|
|
Half-year Report 2024
Strong
year-on-year growth at target margins
Full-year guidance reiterated
|
|
Sabre Insurance Group plc (the
"Group" or "Sabre"), one of the UK's leading motor insurance
underwriters, reports its half-year results for the six months
ended 30 June 2024.
|
|
KEY HIGHLIGHTS
-
Strong year-on-year profit growth
-
Healthy gross written premium levels being written at target
margins
-
Loss ratio significantly better than H1 2023
-
Continued organic capital generation and strong solvency
position
-
Good progress across our key strategic initiatives, which
will support planned growth in profit and volume in future
periods
|
|
Geoff Carter, Chief Executive
Officer of Sabre, commented:
"We are in a strong position
at the halfway point of the year, having written good levels of
premium at our target margins across all product lines. This is
clearly demonstrated by the positive numbers we are reporting
today. We have been able to deploy price increases which reflect
our view of claims inflation, and we look forward to a strong
performance in the second-half of the year as the premium we have
written to date earns-through."
|
|
SUMMARY OF RESULTS
|
|
Unaudited as at
|
Audited
as at
|
|
|
30
June 2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Gross written premium
|
£125.7m
|
£99.5m
|
£225.1m
|
|
Net loss ratio
|
57.3%
|
62.0%
|
56.3%
|
|
Expense ratio
|
26.3%
|
31.8%
|
30.0%
|
|
Combined operating
ratio
|
83.6%
|
93.8%
|
86.3%
|
|
Net profit margin
|
18.0%
|
8.3%
|
15.8%
|
|
Profit before tax
|
£20.2m
|
£4.8m
|
£23.6m
|
|
Profit after tax
|
£15.1m
|
£3.8m
|
£18.1m
|
|
Interim dividend per
share
|
1.7p
|
0.9p
|
0.9p
|
|
Final ordinary and special
dividend per share
|
n/a
|
n/a
|
8.1p
|
|
Solvency coverage ratio
(pre-interim/final dividend)
|
191.9%
|
173.0%
|
205.3%
|
|
Solvency coverage ratio
(post-interim/final dividend)
|
185.2%
|
169.0%
|
170.9%
|
|
|
Current trading
- On
core Motor Vehicle, we have established a position where we are
able to balance the delivery of volume and profitability
- We
are continuing to follow our long-established strategy of
profitability being a target, and volume the output
-
Motorcycle and Taxi portfolios are developing well and we
consider these products provide a valuable complement to our core
Motor Vehicle portfolio with good underlying
profitability
-
Continued strong solvency position, reflecting our robust
underwriting performance, which continues to generate
capital
Market trends
-
Following the necessary market pricing correction which drove
price increases in 2023, there is evidence of an anticipated
slowing-down of market-wide price increases in the first half of
this year
-
Claims inflation has continued at relatively high levels in
2024, and this is expected to continue into 2025
-
Further market-wide rate increases are required this year to
meet the inflating cost of claims
- We
have maintained our usual prudent approach to pricing and
reserving, fully covering claims inflation through price
changes
Legal and regulatory
environment
- We
note the new government's comments around the need to ensure
competitive and transparent pricing in motor insurance
-
Our consistent target margin approach across all customer
segments and lack of dependency on income from ancillary products
positions Sabre well in this environment
- We
believe that the UK motor insurance market delivers value for
consumers through price transparency, a highly competitive market
and a wide choice of products, whilst reflecting the underlying
cost of claims
Strategic initiatives
- We
have continued to make solid progress with key strategic
initiatives:
‒ Putting in
place "insurer hosted pricing", which will provide the
infrastructure for further evolving our pricing
capabilities
‒ On track
to expand our Motorcycle distribution in early 2025
‒ Enhancing
the efficiency of our direct operations
Outlook
-
Guidance reiterated for the full-year:
‒ Anticipate
further growth in the core Motor Vehicle account with overall
growth in GWP above claims inflation across 2024
‒ Overall
COR of 75% to 80% on an IFRS 17 (discounted) basis, dependent on
the level of discounting credit recorded for the year
-
Forward-looking claims inflation continues at circa
10%
|
|
There will be a call for analysts and
investors at 0930hrs on Tuesday, 30 July 2024. For details, please
contact sabre@teneo.com or find the registration link here:
Results Presentation
ENQUIRIES
Sabre Insurance
Group
0330 024 4696
Geoff Carter, Chief Executive
Officer
Adam Westwood, Chief Financial
Officer
Teneo
020 7260 2700
James Macey White/Ffion
Dash
sabre@teneo.com
|
|
DIVIDEND CALENDAR
2024 Interim Dividend Payment Dates
|
Ex-dividend date:
|
22 August 2024
|
|
Record date:
|
23 August 2024
|
|
Payment date:
|
25 September 2024
|
|
|
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No 596/2014.
|
|
FORWARD-LOOKING STATEMENTS DISCLAIMER
Cautionary statement
This announcement may include statements that
are, or may be deemed to be, "forward-looking statements". These
forward-looking statements may be identified by the use of
forward-looking terminology, including the terms "believes",
"estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their
negative or other variations or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or
intentions. These forward-looking statements include all matters
that are not historical facts and involve predictions.
Forward-looking statements may and often do differ materially from
actual results. Any forward-looking statements reflect Sabre's
current view with respect to future events and are subject to risks
relating to future events and other risks, uncertainties and
assumptions relating to Sabre's business, results of operations,
financial position, prospects, growth or strategies and the
industry in which it operates.
Forward-looking statements speak only as of
the date they are made and cannot be relied upon as a guide to
future performance. Save as required by law or regulation, Sabre
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements in this
announcement that may occur due to any change in its expectations
or to reflect events or circumstances after the date of this
announcement.
The Sabre Insurance Group plc LEI number is
2138006RXRQ8P8VKGV98.
|
FINANCIAL AND BUSINESS REVIEW
Highlights
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Gross written premium*
|
£125.7m
|
£99.5m
|
£225.1m
|
|
Insurance revenue
|
£121.9m
|
£86.1m
|
£188.2m
|
|
Net loss ratio*
|
57.3%
|
62.0%
|
56.3%
|
|
Expense ratio
|
26.3%
|
31.8%
|
30.0%
|
|
Combined operating ratio*
|
83.6%
|
93.8%
|
86.3%
|
|
Net profit margin*
|
18.0%
|
8.3%
|
15.8%
|
|
Profit before tax
|
£20.2m
|
£4.8m
|
£23.6m
|
|
Profit after tax
|
£15.1m
|
£3.8m
|
£18.1m
|
|
Solvency coverage ratio
(pre-dividend)*
|
191.9%
|
173.0%
|
205.3%
|
|
Solvency coverage ratio
(post-dividend)*
|
185.2%
|
169.0%
|
170.9%
|
*Alternative Performance Metrics are reconciled to IFRS in
the Financial Reconciliation section
|
The significant improvement in top-line and
profitability in the first half of 2024 is a clear demonstration of
Sabre's strategy, which has allowed the Group to leverage
favourable market conditions to generate profitable growth in the
latter half of 2023 and into 2024, which has earned through in
2024. Whilst gross written premium is up by
26.3%, showing continued momentum in the Group's
growth, a key factor in the c.4x increase in profit before tax is
the 41.6% increase in insurance revenue,
which is equivalent to gross earned premium plus income from
instalment interest.
The increase in insurance revenue has
generated an improvement in operating expense leverage, with a
significant 5.5ppt reduction in expense ratio.
Net loss ratio has also improved since H1
2023, as more profitable business earns through - H1 2023 was still
being impacted by the inflation shock in 2022. Overall, all
products have performed in-line with expectation, and a discounted
combined operating ratio of 83.6% keeps
the Group on track to meet its guidance of a full-year discounted
combined operating ratio within the target 75% to 80% range,
dependent on the level of discounting credit achieved.
