Solvency and Financial Condition Report (SFCR) (sfcr sabre insurance group 2025)

For the year to 31 December 2025

Date: 9 March 2026

Statement of Directors' Responsibilities 4

External Auditor's Report 5

Summary 9

1. Business Performance 12

   1. Business 12

   2. Underwriting Performance 12

   3. Investment Performance 15

   4. Performance of Other Activities 16

2. System of Governance 17

   1. General Information on the System of Governance 17

   2. Fit and Proper Requirements 29

   3. Risk Management System Including the Own Risk and Solvency Assessment ("ORSA") 31

   4. Internal Controls System 31

   5. Internal Audit Function 31

      B.6. Actuarial Function 32

      1. Outsourcing 32

      2. Any Other Information 32

3. Risk Profile 33

   1. Underwriting Risk 33

   2. Market Risk 35

   3. Credit Risk 36

   4. Liquidity Risk 36

   5. Operational Risk 36

   6. Other Material Risks 37

   7. Any Other Information 37

4. Valuation for Solvency Purposes 38

   1. Assets 38

   2. Technical Provisions 39

   3. Other Liabilities 41

   4. Alternative Methods for Valuation 42

   5. Any Other Information 42

5. Capital Management 43

   1. Own Funds 43

   2. Solvency Capital Requirement ("SCR") and Minimum Capital Requirement ("MCR") 47

   3. Use of the Duration-Based Equity Risk Sub-Module in the Calculation of the Solvency Capital Requirement 49

   4. Difference Between the Standard Formula and Any Internal Model Used 49

   5. Non-Compliance with the Minimum Capital Requirement and Non-Compliance with the Solvency Capital Requirement 49

   6. Any Other Information 49

Public Quantitative Reporting Templates (Sabre) 50

Public Quantitative Reporting Templates (Group) 65

Statement of Directors' Responsibilities

The Board of Directors of Sabre Insurance Group plc (together with its subsidiaries the "Group") and Sabre Insurance Company Limited ("Sabre", "SICL", or the "Company") as applicable are responsible for preparing the Group Solvency and Financial Condition Report, including the attached public quantitative reporting templates, in accordance, in all material respects, with the PRA Rules and the Solvency II Regulations.

Each of the Directors of the Group and the Company as applicable is satisfied that:

1. throughout the financial year in question, the Group and the Company have complied in all material respects with the requirements of the PRA Rules and the Solvency II Regulations; and

2. it is reasonable to believe that the Group and the Company have continued so to comply subsequently and will continue so to comply in future.

Signed on behalf of the Boards of Sabre Insurance Group plc and Sabre Insurance Company Limited by:

Adam Westwood

Chief Financial Officer

Report of the external independent auditors to the Directors of Sabre Insurance Group plc ('the Company') pursuant to Rule 4.1 (2) of the External Audit Part of the PRA Rulebook applicable to Solvency II firms

Report on the Audit of the relevant elements of the Single Group-Wide Solvency and Financial Condition Report

Opinion

We have audited the following documents prepared by the Company as at 31 December 2025:

− The 'Valuation for solvency purposes' and 'Capital management' sections of the Single Group-Wide Solvency and Financial Condition Report of the Company as at 31 December 2025, ('the Narrative Disclosures subject to audit');

− Group templates IR.02.01.02, , IR.23.01.04, IR.25.04.22 and IR.32.01.22 ('the Group Templates subject to audit'); and

− Solo templates IR.02.01.02, IR.17.01.02, IR.23.01.01, IR.25.04.21 and IR.28.01.01 in respect of Sabre Insurance Company Limited ('the Solo Templates subject to audit').

The Narrative Disclosures subject to audit, the Group Templates subject to audit and the Solo Templates subject to audit are collectively referred to as the 'relevant elements of the Single Group-Wide Solvency and Financial Condition Report'.

We are not required to audit, nor have we audited, and as a consequence do not express an opinion on the:

− Undertaking Specific Parameter - pursuant to regulation 42 of the Financial Services and Markets (The Solvency II Regulations 2015)

− Other Information which comprises:

‒ The 'Summary', 'Business and performance', 'System of governance' and 'Risk profile' elements of the Single Group-Wide Solvency and Financial Condition Report;

‒ Group templates IR.05.02.01 and,

‒ Solo templates IR.05.02.01, IR.05.03.02, IR.05.04.02 and IR.19.01.21 in respect of the Group member;

‒ The written acknowledgement by management of their responsibilities, including for the preparation of the Single Group-Wide Solvency and Financial Condition Report ('the Responsibility Statement').

In our opinion, the information subject to audit in the relevant elements of the Single Group-Wide Solvency and Financial Condition Report of the Company as at 31 December 2025 is prepared, in all material respects, in accordance with the financial reporting provisions of the PRA Rules, as modified by relevant supervisory modifications.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) including ISA (UK) 800 and ISA (UK) 805, and applicable law. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the relevant elements of the Single Group-Wide Solvency and Financial Condition Report section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Single Group-Wide Solvency and Financial Condition Report in the UK, including the FRC's Ethical Standard as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:

− Obtaining the Directors' Going Concern assessment and challenged the rationale for the downside scenarios adopted and material assumptions made using our knowledge of Sabre's business performance, review of regulatory correspondence and obtaining further corroborating evidence;

− Considered management's assessment of the regulatory Solvency coverage and liquidity position; and

− Considered information obtained during the course of the audit and publicly available market information to identify any evidence that would contradict management's assessment of going concern.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from the date on which the Single Group-Wide Solvency and Financial Condition Report is authorised for issue.

In auditing the Single Group-Wide Solvency and Financial Condition Report, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the Single Group-Wide Solvency and Financial Condition Report is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Emphasis of Matter - Basis of Accounting

We draw attention to the Valuation for solvency purposes and Capital management other relevant disclosures sections of the Single Group-Wide Solvency and Financial Condition Report, which describe the basis of accounting. The Single Group-Wide Solvency and Financial Condition Report is prepared in compliance with the financial reporting provisions of the PRA Rules, and therefore in accordance with a special purpose financial reporting framework. The Single Group-Wide Solvency and Financial Condition Report is required to be published, and intended users include but are not limited to the Prudential Regulation Authority. As a result, the Single Group-Wide Solvency and Financial Condition Report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Other Information

The Directors are responsible for the Other Information.

Our opinion on the relevant elements of the Single Group-Wide Solvency and Financial Condition Report does not cover the Other Information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Single Group-Wide Solvency and Financial Condition Report, our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the relevant elements of the Single Group-Wide Solvency and Financial Condition Report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the relevant elements of the Single Group-Wide Solvency and Financial Condition Report or a material misstatement of the Other Information. If, based on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors for the Single Group-Wide Solvency and Financial Condition Report

The Directors are responsible for the preparation of the Single Group-Wide Solvency and Financial Condition Report in accordance with the financial reporting provisions of the PRA Rules which have been modified by the modifications made by the PRA under section 138A of FSMA and the PRA Rules, as detailed below:

− Permission to publish a Single Group-Wide SFCR

The Directors are also responsible for such internal control as they determine is necessary to enable the preparation of a Single Group-Wide Solvency and Financial Condition Report that is free from material misstatement, whether due to fraud or error.

Auditors' Responsibilities for the Audit of the relevant elements of the Single Group-Wide Solvency and Financial Condition Report

It is our responsibility to form an independent opinion as to whether the information subject to audit in the relevant elements of the Single Group-Wide Solvency and Financial Condition Report is prepared, in all material respects, in accordance with the financial reporting provisions of the PRA Rules.

Our objectives are to obtain reasonable assurance about whether the relevant elements of the Single Group-Wide Solvency and Financial Condition Report are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decision making or the judgement of the users taken on the basis of the Single Group-Wide Solvency and Financial Condition Report.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the Group members and Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory principles, such as those governed by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) , and we considered the extent to which noncompliance might have a material effect on the Single Group-Wide Solvency and Financial Condition Report. We also considered those laws and regulations that have a direct impact on the Single Group-Wide Solvency and Financial Condition Report such as the financial reporting provisions of the PRA Rules. We evaluated management's incentives and opportunities for fraudulent manipulation of the Single Group-Wide Solvency and Financial Condition Report (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and posting of inappropriate journals . Audit procedures performed included:

− Discussions with the Board, management, and Internal Audit function including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

− Understanding management's controls designed to prevent and detect irregularities;

− Reviewing relevant meeting minutes including those of the Board of Directors, Audit, Risk, Nomination and Remuneration Committees;

− Identifying and testing journal entries based on risk criteria

− Challenging assumptions and judgements made by management in their significant accounting estimates, particularly in relation to the estimation of technical provisions

− Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing

− Attendance at Audit Committee meetings

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the Single Group-Wide Solvency and Financial Condition Report. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit is located on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Use of this report

This report, including the opinion, has been prepared for the Board of Directors of the Company in accordance with External Audit rule 2.1 of the Solvency II firms Sector of the PRA Rulebook and for no other purpose. We do not, in providing this report, accept or assume responsibility for any other purpose or to any other party save where expressly agreed by our prior consent in writing.

Report on Other Legal and Regulatory Requirements Other Information

In accordance with Rule 4.1 (3) of the External Audit Part of the PRA Rulebook for Solvency II firms we are also required to consider whether the Other Information is materially inconsistent with our knowledge obtained in the audit of the relevant elements of the Solvency and Financial Condition Report and (where applicable) the audit of the Company's statutory financial statements. If, based on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report in this regard.

The engagement partner on the audit resulting in this independent auditors' report is Philip Watson.

PricewaterhouseCoopers LLP Chartered Accountants

7 More London Riverside 9 March 2026

Solvency II as implemented in the UK requires reporting and public disclosure arrangements to be put in place by insurers, some of which is required to be published on the Group's website. This document is the regulated Group's Solvency and Financial Condition Report ("SFCR"). The SFCR covers the entire Group, headed by the listed ultimate parent company, Sabre Insurance Group plc and also covers Sabre Insurance Company Limited. This is discussed further in section A.1, "Business".

This report covers the Business and Performance of the Group, its System of Governance, Risk Profile, Valuation for Solvency Purposes and Capital Management. The ultimate Administrative Body that has the responsibility for all of these matters is the Group's Board of Directors.

