Tuesday, January 24, 2023
HomeInsurance LawSaga weighs sale of claims hit underwriting unit

Saga weighs sale of claims hit underwriting unit

UK’s Saga Group has revealed that it’s in talks to divest its underwriting unit Acromas Insurance coverage Firm (AICL). 

AICL presently underwrites roughly 25-30% of Saga‘s insurance coverage enterprise, the biggest enterprise of the group. 

In a inventory submitting, Saga stated: “The board has seemed on the alternatives to optimise Saga’s operational and strategic place within the insurance coverage market, in step with the evolution to a capital-light enterprise mannequin and the said goal to cut back debt.

“It has concluded {that a} potential disposal of its Underwriting enterprise is in step with Group technique and would crystalise worth and improve long-term returns for shareholders.”

The talks are ongoing and there’s no certainty {that a} deal will materialise, the agency stated with out disclosing who it was in talks with for the deal.

Individually, Saga stated it expects the income for the group to be as much as 50% greater than the earlier yr pushed by the restoration within the journey sector within the post-Covid period.

For the insurance coverage division, the agency reported a 3% drop in coverage gross sales and the underwriting division additionally continued to expertise excessive ranges of claims inflation, averaging 13% for the yr as a complete.

Saga Group CEO Euan Sutherland stated: “We continued to navigate a difficult interval for the UK motor insurance coverage market and, though there was some stress on our underwriting enterprise, our retail broking outcome will probably be in step with expectations.”



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