationships

   3. Analysis and pricing expertise

      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.

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      Distribution

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      Sabre employs a diversified, multi-channel distribution strategy through broker partnerships and selling direct to customers through the Group's direct brands, Insure2Drive, GoGirl and Sabre Direct. 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.

      Claims handling

      Sabre's emphasis on the technical aspects of claims handling draws on over 900 years' worth of experience, encompassing cutting-edge fraud mitigation, excellent cost control and

      a high-quality experience for claimants.

      Strong cash generation

      Our underwriting discipline and streamlined operating model gives us confidence that we can deliver our target ordinary dividend payout ratio of 70%-80% of IFRS profit after tax.

      IFRS profit after tax

      £37.9m

      2024 | £36.0m

      Premium growth

      We anticipate medium-term growth in gross written premium across the insurance cycle, while maintaining our target net insurance margin.

      Gross written premium1

      £202.9m

      2024 | £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.

      1 Alternative performance measure. For reconciliations to alternative performance measures, see pages 212 to 216

      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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8. ‌Sabre Insurance Group plc Annual Report and Accounts 2025‌

   Ambition 2030

   
   
   Sabre's medium-term growth plans are on-track

   At least £80m

   Initiatives Progress

   profit before tax in 2030

   Core Motor

   Increase Profit

   Efficiency of Direct Distribution

   Expand market position

   Cost base enhancement through greater automation

   Testing started in Q4 2025, on-track to introduce through 2026

   These growth plans are driven by initiatives that stay true to Sabre's DNA - high-margin underwriting activities.

   Growth will not be linear and will accelerate and decelerate

   dependent on market conditions.

   These plans require minimal capital investments - the foundations have already been laid.

   Motorcycle

   Increase Profit

   Direct Motorcycle

   Broker Motorcycle

   Launched in H1 2025 with expansion in 2026

   Implementation work ongoing with expected launch in 2027

   Continued controlled expenditure

   
   
   

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9. ‌Sabre Insurance Group plc Annual Report and Accounts 2025

Ambition 2030 continued

2025 2030

Core Motor

Increase Profit

IT system enhancement

Pricing development

Base development

Initial tests complete

Iterative pricing tests/roll-out

Further evolution of IT capability

GWP impact Profit impact

Motorcycle

Increase Profit

Motorcycle IT requirements

Motorcycle customer service

In place for direct

In place for direct

rates

Expand online chat %

Roll-out to select insurance brokers

AI-supported chat

Motorcycle pricing

Initial development complete

Expand quotability Further develop

GWP impact Profit impact

Expenses Maintain expense base at low level

In progress

Outcomes

Completed

Key

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‌10 Sabre Insurance Group plc Annual Report and Accounts 2025

Ambition 2030 continued

Sabre's core underwriting model

Ambition 2030 initiatives

Fast feedback loops

Daily interaction between claims, pricing, and actuarial functions improve pricing accuracy and maintain underwriting discipline

"One version of the truth"

Consistency on key assumptions ensures all teams use the same data and assumptions, creating clarity and consistency in decision making

Core Motor

Expand market position

• Already quote for expanded footprint

• Already underwrite some policies in expanded footprint

• Amending margin for increased volume in expanded footprint cohort

High quotability

We quote for almost all risks using core and enriched data

Claims screening

All claims screened for fraud and accuracy, which protects performance by ensuring claims are genuine and correctly assessed

Sabre's data advantage

Quality, volume, skills and experience

Policy validation

Pre- and post-sale validation of all policies ensures accurate information and strengthens data integrity

Margin management

Motorcycle

Distribution and pricing

• New rating structure for direct and broker products based on multi-year experience

• New pricing infrastructure replicating new car rating technology

• Large elements of experience combined across car and motorcycle such as

personal injury

Disciplined approach ensures profitability

is prioritised ahead of

volume growth

‌11 Sabre Insurance Group plc Annual Report and Accounts 2025

Strategic Report

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Ambition 2030 continued

Sabre's data advantage

Built on over 25 years of specialist motor data and stable, migration-free systems, Sabre's pure motor focus and specialist footprint enables disciplined pricing and reliable underwriting, underpinning our proven record of margin-led outperformance.

