Kent-headquartered over-50s travel and insurance group Saga Plc is no longer in talks with Australia-based Open Insurance Technologies for a potential deal.
The British insurer revealed: “Saga Plc notes that discussions regarding a possible sale of the group’s underwriting business, Acromas Insurance Company Limited (AICL), to Open Insurance Technologies Pty Ltd have terminated without an agreement being reached.”
It was back in January when it was confirmed that Saga was looking to offload AICL, which at present underwrites about 25% to 30% of the group’s insurance business.
“The board has looked at the opportunities to optimise Saga’s operational and strategic position in the insurance market, in line with the evolution to a capital-light business model and the stated objective to reduce debt,” stated Saga then.
“It has concluded that a potential disposal of its underwriting business is consistent with group strategy and would crystalise value and enhance long-term returns for shareholders.”
At the time, Open wasn’t publicly identified yet as the potential buyer. It wasn’t until February 10 that Saga cited exclusive discussions with Open – a company manned by over 140 people in Sydney, London, Auckland, Queenstown, Melbourne, and the Sunshine Coast.
Meanwhile, Saga – without disclosing the reasons for the terminated talks – said on Thursday: “[The group] will announce its full-year results, which are expected to be in line with the update provided on January 24, on April 4, 2023.”
For the year ended January 31, Saga expects to report an underlying profit before tax of somewhere between £20 million and £30 million.