The Group's solvency coverage ratio, both pre-
and post-dividend remains very strong, with capital having been
generated during the period due to profitable underwriting set
against the Group's capital efficient operating model. The Group's
policy is to address the capital position annually once the
full-year underwriting result is certain and distribute excess
capital primarily by way of a special dividend following the
year-end results.
|
Revenue
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Profit or
loss
|
|
|
|
|
Gross written premium
|
£125.7m
|
£99.5m
|
£225.1m
|
|
Insurance revenue
|
£121.9m
|
£86.1m
|
£188.2m
|
|
Net earned premium
|
£101.1m
|
£71.8m
|
£156.0m
|
|
Other technical income
|
£0.4m
|
£0.7m
|
£1.2m
|
|
Customer instalment income
|
£2.0m
|
£1.6m
|
£3.7m
|
|
Interest revenue calculated using the effective
interest method
|
£3.5m
|
£0.7m
|
£3.8m
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
Fair value gains/(losses) on debt securities
through OCI
|
£0.8m
|
(£1.6m)
|
£9.3m
|
|
|
|
|
|
|
Gross written
premium by product
|
|
|
|
|
Motor vehicle
|
£112.0m
|
£83.0m
|
£199.0m
|
|
Motorcycle
|
£5.6m
|
£9.1m
|
£11.8m
|
|
Taxi
|
£8.1m
|
£7.4m
|
£14.3m
|
|
|
|
|
|
|
Policy counts
by product at period end
|
|
|
|
|
Motor vehicle ('000)
|
237
|
212
|
234
|
|
Motorcycle ('000)
|
41
|
48
|
44
|
|
Taxi ('000)
|
11
|
14
|
12
|
|
The increase in gross written premium vs H1
2023 has been primarily driven by the core Motor Vehicle product,
which has grown by 34.9% year-on-year. This is slightly offset by
an expected decrease in Motorcycle business following the loss of a
distribution partner in Q3 2023 - although we note that the
run-rate for Motorcycle policies is in-line with our expectation as
compared to Q4 2023. The taxi product has grown a little as we
remain cautious on this product, having taken appropriate
underwriting action to protect the underwriting
profitability.
Policy count for core Motor Vehicles
grew 1.3% vs 31 December 2023, although
the increase in policy count has slowed in recent months, as
year-on-year premium growth has been achieved primarily through
average premium increases. We expect policy count to grow and
shrink throughout the market pricing cycle, even in sustained
periods of hard pricing, as individual insurers temporarily alter
market pricing. Motorcycle and Taxi policy counts are stable and we
expect these products to remain a relatively small part of the book
overall.
|
|
The below table shows how the familiar
measures used to calculate our KPIs build up into the income
entries in the IFRS 17 Profit or Loss Account.
|
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Gross written premium
|
£125.7m
|
£99.5m
|
£225.1m
|
|
Less: Unearned element of liability for
remaining coverage
|
(£5.8m)
|
(£15.0m)
|
(£40.6m)
|
|
Gross earned
premium
|
£119.9m
|
£84.5m
|
£184.5m
|
|
Reinsurance expense
|
(£18.8m)
|
(£12.7m)
|
(£28.5m)
|
|
Net earned
premium
|
£101.1m
|
£71.8m
|
£156.0m
|
|
Customer instalment income
|
£2.0m
|
£1.6m
|
£3.7m
|
|
Insurance service expense
|
(£97.6m)
|
(£66.6m)
|
(£139.5m)
|
|
Amounts recoverable from reinsurers
|
£27.1m
|
£12.5m
|
£31.5m
|
|
Insurance
service result
|
£32.6m
|
£19.3m
|
£51.8m
|
|
|
|
|
|
|
Represented
by:
|
|
|
|
|
Insurance service result before reinsurance
contracts held
|
£24.2m
|
£19.5m
|
£48.7m
|
|
Net income/(expense) from reinsurance contracts
held
|
£8.4m
|
(£0.2m)
|
£3.0m
|
|
|
£32.6m
|
£19.3m
|
£51.8m
|
|
This reconciliation highlights the significant
improvement in underwriting performance in H1 2024, with the
insurance service result being 68.9%
above the same period in 2023 and 0.42%
ahead of H2 2023.
|
Operating expenditure
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Profit or
loss
|
|
|
|
|
Insurance service expense
|
£97.6m
|
£66.6m
|
£139.5m
|
|
Reinsurance expense
|
£18.8m
|
£12.7m
|
£28.5m
|
|
Current-year net loss ratio
|
57.1%
|
61.5%
|
58.8%
|
|
Prior-year net loss ratio
|
0.2%
|
0.5%
|
(2.5%)
|
|
Net loss ratio
|
57.3%
|
62.0%
|
56.3%
|
|
Other operating expenses
|
£14.1m
|
£13.2m
|
£26.6m
|
|
Expense ratio
|
26.3%
|
31.8%
|
30.0%
|
|
Combined operating ratio
|
83.6%
|
93.8%
|
86.3%
|
|
|
|
|
|
|
Net loss ratio
by product
|
|
|
|
|
Motor vehicle
|
55.4%
|
55.8%
|
50.4%
|
|
Motorcycle
|
101.2%
|
60.5%
|
65.2%
|
|
Taxi
|
55.3%
|
120.8%
|
108.8%
|
|
Overall net loss ratio has improved by 4.4ppts
since H1 2023, as current-year experience in core Motor Vehicle has
benefitted from pricing increases during and subsequent to the
period of very high inflation, bringing our expected performance
for the year into line with our long-term goals. This has been
offset slightly by a reduction in the release of prior-year claims
reserves. Overall net loss ratio has also benefitted from the
greater proportion of business earned on the core Motor Vehicle
book vs the less mature products. We note that Motorcycle and Taxi
business is on-track to deliver a profit in 2024 and,
notwithstanding the volatility inherent within smaller lines of
business and demonstrated in the H1 loss ratio for Motorcycle,
appear to be performing close to our target margins.
The expense ratio improved by 5.5ppts vs H1
2023, showing the benefit of enhanced operating leverage and
continued tight control of costs.
|
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Undiscounted gross claims incurred
|
£88.7m
|
£63.1m
|
£139.6m
|
|
Discounting
|
(£3.6m)
|
(£6.1m)
|
(£20.3m)
|
|
Directly attributable expenses
|
£3.8m
|
£3.0m
|
£6.1m
|
|
Amortisation of insurance acquisition
costs
|
£8.8m
|
£6.6m
|
£14.1m
|
|
Insurance
service expense
|
£97.7m
|
£66.6m
|
£139.5m
|
|
|
|
|
|
|
Undiscounted reinsurance recoveries
|
(£28.7m)
|
(£15.6m)
|
(£41.4m)
|
|
Discounting
|
£1.6m
|
£3.1m
|
£9.8m
|
|
Amounts
recoverable from reinsurers for incurred claims
|
(£27.1m)
|
(£12.5m)
|
(£31.6m)
|
|
|
|
|
|
|
Undiscounted net claims incurred *
|
£60.3m
|
£47.5m
|
£96.0m
|
|
Net earned premium
|
£101.1m
|
£71.8m
|
£156.0m
|
|
Current-year undiscounted net loss
ratio
|
59.3%
|
69.7%
|
64.3%
|
|
Prior-year undiscounted net loss
ratio
|
0.4%
|
(3.5%)
|
(2.7%)
|
|
Financial-year
undiscounted net loss ratio
|
59.7%
|
66.2%
|
61.6%
|
|
|
|
|
|
|
Undiscounted combined operating ratio
|
86.0%
|
98.0%
|
91.6%
|
|
|
|
|
|
|
Undiscounted
net loss ratio by product
|
|
|
|
|
Motor vehicle
|
56.7%
|
58.9%
|
55.0%
|
|
Motorcycle
|
110.6%
|
67.3%
|
73.3%
|
|
Taxi
|
68.3%
|
132.8%
|
117.1%
|
* Not adjusted for discounting on PPOs, consistent with prior
reporting periods
|
On an undiscounted basis, the current-year
loss ratio has improved at a portfolio-level since 2023, a result
of price increases earning-through and a greater proportion of
business being earned on the core Motor Vehicle book as opposed to
Motorcycle and Taxi. Overall, the core Motor Vehicle book continues
to perform in-line with our expectations, with current-year
carrying some expected growth strain reflecting the normal
uncertainty inherent within new claims. The prior-year run-off has
been lower than in previous periods, however at the 6-month stage
this is often more volatile than on an annual basis.
