The Sabre Insurance Directors have proposed a total final dividend of 1.7p per share in respect of 2022. The total amount proposed to be distributed to shareholders by way of dividends for 2022 is therefore 4.5p per share, including the ordinary interim dividend of 2.8p per share already paid. The total ordinary dividend due to be paid according to the Group's policy is entirely covered by the interim dividend, therefore the entire final dividend is considered 'special' according to the Group's policy. Excluding the capital required to pay this dividend, the Group's SCR coverage ratio at 31 December 2022 would be 154% This is consistent with the Group's policy to pay an ordinary dividend of 70% of profit after tax, and to consider passing excess capital to shareholders by way of a special dividend.
Other financial highlights include:
- Strong capital generation led to a pre-dividend solvency capital ratio of 161.4%, and a post-dividend solvency capital ratio of 153.8%, comfortably within their target range of 140% to 160%
- Year-on-year growth in gross written premium driven by motorcycle and taxi business, with motor book remaining supressed in 2022 due to continued market-wide under-pricing
- Profit before tax of £12.8m (2021: £37.2m), the year-on-year decrease primarily a result of pressure on loss ratio due to rapid, unexpected inflation
- In-year performance for the early stage Motorcycle and Taxi business was below expectation, with a drag from a limited number of large losses against a relatively low earned premium on Taxi, and higher Motorcycle loss ratio on business written prior to our more sophisticated pricing and rating being fully embedded. Their underwriting actions and the significant pricing action taken in 2022 are anticipated to bring these loss ratios down materially in 2023