1

An AI-enabled business

We have deployed AI tools throughout the business, carefully managing risk while seeking new opportunities and efficiencies.

2

Vast volume of quote data

Sabre produces 200m direct quotes per year, providing great

insight into market conditions and our customer base

Long history of specialist underwriting

More than 6.4m years of customer policies underwritten by the Group, with a focus on non-standard risks, gives leading insight

into Sabre's core market

Quality

Volume

Data

Skills and experience

3

Specialist underwriting experience

More than 20 years of specialist underwriting enable accurate, competitive pricing for non-standard risks

Driving performance

This expertise is a core contributor to Sabre's record of market-leading underwriting performance

Complete and consistent data

Sabre's data has been captured on a single, reliable

administration system

Reliable analysis

Integrated pricing and reserving analysis, combining traditional and AI-supported techniques

Pricing

• Use of tools in data analysis and price setting

• Maintain human oversight in all pricing decisions

• Full transparency, no 'black box'

• Complements, does not override pricing team

  Claims management

• Completes routine tasks

• Skilled claims team can focus on technical aspects

• Decision-making remains with individuals

  Operations

• Enhances efficiency in customer service and policy management

• Day-to-day use, such as document summarisation Integration into IT security

  Distribution

• Working with partners to ensure we provide easy access to our product through AI-enabled distribution

‌12 Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

Governance

Financial Statements

Our Values

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 roadmap 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 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 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.

Fair to

our people

Focused on our strategy

Our strategy is simple, clear and well understood by our stakeholders.

This is discussed in detail on page 06, but can be distilled further into one thing: focus. Focus on profitability through obsessive management of our pricing and rigorous discipline. Focus on longterm 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. Focus on the wider needs of

stakeholders, through our sustainability and responsibility programme.

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.

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‌13 Sabre Insurance Group plc Annual Report and Accounts 2025‌

Market Context

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.

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, with price reductions stabilising in H2 2025.

With price decreases having slowed or stopped, we now expect prices to increase in order to cover claims cost inflation. Whilst the market imperative will be to increase prices immediately in order to stem market-wide losses (to which Sabre is not exposed given our continued pricing discipline), we cannot be certain as to when these price increases occur. As we believe that in general market prices currently do not cover costs, we expect price increases in 2026 will need to cover past and future inflation, whereas Sabre's increases should be required only to cover future inflation, at most.

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 with an overall annual increase in costs, including consideration of both cost and frequency of claims, in the mid-single-digits. Key elements driving inflation remain largely consistent with prior period and include:

• Care costs for seriously injured people. Overall care inflation is reported at 10.9% for agency day rates in 2025.

• Wage inflation, and the consequent impact on other costs.

• The costs of car parts and paint continue to increase as these elements become more complex.

• The costs of hire vehicles and extended hire periods has improved somewhat, albeit issues such as the JLR cyber event created delays for that brand.

• An industry consensus formed over the past year that accident frequency had reduced structurally, albeit the reasons for this were unclear - possibly being due to safer driving, driving at different times of day, lower speed limits or a lower propensity to claim for small accidents. We have observed this trend, although remain cautious that certain elements, such as the propensity to claim, could reverse.

  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, many of which have not changed since our last Annual Report:

• 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 continued minimum wage and national insurance rises take effect.

• Wage inflation is predicted to drop in 2026, however impacts from national insurance changes, living wage increases and scarcity of labour supply will likely impact costs by more than this in the care and bodyshop sectors.

• 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.

• 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.

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‌14 Sabre Insurance Group plc Annual Report and Accounts 2025

Market Context continued

Current market focus

Sabre's business model is designed to withstand, adapt, and thrive over the long term within a changing environment.

Political and regulatory

2025 has seen the resolution of certain regulatory issues impacting motor insurance, in particular the conclusion of the UK Government's Motor Insurance Task Force. It was

pleasing to see that this wide-reaching investigation into the price of motor insurance did not result in any market-wide intervention and concluded that in general motor insurance pricing fairly reflected underlying costs, with an effective and competitive market.

