Saga PLC (LSE:SAGA), which offers cruises, package holidays, insurance and financial services to the over-50s, has confirmed it is in talks to sell its underwriting business, Acromas Insurance.
The London-listed company was responding to a report in The Sunday Times.
Saga said it remains committed to providing a “best-in-class insurance offer” to its customers but has looked at opportunities to optimise its operational and strategic position in the market, alongside plans to reduce debt.
The company concluded that a potential sale of its underwriting business was consistent with strategy and would crystalise value and enhance long-term returns for shareholders.
Saga noted Acromas Insurance currently underwrites approximately 25-30% of Saga's insurance business.
The report in The Sunday Times said the group was aiming to raise £90mln to help pay down its huge £721mln debt mountain.