Last checked at 30 Mar 2016 07:00
30 March 2016
Saga plc
Saga plc enters Quota Share Arrangement with NewRe
Saga plc ("Saga" or "the Group"), the UK's leading provider of products and services primarily tailored for the over 50s, announces that is has signed a quota share arrangement to cover 75% of the risk of the motor policies of its in-house underwriter, AICL, from 1st February 2016.
The sole reinsurer agreement is with NewRe, a subsidiary of Munich Re, the world's biggest reinsurance group. The initial arrangement is for three years, with the option to extend the deal on the same terms for a further three years.
In line with the Group's overall strategy, the quota share agreement will significantly reduce Saga's exposure to underwriting risk and will lead to a phased withdrawal of capital from its underwriter. Saga will provide a further update at its preliminary results on 19 April 2016.
Lance Batchelor, Chief Executive Officer, said:
"This quota share arrangement is the next logical step in delivering our strategy and the favourable terms of the deal that we have signed are testament to the quality of the Saga underwritten book and our historic underwriting performance. Going forward, AICL, supported by its reinsurance partner, will continue to play an important role on Saga's motor panel as we aim to expand our motor insurance footprint, providing competitive, differentiated motor insurance products to more of the UKs over 50s."
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For further information please contact:
Saga plc
Tim McCall, Director of Corporate Affairs
Tel: 020 7654 2729
Email: tim.mccall@saga.co.uk
Duncan Browne, Investor Relations Manager
Tel: 020 7654 2731
Email: duncan.browne@saga.co.uk
FTI Consulting
Paul Marriott / Tom Blackwell
Tel: 020 3727 1341 / 1051
Email: paul.marriott@fticonsulting.com
tom.blackwell@fticonsulting.com