Saga PLC (LON:SAGA) has agreed the sale of its motorcycle insurance arm, Bennetts to independent insurance broker to Atlanta Investment Holdings C Limited for £26mln.
Atlanta is part of The Ardonagh Group, one of the largest independent insurance brokers in the UK.
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The disposal is the first under new Saga's chief executive Euan Sutherland, who started in December after leaving Superdry PLC (LON:SDRY) earlier in 2019.
Sutherland commented: "As Saga seeks to focus on our core branded business, I am pleased to announce we have agreed the sale of Bennetts. This is a good outcome for Saga shareholders and Bennetts customers who will find a good home in The Ardonagh Group."
The seller of holidays and insurance for the over 50's set out a new strategy in April last year focused on “returning Saga to its heritage as a company that delivers high quality, differentiated products and services that resonate with its core customers”.
In a trading update published at the end of last month, Saga cautioned that it's home and motor insurance policy sales were going to be 3% lower for the year to 31 January.
Saga shares were down 3% to 43.28p in late trade on Monday.