Shares in Saga PLC (LSE:SAGA), the specialist in services for the over-50s, rose 7.5% to 139.8p after it said underlying profit is expected to be well ahead of the prior year.
Sentiment was further buoyed by news that river cruises and travel businesses were set to return to the black.
In an update covering the period from 1 February, chief executive Euan Sutherland also highlighted the continued growth momentum from the money and media operations.
While market conditions, especially in motor insurance, have weighed on the group's overall results, Saga has secured a valuable partnership with Bupa to enhance its private medical insurance offering.
The company is also focused on launching new products in Saga Money and preparing for the introduction of Saga Spaces, an online platform offering social interaction and health-related services.
Insurance, however, continues to drag down performance and Saga is still in the process of trying to divest its Insurance underwriter.
Broker Peel Hunt said that selling the insurance underwriter AICL ahead of the bond redemption next year is "the key".
** Updated share price and adds broker comment **