Whilst the Taxi loss ratio has improved
considerably, the Motorcycle loss ratio has moved out. This shows
the inherent variability in loss ratio across these very small
lines of business, where a movement in one large claim can
significantly impact the loss ratio. It is our view that both
portfolios are operating profitably in the long-run and we expect
both products to deliver a profit for the full-year.
|
Net insurance financial
result
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Insurance finance income expense for insurance
contracts issued
|
(£4.1m)
|
(£4.7m)
|
(£10.2m)
|
|
Reinsurance finance income for reinsurance
contracts held
|
£1.9m
|
£2.1m
|
£3.6m
|
|
Net insurance
financial result
|
(£2.2m)
|
(£2.6m)
|
(£6.6m)
|
|
Net insurance finance result primarily
reflects the run-off of discounting recorded during the
period.
|
Other comprehensive income
('OCI')
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Key elements of
other comprehensive income
|
|
|
|
|
Fair value gains/(losses) on debt securities
through OCI
|
£0.8m
|
(£1.6m)
|
£9.3m
|
|
Net insurance financial result
|
£1.2m
|
£3.8m
|
(£7.0m)
|
|
The net insurance financial result through OCI
reflects the run-off specifically related to prior charges/credits
to OCI, which are generated primarily through changes in discount
rates.
|
Earnings per share
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Basic earnings per share
|
6.08p
|
1.54p
|
7.27p
|
|
Diluted earnings per share
|
6.04p
|
1.52p
|
7.20p
|
|
Earnings per share reflects the Group's profit
after tax divided by the number of shares, adjusted for dilution
through equity-settled incentive schemes.
|
Cash and investments
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Government bonds
|
£109.5m
|
£85.6m
|
£107.0m
|
|
Government-backed securities
|
£98.7m
|
£80.5m
|
£81.9m
|
|
Corporate bonds
|
£81.4m
|
£61.5m
|
£75.7m
|
|
Cash and cash equivalents
|
£37.5m
|
£29.3m
|
£35.1m
|
|
|
£327.1m
|
£256.9m
|
£299.7m
|
|
The increase in the size of the investment
portfolio reflects growth in the business and organic generation of
capital. The Group's investment objectives remain to operate a low
capital-intensity, low-risk portfolio which generates income ahead
of the risk-free interest rate.
|
Insurance liabilities and
reinsurance contracts
|
|
Unaudited
|
Audited
|
|
|
6 months ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Gross insurance liabilities
|
£421.2m
|
£322.0m
|
£374.8m
|
|
Reinsurance assets
|
(£179.8m)
|
(£138.3m)
|
(£166.7m)
|
|
Net insurance liabilities
|
£241.4m
|
£183.7m
|
£208.1m
|
|
The increase in net insurance liabilities
reflects the growth in the size of the business over the
period.
|
Leverage
|
The Group continues to hold no external debt.
All of the Group's capital is considered 'Tier 1' under Solvency
II. The Directors continue to hold the view that this currently
allows the greatest operational flexibility for the
Group.
|
Dividend
|
|
Unaudited
|
Audited
|
|
|
6 months
ended
|
12 months
ended
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Interim ordinary dividend
|
1.7p
|
0.9p
|
0.9p
|
|
Final ordinary dividend
|
-
|
-
|
4.2p
|
|
Total ordinary dividend
|
1.7p
|
0.9p
|
5.1p
|
|
Special dividend
|
-
|
-
|
3.9p
|
|
Total dividend
|
1.7p
|
0.9p
|
9.0p
|
|
The Board has declared an ordinary interim
dividend of 1.7p per share (30 June
2023: 0.9p) in line with the Group's
policy to pay an interim dividend equal to one-third of
prior-year's ordinary dividend. The Directors will consider
distribution of further excess capital following the release of the
Group's full-year results.
|
Condensed Consolidated Profit or
Loss Account
For the six months ended 30 June
2024
|
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Insurance revenue
|
3.4
|
121,852
|
86,119
|
188,246
|
|
Insurance service expense
|
3.4
|
(97,646)
|
(66,628)
|
(139,497)
|
|
Insurance
service result before reinsurance contracts held
|
|
24,206
|
19,491
|
48,749
|
|
|
|
|
|
|
|
Reinsurance expense
|
3.4
|
(18,755)
|
(12,655)
|
(28,506)
|
|
Change in amounts recoverable from reinsurers
for incurred claims
|
3.4
|
27,127
|
12,498
|
31,532
|
|
Net
income/(expense) from reinsurance contracts held
|
|
8,372
|
(157)
|
3,026
|
|
|
|
|
|
|
|
Insurance
service result
|
|
32,578
|
19,334
|
51,775
|
|
|
|
|
|
|
|
Interest income on financial assets using
effective interest rate method
|
4.4
|
3,495
|
720
|
3,775
|
|
Total
investment income
|
|
3,495
|
720
|
3,775
|
|
|
|
|
|
|
|
Insurance finance expenses from insurance
contracts issued
|
|
(4,111)
|
(4,736)
|
(10,170)
|
|
Reinsurance finance income from reinsurance
contracts held
|
|
1,892
|
2,085
|
3,588
|
|
Net insurance
financial result
|
|
(2,219)
|
(2,651)
|
(6,582)
|
|
|
|
|
|
|
|
Net insurance
and investment result
|
|
33,854
|
17,403
|
48,968
|
|
|
|
|
|
|
|
Other income
|
6
|
427
|
682
|
1,232
|
|
Other operating expenses
|
7
|
(14,069)
|
(13,243)
|
(26,587)
|
|
Profit before
tax
|
|
20,212
|
4,842
|
23,613
|
|
|
|
|
|
|
|
Income tax expense
|
8
|
(5,106)
|
(1,020)
|
(5,548)
|
|
Profit for
the period attributable to ordinary shareholders
|
|
15,106
|
3,822
|
18,065
|
|
|
|
|
|
|
|
Basic earnings per share (pence per
share)
|
|
6.08
|
1.54
|
7.27
|
|
Diluted earnings per share (pence per
share)
|
|
6.04
|
1.52
|
7.20
|
Condensed Consolidated Statement
of Comprehensive Income
For the six months ended 30 June
2024
|
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Profit for the period attributable to ordinary
shareholders
|
|
15,106
|
3,822
|
18,065
|
|
|
|
|
|
|
|
Items that
are or may be reclassified subsequently to Profit or
Loss
|
|
|
|
|
|
Unrealised fair value gains/(losses) on debt
securities
|
4.5
|
819
|
(1,636)
|
9,284
|
|
Tax (charge)/credit
|
|
(205)
|
409
|
(2,149)
|
|
Debt
securities at fair value through other comprehensive
income
|
|
614
|
(1,227)
|
7,135
|
|
|
|
|
|
|
|
Insurance finance income/(expense) from
insurance contracts issued
|
|
3,298
|
5,745
|
(12,436)
|
|
Reinsurance finance (expense)/income from
reinsurance contracts held
|
|
(2,127)
|
(1,946)
|
5,432
|
|
Tax (charge)/credit
|
|
(293)
|
(925)
|
1,550
|
|
Net insurance
financial income/(expense)
|
|
878
|
2,874
|
(5,454)
|
|
|
|
|
|
|
|
Items which
will not be reclassified to Profit or Loss
|
|
|
|
|
|
Revaluation losses on owner-occupied
properties
|
|
-
|
-
|
(800)
|
|
Income tax relating to items that will not be
reclassified
|
|
-
|
-
|
(31)
|
|
|
|
-
|
-
|
(831)
|
|
|
|
|
|
|
|
Total other
comprehensive income for the period, net of tax
|
|
1,492
|
1,647
|
850
|
|
|
|
|
|
|
|
Total
comprehensive income for the period attributable to ordinary
shareholders
|
|
16,598
|
5,469
|
18,915
|
Condensed Consolidated Statement
of Financial Position
As at 30 June 2024
|
|
|
30 June
2024
|
30
June 2023 (1)
|
31
December 2023 (1)
|
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Assets
|
|
|
|
|
|
Cash and cash equivalents
|
4.1
|
37,469
|
29,327
|
35,079
|
|
Financial investments
|
4.2
|
289,553
|
227,667
|
264,679
|
|
Receivables
|
4.3
|
58
|
6
|
87
|
|
Current tax assets
|
|
2,281
|
3,363
|
1,438
|
|
Reinsurance contract assets
|
3.1
|
179,838
|
138,332
|
166,726
|
|
Property, plant and equipment
|
|
4,283
|
5,133
|
4,388
|
|
Deferred tax assets
|
|
167
|
1,215
|
688
|
|
Other assets
|
|
2,186
|
2,097
|
774
|
|
Goodwill
|
|
156,279
|
156,279
|
156,279
|
|
Total
assets
|
|
672,114
|
563,419
|
630,138
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Payables
|
5
|
8,561
|
8,345
|
9,700
|
|
Insurance contract liabilities
|
3.1
|
421,184
|
321,965
|
374,839
|
|
Other liabilities
|
|
3,303
|
2,260
|
3,187
|
|
Total
liabilities
|
|
433,048
|
332,570
|
387,726
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Issued share capital
|
|
250
|
250
|
250
|
|
