1 July 2025

Saga plc

Completion of the sale of Saga's Underwriting business

Saga plc (Saga or the Group) announces that, further to the announcement made on 16 December 2024, the acquisition of Saga's Insurance Underwriting business, Acromas Insurance Company Limited (AICL), by Ageas (UK) Limited (Ageas UK) completed on 1 July 2025. This followed receipt of regulatory approval and all other conditions associated with the sale being satisfied.  

The completion of this transaction represents a significant milestone in the delivery of Saga's strategy. Consistent with that strategy, the transaction simplifies Saga's insurance operations, eliminates underwriting risk and is an important step toward the full motor and home insurance partnership with wholly owned UK subsidiaries of Ageas SA/NV (Ageas), expected to go live later this year.

The final net proceeds, adjustments and pre-completion dividends for the transaction result in cash flows £17.0m higher than previously guided. Net proceeds, after costs and deductions, were £50.0m, £7.0m higher than previously guided, alongside £10.0m of pre-completion dividends, which the Group received from AICL.

Additional details are as follows:

·     As previously communicated, Ageas UK acquired AICL for a base consideration of £65.0m. When combined with the net asset value adjustment, deductions relating to the value of the Group's properties and Section 75 pension debt, expected consideration is £64.4m, with 90% received on completion and 10% due in around three months, following finalisation of completion accounts.

·     After deducting the transfer of our Enbrook Park property and transaction fees, net proceeds are approximately £50.0m.

·     In addition to the amounts above, a further consideration of £2.5m remains payable upon commencement of the agreed Affinity Partnership between Ageas and Saga Services Limited. This remains on track to go live in Q4 2025. All of these amounts are separate from the additional £80.0m consideration, payable when the Affinity Partnership goes live. 

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