Saga, the British financial services and travel provider for over-50s has said that it is in talks with Ageas, one of Europe’s biggest insurers, for a deal involving its insurance arm as it looks to reduce debt.
The London-listed firm said on Wednesday that it was “in discussions with Ageas with regard to a potential partnership arrangement” for the business, confirming an earlier report by Sky News.
Saga added that no deal is guaranteed and a further announcement will be made “as appropriate.”
Ageas, one of Europe’s biggest insurers, tried to buy Direct Line in March. The British firm rebuffed two approaches, with the latter worth £3.2bn.
Saga is reportedly in exclusive negotiations with Ageas over a long-term partnership that will allow it to repay a chunk of its heavy debt pile.
According to Sky, Ageas could take over the running of Saga’s insurance operations in return for an upfront payment. Ageas would then make a series of subsequent commission payments based on the division’s performance.
It was reported that Saga is also in talks over a similar partnership deal for its cruises business, but these are not as advanced.
Saga and Ageas declined to comment on these reports.
Saga also said on Tuesday that it had delayed its half-year results, due on Wednesday, while it “continues to explore partnership opportunities to support the group’s capital-light growth ambitions, crystallise value and enhance long-term returns for shareholders”.
It added: “Saga confirms that performance for the first half is in line with expectations and the group remains on track for the full year.”
Saga previously held talks with Australian firm Open about a possible sale of its insurance arm, called Acromas, but these discussions fell apart in March 2023.
Last September, Saga said its chair Roger de Haan would provide the company an extra £35m of lending after shelving plans to raise cash through the sale of Acromas.