Own shares
|
|
(2,722)
|
(2,552)
|
(3,121)
|
|
Merger reserve
|
|
48,525
|
48,525
|
48,525
|
|
FVOCI reserve
|
|
(5,280)
|
(14,256)
|
(5,894)
|
|
Revaluation reserve
|
|
-
|
831
|
-
|
|
Insurance/Reinsurance finance reserve
(1)
|
|
3,117
|
10,567
|
2,239
|
|
Share-based payments reserve
|
|
1,834
|
1,883
|
2,686
|
|
Retained earnings (1)
|
|
193,342
|
185,601
|
197,727
|
|
Total
equity
|
|
239,066
|
230,849
|
242,412
|
|
Total
liabilities and equity
|
|
672,114
|
563,419
|
630,138
|
(1) Opening balance restatement - Refer to Note 3
"Insurance liabilities and reinsurance assets"
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June
2024
|
|
Share capital
|
Own shares
|
Merger reserve
|
FVOCI reserve
|
Revaluation reserve
|
Insurance/
Reinsurance finance reserve (1)
|
Share-based payments
reserve
|
Retained earnings
(1)
|
Total equity
|
|
|
£'k
|
£'k
|
£'k
|
£'k
|
£'k
|
£'k
|
£'k
|
£'k
|
£'k
|
|
Balance as at 1 January 2023
|
250
|
(2,810)
|
48,525
|
(13,029)
|
831
|
10,244
|
2,407
|
182,570
|
228,988
|
|
Discounting model refinements
(1)
|
-
|
-
|
-
|
-
|
-
|
(2,551)
|
-
|
2,551
|
-
|
|
Restated balance as at 1 January 2023
(1)
|
250
|
(2,810)
|
48,525
|
(13,029)
|
831
|
7,693
|
2,407
|
185,121
|
228,988
|
|
Profit for the period attributable to ordinary
shareholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,822
|
3,822
|
|
Total other comprehensive income for the
period, net of tax: Items that are or may be
reclassified subsequently to Profit or Loss
|
-
|
-
|
-
|
(1,227)
|
-
|
2,874
|
-
|
-
|
1,647
|
|
Share-based payment expense
|
-
|
-
|
-
|
-
|
-
|
-
|
(524)
|
886
|
362
|
|
Net movement in own shares
|
-
|
258
|
-
|
-
|
-
|
-
|
-
|
-
|
258
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,228)
|
(4,228)
|
|
Restated balance as at 30 June 2023
(1)
|
250
|
(2,552)
|
48,525
|
(14,256)
|
831
|
10,567
|
1,883
|
185,601
|
230,849
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to ordinary
shareholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
14,243
|
14,243
|
|
Total other comprehensive income for the
period, net of tax: Items that are or may be
reclassified subsequently to Profit or Loss
|
-
|
-
|
-
|
8,362
|
-
|
(8,328)
|
-
|
-
|
34
|
|
Total other comprehensive income for the
period, net of tax: Items which will not be
reclassified to Profit or Loss
|
-
|
-
|
-
|
-
|
(831)
|
-
|
-
|
-
|
(831)
|
|
Share-based payment expense
|
-
|
-
|
-
|
-
|
-
|
-
|
803
|
121
|
924
|
|
Net movement in own shares
|
-
|
(569)
|
-
|
-
|
-
|
-
|
-
|
-
|
(569)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,238)
|
(2,238)
|
|
Restated balance as at 31 December 2023
(1)
|
250
|
(3,121)
|
48,525
|
(5,894)
|
-
|
2,239
|
2,686
|
197,727
|
242,412
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to ordinary
shareholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
15,106
|
15,106
|
|
Total other comprehensive income for the
period, net of tax: Items that are or may be
reclassified subsequently to Profit or Loss
|
-
|
-
|
-
|
614
|
-
|
878
|
-
|
-
|
1,492
|
|
Share-based payment expense
|
-
|
-
|
-
|
-
|
-
|
-
|
(852)
|
631
|
(221)
|
|
Net movement in own shares
|
-
|
399
|
-
|
-
|
-
|
-
|
-
|
-
|
399
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(20,122)
|
(20,122)
|
|
Balance as at
30 June 2024
|
250
|
(2,722)
|
48,525
|
(5,280)
|
-
|
3,117
|
1,834
|
193,342
|
239,066
|
(1) Opening balance restatement - Refer to Note 3
"Insurance liabilities and reinsurance assets"
Condensed Consolidated Statement
of Cash Flows
For the six months ended 30 June
2024
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
Profit before tax for the period
|
20,212
|
4,842
|
23,613
|
|
Adjustments
for:
|
|
|
|
|
Depreciation of property, plant and
equipment
|
105
|
45
|
140
|
|
Share-based payment - equity-settled
schemes
|
822
|
803
|
1,606
|
|
Investment return
|
(2,632)
|
(523)
|
(3,131)
|
|
Expected credit loss
|
-
|
-
|
6
|
|
Impairment loss on owner-occupied
buildings
|
-
|
-
|
333
|
|
Operating
cash flows before movements in working capital
|
18,507
|
5,167
|
22,567
|
|
Movements in
working capital:
|
|
|
|
|
Change in receivables
|
29
|
1
|
(80)
|
|
Change in reinsurance contract
assets
|
(15,239)
|
(3,325)
|
(24,340)
|
|
Change in other assets
|
(1,412)
|
(819)
|
504
|
|
Change in payables
|
(1,139)
|
3,236
|
4,592
|
|
Change in insurance contract
liabilities
|
49,643
|
13,370
|
48,062
|
|
Change in other liabilities
|
116
|
878
|
1,804
|
|
Cash
generated from operating activities before investment of insurance
assets
|
50,505
|
18,508
|
53,109
|
|
Taxes paid
|
(5,926)
|
(2,468)
|
(4,658)
|
|
Net cash
generated from operating activities before investment of insurance
assets
|
44,579
|
16,040
|
48,451
|
|
Interest and investment income
received
|
2,121
|
1,431
|
3,818
|
|
Proceeds from the sale and maturity of
invested assets
|
17,908
|
4,400
|
24,089
|
|
Purchases of invested assets
|
(41,452)
|
(5,452)
|
(51,018)
|
|
Net cash
generated from operating activities
|
23,156
|
16,419
|
25,340
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
|
|
|
|
Purchases of property, plant and
equipment
|
-
|
(1,182)
|
(1,665)
|
|
Net cash used
by investing activities
|
-
|
(1,182)
|
(1,665)
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
|
|
|
|
Net cash used in acquiring and disposing of
own shares
|
(644)
|
(184)
|
(632)
|
|
Dividends paid
|
(20,122)
|
(4,228)
|
(6,466)
|
|
Net cash used
by financing activities
|
(20,766)
|
(4,412)
|
(7,098)
|
|
Net increase in cash and cash
equivalents
|
2,390
|
10,825
|
16,577
|
|
Cash and cash equivalents at the beginning of
the year
|
35,079
|
18,502
|
18,502
|
|
Cash and cash
equivalents at the end of the year
|
37,469
|
29,327
|
35,079
|
Notes to the Condensed
Consolidated Financial Statements
For the six months ended 30 June
2024
|
1.
GENERAL INFORMATION
The Condensed Consolidated Interim
Financial Statements comprise the results and balances of the Group
for the six-month period ended 30 June
2024, the comparative period for the
six months ended 30 June 2023 and the year ended 31 December
2023. The information in the
Condensed Consolidated Interim Financial Statements is unaudited
and does not constitute statutory accounts as defined in s.434 of
the Companies Act 2006. The independent auditor's report on the
Group accounts for the year ended 31 December
2023 is unqualified, does not
include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and
does not include a statement under s.498(2) or (3) of the Companies
Act 2006.
2.
ACCOUNTING POLICIES
2.1. Basis of
preparation
The Condensed Consolidated Interim Financial
Statements have been prepared and approved by the Directors in
accordance with UK-adopted International Accounting Standard 34
('Interim Financial Reporting'). As required by the Disclosure
Guidance and Transparency Rules sourcebook of the UK's Financial
Conduct Authority, these Condensed Consolidated Interim Financial
Statements have been prepared applying the accounting policies and
presentation that will be applied in the preparation of the Annual
Financial Statements of the Group and will be prepared in
accordance and fully comply with UK-adopted international
accounting standards, comprising International Accounting Standards
('IAS') and International Financial Reporting Standards ('IFRSs').
The Annual Financial Statements were prepared in accordance with
the going concern principle using the historical cost basis, except
for those financial assets that have been measured at fair
value.
The accounting policies applied in the
preparation of the Condensed Consolidated Interim Financial
Statements are consistent with those accounting policies applied in
the preparation of the 31 December 2023
Annual Report and Accounts, expect for those referred to in
2.3 below.
