Sabre hikes premiums 16% amid motor market pressure

Sabre has posted a 16% rise in gross written premiums for the first half of 2026, driven by aggressive price hikes in a market that chief executive Geoff Carter warns is still struggling to stabilize.

Gross written premium reached £116m for the six months ended 30 June 2026, up from £100.3m in the same period last year. While the company reaffirmed guidance for a full-year profit slightly ahead of 2025, profit before tax fell from £25.5m to £23.9m year-on-year. The non-standard motor specialist’s combined operating ratio also increased from 82.6% to 85.6%, though Carter said he expected this figure to fall back to last year’s levels by year end.

Carter explained that the movement was largely driven by timing effects associated with strong premium growth rather than underlying underwriting deterioration. He noted that margins should move back towards the insurer’s target range as written premium earns through during the second half of the year. In its half-year results statement, Sabre said it had continued to write business at target margins while fully covering claims inflation, despite what it described as a relatively soft market during the first six months of the year.

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Speaking to Insurance Times this morning (4 August), Carter said Sabre’s results had been achieved despite market-wide challenges in pushing through premium increases. He explained that the market is struggling to get a foothold on pricing. “Everyone’s trying to increase prices and anyone you talk to at any of the insurance conferences is talking about the need for price increases,” he said. “But that’s not been happening consistently and the market is struggling to make the prices stick.”

Carter said Sabre continued to assume claims inflation of around 6% to 7% this year and agreed with wider industry analysis that indicated further rate action would be needed down the line. In July, Ernst and Young (EY) published a forecast for the UK motor insurance market that predicted policyholders would face premium increases of 16% over the next two years. Carter said he would concur with the EY analysis that says the market needs about 15% of rate by the end of next year.

Alongside its growth ambitions, Carter said Sabre was continuing to invest in pricing, analytics and data capabilities. The business invested £3.7m in IT expenses across the first half of 2026 and intends to continue spending on its data capabilities. Carter also highlighted artificial intelligence (AI) as a major opportunity for the insurer, particularly in relation to data analysis, pricing and operational efficiency.

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According to Carter, AI could help Sabre grow without increasing headcount at the same rate as premium growth by automating routine tasks and allowing employees to focus on higher-value activities. He added that insurers must remain alert to the risks associated with AI adoption, including cyber threats, falsified evidence used in claims and the potential leakage of customer data or intellectual property.

We are very vigilant about the increased risk of a cyber event coming through,” Carter said. “We need to control the tests we’re doing, so we don’t leak either customer data or our IP.” Carter stressed that the technology would support existing staff to become more efficient, rather than leading to job cuts. “We’re absolutely not looking at losing staff,” he said. “We’ve got great people who are well trained and add a huge amount of value to us.”