Acromas currently underwrites about 25-30% of Saga’s insurance business, according to Saga. The underwriting business has been hit by spiking claims inflation (around 13%), increasing costs and hitting profitability.

In a release, Saga said it was “committed to providing a best-in-class insurance offer to its customers” and was looking at opportunities to “optimise [it’s] operational and strategic position in the insurance market, in line with the evolution to a capital-light business model and the stated objective to reduce debt.”

“[The board] has concluded that a potential disposal of its underwriting business is consistent with group strategy and would crystalise value and enhance long-term returns for shareholders,” the release also said.

Saga said the disposal of AICL would still require regulatory and shareholder approvals, and assured stakeholders that a further announcement will be made in due course.