A final report from the Financial Conduct Authority into premium financing (paying by monthly instalments) was released in February 2026. The report confirmed that no market-wide action is to be taken, although it underscored the importance of providing value to customers, for example by not charging excessive interest rates. 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 2025, income from instalment interest made up less than 1.6% of the Group's insurance revenue.

We continue to comply 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 67 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 rising costs 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

After a period of real-terms decline in spending power, many households in the UK continue to struggle to purchase essentials and maintain a fair standard of living. Sabre has always aimed to price its policies fairly, not exploiting any group of customers while fairly reflecting changing underlying costs. This is reflected 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.

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‌15 Sabre Insurance Group plc Annual Report and Accounts 2025‌

Chair's Letter

This performance underscores the strength

and resilience of our business and provides a solid platform from which to pursue our Ambition 2030 targets."

Rebecca Shelley

Group Chair

Welcome to Sabre's 2025 Annual Report and Accounts.

On behalf of the Board, I would like to thank our shareholders for their continued support and engagement throughout

the year. 2025 was another year of strong performance for Sabre, achieved against a backdrop of challenging market conditions. This resilience is a testament to the strength of our business model and the dedication of our people.

Delivering on Our Strategy

In late 2024, we set out our medium-term strategic plan, Ambition 2030, which outlines our ambition to deliver profit before tax of at least £80m in 2030 and builds on the Group's existing core values and unique strengths. I am delighted to report that during the first half of 2025 we achieved the first milestone in this journey: the successful launch of Sabre Direct, our innovative Direct Motorcycle product.

We also advanced our pricing capabilities during the year, entering a testing phase in late 2025 that will enable us to expand our addressable market and accelerate growth in the years ahead.

Performance and Market Context

As our CEO, Geoff Carter, explains in his statement, Sabre delivered a strong headline profit before tax for 2025 despite weak market conditions. This profit has translated into significant capital generation and has allowed us to pay an increased dividend for the year. This performance underscores the strength and resilience of our business and provides a solid platform from which to pursue our Ambition 2030 targets. I am also pleased that we have been able to announce a further £5m share buyback programme this year, subject to regulatory approval.

Governance and Risk

The Board remains committed to robust governance and stewardship, providing challenge and support to management with a clear focus on achieving our strategic goals, and to aid in this, I was delighted to welcome David Neave as a Non-executive Director to the Board in August 2025.

We also engaged extensively with shareholders through one-on-one meetings, ensuring a full understanding of stakeholder needs throughout our decision making. Further information on the Board and its activities during the year can be found in the Governance section of this report, from page 68 onwards.

Managing risk is second nature to Sabre, and our disciplined approach to pricing and risk management gives us confidence in our ability to thrive in any environment. While global economic conditions remain uncertain, our robust foundations and sharp focus position us well for the future.

Further information on the risks the Group faces and how it manages them can be found in the Principal Risks and Uncertainties section of this report on page 22.

Sustainability and ESG

Sabre continues to make progress on its sustainability agenda. We remain firmly committed to our net-zero target, monitored through our evolving Road to Net Zero framework. I am pleased to report that we achieved a 'B' rating from the Climate Disclosure Project for our disclosures last year - a clear recognition of our transparency and commitment.

Outlook

Looking ahead, we expect Sabre to continue delivering strong profits regardless of market conditions. We see significant potential for growth as pricing strengthens and through our Ambition 2030 initiatives. Over the next few years, we anticipate generating and distributing considerable capital, creating value for all stakeholders.

On behalf of the Board I would like to thank Sabre colleagues for their continued commitment and the Executive Team for their strong leadership throughout the year. The Board and I remain confident in Sabre's future and excited about the opportunities ahead.

Rebecca Shelley

Group Chair 9 March 2026

‌16 Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

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Chief Executive Officer's Review

Our profitability clearly demonstrates the benefit of our ongoing commitment to

disciplined underwriting."