Other than the Equity opening balance
restatement, the prior year accounts have been reported on by the
Group's auditors and filed with the Registrar of Companies. This
report should be read in conjunction with the Group's Annual Report
and Accounts as at and for the year ended 31 December
2023.
The Condensed Consolidated Interim Financial
Statements values are presented in Pounds Sterling (£)
rounded to the nearest thousand (£'k), unless otherwise indicated.
The Group does not consider it is exposed to material seasonal
volatility in its financial results.
2.2. Going concern
The Condensed Consolidated Interim
Financial Statements have been prepared on a going concern
basis. Having assessed the Group's forecasts,
projections and principal risks of the Group over the full duration
of the planning cycle, the Directors have a reasonable expectation
that the Group will continue in operation
for at least 12 months from the date the Directors approved these
Condensed Consolidated Financial Statements and that therefore it
is appropriate to adopt a going concern basis for the preparation
of these Condensed Consolidated Financial Statements.
The Group's Principal Risks and Uncertainties
are outlined in the Strategic
Report of the 31 December 2023
Annual Report and Accounts and have not changed since the
last reporting date. The principal risks are:
-
Insurance
-
Operations
- Finance
and Capital
- IT and
Systems
-
Regulatory, Governance and Compliance
-
People
- Macro
risks
-
Climate
-
Inflation and interest rate increases
-
Geo-political
2.3. New and amended standards and interpretations adopted by
the Group
Amendments to IFRS
The following amended standards became
effective for the year ended 31 December 2024:
- Supplier
Finance Arrangements (Amendments to IAS 7 and IFRS 7)
-
Amendments to IAS 1 Presentation of Financial
Statements
o Classification of
Liabilities as Current or Non-Current
o Non-current
Liabilities with Covenants
o Removed the
requirement that the right to defer settlement be
unconditional
o Deferral of
Effective Date Amendment
- Lease
Liability in a Sale and Leaseback (Amendments to IFRS
16)
None of the amendments have had a material
impact on the Group.
2.4. New and amended
standards and interpretations not yet effective in
2024
A number of new standards and
interpretations adopted by the UK which are not mandatorily
effective, as well as standards' interpretations issued by the IASB
but not yet adopted by the UK, have not been applied in preparing
these financial statements. The Group does not plan to adopt these
standards early; instead it expects to apply them from their
effective dates as determined by their dates of UK endorsement. The
Group is reviewing the upcoming standards to determine their
impact:
- Lack of
Exchangeability (Amendments to IAS 21) - Effective 1 January
2025
- IFRS 18
Presentation and Disclosure in Financial Statements - Effective 1
January 2027
|
3.
Insurance liabilities and reinsurance assets
|
CRITICAL ACCOUNTING ESTIMATES AND judgements
There have been no significant
changes to the principles, estimates and judgements used in
applying the Group's accounting policies during the period. Full
details of these critical accounting estimates and judgements are
disclosed on pages 126 to 128 of the Group's Annual Report and
Accounts 2023.
Discount rates
Discount rates applied for
discounting future cash flows are listed below:
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
1 year
|
3 years
|
5 years
|
10 years
|
1
year
|
3
years
|
5
years
|
10
years
|
1
year
|
3
years
|
5
years
|
10
years
|
|
Motor insurance
|
5.12%
|
4.48%
|
4.19%
|
4.09%
|
6.35%
|
5.92%
|
5.32%
|
4.54%
|
5.05%
|
3.98%
|
3.67%
|
3.59%
|
Risk adjustment for non-financial risk
The Company has estimated the risk adjustment
using a methodology which targets a confidence level (probability
of sufficiency) approach between the 80th and 90th percentile. At
30 June 2023, the risk margin applied equates to an approximate
confidence interval of 82.1% (30 June 2023: 82.0% / 31 December 2023: 81.3%)
|
3.1. Composition of the Statement of Financial
Position
An analysis of the amounts presented
on the Statement of Financial Position for insurance contacts is
included in the table below.
|
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Insurance
contract liabilities
|
|
|
|
|
|
Insurance
contract liabilities
|
|
|
|
|
|
Motor Vehicle insurance
|
|
366,778
|
273,168
|
321,720
|
|
Motorcycle insurance
|
|
35,653
|
31,462
|
32,370
|
|
Taxi insurance
|
|
28,241
|
24,469
|
29,482
|
|
Asset for
insurance acquisition cash flows
|
|
|
|
|
|
Motor Vehicle insurance
|
3.3
|
(7,435)
|
(5,204)
|
(6,933)
|
|
Motorcycle insurance
|
3.3
|
(1,011)
|
(926)
|
(867)
|
|
Taxi insurance
|
3.3
|
(1,042)
|
(1,004)
|
(933)
|
|
Total
insurance contract liabilities
|
|
421,184
|
321,965
|
374,839
|
|
|
|
|
|
|
|
Reinsurance
contracts assets
|
|
|
|
|
|
Motor Vehicle insurance
|
|
158,694
|
120,160
|
143,364
|
|
Motorcycle insurance
|
|
13,819
|
11,147
|
13,502
|
|
Taxi insurance
|
|
7,325
|
7,025
|
9,860
|
|
Total
reinsurance contract assets
|
|
179,838
|
138,332
|
166,726
|
3.2. Movements in insurance and reinsurance contract
balances
3.2.1. Insurance contracts issued
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Opening
insurance contract liabilities
|
374,839
|
314,341
|
314,341
|
|
Changes in the Profit or Loss Account
|
|
|
|
|
Insurance
revenue
|
(121,852)
|
(86,119)
|
(188,246)
|
|
Insurance
service expenses
|
|
|
|
|
Incurred claims and other directly
attributable expenses
|
73,326
|
60,945
|
123,662
|
|
Changes that relate to past service -
changes in the FCF relating to
the LIC
|
15,538
|
(953)
|
1,778
|
|
Amortisation of insurance acquisition cash
flows
|
8,782
|
6,636
|
14,057
|
|
|
97,646
|
66,628
|
139,497
|
|
Insurance
service result
|
(24,206)
|
(19,491)
|
(48,749)
|
|
|
|
|
|
|
Net finance income from insurance contracts
issued
|
4,111
|
4,736
|
10,170
|
|
Total changes
in the Profit or Loss Account
|
(20,095)
|
(14,755)
|
(38,579)
|
|
Changes in the Statement of Comprehensive
Income
|
|
|
|
|
Net finance (expense)/ income from insurance
contracts issued
|
(3,298)
|
(5,745)
|
12,436
|
|
Total changes
in Statement of Comprehensive Income
|
(3,298)
|
(5,745)
|
12,436
|
|
Cash flows
|
|
|
|
|
Premiums received
|
130,713
|
87,493
|
206,189
|
|
Claims and other insurance services expenses
paid
|
(51,438)
|
(51,561)
|
(102,720)
|
|
Insurance acquisition cash flows
|
(9,537)
|
(7,808)
|
(16,828)
|
|
Total cash
flows
|
69,738
|
28,124
|
86,641
|
|
|
|
|
|
|
Closing
insurance contract liabilities
|
421,184
|
321,965
|
374,839
|
3.2. Movements in insurance and reinsurance contract
balances
3.2.2. Reinsurance contracts held
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Opening
reinsurance contract assets
|
166,726
|
136,954
|
136,954
|
|
Changes in the Profit or Loss Account
|
|
|
|
|
Net
income/(expense) from reinsurance contracts held
|
|
|
|
|
Reinsurance expense
|
(18,755)
|
(12,655)
|
(28,506)
|
|
Incurred claims recovery
|
11,752
|
13,825
|
25,841
|
|
Changes that relate to past service -
changes in the FCF relating to
incurred claims recovery
|
15,375
|
(1,327)
|
5,691
|
|
|
8,372
|
(157)
|
3,026
|
|
Net finance income for reinsurance contracts
held
|
1,892
|
2,085
|
3,588
|
|
Total changes
in the Profit or Loss Account
|
10,264
|
1,928
|
6,614
|
|
Changes in the Statement of Comprehensive
Income
|
|
|
|
|
Net finance (expense)/ income for reinsurance
contracts held
|
(2,127)
|
(1,946)
|
5,432
|
|
Total changes
in Statement of Comprehensive Income
|
(2,127)
|
(1,946)
|
5,432
|
|
Cash flows
|
|
|
|
|
Premiums paid
|
6,043
|
6,408
|
24,906
|
|
Recoveries received
|
(1,068)
|
(5,012)
|
(7,180)
|
|
Total cash
flows
|
4,975
|
1,396
|
17,726
|
|
|
|
|
|
|
Closing
reinsurance contract assets
|
179,838
|
138,332
|
166,726
|
3.3. Assets for insurance acquisition cash
flows
|
|
£'k
|
|
Balance as at
1 January 2023
|
5,962
|
|
Amounts incurred during the year
|
7,808
|
|
Amounts derecognised and included in
measurement of insurance contracts
|
(6,636)
|
|
Balance as at
30 June 2023
|
7,134
|
|
|
|
|
Amounts incurred during the year
|
9,019
|
|
Amounts derecognised and included in
measurement of insurance contracts
|
(7,420)
|
|
Balance as at
31 December 2023
|
8,733
|
|
|
|
|
Amounts incurred during the year
|
9,537
|
|
Amounts derecognised and included in
measurement of insurance contracts
|
(8,782)
|
|
Balance as at
30 June 2024
|
9,488
|
3.4. Insurance revenue and expenses - Segmental
disclosure
|
An analysis of insurance revenue,
insurance service expenses and net expenses from reinsurance
contracts held is included in the tables below. Additional
information on amounts recognised in Profit or Loss and OCI is
included in the movements in insurance and reinsurance contract
balances in Note 3.2.
