UK holidays group Saga Plc, who offer travel and travel insurance products predominantly to the over-50s, has said that it is currently in discussions with Acromas Insurance Company Ltd for the potential sale of its underwriting unit of its wider insurance division in order to help pay down its debt.
Acromas already underwrites about 25-30 per cent of the company’s insurance business, said Saga.
The insurance division of Saga is the largest business in the group but has been dealing with rising claims, which saw a half-year loss and a warning on full-year earnings in September 2022. Claim inflation is currently around 13 per cent, leading to increased costs and affecting profitability.
Saga did not confirm who it was in discussion with or a potential selling price.
The company’s net debt was £721.3 million as of 31 July 2022.