Where relevant, specific references to the Group's Annual Report and Accounts for the period ended 31 December 2025 (the "Annual Report") are made throughout this SFCR. It can be found at:

https://www.sabreplc.co.uk/investors/results-centre

Sabre is a motor insurer writing motor vehicle, motorcycle and taxi business in the UK. Sabre is the only operating entity within the regulated Group, therefore this report focuses on the Group's results, which are not materially different to those of Sabre. Sabre has been issued a Direction under section 138 of the Financial Services and Markets Act 2000 in respect of Rule 18.1(2) of the Group Supervision Part of the PRA Rulebook for Solvency II Firms which allows for the preparation of a single Group SFCR.

In 2025, the Group reported gross written premium of £202,900k (2024: £236,435k), profit before tax of £50,960k (2024:

£48,562k) and post-tax profit of £37,915k (2024: £35,961k). The Group's capital position is summarised below, before payment of any final dividend in respect of the year.

The Board approved a final dividend of £24,907k in respect of 2025, on 9 March 2026. The impact of the final dividend on the Group's capital position is shown below.

The position of Sabre Insurance Company Limited is not materially different and disclosed fully in section E.2. The Group has announced its intention for a £5m share buyback programme in 2026.

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.

Salient features of the 2025 consolidated financial statements, prepared in accordance with UK-adopted international accounting standards, comprising International Accounting Standards ("IAS") and International Financial Reporting Standards ("IFRS"), are shown in the table below.

IFRS result

The below tables reconcile the IFRS numbers to alternative performance measures used elsewhere in this report.

Gross written premium

Gross earned premium

Net earned premium

Net claims incurred

Net income/(expense) from reinsurance contracts held

1. ‌Business Performance

   1. ‌Business

      Sabre Insurance Group plc is listed on the Main Market of the London Stock Exchange. 100% of the Group's share capital is traded on the exchange, and the Group has no debt or other capital instruments. No restructuring took place during 2025. No one party owns more than 10% of the Group's issued share capital.

      The Group structure as at 31 December 2025 is shown in the summary chart below. Note that all ordinary shares carry equal voting rights and so the proportions below relate to both ownership and voting rights. Each subsidiary entity is 100% owned by its immediate parent.

      
      
      

      Sabre is regulated by the Financial Conduct Authority ("FCA") and the Prudential Regulation Authority ("PRA") and authorised by the PRA. Further details of Sabre's regulators can be found on their respective websites:

      FCA: https://www.fca.org.uk/

      PRA: http://www.bankofengland.co.uk/pra/Pages/default.aspx

      All entities within the Group prepare financial statements in accordance with UK-adopted international accounting standards, comprising International Accounting Standards ("IAS") and International Financial Reporting Standards ("IFRS"), and the requirements of the Companies Act 2006. Endorsement of accounting standards is granted by the UK Endorsement Board ("UKEB").

      The Group and its subsidiaries' financial statements are audited by PricewaterhouseCoopers LLP ("PwC"). Contact details for PwC are given below.

      PricewaterhouseCoopers LLP 7 More London Riverside London

      SE1 2RT

      Certain elements of this Solvency and Financial Condition Report ("SFCR") are covered by the Audit Opinion on pages 5 to 7 of this report. Please refer to the Audit Opinion for detail as to the scope of the Opinion. The Boards of the Group and the Company have approved this report in its entirety, with reference to the Statement of Directors' Responsibilities on page 4 of this report.

   2. ‌Underwriting Performance

      Sabre writes only motor insurance products within the UK (including private car, motorcycle, commercial and taxi business) and therefore management considers Sabre to provide a single product across three segments, and operates within a single geographical area. This single Group SFCR covers Sabre and the non-trading entities within the Group, which are required to be individually identifiable. However, only Sabre has received any income or incurred any underwriting expenditure, therefore the information provided here in respect of the Group is not materially different to that which would be shown for Sabre individually.

      The consolidated underwriting result for the Group is presented below. Note that while Sabre does not differentiate between 'liability' and 'other' motor policies, it is required to report income and expenditure for these notional lines separately under Solvency II. Therefore, in the information presented below, the result has been apportioned between these two bases. Combined operating ratio below is presented before and after administrative expense incurred in respect of other group companies.

      	Motor vehicle liability insurance £'k	2025 Other motor insurance £'k	Non-life annuities £'k	Total £'k	2024 Total £'k
      Gross earned premium	177,946	36,603	-	214,549	243,638
      Reinsurance premium ceded	(19,800)	(4,073)	-	(23,872)	(33,617)
      Net earned premium	158,146	32,530	-	190,677	210,021
      Insurance claims	(139,491)	(25,687)	14,611	(150,567)	(129,454)
      Insurance claims recoverable from reinsurers	58,569	9,307	(13,323)	54,552	13,026
      Net insurance claims	(80,922)	(16,380)	1,288	(96,015)	(116,428)
      Discounted net loss ratio (1)	51.2%	50.4%	N/A	50.4%	55.4%
      Commission expenses	(13,895)	(2,858)	-	(16,753)	(18,166)
      Operating expenses	(29,901)	(6,151)	-	(36,051)	(34,740)
      Total expenses (Sabre)	(43,796)	(9,009)	-	(52,804)	(52,906)
      Discounted combined ratio (2)	78.9%	78.0%	N/A	78.1%	80.6%
      Other Group company expenses	-	-	-	(970)	(606)
      Total Group expenses	(43,796)	(9,009)	-	(53,774)	(53,512)
      Discounted group combined ratio (2)	78.9%	78.0%	N/A	78.6%	80.9%

      (1)Discounted net loss ratio is calculated here as net claims incurred divided by net earned premium. Refer to the 'Summary' section of this report for a reconciliation from IFRS numbers to alternative performance measures.

      (2)Discounted combined ratio is calculated here as the sum of commission, operating expenses and net claims incurred divided by net earned premium.

      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 discounted combined operating ratio by 2.5ppts 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.

      The underwriting performance on a discounted basis of the three lines of business is shown below:

      	Motor	Motorcycle	Taxi	2025 All lines	2024 All lines
      Net earned premium	£168.8m	£8.4m	£13.5m	£190.7m	£210.0m
      Net claims incurred, excluding claims handling expenses	£79.9m	£5.3m	£10.8m	£96.0m	£116.4m
      Current-year loss ratio (discounted)	53.6%	83.5%	77.2%	56.6%	55.4%
      Prior-year loss ratio (discounted)	(6.2%)	(20.7%)	2.8%	(6.2%)	0.0%
      Financial year loss ratio (discounted)	47.4%	62.8%	80.0%	50.4%	55.4%

      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.

      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.

      The Group delivered excellent profitability in its core product in 2025, with a 5.6ppts improvement in Motor loss ratio reflecting strong pricing in both 2024 and 2025 earning through. Performance of the Motorcycle business, which being small is subject to natural volatility, improved significantly in the second half of 2025 and delivered an acceptable result with strong underwriting profitability expected to be shown over the medium term. The Taxi loss ratio improved on 2024 and this product is being written in line with our target margins. As with Motorcycle, this product will show big shifts in loss ratio given the small size of the book.

      There was a 5.5% favourable movement on prior-year reserves - a combination of normal levels of IFRS risk adjustment run-off and some positive development of prior years in 2025. The current-year loss ratio is in line with

      our expectations and reflects our continued cautious view of inflation.

      Overall, the financial-year loss ratio of 54.1% has allowed us to deliver a net insurance margin of 19.2%, well within our target range.

   3. ‌Investment Performance

      The Group's investments consist of cash, gilts, corporate bonds, government-backed securities and owner-occupied property. The portfolio is selected to minimise investment risk and capital strain through matching the maturity of the investment portfolio to the cash outflows from insurance liabilities. The figures shown here represent the Group result, which is not materially different to that of Sabre individually.

      Income and expenses on an IFRS basis by asset class are shown below:

      UK

      Government

      Government

      backed

      Corporate

      Cash and cash

      Owner-occupied

      	bonds £'k	securities £'k	bonds £'k	equivalents £'k	properties £'k
      Balance at 31 December 2024	112,793	103,267	95,124	31,314	3,600
      Balance at 31 December 2025	124,798	100,717	100,237	25,475	3,600
      Average balance (£'k)	118,796	101,992	97,681	28,395	3,600
      Average % of portfolio	33.9%	29.1%	27.9%	8.1%	1.0%
      Effective interest	3,220	3,920	3,441	1,138	-
      Allocated investment fees	(121)	(146)	(128)	-	-
      Property valuation movement	-	-	-	-	-
      Net investment return - £	3,099	3,774	3,313	1,138	-
      Net investment return - %	2.61%	3.70%	3.39%	4.01%	0.00%

      	2025 £'k	2024 £'k
      Total investment expenses	395	439

      The Group continues to hold a low-risk investment portfolio and cash reserves sufficient to meet its future claims liabilities. This has resulted in a stable yield across the portfolio. As most assets are held to maturity, the yield achieved by the portfolio lags changes in market yield, with funds generally being reinvested on maturity.

      Interest revenue reflects the yield achieved across the Company's investment portfolio. The increase in interest revenue reflects the higher yield gained through reinvesting matured. The Company's investment strategy remains unchanged, being invested in a low-risk mix of UK Government bonds, other government-backed securities and diversified investment-grade corporate bonds.

      Sabre holds two owner-occupied properties, Sabre House and the Old House, which are both managed by the Company. The properties are measured at fair value which is arrived at on the basis of a valuation carried out on 16 October 2023 by Hurst Warne and Partners LLP. The valuation was carried out on an open-market basis in accordance with the Royal Institution of Chartered Surveyors' requirements, which is deemed to equate to fair value.

      The Group holds no investments in securitisations.

   4. ‌Performance of Other Activities

      Sabre generates minimal income from the sale of add-on products and administration fees across its direct business, along with commission for marketing certain products. Sabre's largest non-underwriting income stream is generated through the provision of premium finance. A summary of income generated through these activities is shown below. Sabre considers this income to be supplementary to its core business of underwriting policies at a fair price. The figures shown here represent the Group result, which is not materially different to that of Sabre individually.

      	2025 £'k	2024 £'k
      Customer instalment interest Administration fees Brokerage and other fee income	3,441 314 323	4,493 182 558
      Total	4,078	5,233

      Customer instalment income, which is 'earned' in the same way as premium, has decreased in line with premium earned on the direct business and reflects a small decrease in the interest rate charged to customers. As has always been the case, the Group only earns instalment income on its Direct book from the provision of premium financing to those customers who choose to pay monthly, and as such this remains a very small element of the Group's insurance revenue.