Geoff Carter

Chief Executive Officer

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‌17 Sabre Insurance Group plc Annual Report and Accounts 2025

Chief Executive Officer's Review continued

Healthy premium levels, increased profit and attractive capital returns

2025 was another strong year for Sabre. We delivered an increased profit from a lower premium base and made significant progress with our Ambition 2030 initiatives.

Our profitability clearly demonstrates the benefit of our ongoing commitment to disciplined underwriting, treating profit as the target and volume an output. We priced prudently

for potential claims inflation on business written in the year, despite soft market conditions, and benefitted from positive experience as inflation moderated in the latter part of the year which allowed us to drive growth in both premium and policy count in Q4 and into 2026.

The Headline numbers for 2025 are:

Gross written premium1

£202.9m

2024 | £236.4m

IFRS profit before tax

£51.0m

2024 | £48.6m

1 Alternative performance measure. For reconciliations to alternative performance measures, see pages 212 to 216

Within this we delivered a very positive core motor loss ratio of 50.5%. We have seen both Motorcycle and Taxi loss ratios improve in the second half of the year and continue to expect these products to deliver useful additional profit for the business. Our overall financial year loss ratio of 54.1% was a 4.6ppts improvement on 2024 and delivered a net insurance margin of 19.2%, well inside our target range.

We have continued to ensure our prices fully cover our view of claims costs and are calculated to deliver our target margins. In our view, claims inflation moderated during the year and we believe it is now at a mid-single digit level.

Reflections on 2025

In my 2024 Review, I outlined our hopes and expectations for 2025. These included:

• We would deliver a strong financial result through our differentiated and focused approach to pricing

• We would test the first stages of our Ambition 2030 plans

• We would expand our Motorcycle distribution

• We would demonstrate continued focus on customer experience through development of a self-service portal

• Market rates would be competitive in H1, and increase in H2 to protect margins across the market

• Premium levels would be partially impacted by market pricing levels

I'm delighted that we delivered on the majority of these objectives. While market pricing stabilised in H2, there were no signs of meaningful increases, which is discussed further in the Market section.

Ambition 2030 plans - Test new pricing models As hoped, we successfully conducted our initial pricing tests, gathering valuable feedback that will allow us to begin the ramp-up of initiatives in 2026. Given that market pricing was generally not supportive of growth, the increase in our in-force policy count in Q4 indicates that our refreshed strategy allows us to grow profitably even in more challenging

market conditions.

Motorcycle

Our new direct product launched on schedule, attracting business almost entirely through Price Comparison Websites. "Sabre Direct" was launched with a restricted footprint in order to allow us to test and learn, and to amend prices

as we gathered more data. We are now confident in our pricing proposition and will continue to expand our footprint through 2026.

We are also servicing all polices in-house rather than outsourcing. This is supported through low fixed costs, with the product being entirely on-line, with web-chat support and no call centre.

Customer Portal/Experience

We have continued to develop and refine our online portal and are benefitting from an increasing volume of customers using this as their preferred servicing model. This has supported positive customer experience as well as laying the foundations to reduce direct product servicing costs over time.

Regulation

Our approach is to operate in-line with both the spirit and the letter of all relevant regulation, with a continued focus on delivering good customer outcomes.

We were pleased to see the conclusions of the Government Taskforce on Insurance in late 2025. This concluded that

the market functioned well and that price increases were reflective of increased claims costs - which were primarily driven by external factors. This has always been our view as outlined in previous result announcements, and we hope this removes a cloud over the industry.

We continue to believe we have low exposure to on-going areas of regulatory focus, which appear to be primarily poor value ancillary products, high APR's for premium finance and certain claims management activities.

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‌18 Sabre Insurance Group plc Annual Report and Accounts 2025

Chief Executive Officer's Review continued

Market

In our view the market is currently over-competing and risks undermining margins. This is not something we will allow to happen at Sabre, and we remain focussed on underwriting discipline.

As noted earlier, we believe claims inflation is returning to historical norms of mid-single digit levels, whilst overall there has been little compensating market level rate increase

in 2025.

