Home Business NewsBusiness UK insurer Saga misses again

UK insurer Saga misses again

by LLB Reporter
27th Sep 22 11:00 am

Saga, the UK insurance and travel business focused on customers over 50, saw its shares fall 12% after it cut its full-year profit forecasts.

Saga now expects underlying profits of £20m to £30m for the 12 months to January 31, down from a previous range of £35m to £50m.

AJ Bell’s Russ Mould said: “The modern definition of the word ‘saga’ is a complicated series of events that bores people to tears, and there couldn’t be a better name for the provider of insurance and cruises to old people.

“Saga has become a right mess over the years and has turned a once-trusted brand into something many people now primarily associated with profit warnings.

“True to form, along comes another warning that it won’t hit previous guidance for earnings. Inflationary pressures in the insurance market are still creating problems, causing it to significantly lower its earnings expectations.

“Saga continues to talk about having a large database of consumers to engage with, a broad range of financial products and a travel business – essentially giving it a pool of people to whom it can sell the type of things that people in older age spend a good chunk of their money on. What seems to be lacking is the right kind of effective marketing to get people to hand over more cash.

“Insurance has been the bane of its existence for many years, and big plans to grow the travel arm have been derailed by Covid. Something about its current formula isn’t right, although it’s fair to say that some events have been out of its control.”

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