Saga revisiting potential sale of underwriting arm – report

Financial advisory firm said to have been brought in

Saga revisiting potential sale of underwriting arm – report

Insurance News

By Terry Gangcuangco

Saga Plc is reportedly working with financial advisory firm Lazard to strengthen the over-50s travel and insurance group’s balance sheet, with options including the possible sale of its underwriting business Acromas Insurance Company Limited (AICL).

As reported earlier this year, it was decided that Saga would sell AICL as part of a debt reduction strategy. Discussions with a prospective buyer, however, fell through, and the divestment plan was subsequently paused.

Group chief executive Euan Sutherland said in September: “In underwriting, we have paused the process for a potential sale of the business as, while we had established terms for the disposal, the board believes there is potential to generate greater value once market conditions improve.”

Now it’s been revealed that Saga is currently working with Lazard on balance sheet strengthening, and offloading AICL is said to be among the options that are being looked at.

According to Sky News sources, Lazard has recently presented to the Saga board.

Aside from selling AICL, which underwrites approximately 25% to 30% of Saga’s insurance business, other options that are reportedly on the table include alternatives that relate to the financing of the group’s cruise ships.

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