REG - SAGA Plc - Acromas Insurance Company Limited Completion

SagaAnnouncement

Tue 14:15

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RNS Number : 2625P  SAGA PLC  01 July 2025

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.

 

For further information, please contact:

 

 Saga plc
 Sharnj Sandhu, Interim Director of Investor Relations and Treasury  Tel: 07522 985 207

                                                                     Email: sharnj.sandhu@saga.co.uk (mailto:sharnj.sandhu@saga.co.uk)

 Headland Consultancy
 Susanna Voyle                                                       Tel: 07980 894 557
 Will Smith                                                          Tel: 07872 350 428
                                                                     Tel: 020 3805 4822
                                                                     Email: saga@headlandconsultancy.com (mailto:saga@headlandconsultancy.com)

 

 

 
 

 
 

 

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