FX.co ★ Saga Plc H1 Loss Widens, Sees Flat Underlying Profit In FY; In Talks With Ageas Over Partnership

Saga plc (SAGA.L), a company specializing in financial products and services for individuals over the age of 50, announced on Friday an increased pre-tax loss for the first half of the fiscal year, despite a rise in revenues. Looking ahead, the company stated it remains on track to achieve a full-year underlying profit before tax that aligns closely with the previous year's figures.

In a separate development, Saga disclosed that it is engaged in exclusive negotiations with Ageas SA/NV regarding a potential insurance partnership and the sale of Saga's Underwriting business.

The discussions are focused on establishing a 20-year collaboration for motor and home insurance. Moreover, Ageas would also acquire Saga's Insurance Underwriting division, Acromas Insurance Co. Ltd. (AICL).

As part of the proposed agreement, Ageas (UK) Limited, a subsidiary of Ageas, would form a 20-year Affinity Partnership with Saga's Insurance Broking division, Saga Services Limited.

Ageas UK would manage Saga's motor and home insurance products, which recorded gross written premiums exceeding 479 million pounds during the 12 months leading up to July 31.

Saga anticipates that this potential partnership would capitalize on the robust brand, marketing expertise, and customer base of Saga, in conjunction with Ageas's expanding UK insurance operations.

Saga Services Limited's existing collaborations with Collinson for travel insurance and Bupa for private medical insurance would remain unaffected.

In the first half of the fiscal year, Saga reported a pre-tax loss of 104.0 million pounds, compared to a loss of 77.8 million pounds in the same period last year.

The underlying profit before tax was 27.2 million pounds, showing improvement from 8.0 million pounds during the previous year.

Trading EBITDA rose to 67.4 million pounds, marking a 27% increase from 53.0 million pounds a year ago.

During this period, revenue grew by 13% to 404.8 million pounds, compared to 358.1 million pounds a year earlier. The underlying revenue was 393.3 million pounds, an 11% increase from the previous year.