9th Apr 2025 10:50
(Alliance News) - Saga PLC on Wednesday said it was pleased with the successful signing of a new partnership and sale agreement for its insurance underwriting business, despite a wider annual loss.
The Kent-based provider of services to people aged 50 and over had a pretax loss of GBP160.2 million for the year ended January 31, widening from GBP123.8 million in the year prior. Saga said the pretax loss figure is a reflection of the impairment of assets alongside restructuring costs.
Total revenue was GBP588.3 million in financial 2025, up 4.2% from GBP564.6 million in financial 2024.
Saga highlighted its total underlying profit before tax was up 25% and ahead of previous guidance, driven by its Travel businesses and the high customer demand for its ocean and river cruise offers.
Saga declared no dividend for financial 2025 as it is not currently permissible under its financing arrangements. Its net debt was GBP590.5 million, down 7.3% from GBP637.2 million in financial 2024. Saga maintains that net debt reduction remains a key strategic focus.
Saga Chief Executive Officer Mike Hazell said: "Our focus has shifted to the long-term growth plans for [Saga], building on our established businesses by continuing to explore complementary partnerships and unlocking new avenues for growth beyond our current business and product lines."
Saga expects financial 2026 to be a year of "transition". The sale of Saga's Insurance Underwriting business, AICL, combined with the move to its new 20-year partnership arrangement with wholly owned UK subsidiaries of Ageas, will transform Saga's approach to motor and home insurance.
Hazell said: "I am confident that the plans we have in place will step change our financial performance within the next five years.
"Our vision is to be the most-trusted brand for older people in the UK, supported by the quality of products and the service we deliver to our customers. The actions taken over the past 12 months put us in a strong position to deliver this vision and, in turn, create sustainable growth and value for our shareholders."
Following Saga's successful insurance agreement with Ageas, Gareth Hoskin has been promoted to senior independent director, replacing Peter Bazalgette and taking effect from Wednesday.
Saga shares were up 1.3% at 127.00 pence each in London on Wednesday morning.
By Lucy Dunnet, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights reserved.
Related Shares:
Saga