Saga positions itself for financial growth with a strategic focus

The future financial position of Saga will be significantly shaped by the cooperation with Ageas. A cash flow of GBP 80 million is expected upon the implementation of the partnership agreement, which is to occur about a year after signing the contract. CEO Michael Hazell explains that this sum will help mitigate the outflow of working capital, while CFO Mark Watkins highlights the advantageous working capital structure of the existing business. In the insurance sector, the number of policies sold in the first half of the year decreased by 13 percent, partially due to low policy renewal rates. While competition in the car insurance sector improved, CEO Steve Kingshott still perceives challenges in the home insurance market with rising net prices. The new Ageas partnership agreement favors the consolidation and profitability increase of Saga. Although the sale of AICL will lead to deconsolidation, Saga will remain the owner of SSL, and commissions from Ageas will be integrated into the insurance brokerage business. These measures promise stabilization and growth in profit and volume. Regarding the debt maturing in 2026, there is confidence in refinancing. Watkins emphasizes that the transition to a lower-risk insurance model and strong growth in travel and financial businesses position the company well. Hazell highlights the advantages of the Ageas partnership and business development as positive factors for future financial negotiations. Saga also expects positive developments in the travel market. With the growth of the booked business volume, an improved margin is anticipated. This will be achieved through a strategic shift towards higher-priced products, which reduces margin pressure.