As insurance results have ploughed in over the last couple of months, many firms have offered similar excuses for indifferent performances – namely that market uncertainty post Brexit has impacted their results. One insurer however, has bucked that trend.
The insurer in question is over-50s specialist Saga, which has enjoyed an 8.5% increase in profits for the six months to July 31.
Overall, the company saw its pre-tax profits leap to £109.9 million from £101.3 million with trading nudging up slightly from £117.5 million to £117.6 million. Earnings per share, meanwhile, increased by 8.2% - up from 7.3p to 7.9p. There was also an improvement in its combined operating ratio for its car insurance business – which moved from 65.5% to 58.6%.
What is particularly interesting, aside from the results themselves, is that Saga has stated that it has seen “no discernible impact” from the Brexit decision. Indeed pointing to the performance of its travel insurance business it noted that a recent poll of its customers discovered that 99% believed Brexit “would not make them reconsider their future holiday plans”.
“Saga already has significant brand awareness and customer loyalty but we have been working hard to enhance our understanding of the relationship with our customers,” said chief executive Lance Batchelor.
“This has produced some fascinating insights and opportunities and we are under way with the work that will enable us to capitalise on our findings.
“The robust operational performance in the first half means that we are on track to meet our targets for the full year.”
However, despite seemingly recovering from the loss of its most significant shareholder – Acromas Bid sold a 13% stake in the company last year – Joshua Raymond, an analyst at XTB.com, told City AM that the results were “unspectacular”.
Saga posts steady trade due to cruises, car insurance
Insurance earnings: all in one place