Feb 12 (Reuters) - Saga Plc, a British tourism and insurance group for the over-50s, said it had signed a quota share deal with NewRe and German reinsurer Hannover Re to take on 80 percent of the motor underwriting risk of its in-house underwriter AICL.
The deal, effective from February next year, adds Hannover Re to Saga’s current reinsurance partner NewRe, a unit of the world’s largest reinsurer Munich Re, and replaces its existing quota share arrangement.
The agreement provides three years of cover on a rolling basis, Saga said.
“The increase to 80 percent (from 75 percent) in the reinsured share of our in-house underwriter’s motor policy risk continues to reduce Saga’s exposure to underwriting risk,” CEO Lance Batchelor, said.
Saga, which restructured its travel business after its tour operations were hit by the collapse of Monarch Airlines, said that trading continues to be in line with the guidance given in December, when it cut its profit forecast. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier)