other reasons for share price fall4 Feb 2018 16:55
Hi - Like others on this board I have been surprised by the share fall of SAGA, I have done some further research into the company.
They have a generous but underfunded pension fund. They have been trying to negotiate with their staff over the last few months to reach a settlement on new terms (paying them less?). This was supposed to have been finalised by Dec 2017. Companies with underfunded pension funds are not liked by the markets.
I regards to the Monarch collapse, Saga is not an insurance company it is a broker that sells policies for a commission. Any losses are borne by the underwriters of the policy - usually large insurance companies. Therefore I fail to see how it could have directly affected Saga as presumably they would have received their commissions regardless.
Strangely enough, although I own shares in Saga and am a mature person (68), I find that Saga although it purports to specialise in policies for seniors, it cannot provide me with insurance for a six month trip to Australia as I am over 65. I have been able to find better insurance and much cheaper with other insurers. Other insurance companies will insure me up to 85-90 and they are just ordinary travel insurers. So they do not specialise at all from my point of view.
I have noticed that Saga has now started daytime advertising on TV. The advert is generic and typical 'brand' advertising that tells you nothing and is a waste of money these days. I get bombarded on my phone with adverts for holidays and other products which I have often bought. Saga management needs to wake up from the old model of marketing eg TV adverts. They should get on Martin Lewis's website and others and start using social media. Plus if you say you are specialising in the senior market then really specialise, as at the moment they do no more and much less than other insurers do for seniors. Saga must realise that not everyone over 60 is sitting at home watching daytime soaps. The growth market in seniors is adventure holidays-just like younger people. DYOR.
Good Luck to all of you.