The Group provides short-term
motor insurance to clients, which comprises three lines of
business, Motor Vehicle insurance, Motorcycle insurance and Taxi
insurance, which are written solely in the UK. The Group has no
other lines of business, nor does it operate outside of the UK.
Other income relates to auxiliary products and services, including
brokerage and administration fees, all relating to the motor
insurance business. The Group does not have a single client which
accounts for more than 10% of revenue.
|
|
|
6 months ended 30 June
2024
|
|
6
months ended 30 June 2023
|
|
|
Motor
Vehicle
|
Motorcycle
|
Taxi
|
Total
|
|
Motor
Vehicle
|
Motorcycle
|
Taxi
|
Total
|
|
|
£'k
|
£'k
|
£'k
|
£'k
|
|
£'k
|
£'k
|
£'k
|
£'k
|
|
Insurance
revenue
|
|
|
|
|
|
|
|
|
|
|
Insurance revenue from contracts measured
under the PAA
|
109,549
|
5,059
|
7,244
|
121,852
|
|
69,616
|
9,132
|
7,371
|
86,119
|
|
Total
insurance revenue
|
109,549
|
5,059
|
7,244
|
121,852
|
|
69,616
|
9,132
|
7,371
|
86,119
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
service expense
|
|
|
|
|
|
|
|
|
|
|
Incurred claims and other directly
attributable expenses
|
(62,053)
|
(4,131)
|
(7,142)
|
(73,326)
|
|
(39,911)
|
(11,242)
|
(9,792)
|
(60,945)
|
|
Changes that relate to past service - changes
in the FCF relating to the LIC
|
(19,987)
|
(1,114)
|
5,563
|
(15,538)
|
|
(888)
|
2,659
|
(818)
|
953
|
|
Amortisation of insurance acquisition cash
flows
|
(6,813)
|
(1,046)
|
(923)
|
(8,782)
|
|
(4,580)
|
(1,111)
|
(945)
|
(6,636)
|
|
Total
insurance service expense
|
(88,853)
|
(6,291)
|
(2,502)
|
(97,646)
|
|
(45,379)
|
(9,694)
|
(11,555)
|
(66,628)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(expenses) from reinsurance contracts held
|
|
|
|
|
|
|
|
|
|
|
Reinsurance expenses - contracts measured
under the PAA
|
(16,829)
|
(801)
|
(1,125)
|
(18,755)
|
|
(10,183)
|
(1,368)
|
(1,104)
|
(12,655)
|
|
Incurred claims recovery
|
9,977
|
237
|
1,539
|
11,753
|
|
5,475
|
5,545
|
2,805
|
13,825
|
|
Changes that relate to past service - changes
in the FCF relating to incurred claims recovery
|
18,702
|
159
|
(3,487)
|
15,374
|
|
854
|
(2,266)
|
85
|
(1,327)
|
|
Total net
income/(expense) from reinsurance contracts held
|
11,850
|
(405)
|
(3,073)
|
8,372
|
|
(3,854)
|
1,911
|
1,786
|
(157)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
insurance service result
|
32,546
|
(1,637)
|
1,669
|
32,578
|
|
20,383
|
1,349
|
(2,398)
|
19,334
|
|
Other than reinsurance assets and
insurance liabilities (see Note 3.1), the Group does not allocate,
monitor or report assets and liabilities per business line and does
not consider the information useful in the day-to-day running of
the Group's operations. The Group also does not allocate, monitor,
or report other income and expenses per business line.
|
|
|
|
12
months ended 31 December 2023
|
|
|
Motor
Vehicle
|
Motorcycle
|
Taxi
|
|
Total
|
|
|
£'k
|
£'k
|
£'k
|
|
£'k
|
|
Insurance
revenue
|
|
|
|
|
|
|
Insurance revenue from contracts measured
under the PAA
|
158,054
|
15,363
|
14,829
|
|
188,246
|
|
Total
insurance revenue
|
158,054
|
15,363
|
14,829
|
|
188,246
|
|
|
|
|
|
|
|
|
Insurance
service expense
|
|
|
|
|
|
|
Incurred claims and other directly
attributable expenses
|
(91,688)
|
(16,087)
|
(15,887)
|
|
(123,662)
|
|
Changes that relate to past service - changes
in the FCF relating to the LIC
|
(861)
|
1,796
|
(2,713)
|
|
(1,778)
|
|
Amortisation of insurance acquisition cash
flows
|
(10,206)
|
(1,953)
|
(1,898)
|
|
(14,057)
|
|
Total
insurance service expense
|
(102,755)
|
(16,244)
|
(20,498)
|
|
(139,497)
|
|
|
|
|
|
|
|
|
Net
income/(expense) from reinsurance contracts held
|
|
|
|
|
|
|
Reinsurance expense - contracts measured under
the PAA
|
(23,800)
|
(2,444)
|
(2,262)
|
|
(28,506)
|
|
Incurred claims recovery
|
17,367
|
5,947
|
2,527
|
|
25,841
|
|
Changes that relate to past service - changes
in the FCF relating to incurred claims recovery
|
4,758
|
(1,184)
|
2,117
|
|
5,691
|
|
Total net
income/(expense) from reinsurance contracts held
|
(1,675)
|
2,319
|
2,382
|
|
3,026
|
|
|
|
|
|
|
|
|
Total
insurance service result
|
53,624
|
1,438
|
(3,287)
|
|
51,775
|
3.5. Opening balance restatement - Insurance Finance
Reserve
|
As a result of refinements made to the IFRS 17
discounting model, an amount of £2.6m has been reclassified between
2023's opening Retained Earnings and opening Insurance/Reinsurance
Finance Reserve. This restatement has no impact on the total equity
or regulatory capital of the Group, and has no impact on the
Consolidated Profit and Loss Account or Consolidated Statement of
Comprehensive Income for any of the previously reported
periods.
|
4.
Financial assets
The Group's financial assets are
summarised below:
|
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Cash and cash equivalents
|
4.1
|
37,469
|
29,327
|
35,079
|
|
Debt securities held at fair value through
other comprehensive income
|
4.2
|
289,553
|
227,667
|
264,679
|
|
Receivables
|
4.3
|
58
|
6
|
87
|
|
Total
|
|
327,080
|
257,000
|
299,845
|
4.1. Cash and cash equivalents
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Cash at bank and on hand
|
15,995
|
23,462
|
12,890
|
|
Money market funds
|
21,474
|
5,865
|
22,189
|
|
Total
|
37,469
|
29,327
|
35,079
|
Cash held in money market funds
has no notice period for withdrawal.
The carrying value of cash and
cash equivalents approximates fair value. The full value is
expected to be realised within 12 months.
4.2. Debt securities held at fair value through other
comprehensive income
The Group's debt securities held
at fair value through other comprehensive income are summarised
below:
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
% holdings
|
£'k
|
%
holdings
|
£'k
|
%
holdings
|
|
Government bonds
|
109,396
|
37.8%
|
85,605
|
37.6%
|
107,040
|
40.4%
|
|
Government-backed securities
|
98,709
|
34.1%
|
80,548
|
35.4%
|
81,942
|
31.0%
|
|
Corporate bonds
|
81,448
|
28.1%
|
61,514
|
27.0%
|
75,697
|
28.6%
|
|
Total
|
289,553
|
100.0%
|
227,667
|
100.0%
|
264,679
|
100.0%
|
|
Fair value measurements are based
on observable and unobservable inputs. Observable inputs reflect
market data obtained from independent sources, while unobservable
inputs reflect the Group's view of market assumptions in the
absence of observable market information.
