Saga PLC (LSE:SAGA), which offers cruises, package holidays, insurance, and financial services to the over-50s, has confirmed it is in exclusive discussions with Open Insurance Technologies over the sale of its Acromas Insurance business following recent media coverage.
According to a statement, discussions are ongoing and there can be no certainty that any transaction will occur.
Any disposal of Acromas, the underwriter which is part of Saga’s wider insurance business, will require regulatory and shareholder approval.
Last month, the group confirmed it was in talks to dispose of the company in response to a report in The Sunday Times.
Saga said it remained committed to providing the “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.
The report in The Sunday Times said the group was aiming to raise £90mln to help pay down its huge £721mln debt mountain.