Saga on track as motor and home insurance sales rise

In the four months to 31 May sales of new motor insurance policies increased 30% and home policies rose 14%. Saga-branded retail policies rose 1% and total policies were flat after the company closed its Direct Choice brand in 2017.

Ahead of its annual general meeting, the FTSE 250 company said the home and motor markets were competitive but it was writing business on attractive terms. Motor claims and costs are in line with expectations despite the extreme winter conditions that battered the UK in March.

Tour bookings for departures in 2019-2020 are flat but have picked up momentum recently. Saga said. Bookings for the company’s new cruise ship, Spirit of Discovery, have clocked up more than 55% of the sales target for the first nine months from June 2019 at attractive yields.

Lance Batchelor, Saga’s chief executive, 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."

Saga’s new membership scheme, called Possibilities, has 740,000 members. The trading update appeared to show Saga clambering back on track after a profit warning in December. In April the company said its markets were challenging and that profit would remain under pressure in 2018.