Saga cuts forecasts as inflation drives up cost of claims
Saga, the UK insurance and travel business focused on customers over 50, cut its full-year profit forecasts on Tuesday, sending the group’s shares down more than 12 per cent.
The company blamed the gloomier outlook on inflation, which has driven up the cost of paying claims. Saga now expects underlying profits of £20mn to £30mn for the 12 months to January 31, down from a previous range of £35mn to £50mn.
Euan Sutherland, chief executive, attributed the cut to the forecasts to the effect on Saga’s insurance underwriting business of the “underlying inflationary environment around insurance claims”.
This story originally appeared on: Financial Times - Author:Robert Wright
