"The FCA’s high-profile motor-finance review is aimed at car-loan providers and the brokers/dealers that earned “discretionary-commission” kick-backs, not at motor insurers such as Sabre. Sabre neither lends money for car purchases nor arranges that credit, so it has no direct redress liability under the review that could hit banks for billions of pounds"
and
"The only “finance” product Sabre touches: premium-finance instalments
Sabre lets a subset of its direct-brand customers pay monthly and charges modest interest on the instalments.
Management quantify the scale very clearly: < 20 % of customers use the facility and the interest margin contributed “< 2 % of Group insurance revenue” in 2024.
Glad they're not involved, good luck with it. Looks like a good buy.
Thanks for the article. Does Sabre have exposure to the motor finance reviews in the UK?
Had to look that up.
"The FCA’s high-profile motor-finance review is aimed at car-loan providers and the brokers/dealers that earned “discretionary-commission” kick-backs, not at motor insurers such as Sabre. Sabre neither lends money for car purchases nor arranges that credit, so it has no direct redress liability under the review that could hit banks for billions of pounds"
and
"The only “finance” product Sabre touches: premium-finance instalments
Sabre lets a subset of its direct-brand customers pay monthly and charges modest interest on the instalments.
Management quantify the scale very clearly: < 20 % of customers use the facility and the interest margin contributed “< 2 % of Group insurance revenue” in 2024.
sabreplc.co.uk
Sabre therefore told investors it has “low exposure to current areas of regulatory focus… ancillary income is not a material part of profits.”