2. ‌System of Governance

   1. ‌General Information on the System of Governance

      As disclosed in its Annual Report, the Board is committed to high standards of corporate governance across the Group. The Annual Report sets out the system of governance. The Board of the Company is collectively responsible for setting the Company's strategic aims and providing the leadership to put them into effect through the management of the Group's business within the Company's governance framework. It does this by setting Group strategy and then ensuring that appropriate standards, controls and resources are in place for the Company to meet its obligations and reviewing Management's performance.

      In order to ensure there is a clear division of responsibilities between the Board and the running of the business, the Board has a formal schedule of matters specifically reserved for its decision which is reviewed on an annual basis. These reserved matters include the Group's strategic aims; objectives and commercial strategy; governance and regulatory compliance; structure and capital; financial reporting and controls; internal controls and risk management; major capital commitments; major contracts and agreements; shareholder engagement; remuneration of senior executives; material corporate transactions; and any changes to this schedule of reserved matters. The Board plans to meet six times a year with supplementary meetings as required.

      Board of Directors of the Group (as at 31 December 2025)

      − Rebecca Shelley (Group Chair)

      − Geoff Carter (Chief Executive Officer)

      − Adam Westwood (Chief Finance Officer)

      − Ian Chapple (Independent Non-executive Director)

      − Karen Geary (Independent Non-executive Director)

      − Bryan Joseph (Senior Independent Non-executive Director)

      − Alison Morris (Independent Non-executive Director)

      − David Neave (Independent Non-executive Director) - Appointed 1 August 2025

      Details of the experience of all members of the Board and Governance Committees are included on page 71 to 73 of the Annual Report.

      Board of Sabre Insurance Company Limited (as at 31 December 2025)

      − Rebecca Shelley (Chair)

      − Geoff Carter (Chief Executive Officer)

      − Adam Westwood (Chief Finance Officer)

      − Ian Chapple (Independent Non-executive Director)

      − Karen Geary (Independent Non-executive Director)

      − Bryan Joseph (Senior Independent Non-executive Director)

      − Alison Morris (Independent Non-executive Director)

      − David Neave (Independent Non-executive Director) - Appointed 1 August 2025

      − Trevor Webb (Claims Director)

      − Matthew Wright (Chief Actuary)

      Audit Committee

      The Committee comprises at least two Non-executive Directors of the Group, who are considered to be free of any relationship that would affect their impartiality in carrying out their responsibilities and are independent as required under Provision 24 of the UK Corporate Governance Code (the "Code"). Members of the Committee are appointed by the Board, on the recommendation of the Nomination & Governance Committee and the Chair of the Committee. The Committee is to be chaired by an individual who has significant, recent and relevant financial experience.

      The Chair, Chief Executive Officer, Chief Financial Officer and Chief Actuary are invited to attend meetings, unless they have a conflict of interest. In addition, the External Audit Partner, the Internal Audit Partner, the Company Secretary are invited to attend part or all of the Committee meetings, providing there is no conflict of interest. Other relevant people from the Group may also be invited to attend all or part of a meeting to provide deeper insight into the Group and its issues. The Board considers that membership of the Audit Committee is appropriate and that it has the skills and competencies relevant to the role of the Committee and the insurance sector.

      The Committee regularly meets privately with either the External Audit Partner or the Internal Audit Partner, prior to the business of the Committee. These private meetings alternate at each meeting and give the external parties access to the Committee members. The Committee Chair also meets regularly with both Internal and External Audit Partners outside of the Committee meetings and is available to shareholders at the Group's Annual General Meeting. The Committee is kept up to date with relevant developments in Accounting Standards and regulatory requirements through updates from the Chief Financial Officer, Chief Actuary, Company Secretary, Internal Audit and External Audit, as and when it is appropriate. Additionally, it is expected that Committee members keep their knowledge up to date by attending relevant external or internal training sessions.

      The Chair of the Committee reports to subsequent meetings of the Board and the Company Secretary acts as Secretary to the Committee. Annually, the Committee reviews its effectiveness.

      Roles and responsibilities

      The Committee, in line with its terms of reference, meets at least three times a year, and as and when required. The terms of reference of the Committee can be found on the Group's website https://www.sabreplc.co.uk/about-us/corporate-governance and are reviewed by the Committee on an annual basis.

      In accordance with its terms of reference the Board has delegated to the Committee responsibility for overseeing key areas of responsibility which include the following:

      − External Audit - this includes considering and making recommendations to the Board on the appointment of the external auditor (including approving the remuneration and terms of appointment) as well as reviewing the external auditor's annual audit plan and the results therefrom, reviewing the quality and effectiveness of the audit, approving the policy on non-audit services carried out by the external auditors and reviewing auditor independence. The Committee is responsible for managing the relationship with the Group's external auditor, PwC, on behalf of the Board. The effectiveness of the external audit process is dependent upon communication between the Group and the auditor, which allows each party to raise potential accounting and financial reporting issues as and when they arise, rather than limiting this exchange to only during regularly scheduled meetings.

      − Financial and narrative reporting - this area of responsibility includes monitoring the integrity and compliance of the Group's financial statements and for providing effective governance over the Group's financial reporting, as well as reviewing significant financial reporting issues and judgements made in connection with them.

      − Internal Audit -the Committee outsourced the Internal Audit function to Deloitte LLP. The Committee reviews and approves the Internal Audit Strategy and Internal Audit plan and receives updates on the Internal Audit activity. Internal Audit reports are made available to the Board, the Committee, the Chief Risk Officer, the Company Secretary, and relevant members of Management.

      The primary objective of the function is to systematically and objectively assess:

      I. The effectiveness of the business controls over the Group's operations, financial reporting, risk and compliance areas.

      ii. The adequacy of these systems of control to manage business risk and safeguard the Group's assets and resources.

      − Internal controls - this includes reviewing the effectiveness of the Group's system of internal controls and ensuring timely action is taken by Management to address matters arising from the Internal Audit reports.

      − Reserves review - the establishment of insurance liabilities in respect of reported and unreported claims is the most significant area of judgement within the financial statements. The Committee maintains oversight of the reserving process and assumptions used in setting the level of insurance liabilities, which are assessed by the Group's actuaries on a quarterly basis.

      − Whistleblowing - reviewing arrangements by which employees may in confidence raise concerns about possible improprieties regarding financial reporting and other matters. The Committee receives an annual whistleblowing report and reports matters to the Board as appropriate.

      Committee members (as at 31 December 2025)

      Committee Members Date of Appointment

      Alison Morris (Chair) May 2022

      Ian Chapple September 2024

      Bryan Joseph June 2023

      David Neave November 2025

      The Audit Committee meetings are also attended by the following, on invitation:

      − Rebecca Shelley (Group Chair)

      − Geoff Carter (Chief Executive Officer)

      − Adam Westwood (Chief Financial Officer)

      − Anneka Kingan (Chief Risk Officer and Company Secretary)

      − Matt Wright (Chief Actuary)

      − Other teams or members of the management team as appropriate

      The external auditor, currently PwC, is invited to attend all Audit Committee meetings.

      Representatives from the Company's Internal Auditor, currently Deloitte, is invited to attend all Audit Committee meetings.

      At every meeting the Committee has the opportunity to meet alone with the internal or external audit partners.

      Risk Committee

      The Committee comprises at least two Non-executive Directors of the Group, who are considered to be free of any relationship that would affect their impartiality in carrying out their responsibilities and are considered independent or, in the case of the Group's Chair, considered independent on appointment. Members of the Committee are appointed by the Board, on the recommendation of the Nomination & Governance Committee and the Chair of the Committee.

      The Chief Executive Officer and the Chief Risk Officer are invited to attend meetings, unless they have a conflict of interest. In addition, the Chief Financial Officer, the Head of Compliance and the Data Protection Officer are invited to attend part or all of the meeting, providing there are no conflicts of interest. Other employees of the Group may also be invited to attend all or part of a meeting to provide deeper insights into the Group and the issues within the Committee's scope.

      The Committee has regular private meetings with the Chief Risk Officer and the Head of Compliance. These private meetings alternate at each meeting and give the Chief Risk Officer and the Head of Compliance access to Committee members. The Committee Chair also meets regularly with these individuals, the Chief Actuary and the Data Protection Officer outside of the Committee meetings and is available to shareholders at the Group's Annual General Meeting.

      The Chair of the Committee provides an update of the Committee's activities at subsequent meetings of the Board. A member of the Company Secretariat Team acts as Secretary to the Committee, as the Company Secretary is also the Chief Risk Officer. Annually, the Committee reviews its effectiveness.

      Roles and responsibilities

      The Committee has a planned cycle of activities, managed through a schedule of matters, to ensure that it addresses its responsibilities in the current financial year. The terms of reference of the Committee can be found on the Group's website at https://www.sabreplc.co.uk/about-us/corporate-governance and are reviewed by the Committee and the Board on an annual basis. The Committee meets at least three times a year, in line with its terms of reference, and as and when required.

      The Board has delegated to the Committee responsibility for ensuring that the Group has robust processes and procedures in place for the identification and management of risk. This includes monitoring and reviewing the Group's risk management and compliance framework and ensuring that there are adequate processes for the identification, evaluation and mitigation of the risks faced by the Group. The Committee reviews the effectiveness of the Group's risk management, compliance management and internal control systems, and reports to the Board on these areas. In conducting its reviews, the Committee focuses on material risks, including the determination of the nature and extent of the principal risks, and controls in the context of reports it receives regarding risk management. These include reports from the Chief Risk Officer, the Head of Compliance, the Data Protection Officer and the Head of IT.

      The Committee leads the process for:

      − Risk management - this includes reviewing and monitoring the effectiveness of the procedures for the identification, assessment and reporting of risk as well as setting, and monitoring adherence to, a risk appetite that defines the nature and extent of the risks that the Group is facing and should be willing to accept in achieving its strategic objectives. It also includes oversight of the processes by which risk-based capital requirements, and the Group's solvency position, are determined and monitored. The Committee further advises the Board on the Group's overall risk appetite, tolerance and strategy, and oversees and advises the Board on its risk strategy and current risk exposures. In addition to this, the Committee is responsible for the appointment and removal of the Group's Chief Risk Officer and reviewing their reports and management's responses to the findings and recommendations.

