Saga first half results showed underlying improvement from retail broking, travel

Saga reported underlying growth in first half profits, supported by retail broking and travel operations.

However, refinancing costs and write-downs on investment depressed headline profits for the six months to July.

The over-50s insurer reported underlying pretax profit rose 5.5% from a year earlier to £110.2m from £104.5m, boosted by a 10.4% growth in retail broking and travel. However, headline pretax profit fell 6.3% to £103.0m from £109.9m.

Retail broking profit grew 4.7% to £70.9m from £67.7m with a strong performance in motor broking.

Underwriting pretax profit slipped to £46.8m from £49.1m on lower reserve releases than last year.

Travel profit grew 63% to £11.9m from £7.3m.

“Saga is on track to deliver a fourth consecutive year of growth. Our retail broking and travel divisions are performing well,” said Saga chief executive Lance Batchelor.

“I believe that these results continue to demonstrate that Saga is growing, has good momentum, and is on track to deliver in line with expectations for the full year.”