Saga sees profits rise

Over-50s travel and insurance company Saga reported a 5.6 per cent increase in full-year pre-tax profit as Britain's vote to leave the European Union did not dent demand for holidays among Britons over 50 years old.

By The Newsroom

Published 29th Mar 2017, 08:30 BST

Updated 8th Apr 2017, 22:24 BST

The lush green backwaters of Kerala, South India. Picture: PA Photo/Saga.

The company, which offers ocean and river cruises, singles holidays and escorted tours, said its current reservations were 8 per cent ahead of last year and that economic confidence amongst its customers remained strong after the referendum vote.

However, Saga said it had begun to see the government’s decision to cut the discount rate used by insurers to settle personal injury claims being reflected in premiums across the market and affecting the net rates.

Underlying pre-tax profit, excluding derivative gains and the impact of the rate change, rose to £187.4m in the year ended January 31, from £177.4m a year earlier.

CEO Lance Batchelor said: “Our confidence in continuing to deliver a consistent financial performance in 2017 is strong. We have started the financial year well, and I look ahead with a great deal of optimism for the business.”

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