IFRS 13 requires certain
disclosures which require the classification of financial assets
and financial liabilities measured at fair value using a fair value
hierarchy that reflects the significance of the inputs used in
making the fair value measurement.
Disclosure of fair value
measurements by level is according to the following fair value
measurement hierarchy:
- Level 1: fair value
is based on quoted market prices (unadjusted) in active markets for
identical instruments as measured on reporting date
- Level 2: fair value
is determined through inputs, other than quoted prices included in
Level 1 that are observable for the assets and liabilities, either
directly (prices) or indirectly (derived from prices)
- Level 3: fair value
is determined through valuation techniques which use significant
unobservable inputs
Level 1
The fair value of financial
instruments traded in active markets is based on quoted market
prices at the Statement of Financial Position date. A market is
regarded as active if quoted prices are readily and regularly
available from the stock exchange or pricing service, and those
prices represent actual and regularly occurring market transactions
on an arm's length basis. The quoted market price used for
financial assets held by the Group is the closing bid price. These
instruments are included in Level 1 and comprise only debt
securities classified as fair value through other comprehensive
income.
Level 2
The fair value of financial
instruments that are not traded in an active market is determined
by using valuation techniques. These valuation techniques maximise
the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant
input required to fair value an instrument is observable, the
instrument is included in Level 2. The Group has no Level 2
financial instruments.
Level 3
If one or more of the significant
inputs are not based on observable market data, the instrument is
included in Level 3. The Group has no Level 3 financial
instruments.
Transfers between levels
There have been no transfers
between levels during the period (30 June
2023: no transfers / 31
December 2023: no
transfers).
|
4.3. Receivables
The Group's receivables comprise
of:
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Other debtors
|
58
|
6
|
87
|
|
Total
|
58
|
6
|
87
|
|
The estimated fair values of
receivables are the discounted amounts of the estimated future cash
flows expected to be received.
The carrying value of receivables
approximates fair value. The provision for expected credit losses
('ECL') is based on the recoverability of the individual
receivables.
The Group has calculated the ECL
on receivables and has concluded that it is wholly immaterial and
such further disclosure has not been included.
|
4.4. Investment income
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Interest
income on financial assets using effective interest rate
method
|
|
|
|
|
Interest income from debt
securities
|
2,632
|
523
|
3,131
|
|
Interest income from cash and cash
equivalents
|
863
|
197
|
644
|
|
Total
|
3,495
|
720
|
3,775
|
4.5. Net gains/(losses) from fair value adjustments on
financial assets
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Other
comprehensive income
|
|
|
|
|
Unrealised fair value gains/(losses) on debt
securities
|
819
|
(1,636)
|
9,278
|
|
Expected credit loss
|
-
|
-
|
6
|
|
Unrealised
fair value gains/(losses) on debt securities through Other
Comprehensive Income
|
819
|
(1,636)
|
9,284
|
|
|
|
|
|
|
Net
gains/(losses) from fair value adjustments on financial
assets
|
819
|
(1,636)
|
9,284
|
5.
PAYABLES
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Trade and other creditors
|
1,020
|
1,643
|
2,149
|
|
Indirect taxes
|
7,541
|
6,702
|
7,551
|
|
Total
|
8,561
|
8,345
|
9,700
|
6.
Other income
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Administration fees
|
33
|
379
|
495
|
|
Brokerage and other fee income
|
394
|
303
|
737
|
|
Total
|
427
|
682
|
1,232
|
Other income relates to auxiliary products and
services, including brokerage and administration fees, all relating
to the Motor Vehicle product.
7.
OTHER Operating expenses
|
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
Notes
|
£'k
|
£'k
|
£'k
|
|
Employee expenses
|
7.1
|
8,046
|
7,237
|
13,869
|
|
Property expenses
|
|
161
|
469
|
689
|
|
IT expenses including IT
depreciation
|
|
3,314
|
3,077
|
5,961
|
|
Other depreciation
|
|
57
|
4
|
59
|
|
Industry levies
|
|
2,927
|
2,973
|
5,936
|
|
Policy servicing costs
|
|
1,510
|
1,010
|
2,491
|
|
Other operating expenses
|
|
1,817
|
1,464
|
3,328
|
|
Movement in expected credit loss on debt
securities
|
|
-
|
-
|
6
|
|
Impairment loss on owner occupied
properties
|
|
-
|
-
|
333
|
|
Before
adjustment for directly attributable claims
expenses
|
|
17,832
|
16,234
|
32,672
|
|
Adjusted
for:
|
|
|
|
|
|
Reclassification of directly attributable
claims expenses
|
|
(3,763)
|
(2,991)
|
(6,085)
|
|
Total
operating expenses
|
|
14,069
|
13,243
|
26,587
|
7.1. Employee
expenses
The aggregate remuneration of
those employed by the Group's operations comprised:
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Wages and salaries
|
5,939
|
5,216
|
10,079
|
|
Social security expenses
|
691
|
745
|
1,276
|
|
Contributions to defined contribution
plans
|
307
|
292
|
557
|
|
Equity-settled share-based payment
|
851
|
803
|
1,606
|
|
Other employee expenses
|
258
|
181
|
351
|
|
Before
adjustment for directly attributable claims
expenses
|
8,046
|
7,237
|
13,869
|
|
Adjusted
for:
|
|
|
|
|
Reclassification of directly attributable
claims expenses
|
(2,531)
|
(2,081)
|
(4,146)
|
|
Employee
expenses
|
5,515
|
5,156
|
9,723
|
8. INCOME TAX EXPENSE
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Current
taxation
|
|
|
|
|
Charge for the year
|
5,082
|
360
|
4,444
|
|
|
5,082
|
360
|
4,444
|
|
|
|
|
|
|
Deferred
taxation
|
|
|
|
|
Origination and reversal of temporary
differences
|
24
|
660
|
1,104
|
|
|
24
|
660
|
1,104
|
|
|
|
|
|
|
Current taxation
|
5,082
|
360
|
4,444
|
|
Deferred taxation
|
24
|
660
|
1,104
|
|
Income tax
expense for the year
|
5,106
|
1,020
|
5,548
|
Tax recorded in Other Comprehensive
Income is as follows:
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Current taxation
|
-
|
-
|
31
|
|
Deferred taxation
|
498
|
516
|
599
|
|
|
498
|
516
|
630
|
|
Management estimates the Group's
effective tax rate to be approximately 25.3% of profit before tax
for the year ending 31 December 2024, in line with the corporation
tax rate in the UK of 25.0%. This estimate is slightly higher than
the prevailing rate of corporation tax in the UK, reflecting the
impact of the Group's employee share schemes. The income tax
expense for the period is recognised based on this
estimate.
|
9. Dividends
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
pence per
share
|
£'k
|
pence per
share
|
£'k
|
pence per
share
|
£'k
|
|
Amounts
recognised as distributions to equity holders in the
period
|
|
|
|
|
|
|
|
Interim dividend for the current
year
|
-
|
-
|
-
|
-
|
0.9
|
2,238
|
|
Final dividend for the prior year
|
8.1
|
20,122
|
1.7
|
4,228
|
1.7
|
4,228
|
|
|
8.1
|
20,122
|
1.7
|
4,228
|
2.6
|
6,466
|
|
Proposed
dividends
|
|
|
|
|
|
|
|
Interim dividend in respect of the current
year (1)
|
1.7
|
4,250
|
0.9
|
2,250
|
|
|
|
(1) Subsequent to 30 June 2024, the Directors declared an
interim dividend for 2024
of
1.7p per ordinary share. This
dividend will be accounted for as an appropriation of retained
earnings in the year ended 31 December 2024
and is not
included as a liability in the Statement of Financial Position as
at 30 June 2024.
The trustees of the employee share
trusts waived their entitlement to dividends on shares held in the
trusts to meet obligations arising on share incentive schemes,
which reduced the dividends paid for the period ended 30
June 2024 by
£128k (30 June
2023: £22k
and 31 December
2023:
£34k).
|
10. Related party transactions
|
There has been no change to the
relationships disclosed in Note 18 of the 31 December
2023 Annual Report and
Accounts.