At an overall level this is likely to drive reduced market-level profitability in 2026 although this may look very different for individual competitors, such as Sabre, where underwriting profitability has remained the focus.

Capital and dividend

We have increased our dividend to 13.5p per share for 2025, reflecting increased profits and strong capital generation.

While our post-dividend solvency ratio of 161.5% is below 2024, this remains above our preferred operating range. The Board has elected to use additional capital, paying down into the range, to execute a buyback of £5m, the

same amount as in the previous year. This is indicative of the Board's confidence in the Group's robust capital position and ability to generate further capital as we look to grow through to our Ambition 2030 target.

People

Our success in 2025 and confidence about the future are entirely due to the efforts and commitment of all Sabre's people. In 2025 the whole business excelled in pushing to deliver the in-year result as well as continuing to develop our Ambition 2030 plans.

In return we were delighted to be able to pay a Christmas Bonus as well as performance bonuses. In addition, in the year we agreed an extra day's holiday for all staff to be taken on or around their birthday.

Our hybrid way of working with all staff spending a minimum of 3 days in the office continues to work well for the business and our people and we have no plans to change this.

Environmental, Social and Governance ("ESG")

Environmental, social and governance matters remain integral to how we make decisions as a business. We continue to uphold our environmental commitments and values, ensuring fairness to our people, customers, partners and the planet. During the year, we have made continued progress towards our net-zero ambitions, as outlined in the 'Responsibility and Sustainability' section of this report on pages 54 to 66.

Artificial intelligence

Throughout the year we continued to position the business to benefit from potential AI driven opportunities and to manage the threats arising from AI. This includes running numerous efficiency tests, utilising large language models and other novel pricing and analysis models and preparing for possible medium-term changes in distribution - for example AI driven premium comparisons. Overall, we believe that as a focused product manufacturer AI will benefit rather than threaten

our business.

Outlook for 2026

We will continue to focus on writing business at our target margins, with overall premium levels being influenced by market pricing dynamics. As the year progresses, we expect to begin seeing the noticeable positive premium impact of our Ambition 2030 plans. We expect the Group to continue premium growth in 2026, and to deliver a profit slightly ahead of 2025 as the high-margin business written in 2025 earns through. I anticipate we will continue to deliver sustainable profitable growth as we move towards 2030.

In my next report I look forward to providing more detail on the development and impact of this work, as well as reporting another strong in year performance. Huge thanks to all our people for making this happen, and to the board members for their continuing support and constructive challenge.

Geoff Carter

Chief Executive Officer 9 March 2026

‌19 Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report

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We delivered an increased profit, from a lower premium base, but made very substantial progress with our Ambition 2030 initiatives."

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‌20 Sabre Insurance Group plc Annual Report and Accounts 2025‌

Key Performance Indicators

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 page 06

How our KPIs link to Directors' remuneration

Executive Directors' and senior management's remuneration is based on both financial and nonfinancial 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 page 92

Gross written premium £'m

What is it?

The total premium written by the business.

£225.1m

£236.4m

£202.9m

Why is it important?

Writing insurance policies is the Group's primary function, and the Group's margin

Expense ratio %

What is it?

30.0%

25.5%

28.2%

A measure of the Group's total operating expenses as a proportion of the net earned premium.

Why is it important?

23 24 25

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.

Links to Strategy

1 2 3 4 5

Principal Risks

1 2 3 4 5

6 7

Aim

To grow premium over the medium term such that the profit target set out in Ambition 2030 can be achieved.

23 24 25

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

Links to Strategy

3 4 5

Principal Risks

1 2 4 5 6

7

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 net insurance margin target can be achieved.

Net loss ratio %

What is it?

61.6%

58.7%

54.1%

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

Combined operating ratio %

What is it?

91.6%

84.2%

82.3%

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?

23 24 25

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.

Links to Strategy

1 4 5

Principal Risks

1 2 5 6 7

Aim

To achieve a sufficiently low loss ratio to achieve the combined operating ratio and net insurance margin targets.

