Last checked at 21 Jun 2018 07:00
21 June 2018
Saga plc
("Saga" or "the Group")
AGM Trading Update
Saga plc, the UK's specialist in products and services for people aged 50 and over, announces a trading update for the period from 1 February to 31 May 2018, ahead of its Annual General Meeting at its headquarters in Folkestone today at 11.00am.
We have traded in line with our expectations for the first four months of the year. The Group's targeted investment in customer growth is driving both our Saga branded policy count and cruise bookings.
Trading summary
• | Saga branded retail insurance policies increased by approximately 1% year on year, supported by 30% and 14% growth in motor and home new business policies, respectively. Total retail insurance policies for the period are flat as a result of our decision to close the Direct Choice brand in 2017. |
• | The motor and home markets remain competitive. However, we continue to write new business on attractive terms with our direct marketing channels representing the majority of our new business volumes. |
• | Our Underwriter continues to perform well. Our motor claims costs are in line with our expectations despite the snow and icy weather conditions experienced during the period as our customers are able to defer journeys. |
• | Tour bookings for 2019/20 departures are flat year on year with recent positive momentum. |
• | Bookings for our new cruise ship, Spirit of Discovery, are now over 55% of our sales target for the first 9 months from June 2019, at attractive yields. |
• | Possibilities, our new membership scheme, now has 740,000 members, as at 17 June 2018. |
Lance Batchelor, Chief Executive Officer, said:
"We have seen good momentum this year across our travel and insurance businesses, particularly in new motor and home insurance policies, underwriting performance and bookings for our new cruise ship, Spirit of Discovery. All of this underpins our confidence that we have put in place the right investment to drive the Saga business forward."
The Group's interim results will be announced on 27 September 2018.
ENDS
Saga plc
Mark Watkins, Director of Investor Relations Tel: 07738 777 479
Email: mark.watkins@saga.co.uk
MHP
Tim Rowntree/Simon Hockridge/Reg Hoare Tel: 020 3128 8789/8572
Email: saga@mhpc.com
Notes to editors
Saga is a specialist in the provision of products and services for people aged 50 and over. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award winning products and services including cruises and holidays, insurance, personal finance and publishing. www.saga.co.uk