      − Risk controls - these are in place and are designed to mitigate the risks that the Group faces, rather than to eliminate the risk of failure to achieve business objectives. The Risk Committee ensures timely action is taken by management to address matters arising from the risk and compliance assessments.

      − Principal risks and uncertainties - details of the Group's principal risks and uncertainties are set out on pages 22 to 30 of the Annual Report and Accounts, together with information about the management and mitigation of such risks.

      − Compliance - reviewing the Group's compliance policies and procedures to ensure that the Group complies with relevant regulatory and legal requirements.

      − Data protection - the appointment and removal of the Group's Data Protection Officer, reviewing how the Group meets its obligations under the Data Protection Act, reviewing all reports from the Data Protection Officer and management's responses to the findings and recommendations.

      − Risk and remuneration alignment - the Committee provides input to the Remuneration Committee regarding the weightings to be applied to performance objectives relating to the Executive Team's management of risk throughout the year.

      Committee members (as at 31 December 2025)

      Committee Members	Date of Appointment
      Bryan Joseph (Chair)	June 2023
      Ian Chapple	January 2025
      Karen Geary	January 2022
      Alison Morris	May 2022

      The Risk Committee meetings are also attended by the following, on invitation:

      − Geoff Carter (Chief Executive Officer)

      − Adam Westwood (Chief Financial Officer)

      − Anneka Kingan (Chief Risk Officer and Company Secretary)

      − Other teams or members of the management team as appropriate

      Nomination and Governance Committee

      The Committee comprises at least three Non-executive Directors of the Company, all of whom are to be considered to be free of any relationship that would affect their impartiality in carrying out their responsibilities and were independent as required under Provision 17 of the UK Corporate Governance Code (the "Code"). The Committee is chaired by the Group Chair, unless there is a conflict of interest.

      The Chief Executive Officer, Company Secretary and Head of HR may also be invited to attend meetings, unless this presents a conflict of interest. The Committee Chair meets regularly with the Chief Executive Officer outside of the Committee meetings and is available to answer shareholder questions at the Company's Annual General Meeting.

      The Chair of the Committee provides updates on Committee proceedings to subsequent meetings of the Board and the Company Secretary acts as the Secretary to the Committee. Annually, the Committee reviews its effectiveness.

      Roles and responsibilities

      The Committee has a planned cycle of activities, managed through a schedule of matters, to ensure that it addresses its responsibilities in the current financial year. The terms of reference of the Committee can be found on the Company's website at https://www.sabreplc.co.uk/about-us/corporate-governance and are reviewed by the Committee on an annual basis. The Committee meets at least twice a year, in line with its terms of reference, and as and when required.

      The Committee leads the processes for:

      − Reviewing the size, structure and composition of the Board;

      − Overseeing succession planning for the Directors and other senior executives, considering the challenges and opportunities facing the Group, and the skills and expertise needed on the Board in the future;

      − Reviewing the leadership needs of the organisation, both executive and non-executive, with a view to ensuring the continued ability of the organisation to compete effectively in the marketplace;

      − Reviewing strategic issues and commercial changes affecting the Group and the market in which it operates;

      − Reviewing the Group's policy on diversity, setting measurable objectives for Board diversity and preparing a policy on how to promote Board diversity;

      − Identifying, evaluating and recommending candidates to join the Board;

      − Making recommendations to the Board regarding the make-up of the Company's Committees and the appointment of the Senior Independent Director; and

      − Making recommendations regarding the election and re-election of the Directors by shareholders.

      Committee members (as at 31 December 2025)

      Committee Members	Date of Appointment
      Rebecca Shelley (Chair)	October 2017
      Ian Chapple	September 2024
      Karen Geary	December 2020
      Bryan Joseph	September 2023
      Alison Morris	October 2022
      David Neave	September 2025

      The Nomination and Governance Committee meetings are also attended by the following, on invitation:

      − Anneka Kingan (Chief Risk Officer and Company Secretary)

      − Geoff Carter (Chief Executive Officer)

      − Other teams or members of the management team as appropriate

      Remuneration Committee

      The Committee comprises at least two Non-executive Directors of the Group, all of whom are considered to be free of any relationship that would affect their impartiality in carrying out their responsibilities and are independent as required under Provision 32 of the UK Corporate Governance Code (the "Code"). Members of the Committee are appointed by the Board, on the recommendation of the Nomination & Governance Committee and the Chair of the Committee. Members of the Committee do not have any personal interests in the topics discussed at the Committee, except as shareholders in the Group. No Director is involved in the decisions setting their own remuneration.

      The Chair and the Chief Executive Officer are invited to attend meetings, unless they have a conflict of interest, for example the discussion of their own remuneration. All meetings are minuted by the Company Secretary, unless there is a conflict of interest. Other relevant people from the Group may also be invited to attend all or part of a meeting to provide deeper insight into the Group and its issues.

      The Committee Chair meets regularly with the Chief Executive Officer and the Company Secretary outside of the Committee meetings and is available to shareholders to answer their questions at the Group's Annual General Meeting. The Chair of the Committee reports to subsequent meetings of the Board, and the Company Secretary acts as Secretary to the Committee. Annually, the Committee reviews its effectiveness.

      Roles and responsibilities

      The Committee, in line with its terms of reference, meets at least twice a year, and as and when required. The terms of reference of the Committee can be found on the Group's website https://www.sabreplc.co.uk/about-us/corporate-governance and are reviewed by the Committee on an annual basis. The Committee has a planned cycle of activities, managed through a schedule of matters, to ensure that it addresses its responsibilities in each financial year.

      The Board has delegated to the Committee responsibility for ensuring that the Executive Team is appropriately incentivised to deliver sustainable growth to shareholders over the long term. The Committee supports this objective by structuring and deploying remuneration in a cost-effective manner, embedding a clear link between pay and performance in the Group's remuneration framework. The Committee is responsible for setting the Remuneration Policy for the Executive Directors, the Executive Team and the Group's Chair, including pension rights and any compensation payments. It is also responsible for reviewing all share incentive plans and setting and approving the achievement of their performance conditions, as well as reviewing all employee pay arrangements periodically. The fees of the Non-executive Directors are approved by the Group Chair and the Executive Directors.

      Committee members (as at 31 December 2025)

      Committee Members	Date of Appointment
      Karen Geary (Chair)	December 2020
      Ian Chapple	September 2024
      Bryan Joseph	March 2024
      David Neave	September 2025

      The Remuneration Committee meetings are also attended by the following, on invitation:

      − Geoff Carter (Chief Executive Officer)

      − Anneka Kingan (Company Secretary)

      − Vicky Roberts (Head of HR)

      − Other teams or members of the management team as appropriate

      Remuneration of Senior Management

      The Group's remuneration policy is recorded in full within the Governance section of the 2025 Annual Report and Accounts on pages 96 to 106.

      The key elements of management remuneration are:

      − Bonus deferral: To ensure the alignment of management with shareholders' interests a portion of the annual bonus is deferred through the Deferred Bonus Plan ("DBP").

      − Long Term Incentive Plan: To reward management for the creation of long-term, sustainable shareholder value the Committee introduced a Long Term Incentive Plan ("LTIP"). This operates through Restricted Share Awards.

      − Malus and clawback: To further embed pay for performance, malus and clawback will apply to all awards made under the DBP and the LTIP. Clawback provisions will also apply to all Bonus and LTIP awards.

      − Shareholding guidelines:

      − To further align Executive Directors with shareholders' interests, all Executive Directors will be expected to build up and maintain shareholdings having a value of at least 200% of salary. Until this has been achieved, Executive Directors will retain 50% of all shares vesting from both the DBP and LTIP (after tax liabilities have been settled).

      − Post-employment shareholding - 100% of in-employment shareholding to be held for two years post-cessation of employment.

      The Board believes that these elements of remuneration align management with both the best interests of the shareholders and the long-term wellbeing and financial stability of the Group.

      Assignment of responsibility

      Key functions and prescribed responsibilities are well defined by the Group. Responsibilities of the Board members and other key function holders are summarised below. Prescribed responsibilities are shown in bold.

      Name	SMF Role	Prescribed responsibilities (bold)/other responsibilities
      Geoff Carter	SMF 1 Chief Executive Officer	− Performance by the firm of its obligations under the Senior Managers Regime, including implementation and oversight (A) − Performance by the firm of its obligations under the Certification Regime (B) − Induction, training and professional development of all persons performing designated senior management functions on behalf of the firm other than members of the governing body and key function holders (G) Overseeing the adoption of the firm's culture (H) − Developing and maintenance of the firm's business model by the governing body (T) − Performance of the firm's obligations under the Fitness and Propriety in the PRA Rule Book(U) − Outsourced operational functions including systems and technology (X) − Director level reports - Finance, Actuarial, Company Secretary, Internal Audit, Claims, CRO − Non-director level reports - marketing, HR, IT & Facilities, Compliance − Accountable for company strategy, investor relations, reinsurance arrangements (jointly with Claims Directors & Chief Actuary) − Liaison with ABI & regulatory bodies − Chair of monthly pricing meeting − Approval of large claims and cash transfers − Oversee the design and implement the pricing and product development strategy and deliver the Combined Operating Ratio − Provide risk-focused advice and information into the setting and individual application of the Company's remuneration policy

      		− Lead the preparation of the Sabre business plan and expense budgets − To develop, implement and maintain along with the Claims Director and Chief Actuary, an integrated and efficient underwriting, claims, investment and reserving approach across the business − Direct Oversight and management of key external relationships (brokers, aggregators, software houses, data suppliers, industry bodies etc) − Management of outsourcers relevant to role and department − Investor relations − Accountable for senior level broker relations − Manage the Company's marketing activities − Oversee product governance − Oversee data protection requirements
      Geoff Carter	SMF 23 Chief Underwriting Officer	− To develop, implement and maintain along with the Claims Director and Chief Actuary, an integrated underwriting and pricing approach − Ensure appropriate reinsurance arrangements are in place − To develop and maintain appropriate underwriting controls
      Geoff Carter	SMF 24 Chief Operations Officer	− Non-director level reports - business account managers, electronic trading, product development − Accountable for the Company's Operational Resilience
      Adam Westwood	SMF 2 Chief Financial Officer	− For the firm's policies and procedures for countering the risk that the firm might be used to further financial crime (D) − Management of the allocation and maintenance of the firm's capital, funding and liquidity (O) − Production and integrity of the firm's financials and its regulatory reporting (Q) − Responsible for managing financial risks from climate change (OTHER) − Responsibility for and analysis of regular and ad-hoc financial information for management purposes − Financial planning and analysis − Budget reporting − Manage the Finance Department to ensure adequate controls are maintained and make improvements where necessary − Ensure Financial Regulations are met − Ensure financial records are adequate and appropriate − Assist the HR department in payroll and payroll taxation related matters − Have overall responsibility for filing UK corporation tax, IPT and VAT returns − Ensure that the data used by the Company to assess its risks are fit for purpose in terms of quality, quantity and breadth − Responsible for Company's responses to climate change and other environmental, social and governance requirements − Liquidity management − Investor relations − Oversight of production of accounts and externally reported MI − Investment and treasury − Management of fraud risk within the Finance function − Capital management − Management of outsourcers relevant to role and department

