Saga's Insurance Broking business is trading in line with expectations, the group said in a trading update issued ahead of its annual general meeting on 30 June. The update covers the period from 1 February to 29 June 2026.
The company's long-term motor and home partnership with Ageas is progressing, according to the update. New business for both lines is now live, with renewals expected to follow later this year.
The partnership moved into its operational phase in December 2025, when motor new business launched ahead of home cover in early 2026. Ageas took on underwriting, pricing and claims handling for both lines, while Saga kept its brand and customer relationships in exchange for a commission tied to gross written premium.
Saga has triggered a contingent consideration payment of £10.5 million from Ageas, following the outperformance of certain policy volume targets under the partnership. The company expects to receive the payment in the coming days.
The payment follows a turn in the division's broader performance. Insurance Broking returned to policy growth for the first time in four years in the year to January 2026, with underlying profit before tax rising 17% to £16.9m.
Private medical and travel insurance are also performing well, the company said, with increased focus and continued investment in marketing and pricing supporting both areas. Policies in force for the first half of the year are expected to be materially higher than at 31 January 2026.
Mike Hazell, Saga's group chief executive, said the wider insurance business had benefited from a more simplified and customer-focused operating model. "The performance in our wider Insurance business continued to benefit from the more simplified and customer focussed operating model we now have," he said.
Saga's simplified model has coincided with significant restructuring on Ageas's side. Ageas is cutting its directly employed UK workforce by almost half by 2029 as it integrates the Saga and esure deals, with outsourced roles set to more than double over the same period.
Hazell said the company was focused on completing the transition to its new insurance model, and that Saga remained on track to deliver its full year guidance.
The Saga deal sits within a wider consolidation drive at Ageas. The insurer separately acquired esure for £1.295 billion, a deal it said would make the combined business the UK's third-largest personal lines insurer.
Saga's interim results for the six months ending 31 July 2026 are due to be announced on 30 September.
