Saga profits up 60% yet they still want to sell

Saga Group, the company which targets the over-50s market has just delivered a good set of financial results.

Profits up 63% (to £82m) and sales 14% higher (£383m).

The company's financial services arm increased its turnover by 32% to £165m. However, its share of the over-50s market remains low. In motor insurance it has 9% of that demographic, in home insurance 5% and private medical insurance 5%.

The travel arm, which offers cruises and short breaks, increased its sales by £4.6m to nearly £200m.

The Saga magazine, the most feared thing about reaching the age of 50, increased its circulation 3.4% to 1.2m and grew advertising revenue by 8% last year. See this article for more details.

Why sell such a successful business? I will give you two reasons. One, financial services and travel (95% of the group’s turnover) are the prime targets for mainstream suppliers to target the 50+. Second, the Saga brand is associated with the old-old not the young-old. The future lies with the young-old.