Saga slides as coronavirus weighs on cruise and tour businesses
The two divisions of the over 50's travel and insurance firm were being hit by falls in passenger bookings as holidaymakers stayed home to avoid infection
Company
LON:SAGA
Saga Group plc is a British company focused on serving the needs of those aged 50 and over. It has 2.7 million customers. Saga Holidays provides package holidays and tours across the globe. It owns and operates the cruise ships MS Saga Pearl and MS Saga Sapphire and also owns and operates the Bel Jou Hotel in St Lucia, as well as Titan Travel.Saga Services provides a wide range of Insurance products - Motor, Home, Travel, Caravan, Commercial Van, Pet, Private Medical, Life Insurance, Motorhome and legal services.Saga Personal Finance provides savings accounts, credit cards, travel money, financial advice, equity release, share dealing, annuities, life assurance & long term care funding advice.Allied Healthcare is a sister company providing domiciliary care nationwide.
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The two divisions of the over 50's travel and insurance firm were being hit by falls in passenger bookings as holidaymakers stayed home to avoid infection
Its Titan Travel business was valued at £100mln and had attracted interest of private equity firms
It is the first disposal since Euan Sutherland joined as chief executive in December
The collapse of Thomas Cook is expected to result in a £4mln hit to underlying profit
Activist hedge fund Elliott was revealed in the summer to have built up a 5% stake in the over-50s group
Sutherland received a pay-off of £730,000 when he walked away from Superdry, but the contract stipulated the amount will decrease if he found another job within a year
The over-50s specialist is under pressure from activist investor Elliott Advisers, which built up a stake during the summer's all-time low
The over-50s specialist made progress with new three-year insurance policies, but overall retail broking policy volumes were down 6% and gross margins were lower
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Since it floated in 2014, Saga has shed about four-fifths of its value.
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UBS cut its rating on Saga to ‘neutral’ from ‘buy and its target price to 65p from 150p.
Tough competition, regulatory changes and the dominance of price comparison websites have hit Saga's insurance business
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Saga's plans to launch a new three-year fixed price product to lure in more customers will hurt margins