Full Year Results 

Saga cuts profit guidance as competition bites

Saga cuts profit guidance as competition bites

As a group that has spent the past 60 years targeting the over-50s market, one would think Saga (SAGA) had differentiation sewn up. However, increased competition has forced the travel and insurance specialist to overhaul its product design and marketing strategy. That includes increasing the number of customers it gains directly rather than through price comparison websites and changing its renewal pricing approach. Costs associated with those investments, lower insurance margins and reduced reserve releases have forced management to warn that underlying pre-tax profits for 2020 will be around at least a third lower than last year at between £105m and £120m.

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