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Saga Back in the Black on Cruise Demand and Insurance Overhaul

A pivot to travel with an Ageas underwriting tie-up signals steadier, lower-risk earnings.

Overview

  • Saga, which reported annual results Wednesday, posted a £2.1 million statutory pre-tax profit after a £160.2 million loss the year before.
  • Underlying profit before tax rose 19% to £44.2 million as travel led the recovery, with travel profits up 37% to £87.2 million and ocean cruises contributing £67.3 million, while passenger numbers grew 11%.
  • The group exited in-house insurance underwriting by selling AICL and entering a long-term partnership with Ageas, removing underwriting risk and bringing in about £60 million so far from expected proceeds of roughly £80 million.
  • Operating cash flow increased to £205.9 million and net debt fell to £499.5 million after a refinancing that added a new facility running to 2031 and £150 million of undrawn credit lines.
  • Management reaffirmed a goal of at least £100 million of operating profit by January 2030, citing minimal disruption from the Middle East conflict, a small number of Jordan holiday cancellations, and fuel hedges that cover 100% to next March and 75% to end-2027.