The over-50s service group adds Hannover Re to quota share agreement

Saga said it is increasing the reinsured share of its motor insurance risk to 80% from 75%.

The over-50s services group said the move supports the group’s move to withdraw capital from its in-house underwriter AICL and further reduces the group’s exposure to underwriting risk. .

At the same time, Saga said it has entered ito a new quota share agreement, adding Hannover Re to its existing reinsurance partner NewRe. The new agreement provides for three years of cover on a rolling basis.

The group said trading continues to be in line with the guidance given in December  and Saga will announce its preliminary results on 12 April.

Lance Batchelor, Chief Executive Officer, said: “The new quota share arrangement and the addition of Hannover Re as a partner provides further evidence of the stability and high quality of our underwriting business.

”The increase to 80% in the reinsured share of our in-house underwriter’s motor policy risk continues to reduce Saga’s exposure to underwriting risk which allows the Group to maintain its efficient capital structure.”