Saga PLC, a U.K. provider of specialized products for consumers over the age of 50, announced on Tuesday that its fiscal 2023 pretax loss widened due to higher asset impairment charges and lower sales in motor and home insurance. According to the company, the pretax loss for the year ended January 31 was 254.2 million pounds ($315.6 million) compared to a pretax loss of 23.5 million pounds for the previous year. On the other hand, revenue increased from 377.2 million pounds to 581.1 million pounds.
The chief executive of Saga PLC, Anthony O. Goriainoff is a seasoned veteran of the insurance industry with over fifteen years of experience. He joined the company in 2020 and has since spearheaded several key initiatives at the company, namely the plan to sell insurance underwriting business AICL in the second half of 2023. Despite the difficult circumstances, the company hopes to bolster their insurance business with material rate increases that would benefit the future.
Additionally, while Saga posted losses in their insurance underwriting sector, they are still pushing ahead with their cruise business with an optimistic outlook. The company is aiming for a load factor of at least 80%, suggesting that customer demand for their cruises is expected to choose up significantly.
To ensure liquidity needs are met, Saga has also arranged a loan facility that would be used in case AICL is not sold by the end of the year. This loan can lend up to 50 million pounds to fund liquidity needs, including payment of 2024 bonds.
Overall, Saga PLC reported widened pretax losses despite an increase in revenue due to an increase in asset impairment charges and lower sales. In light of these results, the company is looking to shift their focus towards their cruise business while attempting to stifle the losses in the insurance underwriting sector.