      Matt Wright	SMF 20 Chief Actuary	− Pricing Analysis − Profitability Modelling − Relativity Rating − Oversight of reserve margin − Calculating the Company's reserve requirements; − Development and maintenance of effective statistical models and analyses of the Company's underwriting performance and pricing strength − Development and maintenance of effective analyses of competitors' results and activities, and market trends − Interpreting results of statistical analyses in order to determine premium rates − Modelling, extrapolating, interpreting and monitoring statistical data to identify and market trends, business/niche opportunities, new/changing rating factors, recommending appropriate strategies and actions − Undertaking specific actuarial/statistical/analytical projects to deadlines as directed − Reporting progress and problems to the Chief Executive Officer and seeking direction and guidance where necessary − To develop, implement and maintain along with the Claims Director and Chief Executive Officer, an integrated and efficient underwriting, claims, investment and reserving approach across the business − Alongside the Chief Executive Officer, design and implement the pricing and product development strategy and deliver the Combined Operating Ratio − Management of outsourcers relevant to role and department − Oversight of the Actuarial Department
      Matt Wright	SMF 3 Executive Director
      Trevor Webb	SMF 3 Executive Director	− Production of accurate and consistent claims payment and reserving information − Maintain systems that ensure reserving philosophy is understood and followed − Ensure that Claims and Policy Operations Departments has sufficient numbers of staff with appropriate levels of expertise, which receive timely, relevant and documented training − Maintain systems of work that facilitate the detection of fraudulent activity, yet deliver acceptable service levels − Maintain records necessary to comply with regulatory requirements − Dissemination of industry, legal and regulatory information in the department − Introduction of cost control initiatives − Review and maintenance of supply chain requirements for Claims department − Lead for staff appraisal and skill gap action within the Claims department − Act as lead contact for re-insurers on claims issues, providing development and case information as required

      		− Deal personally with claims of greatest severity, complexity or corporate sensitivity − Be the Claims contact with all industry bodies − Determining levels of authority within department − Setting of reserving philosophy at individual claim level − Approval or rejection of suppliers to the Claims Department − Ensure expedient payment of valid claims − To develop, implement and maintain along with the Chief Actuary and Chief Executive Officer, an integrated and efficient underwriting, claims, investment and reserving approach across the business. − Management of outsourcers relevant to role and department − Oversight of the Claims and Policy Operations Departments
      Anneka Kingan	SMF 4 Chief Risk Officer, and Company Secretary	− Performance of the firm's Own Risk and Solvency Assessment (ORSA) (T2) − PLC and subsidiary company governance compliance − Executive Remuneration and share plans development and maintenance − Company insurance policies − Guidance and advise on corporate governance; Provide oversight and challenge of the Company's systems and controls in respect of risk management − Provide oversight and validation of the Company's external reporting of risk − Ensure the adequacy of risk information, risk analysis and risk training provided to members of the Company's governing body − Report to the Company's governing body on the Company's risk exposures relative to its risk appetite and tolerance, and the extent to which the risks inherent in any proposed business strategy and plans are consistent with the governing body's risk appetite and tolerance − Alert the Company's governing body to and provide challenge on, any business strategy or plans that exceed the Company's risk appetite and tolerance − Management of outsourcers relevant to role and department − Oversight of the Co Sec and Risk Department
      Rebecca Shelley	SMF 9 Chair of the Governing Body	− Induction, training and professional development of all the members of the firm's governing body (F) − Leading the development of the firm's culture by the governing body as a whole (I) − Manage and lead the Board of Directors of both Sabre Insurance Company Limited and Sabre Insurance Group plc − Oversight of the Board Effectiveness Review − Review Fitness and Propriety of the questionnaires of the NEDs and CEO − Engage with shareholders
      Rebecca Shelley	SMF 13 Chair of the Nomination Committee	− Lead the nomination committee in succession planning and talent management for senior managers within the company − Ensuring that the Board and its Committees are correctly and appropriately composed − Chair Nomination Committee

      Bryan Joseph	SMF 10 Chair of the Risk Committee	− Foster an open, inclusive discussion at the Risk Committee which challenges executives where appropriate − Devote sufficient time and attention to matters within their remit which are relevant to the Company's safety and soundness. − Oversight of Compliance Function − Oversight of Data Protection Function − Oversight of Risk Function − Chair Risk Committee
      Bryan Joseph	SMF 14 Senior Independent Director	− Be available to shareholders if they have concerns that contact through the normal channels of Chairman, Chief Executive Officer or Chief Financial Officer has failed to resolve or for which such contact is inappropriate − Run succession planning for Chair of the Company role − Foster an open, inclusive discussion which challenges executives where appropriate − Devote sufficient time and attention to matters within their remit which are relevant to the Company's safety and soundness
      Alison Morris	SMF 11 Chair of the Audit Committee	− Oversight of Internal Audit (IA) at firms that outsource their IA to a third party (J2) − Whistle blowing (the Whistle Blower's champion's allocated responsibilities are set out in SYSC 18.4.4R.) (N) SYSC 18.4.4R A firm must allocate to the whistle-blowers' champion the responsibility for ensuring and overseeing the integrity, independence and effectiveness of the firm's policies and procedures on whistleblowing (see SYSC 18.3 (Internal Arrangements)) including those policies and procedures intended to protect whistle-blowers from being victimised because they have disclosed reportable concerns. − Foster an open, inclusive discussion which challenges executives where appropriate − Devote sufficient time and attention to matters within their remit which are relevant to the Company's safety and soundness − Oversight of the Company's financial reporting cycle − Oversight of financial and internal controls, risk management and internal audit − Oversight of reserving function − Chair Audit Committee
      Karen Geary	SMF 12 Chair of the Remuneration Committee	− Responsibility for overseeing the development of, and implementation of the firm's remuneration policies and practices (M). − Oversight of the Company's remuneration policy; − Chair Remuneration Committee − Foster an open, inclusive discussion at the Remuneration Committee which challenges executives where appropriate − Devote sufficient time and attention to matters within their remit which are relevant to the Company's safety and soundness

      Karen Geary	N/A	− Consumer Duty Champion − Designated NED for Employee Engagement Whilst neither of the above duties are regulated roles or prescribed responsibilities they are reference in this document for information purposes.
      Edward Smith	SMF 16 Compliance Oversight	− Responsibility for the firm's performance of its obligations under the Code of Conduct (COCON) (in terms of training and regulatory reporting) (B-1) − Compliance with the requirements of the regulatory system about the responsibilities map (C) − Provide an independent oversight and challenge on all business areas. − Production of relevant compliance MI for senior management and the Risk Committee − Ensuring Compliance is embedded across the organisation and reflected in a healthy culture that will ensure fair customer outcomes − Identification of regulatory and legislative requirements and changes (including horizon scanning) − Monitoring to ensure compliance requirements are met and suitable controls are in place − Maintenance, development and planning of the compliance function, including identification, escalation and resolutions of issues, oversight of financial promotions, monitoring of complaints and Consumer Duty requirements, and the recordings of findings to evidence compliance activity − Oversight of conduct risk − Maintaining regulatory relationships − Reviewing regulatory updates
      Stephen McDonald	SMF 17 Money Laundering Reporting Officer	− Co-ordinate anti-money laundering and counter-fraud detection across the Company − Monitor performance of anti-money laundering and counter-fraud strategy in respect of financial savings − Lead, develop and monitor training requirements − Be Primary contact for the National Crime Agency, IFB, IFED and the MIB − Deal with external audits and reporting of fraud systems, databases and procedures (including IFB, FCA, PRA and ABI returns)

      Multi-role holders

      Due to the size and nature of the business, it is both practical and risk-effective to combine certain functions under a single person.

      Committee Chairs

      The Chair of the Governing Body (SMF 9) is also the Chair of the Nomination Committee (SMF 13). This is common practice for a listed Group and presents no conflict.

      Chief Executive, Chief Underwriting Function and Chief Operations

      The Chief Executive Officer is directly responsible for the operations of the business and its underwriting function. Due to the straightforward nature of the business, the Company does not need to separate these roles. Therefore, the Chief Executive (SMF 1) also carries out the role of the Chief Underwriting Function (SMF 23) and Chief Operations (SMF 24).

   2. ‌Fit and Proper Requirements

      Conduct Standards

      All Senior Manager Function Holders, Certified Individuals and Non-executive Directors (even if not a Senior Manager Function Holders or a Certified Individual) are required to adhere to appropriate conduct standards and meet the appropriate level of fitness and propriety, as detailed below:

      − Act with integrity

      − Act with due care, skill and diligence

      − Be open and honest with the regulators

      − Pay due regards to the interests of customers and treat them fairly

      − Observe proper standards of market conduct

      − Disclose any information of which the FCA or PRA would reasonably expect to be notified

      In addition to this all Senior Manager Function Holders and Non-executive Directors are to take reasonable steps to ensure:

      − The business of the Company for which they are responsible is controlled effectively

      − The business of the Company for which they are responsible complies with the relevant requirements and standards of the regulatory system

      − Any delegation of responsibilities is to an appropriate person and that they oversee the discharge of the delegated responsibility effectively

      Fitness and Propriety

      The Company must ensure at all times that people who perform key functions, including Senior Manager Function Holders, Certified Individuals, and Non-executive Directors are 'fit and proper persons'.

