Over-50s insurer Saga set to meet profit expectations after sales cruise forward
Saga, the insurer and package holiday provider for the over-50s, reported overall profitability is in line with expectations today despite a “challenging” market.
Forward sales for cruises have been strong, the company reported, with its ship the Spirit of Discovery, which will set sail in June this year, reaching 69 per cent of the sales target for 2019/20 departures and Spirit of Adventure, which will launch next year, hitting 34 per cent of its sales target for 2020/21 trips.
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The group’s membership programme, Possibilities, has added 250,000 members since September and now has more than 1m members, Saga said in a trading update this morning.
The company is targeting further membership expansion with the launch of a new advertising campaign across TV, press and digital media.
Saga chief executive Lance Batchelor said: “We are making progress with our strategy to invest in attracting new customers across the business.
“In a challenging insurance market, the increase in new business has kept our policy count broadly stable. Our underwriting business has performed well during the year.
“Healthy forward sales for our new cruise ships and the growth in membership are encouraging signs for the group.”
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“Despite competitive home and motor markets it is somewhat reassuring that insurance policy numbers remain stable, with tours and cruise seemingly performing in line with targets,” a note from Numis said.
Saga will announce its preliminary results for the year ended 31 January 2019 in April.