Saga hailed an “excellent” year for its cruise business but still racked up a £129m loss as problems at its insurance division took their toll.
The company, which specializes in insurance and holidays for over-50s, returned to positive numbers in its ocean cruise business, where profits rose to £36 million by 2023, compared to a loss of £700,000 the previous year.
Its river cruise division revealed annual profits of £3m, against a loss of £5m in 2022.
Saga’s travel business, which includes the Saga Holidays and Titan brands, saw passenger numbers increase from 47,000 in 2022 to 57,800 last year.
“Ocean Cruise had an exceptional year and, as a result, we far exceeded our initial profit targets, while River Cruise and Travel returned to profit for the first time since the pandemic,” said CEO Mike Hazell, former CFO of the company. officer who replaced Euan Sutherland in November.
Ongoing: Saga, which specializes in insurance and holidays for over-50s, made profits in its ocean cruise business of £36m by 2023.
He added: “Forward bookings are strong, with all three businesses significantly ahead of the same point a year ago.”
In 2023, fjord and Scandinavia tours were a particular hotspot, while cruises to Greenland became increasingly popular.
But despite excellent demand for cruises and breaks, Saga still posted losses of £129m as its insurance division continues to feel the impact of high inflation, driving up the price of payouts.
Auto insurers are being significantly affected by rising claims due to higher repair and labor costs and semiconductor shortages driving up second-hand car prices.
Additionally, they are prohibited from “repricing,” that is, offering cheaper premiums to new customers and making loyal customers pay more for renewals.
Saga was reportedly in talks to sell its underwriting business last year to Open, an Australian insurer, but failed to reach a deal.
But the company recently said it was “exploring opportunities” as it tries to reduce its debt, which currently stands at £637m.
Last year he hired chairman Roger De Haan for £35m, adding to the pile of cash owed to him. He said he was considering a partnership with an outside company that would take over management of his cruise operations.
Its two flagships, Spirit of Adventure and Spirit of Discovery, cruise the British Isles, the Mediterranean, the Nordic countries and the Caribbean, with prices ranging from £1,300 to £15,000.
Analysts at Peel Hunt said “further strategic actions are needed” to put the company on a “firmer financial footing”.