According to a Sky News report, Saga and Ageas are in exclusive talks regarding a long-term deal for Saga’s insurance division. While both companies are optimistic about reaching an agreement, no final deal has yet been confirmed.
If finalised, the deal would see Ageas make an up-front payment to Saga, followed by additional commission payments, in exchange for taking over the management of parts of Saga's insurance business. The exact value of these payments remains unclear.
This transaction would provide Saga with the means to pay down its significant debt and shift to a new operational model, easing the pressure on its balance sheet. The report highlighted that Saga, which has faced financial challenges in recent years, is seeking to align itself with capital-light growth strategies.
Earlier this week, Saga delayed the release of its half-year results, originally scheduled for October 2, 2024. In a statement, the company said it is continuing to explore partnership opportunities to support growth and improve long-term shareholder returns.
The results will be published at the earliest opportunity, with the company confirming that its performance for the first half of the year is in line with expectations.
This is not the first time Saga has explored a deal involving its insurance division. In early 2023, the company held talks with Australian firm Open regarding a potential sale, but the negotiations were unsuccessful.
Saga is also in discussions about a similar partnership model for its cruises division, although these talks are reportedly at an earlier stage. The company has faced ongoing financial strain and last year borrowed £35 million from chairman Roger de Haan (pictured above), adding to an existing debt owed to him.
De Haan, Saga’s former CEO, returned to the company in 2020 as part of an effort to lead a turnaround, investing £100m as part of a broader capital-raising initiative.
Saga’s shares have fallen by nearly 10% over the past 12 months, leaving the company with a market capitalisation of just over £155m.
Last year, Saga launched a global website, Saga Exceptional, aimed at offering advice and services tailored to over-50s consumers.
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