Saga Plc reports lower insurance sales

Market continues to be challenging, says firm

Saga Plc reports lower insurance sales

Insurance News

By Terry Gangcuangco

Over-50s travel and insurance group Saga Plc posted lower insurance policy sales in the four months ended May 31.

In a trading update this morning, the Kent-headquartered business noted: “In what continued to be a challenging market, total policy sales across all products, for the four months ended May 31, 2023, were 6% behind the prior year.”

Policy sales for motor and home insurance were down 7%, according to Saga. It added that the margin per policy within motor and home was £56, given the market-wide inflationary environment.   

“The growth in sales of travel insurance continued over the same period, with policies 6%, and revenue 22%, ahead of the prior year,” Saga also reported. “Private medical insurance (PMI) delivered revenue growth of 16% when compared with the prior year on a broadly stable policy count.”

As part of Saga’s PMI offering, the company has partnered with health insurance provider Bupa. A separate announcement said the tie-up starts in December and will see Bupa supporting Saga’s four HealthPlans.

Additionally, it’s been confirmed that Saga still intends to sell its insurance underwriting business after talks with a potential buyer fell through earlier this year.

Without providing further details, Saga chief executive Euan Sutherland stated in the update: “We have secured a valuable partnership with Bupa that will not only improve our current private medical offering but also open up exciting new opportunities, and we plan to launch our new pet insurance later in the year.

“Meanwhile, we are also continuing with the sale process of our insurance underwriting business.”

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