30th Mar 2016 06:09
LONDON (Alliance News) - Saga PLC on Wednesday said it has signed a quota share agreement for motor policies underwritten by its AICL unit.
The FTSE 250-listed company, which provides products and services for over-50s, said the quota share deal with NewRe, a subsidiary of German reinsurer Munich Re, will cover 75% of the risk of motor policies underwritten by AICL since February 1.
The initial agreement is for three years, with the option to extend for another three years.
Saga said the deal will significantly reduce its underwriting risk and will lead to a phased withdrawal of capital from its underwriter.
"This quota share arrangement is the next logical step in delivering our strategy and the favourable terms of the deal that we have signed are testament to the quality of the Saga underwritten book and our historic underwriting performance," said Lance Batchelor, Saga's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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