New quota share agreement with NewRe & Hannover Re

RNS Number : 5182E

SAGA PLC

12 February 2018

 

12 February 2018

Saga plc

New 80% quota share agreement with NewRe and Hannover Re

Saga plc ("Saga" or "the Group"), the UK's specialist in products and services for life after 50, announces that it has entered into a new quota share arrangement with NewRe and Hannover Re to cover 80% of the underwriting risk of motor policies of the Group's in-house underwriter, AICL, to take effect from 1 February 2019. 

The new quota share agreement adds Hannover Re to our current reinsurance partner NewRe, and replaces our existing quota share arrangement which is due to expire on 31 January 2019.  The new agreement provides three years of cover on a rolling basis. 

The increase of our quota share arrangement from 75% to 80% share is in line with the Group's overall strategy and further reduces our exposure to underwriting risk.  This will continue to support the withdrawal of capital from the underwriter. 

Trading continues to be in line with the guidance given in December 2017 and Saga will announce its preliminary results on 12 April 2018.

Lance Batchelor, Chief Executive Officer, said:

"The new quota share arrangement and the addition of Hannover Re as a partner provides further evidence of the stability and high quality of our underwriting business.

The increase to 80% in the reinsured share of our in-house underwriter's motor policy risk continues to reduce Saga's exposure to underwriting risk which allows the Group to maintain its efficient capital structure."

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Saga plc

Mark Watkins, Director of Investor Relations                     Tel: [phone]

                                                                                                                Email: [e-mail] 

MHP

Tim Rowntree/Simon Hockridge/Reg Hoare                       Tel: [phone]

Email: [e-mail] 

Notes to editors

Saga is a specialist in the provision of products and services for life after 50. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award winning products and services including cruises and holidays, insurance, personal finance and publishing. www.saga.co.uk

 

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