Saga PLC (LSE:SAGA) said it remains on track to post an underlying profit this year thanks to a strong rebound in demand for cruises and holidays.
For the year to the end of January 2023, Saga expects to generate an underlying profit before tax of £35-50mln, compared to an underlying loss of £7mln a year ago.
Now describing itself as the 'superbrand for older people', Saga said cruise bookings this summer had been exceptionally strong with the load factor up to 75% at the end of the four months to 4 July 2022.
Bookings for next summer’s cruise season, too, are ahead of expectations at a load factor of 34%, it said.
Holiday bookings for 2023/24 were also described as encouraging though this business will lose money in both the first half and full-year in 2022/23.
In insurance. premiums overall picked up with a recovery in travel helping total policy sales across all products rise by 2%, even with a 9% slide in motor and household policy new business, as Saga said it had not cut prices to compete following new industry guidelines.
Motor and home margins per policy were broadly maintained at £73 even so and reflected strong retention offsetting the significantly lower new business.
Euan Sutherland, chief executive, added: "Saga is a great business with a strong brand, loyal customers and fantastic people. Over the past two years, we have stabilised the business and are now moving to focus on growth, based on our successful brand relaunch.”
To strengthen its executive management, Saga added it had brought Aron Asadi in as CEO of Media from Future, appointed a chief data officer, while Jerry Toher is joining from Royal London to head its new personal finance arm.