Saga Reports Strong Demand for Ocean and River Cruises Driving Increased Profits

Saga, a provider of insurance and cruises aimed at individuals over 50, has announced that its underlying pre-tax profit for the financial year ending January 31, 2026, is set to exceed the £47.8 million recorded the previous year. This positive outlook has been bolstered by a robust demand for both ocean and river cruises, leading to a significant increase in the company’s share price, which surged by 15.2 per cent to 500p, marking its highest valuation in over five years.

The company highlighted that its ocean cruise segment, which remains its main profit driver, had an impressive load factor of 93 per cent. Additionally, the launch of the new river cruise vessel, Spirit of the Moselle, has enhanced its offerings, with itineraries including notable destinations such as Nuremberg and Frankfurt. The performance of Saga’s holiday division is also anticipated to surpass the £10.7 million pre-tax profit achieved last year, supported by higher passenger numbers and strategic management restructuring.

Mike Hazell, Saga’s chief executive, commented on the increased demand for both cruises and hotel touring holidays. He noted that this positive trajectory has not only improved revenue, but also reflects the company’s ongoing commitment to revitalising its operations following challenges faced over the past few years. The insurance broking business has similarly demonstrated improved performance during the second half of the year, further strengthening the company’s financial position.

Saga, established in 1951, has evolved from a travel business focused on package holidays for retirees to a multifaceted provider of insurance and healthcare products. The company went public in 2014 but faced numerous difficulties, including adverse market conditions for insurance and the temporary shutdown of its cruise operations during the pandemic. These issues prompted a comprehensive restructuring plan, aimed at addressing its significant loss in market valuation.

Recently, Saga completed the divestiture of its insurance underwriting business to Ageas, a Belgian insurer, for £67 million. Despite the volatility in recent years, the value of Saga’s shares has increased by 300 per cent in the past 12 months, demonstrating a clear recovery and growing investor confidence in the company’s future prospects.