Saga plc (LSE:SAGA) (Saga or the Group) noted recent media coverage about the potential sale of Acromas Insurance Company limited (AICL) and confirmed that it is in discussions with regard to a possible disposal of this business. The Board has looked at the opportunities to optimise Saga'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. It 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.

AICL currently underwrites approximately 25-30% of Saga's insurance business. Discussions are ongoing and there can be no certainty that any transaction will occur. Any disposal of AICL would require regulatory and shareholder approvals.

A further announcement will be made in due course.