      In order to assess whether a person is fit and proper the Company must be satisfied that the individual:

      − Is of good repute, integrity and honest

      − Possesses an appropriate level of knowledge, competence and experience

      − Has relevant qualifications

      − Has undergone or is undergoing relevant training This must take into account:

      − The person's past business conduct

      − Whether the person has applied the relevant conduct standards as specified above

      The fitness and propriety of all Senior Manager Function Holders is to be reviewed by the Chief Executive Officer on an annual basis. This forms part of the individual's annual review and is shared with the Chairman of the Board on completion. The Chairman of the Board reviews the on-going fitness and propriety of the Chief Executive Officer, the Non-executive Directors and the Company Secretary.

      Each fitness and propriety review will consist of the following compulsory questions:

      − Has the individual acted in a manner, which might cast doubt upon their integrity (either within or outside of their role within the Company)?

      − Has the individual undergone all training that is relevant to their role, including obtaining sufficient CPD qualifying training to satisfy their professional body of their on-going development?

      − Has the individual applied the appropriate conduct standards?

      − Has the individual been accused or convicted of any criminal activity within the past year?

      Each Senior Manager Function Holder and Non-executive Director will be required on an annual basis to self-certify that they have not been convicted of a criminal activity, and will be subject to a Disclosure and Barring Service check annually.

      When hiring new Senior Manager Function Holders, Non-executive Directors or a Company Secretary, these questions will be asked as part of the recruitment process. To support this, and in addition to the above list of questions, the

      Company will carry out regulatory references, employment references and a Disclosure and Barring Service on the individual, prior to their appointment.

      Each Senior Manager Function Holder is to prepare a set of handover notes to ensure that any incoming Senior Manager Function Holder has all the information and materials required to reasonably allow them to carry out their role and prescribed responsibilities. This is to be reviewed annually.

      Reassessment of fitness and propriety

      There are certain situations which may arise between annual checks which may cause an individual's fitness and propriety and its impact on the individual's certified status to be re-examined. It is likely that these situations impact one of the following elements of the individual's fitness and propriety:

      − Honesty and Integrity

      − Reputation

      − Competence and capability

      − Financial soundness

      The reassessment may be triggered by the Company's disciplinary procedures, performance management procedures, update regulatory references, or self-declared by the individual. These include but are not limited to:

      − Failure to manage a conflict of interest

      − Conduct rule breach

      − Notification of a criminal conviction/caution

      − Determination from a regulatory or professional body

      − Failure to disclose information relevant to the consideration of the individual's fitness and propriety

      − Behaviour warranting malus or clawback

      − Evidence of breach of conduct rules

      − Breach of a Company policy

      − Performance management outcome indicating the person is not competent or capable of performing the role

      − Fraud

      − Deliberate breach of the Company's expenses policy

      − Indicator of financial irresponsibility

      In addition to the above, an individual's fitness and propriety will be reviewed if and when they take on a new role within the organisation, or a prescribed responsibility if it is felt appropriate by the Audit Committee Chair.

      Certified Individuals

      Certified individuals are those who are not Senior Manager Function Holders, but due to their role are able to cause significant harm to the Company or its customers. They are not approved by either the FCA or the PRA, but the Company is required to annually check and confirm that they are suitable for their role. All Certified Individuals will be asked to self-certify their fitness and propriety on an annual basis and will be subject to a Disclosure and Barring Service check annually.

      Upon hiring any role within the business, Head of Compliance will examine whether or not the role is one to be fulfilled by a Certified Individual. If it is decided that the individual is a Certified Individual, the Company will confirm that the individual is:

      − Is of good repute, has integrity and is honest

      − Possesses an appropriate level of knowledge, competence and experience

      − Has relevant qualifications

      − Has undergone, or is undergoing all relevant training

      To support this, and in addition to the above list of questions, the Company will carry out regulatory references, employment references and a Disclosure and Barring Service check on the individual, prior to their appointment.

   3. ‌Risk Management System Including the Own Risk and Solvency Assessment ("ORSA")

      The Board has delegated to the Risk Committee responsibility for monitoring and reviewing the Group's risk management framework, the risks that the Group should be willing to take in achieving its strategic objectives, and the controls in place within this framework to ensure that the Group has robust procedures for financial reporting and preparing its consolidated accounts.

      The Group operates a Risk Committee which allows for effective monitoring and management of the Group's exposure to risk, which operates jointly across the Group and SICL. A separate Risk Committee report can be found on page 86 to 88 of the Annual Report and details of the Group's principal risks and uncertainties are set out on pages 22 to 33 of the Annual Report together with information about the management and mitigation of such risks. The Group's senior management team assume primary responsibility for the day-to-day risks that it takes in the pursuit of the Group's business objectives, and for adherence to risk management practices, processes and controls. Within the management team, overall responsibility for the oversight and monitoring of risks is taken by Anneka Kingan, the Chief Risk Officer ("CRO").

      Sabre has maintained an issues log throughout 2025. This log records events which may lead to significant financial loss, are potential regulatory breaches or are otherwise noteworthy. Issues recorded in this log are discussed at the management meeting and reported to the Board.

      The Group prepares an ORSA report according to its ORSA policy on an annual basis, usually towards the end of the financial year. It is considered to be a 'point in time' report noting the position as it stands as well as any significant changes since the last report. The report is owned jointly by the CRO and Chief Financial Officer ("CFO") and is collated primarily by the CRO. It is reviewed by the CEO and reviewed and approved by the Board on an annual basis.

      Elements of the ORSA, such as a review of the short-term capital position and high-level scenario testing, are performed on an ad-hoc basis when a significant change to capital is proposed (for example, prior to a dividend payment). Other elements of the ORSA process may be carried out during the review period should this be requested by the Risk Committee or Board.

      The Company calculates its solvency capital requirement ("SCR") using the Standard Formula ("SF"). Given the Company's risk appetite and strategy, we would expect Sabre to hold capital primarily against underwriting risk, given the purposefully low risk investment portfolio and pure underwriting focus of the business. The SF model does represent this, and with the undertaking specific parameter ("USP") gives sufficient weighting to the reduction in volatility.

   4. ‌Internal Controls System

      In accordance with its terms of reference the Board of the Group has delegated to the Audit Committee responsibility for overseeing key areas of responsibility including reviewing the effectiveness of the Group's system of internal controls and ensuring timely action is taken by management to address matters arising from the risk and internal audit assessments.

      The Audit Committee has reviewed the effectiveness of the Group's risk management and internal controls systems and reported on such review to the Board. In conducting its review the Committee focused on material risks, including the determination of the nature and extent of the principal risks, and controls in the context of reports it received regarding risk management, compliance and internal audit as well as reports from the Company's external auditors.

   5. ‌Internal Audit Function

      The Group's Internal Audit function is outsourced to Deloitte and they provide independent, objective assurance on the internal control environment, focusing on the design and operating effectiveness of the governance processes, risk management procedures, internal control and information systems. The outsourced Internal Audit function has a direct reporting line into the Chair of the Audit Committee.

      ‌B.6. Actuarial Function

      Sabre's Actuarial Function Deliverer is the Chief Actuary, who since 2021 holds a UK Practising Certificate to perform the role of Chief Actuary as a member of the Institute and Faculty of Actuaries. The Chief Actuary's role within the Actuarial Function is to perform the calculation of the technical reserves, to conduct pricing analysis and to input into the calculation of Solvency requirements. The Chief Actuary is a member of Sabre Insurance Company Limited's Board of Directors and a member of Sabre's Executive Team.

      The Actuarial Function has considerable input into the effective risk management of Sabre. Both the Chief Actuary and the Chief Financial Officer, who have responsibility for technical provision calculations and oversight of the Solvency calculations as well as input into the ORSA, sit on the Executive Team and the Sabre Insurance Company Limited Board. This helps ensure the Board are sufficiently well equipped to understand the key risks Sabre is potentially subject to, to understand their financial implications, and also ensures that the Actuarial Function plays an active role in effective risk management of the company.

      1. ‌Outsourcing

         Sabre currently has 8 material outsourcing arrangements, as listed in the table below.

         Provider Name			Solution
         Right Choice Insurance Brokers			−	Administration of the direct policies (excluding direct Motorcycle)
         CDL Production Services Limited			−	Broking system/software
         Innovation Group (Motorcare Services Ltd)			−	First Notification of Loss
         			−	Management of repair claims
         Freeway UK Insurance Services			−	First Notification of Loss for taxi
         			−	Management of damage/loss claims for taxi (Freeway)
         			−	First-party claims handling and some third-party claims handling
         4th Dimension Innovation Ltd			−	First Notification of Loss for bike
         			−	Management of damage/loss claims for bike (Bennetts)
         			−	First-party claims handling
         Wavenet Limited Technology Group)	(Previously	Adept	−	IT Support and infrastructure provision
         Deloitte LLP			−	Internal Audit
         Goldman Sachs Asset Management			−	Investment Management

         The functions being outsourced are considered to be one of the following:

         − outside current Sabre key competencies

         − a benefit to our customers with a specialist outsourced arrangement

         − support our business to operate effectively

         Sabre also relies on a number of other external service and systems providers. All outsourced functions operate within the United Kingdom. The Board monitors its outsourced operational functions through audits of those functions and through regular management reporting. The Audit and Risk Committees and Management maintain close communication with the Internal Audit and Compliance functions.

      2. ‌Any Other Information

      The Boards of Sabre Insurance Group plc and Sabre Insurance Company Limited consider that the governance system in place is suitably robust to ensure that Sabre and the Group are managed in a way which takes into consideration the needs of all stakeholders, while ensuring that the Group's capital position and profitability remain strong. Further, the Boards consider the Group's governance to be fully compliant with Solvency II and all other relevant rules and regulations; and to be adequate relevant to the nature, scale and complexity of the business. Note that the Group prepares a single Own Risk and Solvency Assessment under approval from the PRA.

      Further information on the Group's strategy, governance, risk management framework and financial results can be found within the Annual Report.

3. ‌Risk Profile

   The risk profile of the Group is dominated by the activities of its sole trading subsidiary, Sabre Insurance Company Limited. The Group considers its exposure to risk on a regular basis, both formally through its Risk Committee and informally through regular management meetings. Sabre continually monitors its exposure to risks in order to ensure that it does not step outside its accepted risk appetite. In general, Sabre accepts appropriate underwriting risk to ensure an acceptable underwriting gain is generated, while minimising other risks. Sabre's approach to each of the identified risks is discussed below. Sabre's risk profile is demonstrated numerically through its Solvency Capital Requirement ("SCR"), which is calculated on the basis of the Standard Formula. Management considers the proportionate risks presented in the SCR accurately represents the risks to which the Group is exposed. The SCR for Sabre Insurance Company Limited is not materially different to that of the Group.

