25th Jun 2024 09:18
(Alliance News) - Saga PLC on Tuesday highlighted an exceptional start to the year at its cruise business but said conditions in insurance remain challenging.
In a trading update ahead of Tuesday's annual general meeting, the provider of insurance and travel services for people aged 50 and over said it remains on track for the full year, with trading from February 1 to date in line with expectations.
"Our Ocean and River Cruise businesses have had an exceptional start to the year with booked load factors ahead of the same point last year, at 83% and 78% respectively, alongside growing per diems," Saga said.
Travel bookings are also ahead of the prior year, with booked revenue 14% up, on a higher number of passengers.
But market conditions for Insurance remain challenging, the company added.
"We are taking action to stabilise our Broking business and are seeing early signs of the expected benefits in motor. Emerging net rate inflation in home means the actions are expected to have less of an impact overall," Saga stated.
Saga said it was continuing to explore partnership opportunities within Ocean Cruise and Insurance that would support growth ambitions, crystallise value and enhance long-term returns for shareholders.
Chief Executive Officer Mike Hazell said it had been a "good start to the new financial year".
"Our Ocean Cruise business has traded exceptionally well and, in Insurance, we have continued to take actions within a market which remains challenging. Looking ahead, we are focused on driving sustainable business growth in a capital-light way, while growing our customer base and deepening our connections with those customers."
Shares in Saga rose 0.7% to 113.60 pence in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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