Saga – 115.9p

12 February 2018 – new 80% quota share agreement with NewRe and Hannover Re

The company has entered into a new quota share arrangement with NewRe and Hannover Re to cover 80% of the underwriting risk of motor policies of its in-house underwriter, AICL.  The agreement will take effect from 1 February 2019 and adds Hannover Re as a reinsurance partner.  The new agreement provides three years of cover on a rolling basis.  The increase of the quota share arrangement from 75% to 80% share is in line with the strategy to reduce exposure to underwriting risk.  Trading continues to be in line with guidance provided in December 2017 and preliminary results will be released on 12 April 2018.  We continue to rate the shares as a BUY.

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