   
   
   

   Sabre monitors emerging risks on a continual basis.

   Detailed discussion of the Group's Principal Risk and Uncertainties can be found on pages 22 to 30 of the Group's Annual Report and Accounts.

   1. ‌Underwriting Risk

      The principal risk the Group faces under insurance contracts is that the actual claims and benefit payments, or the timing thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development of long-term claims. Therefore, the objective of the Group is to ensure that sufficient reserves are available to cover these liabilities.

      The Group issues only motor insurance contracts within the UK, which usually cover a 12-month duration. For these contracts, the most significant risks arise from severe weather conditions or single catastrophic events. For longer-tail claims that take some years to settle, there is also inflation risk.

      The above risk exposure is mitigated by diversification across a large portfolio of policyholders and geographical areas within the UK. The variability of risks is improved by careful selection and implementation of underwriting strategies, which are designed to ensure that risks are diversified in terms of type of risk and level of insured benefits. This is largely achieved through diversification across policyholders. Furthermore, strict claim review policies to assess all new and ongoing claims, regular detailed review of claims handling procedures and frequent investigation of possible fraudulent claims are all policies and procedures put in place to reduce the risk exposure of the Group. The Group further enforces a policy of actively managing and promptly pursuing claims, in order to reduce its exposure to unpredictable future developments that can negatively impact the business. Inflation risk is mitigated by taking expected inflation into account when estimating insurance contract liabilities.

      The Group purchases reinsurance as part of its risk mitigation programme. Reinsurance ceded is placed on a non-proportional basis. This non-proportional reinsurance is excess-of-loss, designed to mitigate the Group's net exposure to single large claims or catastrophe losses. The current reinsurance programme has a retention limit of £1m, with no upper limit. Under this programme, the Group pays the first £1m of any claim and, from 1 July 2025, 50% of the next £1m (prior

      to 1 July 2025: 40%). Any amount above £2m, is covered in full by the panel of reinsurers. All retention levels are subject to monthly indexation subsequent to the accident date. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision and are in accordance with the reinsurance contracts. Although the Group has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders and thus a credit exposure exists with respect to ceded reinsurance, to the extent that any reinsurer is unable to meet its obligations assumed under such reinsurance agreements. The Group's placement of reinsurance is diversified such that it is not dependent on a single reinsurer. There is no single counterparty exposure that exceeds 25% of total reinsurance assets at the reporting date.

      Key assumptions

      The principal assumption underlying the liability estimates is that the Group's future claims development will follow a similar pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim inflation factors and claim numbers for each accident year. Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: one-off occurrence; changes in market factors such as public attitude to claiming: economic conditions; and internal factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates.

      Other key circumstances affecting the reliability of assumptions include variation in interest rates and delays in settlement.

      Sensitivities

      The motor claim liabilities are primarily sensitive to the reserving assumptions noted above. It has not been possible to quantify the sensitivity of individual, specific assumptions such as legislative changes.

      The following analysis is performed for reasonably possible movements in key assumptions with all other assumptions held constant, showing the impact on profit after tax and equity. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are nonlinear. This sensitivity analysis reflects one-off impacts at the balance sheet date and should not be interpreted as a forecast.

      Increase/(decrease) in profit after tax			Increase/ (decrease) in SCR
      	2025 £'k	2024 £'k	2025 £'k
      Liability for incurred claims (1) (2) Impact of 5% increase in insurance contract liabilities Impact of an increase in ultimate loss ratio of 5ppts	(16,959) (25,326)	(9,500) (14,800)	2,741 4,094
      Discount rates Impact of 1% increase in the discount rates used in calculating present value of future expected cash outflows Impact of 1% decrease in the discount rates used in calculating present value of future expected cash outflows	6,572 (7,021)	2,248 (2,378)	(875) 887
      Risk adjustment for non-financial risk
      Impact of moving the confidence interval of the booked risk	(11,555)	(2,626)	-
      adjustment up by 5ppts
      Impact of moving the confidence interval of the booked risk	8,988	2,233	-
      adjustment down by 5ppts

      1. The impact of decreases will have a similar but opposite impact.

      2. A substantial increase in individually large claims which are over our reinsurance retention limit, generally will have no impact on profit after tax.

      Climate change

      Management has assessed the short, medium and long-term risks that result from climate change. The short-term risk is low. 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 the Group's financial position, including its assessment of the liability for incurred claims. More likely is that the costs associated with the transition to a low-carbon economy will impact the Group's indemnity spend in the medium term, as electronic vehicles are currently relatively expensive to fix. This is somewhat, or perhaps completely, offset by advances in technology reducing the frequency of claims, in particular bodily injury claims which are generally far more expensive than damage to vehicles. These changes in the costs of claims are gradual and, as such, reflected in the Group's claims experience and fed into the pricing of policies. However, if the propensity to travel by car decreases overall this could impact the Group's income in the long term.

   2. ‌Market Risk

      Interest rate risk and property risk

      Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate instruments expose the Group to fair value interest risk. Currently the Group holds only fixed rate securities.

      The Group's interest risk policy requires it to manage the maturities of interest-bearing financial assets and interest-bearing financial liabilities. Interest on fixed interest rate instruments is priced at inception of the financial instrument and is fixed until maturity.

      The Group has a concentration of interest rate risk in UK government bonds and other fixed-income securities.

      The analysis that follows is performed for reasonably possible movements in key variables with all other variables held constant, showing the impact on profit before tax and equity. The correlation of variables will have a significant effect in determining the ultimate impact on interest rate risk, but to demonstrate the impact due to changes in variables, variables had to be changed on an individual basis. It should be noted that movements in these variables are non-linear.

      Note that the Group's investment portfolio has been designed such that the cash flows yielded from investments match, as far as possible, the projected outflows inherent primarily within the claims reserve.

      The impact of any movement in market values, such as those caused by changes in interest rates, is taken through other comprehensive income and has no impact on profit after tax.

      Property risk represents the potential downward valuation of the Group's property investments.

      					SCR
      At 31 December	2025 £'k	2024 £'k	2025 £'k	2024 £'k	2025 £'k
      Interest rate Impact of a 100-basis point increase in interest rates on financial investments Impact of a 200-basis point increase in interest rates on financial investments	- -	- -	(3,378) (6,755)	(3,250) (6,499)	(24) (47)
      Owner-occupied property Impact of a 15% decrease in property markets	(405)	(405)	(405)	(405)	(13)

      Increase/(decrease in):

      profit after tax total equity

      The impact on the firm's capital requirement of such events would be negligible.

      Concentration risk

      Excessive exposure to particular industry sectors or groups can give rise to concentration risk. The Group has no significant investment in any particular industrial sector and therefore is unlikely to suffer significant losses through its investment portfolio as a result of over-exposure to sectors engaged in similar activities or which have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions.

      A significant part of the Group's investment portfolio consists primarily of UK government bonds and government-backed bonds, therefore the risk of government default does exist, however the likelihood is extremely remote. The remainder

      of the portfolio consists of investment grade corporate bonds. The Group continues to monitor the strength and security of all bonds.

      The Group's portfolio has a significant concentration of UK debt securities and therefore is exposed to movements in UK interest rates.

      The Group's investment management policy ensures its continued compliance with the "Prudent Person Principle" as laid down in Article 132 of the Directive 2009/138/EC. Deviations from the Group's investment strategy require approval by the Investment Committee. During the year, there were no deviations from this strategy.

      Refer to financial statement Note 4.2.1 of the 2025 Annual Report and Accounts on page 172 for quantitative information.

   3. ‌Credit Risk

      Credit risk reflects the financial impact of the default of one or more of the Group's counterparties. The Group is exposed to financial risks caused by a loss in the value of financial assets due to counterparties failing to meet all or part of their obligations. Key areas where the Group is exposed to credit default risk are:

      − Failure of an asset counterparty to meet their financial obligations

      − Reinsurers default on their share of the Group's insurance liabilities

      − Default on amounts due from insurance contract intermediaries or policyholders

      The following policies and procedures are in place to mitigate the Group's exposure to credit risk:

      − A Group credit risk policy which sets out the assessment and determination of what constitutes credit risk for the Group. Compliance with the policy is monitored and exposures and breaches are reported to the Group's Risk Committee

      − Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following policy guidelines in respect of counterparties' limits that are set each year by the Board of Directors and are subject to regular reviews. At each reporting date, management performs an assessment of creditworthiness of reinsurers and updates the reinsurance purchase strategy, ascertaining a suitable allowance for impairment

      − The Group sets the maximum amounts and limits that may be advanced to corporate counterparties by reference to their long-term credit ratings

      − The credit risk in respect of customer balances incurred on non-payment of premiums or contributions will only persist during the grace period specified in the policy document or trust deed until expiry, when the policy is either paid up or terminated. Commission paid to intermediaries is netted off against amounts receivable from them to reduce the risk of doubtful debts.

      Refer to Notes 3.7 and 4.4 of the 2025 Annual Report and Accounts on pages 167 and 177 for quantitative information.

   4. ‌Liquidity Risk

      Liquidity risk is the potential that obligations cannot be met as they fall due as a consequence of having a timing mismatch or inability to raise sufficient liquid assets without suffering a substantial loss on realisation. The Group manages its liquidity risk through both ensuring that it holds sufficient cash and cash equivalent assets to meet all short-term liabilities, and matching the maturity profile of its financial investments to the expected cash outflows. There has been no material change to the Group's exposure to liquidity risk during the period.

      The expected profit in future premiums, as calculated according to Article 1(46) of the Delegated Regulation (EU) 2015/35, is £32,053k. This represents the impact on technical provisions of non-receipt of all future premium income included within technical provisions at the period end.

      Refer to financial statement Note 6 of the 2025 Annual Report and Accounts on page 182 for quantitative information.

   5. ‌Operational Risk

      Operational risk is the risk of loss arising from system failure, cyber attack, human error, fraud or external events. When controls fail to perform, operational risks can cause damage to reputation, have legal or regulatory implications or can lead to financial loss. The Group cannot expect to eliminate all operational risks, but by operating a rigorous control framework and by monitoring and responding to potential risks, the Group is able to manage the risks. Controls include effective segregation of duties, access controls, authorisation and reconciliation procedures, staff education and

      assessment processes, including the use of internal audit. Business risks such as changes in environment, technology and the industry are monitored through the Group's strategic planning and budgeting process. There has been no material change to the operational risk profile of the business during the period.