23 24 25

This is a common performance indicator used by similar companies, so will aid in allowing comparison across the sector.

Links to Strategy

1 3 4 5

Principal Risks

1 2 4 5 6

7

Aim

To achieve to the overall net insurance margin target, the Group needs to record a combined operating ratio of 80% - 85%, while ensuring an optimal level is reached to maximise profit before tax.

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‌21 Sabre Insurance Group plc Annual Report and Accounts 2025

Key Performance Indicators continued

Net insurance margin %

What is it?

10.6%

17.6%

19.2%

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

Pre-dividend solvency coverage ratio %

What is it?

205.3%

216.6%

198.7%

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

KPI to IFRS reconciliations

All KPIs are non-IFRS measures, with the exception of IFRS profit before tax.

23 24 25

undiscounted basis.

Why is it important?

Links to Strategy

1 2 3 4 5

Principal Risks

1 2 5 6 7

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%.

23 24 25

the final dividend declared in respect of the financial year.

For a reconciliation of KPIs to IFRS measures go to pages 212 to 216

Links to Strategy

1. Disciplined Underwriting

2. Risk Management

3. Controlled Growth

4. Operations

5. Distributions

Links to Strategy

1 4 5

Principal Risks

1 2 5 6 7

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 than 160%.

For our strategy go to page 06

Principal Risks

1. Insurance

2. Operations

3. Finance and Capital

4. IT and Systems

5. Regulatory, Governance and Compliance

6. People

7. Macro Risks

Return on tangible equity % IFRS profit before tax £'m

22.7%

38.2%

37.2%

23 24 25

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?

Links to Strategy

3 4 5

Principal Risks

1 2 3 5 6

7

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.

£23.6m

£48.6m

£51.0m

23 24 25

What is it?

A measure of the total pre-tax earnings of the Group, in accordance with prevailing accounting standards.

Why is it important?

Links to Strategy

1 3 4 5

Principal Risks

1 3 5 7

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.

For our Principal Risks go to pages 22 to 30

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‌22 Sabre Insurance Group plc Annual Report and Accounts 2025‌

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, 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 risks. The Board also ensures that measures are in place to provide independent and objective assurance on the rigorous 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 Risk Committee can be found on pages 86 to 88. The Risk Committee works closely with the Remuneration Committee to ensure that the effective management of risk is accurately reflected when making decisions regarding remuneration payments.

Sabre has established a robust and proportionate risk management strategy and framework as an integral element in its pursuit of business objectives and the fulfilment of its obligations to shareholders, regulators, customers, employees and suppliers.

The Group's objectives regarding risk management are that:

1. The Group endeavours to operate an effective Risk Management Framework, which utilises the three lines of defence philosophy and manages risk within Board appetite;

2. All significant risks are identified, measured, assessed, managed and monitored in a consistent and effective manner across the Group;

3. Appropriate and reliable risk management tools, including likelihood and impact indicators, are deployed to support the rating and the management of risks;

4. 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;

5. The Group complies with all relevant legislation, regulatory requirements, guidance and codes of best practice; and

   Second line

   • Facilitating the Group's risk management processes

   • Oversight and challenge of risk management and controls

   • Testing of controls

6. The Board receives timely, dependable assurance that the Group is managing the significant risks it is exposed to.

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 impacts on the Group are minimised. Whilst accepting that some elements of risk are core to the operation of the Group, it is important that the Group identifies and accepts only the risks which the Group considers to be within its risk appetite. To do this, Sabre's Risk Framework is based on the 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

First line

- Day-to-day responsibility for owning, assessing, managing and controlling risks

Third line

- Provision of independent assurance

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‌23 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

1. Risk identification

4. Risk monitoring and reporting

The risk management process at Sabre This section sets out the activities that Sabre conducts to ensure that risks arising are identified and managed. The risk management process comprises five broad categories of activities:

2. Risk assessment

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.

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

The output of Sabre's risk 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 risk changes, key risk indicators, breaches, incidents, issues, and significant control weaknesses, is curated and shared across the relevant individuals and committees in the form of a Risk Dashboard over the quarter.

