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Bennetts sale talks swirl as Saga releases interim results

Bennetts sale talks swirl as Saga releases interim results | Insurance Business

Bennetts sale talks swirl as Saga releases interim results

Over-50s insurer Saga Plc, which suffered a £162 million loss in the financial year ending January 31, has released its latest set of numbers amid talks that the Kent-headquartered group is offloading its motorbike insurance broker Bennetts.  

An Evening Standard report said Bennetts is being sold, possibly at a lower price than when it was snapped up from BGL Group in 2015.

Earlier this year group chief executive Lance Batchelor, who is retiring in January 2020, announced that Saga would be making what he called “a bold and fundamental change” to the company’s strategy, including a shift in the insurance division.

Read more: Saga rolls out fixed-price offer after revealing massive loss

Meanwhile, Saga’s interim results for the six months ending July 31 showed that the carrying value of goodwill by cash-generating unit (CGU) is as follows:

  • Insurance, excluding Bennetts – £1.1 billion
  • Insurance, Bennetts – £13.6 million
  • Travel, excluding Destinology – £59.8 million
  • Travel, Destinology – £13 million

In March, it was reported that consultancy firm Duff & Phelps had been called in to see whether there were likely buyers of luxury holidays provider Destinology as well as fellow non-Saga brand Titan Travel.

This morning Saga stated: “The group has tested all goodwill balances for impairment at July 31, 2019. The impairment test compares the recoverable amount of the goodwill of each CGU to its carrying value. The goodwill associated with the Bennetts and Destinology businesses have been considered separately, as these businesses represent separate CGUs.”

It added that the testing concluded that no impairment of the goodwill asset is required at July 31.

For the latest six-month period, Saga’s profit after tax amounted to £45.8 million. This represents a 48.2% decline compared to the figure posted in the same period last year. Pre-tax profit was down 52.1% to £52.6 million.