   6. ‌Other Material Risks

      Sabre's Management believe that all material risks are covered in sections C.1 to C.5 above.

      The Group has commented in its Annual Results presentation on the effects of inflation and interest rate increases; and climate change. Management believe that they continue to identify the impact of trends in claims inflation and adjust rates accordingly, while monitoring the market response. The Group continues to monitor the effect of the conflict in the Middle East and the war in Ukraine and is of the opinion that the impact is primarily limited to inflation in the cost of claims and other operational expenditure. We anticipate continued high levels of claims inflation and are alert to potential increases in fraud levels due to the current strain on the cost of living.

   7. ‌Any Other Information

      During the period Sabre continued its business-as-usual modelling process. This involves the regular projection of the Company's solvency position under a number of scenarios. These projections are generally run prior to a capital event (such as the announcement of a dividend) and as part of the ORSA process.

      By nature, the regular projections are shorter-term and somewhat more precise, whereas the ORSA projections give a broader view of the impact of various scenarios on the medium-term development of the company. Sabre also performs reverse-stress testing as part of its ORSA process.

      The outcome of all modelling and stress testing during the period was that Sabre had sufficient capital to meet its obligations under all but the most extreme and unlikely scenarios. Specifically, Sabre held capital well above that required to withstand the 1 in 200 events modelled through the standard formula calculation.

4. ‌Valuation for Solvency Purposes

   1. ‌Assets

      All of the Group's financial assets are measured at fair market value under both IFRS and Solvency II. With the exception of owner-occupied property, all of Sabre's investments are actively traded on open markets and therefore incontrovertible external valuations can be obtained. Sabre's property portfolio, which forms approximately 1.01% of its asset portfolio, is valued every three years by an external valuation agency, as discussed in section A.3 above. The Group's financial assets, classified as 'financial investments' in the table below, are considered to be traded on an active market. The IFRS 13 definition has been applied to active markets, i.e. a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis, which forms the criteria used by the Group to assess whether a market is 'active'.

      The valuation of owner-occupied property is discussed in Section D.4. Other property, plant and equipment are held at historical cost less depreciation, and are depreciated according to the estimated useful life of assets by category.

      A summary reconciliation of the consolidated Group's and Sabre's assets under Solvency II and IFRS is provided below. There has been no change to the valuation bases applied during the year.

      Consolidated Group
      	IFRS accounts	Reclassification	Revaluation	Solvency II
      	£'k	£'k	£'k	£'k
      Assets Cash and cash equivalents (1)	25,475	(10,652)	-	14,823
      Debt securities at fair value through other	325,752	10,652	-	336,404
      comprehensive income
      Receivables	41	-	-	41
      Current tax assets	209	(209)	-	-
      Reinsurance contract assets (2)	216,382	-	(43,099)	173,283
      Property, plant and equipment	4,278	-	-	4,278
      Deferred tax assets (3)	82	-	(82)	-
      Insurance and intermediaries receivables	-	68	-	68
      Other assets	799	209	-	1,008
      Goodwill (4)	156,279	-	(156,279)	-
      Own shares (directly held) (5)	-	-	3,354	3,354
      Total assets	729,297	68	(196,106)	533,259

      1. Cash held in Money Market Funds is reclassified as financial investments under Solvency II

      2. Technical reinsurance assets are revalued under Solvency II - see section D.2 below

      3. Deferred tax asset offset against liability

      4. Goodwill and intangible assets removed under Solvency II

      5. Own shares shown on balance sheet, and later subtracted from own funds

      Sabre Insurance Company Limited
      	IFRS accounts	Reclassification	Revaluation	Solvency II
      	£'k	£'k	£'k	£'k
      Assets Cash and cash equivalents (1)	25,430	(10,652)	-	14,778
      Debt securities at fair value through other	325,752	10,652	-	336,404
      comprehensive income
      Receivables	207	-	-	207
      Current tax assets	209	(209)	-	-
      Reinsurance contract assets (2)	216,382	-	(43,099)	173,283
      Property, plant and equipment	4,278	-	-	4,278
      Deferred tax assets (3)	82	-	(82)	-
      Insurance and intermediaries receivables	-	68	-	68
      Other assets	778	209	-	987
      Total assets	573,118	68	(43,181)	530,005

      1. Cash held in Money Market Funds is reclassified as financial investments under Solvency II

      2. Technical reinsurance assets are revalued under Solvency II - see section D.2 below

      3. ‌Deferred tax asset offset against liability

   2. Technical Provisions

As there is only one trading entity within the Group, the technical provisions and reinsurance recoveries of the Group and Sabre are the same. As the Group holds a small amount of cash, this presents additional counterparty risk, however the impact on the risk margin is wholly immaterial.

Sabre's philosophy with respect to setting technical provisions is to maintain consistency, both in terms of how claims are settled and also the approach to setting the reserves. Sabre's technical provisions undergo a robust peer-review process and are challenged at the peer, Executive and Board level.

Sabre calculates technical provisions by splitting its claims data into homogenous groups, and by using typical market methods to aid setting ultimate claims projections. As with any form of modelling, uncertainty is present in estimating claims reserves for motor insurance business. Uncertainty can result for a number of reasons, including legislative and regulatory changes, changes in social behaviour and also future decisions of law courts. This means that actual future claims estimates could deviate away from expected future claim amounts, particularly as most of Sabre's claims are attributed to personal injury claims, which are particularly vulnerable to these factors. Consequently the deviation of expected and actual claim amounts could be significant.

The estimates of future claims reserves generally assume that there will be no significant changes to the claims environment, including the legal and regulatory environment. An assumption has also been made that no latent claim types will arise in the future. In arriving at a best estimate, specific assumptions are made with regard to claims inflation. To quantify the level of uncertainty associated with a deviance from the assumed level of claims inflation, a sensitivity analysis has been performed to understand the impact on the claims reserves of greater than expected levels of future claims inflation. Key assumptions which drive the calculation of technical provisions, and are subject to some uncertainty are: the timing and ultimate cost of claims already notified to the Group; the existence and extent of claims not yet notified; the propensity for claims to settle as Periodic Payment Orders ("PPO's"); the prevailing Ogden discount rate at the point of settlement; and future reinsurance cost and the costs of administering our customers' policies, including the claims thereon. Some numerical estimation of sensitivity to changes in loss ratios is given in Section C.1.

The estimate of claims reserves is made on a 'best estimate' basis using adequate applicable and relevant actuarial and statistical methods. Best estimate in this context means that there is no explicit margin for prudency in estimating reserves, nor are the estimates optimistically low.

For each peril, a variety of methods are used to come up with the final reserve estimates, meaning a range of estimates are produced before a chosen ultimate level of claims reserve is selected. In estimating the claims reserves, the Chief Actuary engages with the Claims Director to gain an insight into the operational consistency of the claims department, which can supplement statistics in trying to explain levels of uncertainty.

The Group purchases reinsurance as a risk transfer mechanism to mitigate risks that are outside the Group's appetite for individual claim or event exposure and to reduce the volatility caused by individually large losses. By doing so, the Group minimises the volatility in results and available capital presented by significant claims.

Currently the Group has in place an unlimited non-proportional excess of loss reinsurance programme. The non-proportional reinsurance is excess-of-loss, designed to mitigate the Group's net exposure to single large claims or catastrophe losses. The current reinsurance programme has a retention limit of £1m, with no upper limit. Under this programme, the Group pays the first £1m of any claim and, from 1 July 2025, 50% of the next £1m (prior to 1 July 2025: 40%). Any amount above £2m, is covered in full by the panel of reinsurers.

The Group estimates a future cost of reinsurance based on its best estimate of future premium, along with an estimated recovery against gross claims. The Group's reinsurance programme is placed with a range of highly-rated reinsurers and as such, while there is a counterparty risk associated with the estimated reinsurance recoveries, this is mitigated through using a diverse panel of reinsurers, as reflected in the Group's calculation of counterparty risk.

There are a number of recurring adjustments which are applied to the Basic IFRS Claims Reserves in order to reach a Solvency II position. The material adjustments are discussed below.

1. Remove IFRS Risk Adjustment

   IFRS accounting Risk Adjustment is removed and replaced by the Solvency II Risk Margin.

2. Consider expense accounting

   A claims-handling provision is included within the IFRS position, which includes various expenses related to handling policies on an ongoing basis. Solvency II has particular rules as to the expenses to be included within technical provisions. In particular Solvency II requires investment management expenses to be included. Due to the nature of Sabre's business, and the way in which investments are managed, these are wholly immaterial to the calculation.

3. Discounting

   The discount rates applied to the claims reserves are changed from those used under IFRS 17 to the Bank of England's proscribed risk free rates.

4. Remove Unearned Premium Reserve ("UPR")

   Although not strictly within the technical provision, a key adjustment from the IFRS to Solvency II balance sheet is the removal of deferred income and expense balances, due to these costs being recognised on a different basis as part of technical provisions under Solvency II.

5. Review (re)insurance contract boundaries

   Under Solvency II, the technical provision must include the minimum amount due to reinsurers under an in-force contract. Mathematical analysis has shown that, if the minimum premium is sufficiently low, there is no net difference between this approach and the IFRS accounting method, where reinsurance is recorded on an earned basis. The Actuarial Function has reviewed the reinsurance programme and is satisfied with this assessment.

6. Premium reserve

   A premium reserve is calculated through applying an expected claims ratio, expense ratio and cancellation rate to the unearned premium reserve. The loss ratio applied is based upon a rating strength model, while the expense ratio and cancellation rate are calculated based upon previous historical financial information. The basic premium reserve figure is discounted in the same way as the claims reserve.

7. Solvency II Risk Margin

The Solvency II risk margin represents the premium that would be required were Sabre to transfer its technical provision to a third party. The Group has applied simplifications in calculating the Risk Margin allowed under the PRA Rules, which essentially reflects the SCR required to cover a run-off of claims on existing business. This is calculated through modelling the discounted SCR on a projected future balance sheet for each year of claims run-off.

Note that Sabre has not applied a volatility adjustment, matching adjustment, transitional interest-rate structure or any other transitional deduction.

There were no material changes in the relevant assumptions made in the calculation of technical provisions compared to the previous reporting period

The Group's net technical provision balance is shown below. Note that the individual technical provisions for Sabre Insurance Company Limited are the same.