Risks and controls are reported through the Group with a bottom-up approach, 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.

5. Risk response and learning

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 and training.

When risks crystalise, or when Sabre's residual risk exposures increase, this is escalated to the appropriate individuals, Board and committees, either through regular reporting or on an exceptions basis.

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‌24 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

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:

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 is generally 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, the Board considers all stakeholders, including customers, employees, regulators, shareholders and suppliers. The Group's risk appetite is reviewed by the Group's Management Risk and Compliance Forum, the Risk Committee and the Board annually to confirm that it remains appropriate.

Emerging risks

Sabre monitors external developments, including regulatory changes, industry trends, and changes in the global and domestic economic environment, which would impact its risk profile.The identification and management of emerging risks through this monitoring is a key element of the Group's strategic risk management. Emerging risks are developing threats that are subject to uncertainty but could impact the

Group in either the short or long term. Emerging risk scanning provides a forward-looking view of the risks that have the potential to impact Sabre but have not yet crystalised.

Management continually monitors emerging risks to ensure they are mitigated where possible and the Management Risk and Compliance Forum and Risk Committee review the Emerging Risk Log quarterly.

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 customers 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's 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.

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‌25 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

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.

The following table shows the principal risks the Group faces, their impacts and how they are mitigated.

Insurance

Key

LINK TO STRATEGY*

Disciplined Underwriting

Risk Management

1

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 page 06

Risk Description Mitigation

Change from prior year

Link to strategy

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‌26 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

Insurance

Risk Description Mitigation

Change from prior year

Link to strategy

Operations

Risk Description Mitigation

Change from prior year

Link to strategy

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‌27 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

Operations

Risk Description Mitigation

Change from prior year

Link to strategy

Finance and Capital

Risk Description Mitigation

Change from prior year

Link to strategy

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‌28 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

IT and Systems

Risk Description Mitigation

Change from prior year

Link to strategy

Regulatory, Governance and Compliance

Risk Description Mitigation

Change from prior year

Link to strategy

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 those which relate 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

2 4

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.

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‌29 Sabre Insurance Group plc Annual Report and Accounts 2025

Principal Risks and Uncertainties continued

Regulatory, Governance and Compliance

Risk Description Mitigation

Change from prior year

Link to strategy

People

The Group operates within the UK and is therefore primarily subject to the requirements of the laws in that territory. Further to those regulatory and data protection laws, 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.

Change

2 4

Link to

Risk Description Mitigation

from prior year

strategy

The quality of our employees is central to the success of Sabre, and the potential loss of key 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

4

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 44 to 50.

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Principal Risks and Uncertainties continued

Macro

Risk Description Mitigation

Change from prior year

Link to strategy

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‌31 Sabre Insurance Group plc Annual Report and Accounts 2025‌

Viability Statement

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 2028, 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, motor insurance policies which generally cover

a period of one year, 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.

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 2028.

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

Whilst inflation has fallen from the peaks in 2022, overall economic inflation remains higher than the Bank of England's target rate and above expectations set at the start of 2025. Persistency remains uncertain and investment markets are vulnerable to increased levels of volatility.

Interest rates remain materially higher than in the 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 maintains 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 54 to 66 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. For example, electric vehicles are currently relatively expensive to repair. 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 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. If the propensity to travel by car decreases over time 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.

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‌32 Sabre Insurance Group plc Annual Report and Accounts 2025

Viability Statement continued

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

Our modelling 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 for one year

• 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 2026.

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‌33 Sabre Insurance Group plc Annual Report and Accounts 2025‌

Section 172 Statement

Our purpose

To provide motor insurance, available to the widest possible range of drivers, based upon a fair, risk-based pricing model.

Our Aim

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.

Pages 34 and 35 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 41 to 66 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:

• A nominated Non-executive Director is 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.

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‌34 Sabre Insurance Group plc Annual Report and Accounts 2025

Section 172 Statement continued

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.

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:

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‌35 Sabre Insurance Group plc Annual Report and Accounts 2025

Section 172 Statement continued

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.

