16th Jan 2019 08:22
LONDON (Alliance News) - Saga PLC said Wednesday it traded in line with management expectations in the last five months of 2018.
In the period from August to January 15, the FTSE 250-listed over-50 product and services provider said the increase in new business has kept its policy count "stable" despite a "challenging" insurance market.
Saga said the Motor and Home insurance markets continue to be "competitive". The company said a fall in average premiums and "some upward pressure" on net rates in Home, impacted broker revenue and profitability.
Saga branded Motor and Home insurance policy count was "broadly stable" in the period compared to the year before, with increased new business volumes.
The company's underwriter exceeded management expectations, Saga said, supported by a "particularly positive" small and large personal injury claims results.
"We are making progress with our strategy to invest in attracting new customers across the business. In a challenging insurance market, the increase in new business has kept our policy count broadly stable," said Chief Executive Officer Lance Batchelor. "
"Our underwriting business has performed well during the year. Healthy forward sales for our new cruise ships and the growth in membership are encouraging signs for the group."
Saga said its Travel division has fully sold its cruise ship capacity for financial year 2019, ending January 31, and has sold 54% of its target for financial 2020.
Cruise ship demand remains "strong", said Saga but tour revenue for financial 2020 will be flat on a change in product mix. Saga will focus on higher margin products in the face of fewer passengers.
Possibilities, Saga's membership programme, added 250,000 members in the period and now has over one million members.
In an effort to increase membership, Saga has launched a new advertising campaign across TV, press, digital media and direct marketing.
Saga is expected to release to its preliminary results on April 4.
Shares in Saga were down 0.1% in early trading Wednesday at 103.10 pence each.
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