Saga warns on profit, slashes dividend on insurance woes

April 4 (Reuters) - Saga Plc on Thursday forecast lower annual underlying pretax profit and cut its dividend as the over-50s tourism and insurance firm struggles to keep up in a competitive motor and home insurance sector.

The company, which operates the cruise ship Saga Pearl, said it expects underlying profit before tax for fiscal 2019-20 to be between 105 million pounds to 120 million pounds, hurt by lower margins in insurance, a change in approach to renewal pricing, lower reserve releases and investment in new products.

“We have taken the difficult decision to reduce our final dividend and write down goodwill,” Chief Executive Officer Lance Batchelor said.

Reporting by Tanishaa Nadkar in Bengaluru