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‌36 Sabre Insurance Group plc Annual Report and Accounts 2025

Section 172 Statement continued

Key Board decisions during the financial year ended 31 December 2025

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 2025,

as discussed below.

Strategy

During 2025, the Board reviewed the Group's progress towards the medium-term strategy, Ambition 2030, discussed on 08 to 11 of this report. The Board considered whether the strategy had met, and will continue to meet, the needs of the Group's shareholders.

This strategy underlines the Board's commitment to driving profitable, sustainable growth over the medium term without compromising the Group's strengths. 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 longterm result for shareholders as well as the best prices for customers and the best level of customer service.

Distribution of capital

The Group's dividend policy states that an ordinary dividend will be paid based on 70%-80% 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 2025, 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. In early 2026 the Board approved the buyback of Ordinary Shares worth up to £5m, subject to regulatory approval.

This follows the successful £5m buyback programme completed in 2025.

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.

In line with the Group's strategy, intended to deliver maximum value to shareholders whilst maintaining sufficient levels of regulatory capital, the Directors monitored the appropriateness of allowing volumes of business to decline in weak market pricing conditions.

Investment in cyber-security

The Board recognises cyber-security as a key risk to the business and, as such, has supported management's continued enhancement of the Group's security infrastructure. Cyber-security benefits all stakeholders, in particular customers,

who can take comfort that their personal data is held safely and securely.

‌37 Sabre Insurance Group plc Annual Report and Accounts 2025 Strategic Report‌

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Chief Financial Officer's Review

Demonstrating Sabre's strengths through the market cycle."

Adam Westwood

Chief Financial Officer

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‌38 Sabre Insurance Group plc Annual Report and Accounts 2025

Chief Financial Officer's Review continued

Gross written premium*

2025 2024

£202.9m £236.4m

Solvency coverage ratio (pre-dividend)*

Solvency coverage ratio (post-dividend)*

Return on tangible equity*

198.7%

216.6%

161.5%

37.2%

171.1%

38.2%

Highlights

Insurance revenue

Whilst the Taxi business has been in a holding pattern to preserve profitability in a difficult market, we have started to grow the Motorcycle business, which now operates through an established broker relationship and the Sabre Direct brand, launched in 2025 and a cornerstone of the Group's Ambition 2030 initiatives. The Sabre Direct brand remains deliberately restricted as we gain comfort in the product, and we expect to continue to release these restrictions and grow the product throughout 2026.

* Alternative performance metrics are reconciled to IFRS reported figures on pages 212 to 216 of the Annual Report and Accounts

Executive summary

Sabre's performance in 2025 has demonstrated the strength of the Group's core strategy and delivered a strong result despite challenging market conditions.The Group has grown profit before tax by 4.9% and improved margin by 1.6ppts through deploying strict pricing discipline and balancing profitability with the volume of business written, allowing the top-line to decrease as market pricing has remained below inflation.

Whilst the motor insurance market is expected to experience a drop in profitability in 2026, Sabre's approach has provided a strong foundation for continuing profitable growth as the Group delivers consistent profitability and capital returns.

Gross written premium

2025 2024

£202.9m £236.4m

Net insurance revenue

Gross written premium by product

Motor vehicle Motorcycle Taxi

Policy counts by product

Motor vehicle ('000)

Motorcycle ('000)

Taxi ('000)

£194.1m £214.5m

£180.1m

£10.6m

£12.2m

£209.9m

£9.7m

£16.8m

201

40

8

217

38

11

The 14.2% decline in premium was as expected given market pricing decreases during the year, with Sabre pricing to ensure bottom-line stability and allowing volumes of business written to drop in unfavourable conditions, in line with our long-term strategy. The dip in premium was weighted towards the first half of the year, with conditions stabilising in the second half allowing a gradual return to growth in the fourth quarter.

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.

Gross written premium1

£202.9m

2024 | £236.4m

IFRS profit before tax

£51.0m

2024 | £48.6m

1 Alternative performance measure. For reconciliations to alternative performance measures, see pages 212 to 216