Saga shares plunged 7% today amid a profit hit from the coronavirus.

The group said it will take an earnings hit amid struggles in its cruise ship business from the virus.

The cruise ship-operator said it had seen a “higher level of cancellations for departures in the near-term and more generally a lower level of bookings for departures further out”.

The insurance business will be unaffected, Saga said today.

Saga’s share price has been on the slide since crashing to a £134.6m loss last year amid the FCA pricing crackdown and a shake up in its renewals strategy.

The firm is battling claims inflation, reported at a similar level to Hastings. 

Last month, it sold the motorbike broker Bennetts to Ardonagh for £26m.