No related party transactions have
taken place in the period ended 30 June 2024
that have materially affected the financial
position or the financial performance of the Group.
|
11. EVENTS AFTER THE BALANCE SHEET DATE
|
Other than the declaration of a
final dividend as disclosed in Note 9, there have been no material
changes in the affairs or financial position of the Group and its
subsidiaries since the Statement of Financial Position
date.
|
Directors' Responsibility
Statement
|
We confirm that to the best of our
knowledge:
The Condensed Consolidated
Financial Statements for the six months ended 30 June
2024 have been prepared
in accordance with International Accounting Standards 34 ("IAS 34")
as adopted by the UK.
The interim management report
includes a fair review of the information as required
by:
-
DTR 4.2.7R of the Disclosure and Transparency
Rules, being an indication of the important events that have
occurred during the first six months of the current financial year
and their impact on the condensed set of Consolidated Financial
Statements and a description of the principle risks and
uncertainties for the remaining six months of the financial year;
and
-
DTR 4.2.8R of the Disclosure and Transparency
Rules, being related party transaction that have taken place in the
first six months of the current financial year and that have
materially impacted the financial position or performance of the
Group during the period; and any changes in the related party
transactions from the Group's Consolidated Financial Statements for
the year ended 31 December 2023 that could do so.
Signed on behalf of the Board of
Directors
|
|
|
|
|
Geoff Carter
Chief Executive Officer
29 July 2024
|
Adam Westwood
Chief Financial Officer
29 July 2024
|
|
Independent review report to Sabre Insurance Group
plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed Sabre Insurance Group plc's
condensed consolidated interim financial statements (the "interim
financial statements") in the Half-Year Report 2024 of Sabre
Insurance Group plc for the 6 month period ended
30 June 2024 (the "period").
Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with UK adopted International Accounting Standard 34,
'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
The interim financial statements
comprise:
-
the Condensed Consolidated Statement of Financial Position as
at 30 June 2024;
-
the Condensed Consolidated Profit or Loss Account and the
Condensed Consolidated Statement of Comprehensive Income for the
period then ended;
-
the Condensed Consolidated Statement of Cash Flows for the
period then ended;
-
the Condensed Consolidated Statement of Changes in Equity for
the period then ended; and
-
the explanatory notes to the interim financial
statements.
The interim financial statements included in
the Half-Year Report 2024 of Sabre Insurance Group plc have been
prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with
International Standard on Review Engagements (UK) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Financial Reporting Council for use in
the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and
applying analytical and other review procedures.
A review is substantially less in scope than
an audit conducted in accordance with International Standards on
Auditing (UK) and, consequently, does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
We have read the other information contained
in the Half-Year Report 2024 and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less
extensive than those performed in an audit as described in the
Basis for conclusion section of this report, nothing has come to
our attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on
the review procedures performed in accordance with ISRE (UK) 2410.
However, future events or conditions may cause the group to cease
to continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the
directors
The Half-Year Report 2024, including the
interim financial statements, is the responsibility of, and has
been approved by the directors. The directors are responsible for
preparing the Half-Year Report 2024 in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority. In preparing the Half-Year
Report 2024, including the interim financial statements, the
directors are responsible for assessing the group's ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the
group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility is to express a conclusion
on the interim financial statements in the Half-Year Report 2024
based on our review. Our conclusion, including our Conclusions
relating to going concern, is based on procedures that are less
extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the
purpose of complying with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this
conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent
in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
29 July 2024
|
Financial
Reconciliations
GROSS WRITTEN PREMIUM
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Insurance revenue
|
121,852
|
86,119
|
188,246
|
|
Less: Instalment
income
|
(1,969)
|
(1,630)
|
(3,738)
|
|
Less: Movement in
unearned premium
|
5,839
|
14,976
|
40,590
|
|
Gross written
premium
|
125,722
|
99,465
|
225,098
|
NET LOSS RATIO
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Insurance service expense
|
97,646
|
66,628
|
139,497
|
|
Less: Amortisation
of insurance acquisition cash flows
|
(8,782)
|
(6,636)
|
(14,057)
|
|
Less: Amounts
recoverable from reinsurers for incurred claims
|
(27,127)
|
(12,498)
|
(31,532)
|
|
Less: Directly
attributable claims expenses
|
(3,763)
|
(2,991)
|
(6,085)
|
|
Net claims
incurred
|
57,974
|
44,503
|
87,823
|
|
|
|
|
|
|
Insurance revenue
|
121,852
|
86,119
|
188,246
|
|
Less: Instalment
income
|
(1,969)
|
(1,630)
|
(3,738)
|
|
Less: Reinsurance
expense
|
(18,755)
|
(12,655)
|
(28,506)
|
|
Net earned
premium
|
101,128
|
71,834
|
156,002
|
|
|
|
|
|
|
Net claims incurred
|
57,974
|
44,503
|
87,823
|
|
Net earned premium
|
101,128
|
71,834
|
156,002
|
|
Net loss
ratio
|
57.3%
|
62.0%
|
56.3%
|
EXPENSE RATIO
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Other operating expenses
|
14,069
|
13,243
|
26,587
|
|
Add: Amortisation
of insurance acquisition cash flows
|
8,782
|
6,636
|
14,057
|
|
Add: Directly
attributable claims expenses
|
3,763
|
2,991
|
6,085
|
|
Total
operating expenses
|
26,614
|
22,870
|
46,729
|
|
|
|
|
|
|
Insurance revenue
|
121,852
|
86,119
|
188,246
|
|
Less: Instalment
income
|
(1,969)
|
(1,630)
|
(3,738)
|
|
Less: Reinsurance
expense
|
(18,755)
|
(12,655)
|
(28,506)
|
|
Net earned
premium
|
101,128
|
71,834
|
156,002
|
|
|
|
|
|
|
Total operating expenses
|
26,614
|
22,870
|
46,729
|
|
Net earned premium
|
101,128
|
71,834
|
156,002
|
|
Expense
ratio
|
26.3%
|
31.8%
|
30.0%
|
COMBINED OPERATING RATIO
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Net loss ratio
|
57.3%
|
62.0%
|
56.3%
|
|
Expense ratio
|
26.3%
|
31.8%
|
30.0%
|
|
Combined
operating ratio
|
83.6%
|
93.8%
|
86.3%
|
UNDISCOUNTED NET LOSS RATIO
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Net claims incurred
|
57,974
|
44,503
|
87,823
|
|
Add: Net impact of
discounting
|
2,350
|
3,045
|
8,201
|
|
Undiscounted
net claims incurred
|
60,324
|
47,548
|
96,024
|
|
|
|
|
|
|
Net earned
premium
|
101,128
|
71,834
|
156,002
|
|
|
|
|
|
|
Undiscounted
net loss ratio
|
59.7%
|
66.2%
|
61.6%
|
UNDISCOUNTED COMBINED OPERATING RATIO
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Undiscounted net loss ratio
|
59.7%
|
66.2%
|
61.6%
|
|
Expense ratio
|
26.3%
|
31.8%
|
30.0%
|
|
Undiscounted
combined operating ratio
|
86.0%
|
98.0%
|
91.6%
|
NET PROFIT MARGIN
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Net claims incurred
|
57,974
|
44,503
|
87,823
|
|
Total operating expenses
|
26,614
|
22,870
|
46,729
|
|
Total
insurance expense
|
84,588
|
67,373
|
134,552
|
|
|
|
|
|
|
Insurance revenue
|
121,852
|
86,119
|
188,246
|
|
Less: Reinsurance
expense
|
(18,755)
|
(12,655)
|
(28,506)
|
|
Net insurance
revenue
|
103,097
|
73,464
|
159,740
|
|
|
|
|
|
|
Net profit
margin
|
18.0%
|
8.3%
|
15.8%
|
SOLVENCY COVERAGE RATIO - PRE-DIVIDEND
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Solvency II net assets
|
121,737
|
97,091
|
121,099
|
|
Solvency capital requirement
|
63,445
|
56,113
|
58,998
|
|
Solvency
coverage ratio - pre-dividend
|
191.9%
|
173.0%
|
205.3%
|
SOLVENCY COVERAGE RATIO - POST-DIVIDEND
|
|
30 June
2024
|
30
June 2023
|
31
December 2023
|
|
|
£'k
|
£'k
|
£'k
|
|
Solvency II net assets
|
121,737
|
97,091
|
121,099
|
|
Less: Interim/Final
dividend
|
(4,250)
|
(2,250)
|
(20,250)
|
|
Solvency II net assets -
post-dividend
|
117,487
|
94,841
|
100,849
|
|
Solvency capital requirement
|
63,445
|
56,113
|
58,998
|
|
Solvency
coverage ratio - post-dividend
|
185.2%
|
169.0%
|
170.9%
|
