Saga PLC (LSE:SAGA) has reported further strong trading in its ocean cruise business but added that the insurance market remains “challenging”.
Overall, the provider of services to the over-50s said, trading was in line with expectations in the period since its financial year started on 1 February, and remains on target for the full year.
Actions taken to “stabilise” its insurance broking arm are starting to produce the expected benefits in motor insurance, the FTSE 250-listed group added, but the rising net cost of insurance claims in home insurance is expected to lessen the impact of the actions overall.
On the plus side, the combined operating ratio [profitability] has been improved by price rises in insurance underwriting.
Ocean and river cruises both had starts described as “exceptional”, with ship booked load factor up 83% and 78% respectively on the same point last year.
"Saga has made a good start to the new financial year,” said CEO Mike Hazell in the statement released before the group’s annual shareholder meeting.