Saga Completes Sale of Insurance Underwriting Business to Ageas
Why we think this is good
The RNS announcement indicates that Saga has successfully completed the sale of its Insurance Underwriting business, Acromas Insurance Company Limited, to Ageas (UK) Limited. The transaction simplifies Saga's insurance operations, eliminates underwriting risk, and is an important step towards the full motor and home insurance partnership with Ageas. The final net proceeds of £50.0m, which are £7.0m higher than previously guided, along with £10.0m in pre-completion dividends, suggest a positive financial outcome for Saga. Overall, the completion of this sale represents a significant milestone in the delivery of Saga's strategy.
Key Points
- Saga completes sale of Insurance Underwriting business, Acromas Insurance Company Limited, to Ageas (UK) Limited
- Final net proceeds of £50.0m, £7.0m higher than previously guided, along with £10.0m in pre-completion dividends
- Transaction simplifies Saga's insurance operations and eliminates underwriting risk
- Important step towards full motor and home insurance partnership with Ageas, expected to go live later this year
Summary
Saga plc has announced the completion of the sale of its Insurance Underwriting business, Acromas Insurance Company Limited (AICL), to Ageas (UK) Limited. The final net proceeds of £50.0m, £7.0m higher than previously guided, along with £10.0m in pre-completion dividends, suggest a positive financial outcome for Saga. The transaction represents a significant milestone in the delivery of Saga's strategy, simplifying its insurance operations and eliminating underwriting risk. It is also an important step towards the full motor and home insurance partnership with Ageas, expected to go live later this year.