Business
Statement regarding Ogden Rate decision
Statement regarding Ogden Rate decision.
About this update from Saga Plc
[{"type":"text","content":"\n \nRNS Number : 9956X SAGA PLC 28 February 2017 \n\n28 February 2017\n \nSaga plc\n \nStatement regarding Ogden Rate decision \n \nSaga plc (\"Saga\" or \"the Group\"), the UK's specialist in products and services for life after 50, provides the following update on the UK Government's decision to move the Ogden Rate to -0.75% from 2.5%.\n \nThe UK Government first announced the decision to launch a consultation process on a potential downgrade to the Ogden Rate in 2012. In line with its prudent approach to reserving, Saga has therefore held a specific amount within its reserve margin in anticipation of a reduction in the Ogden Rate. \n \nGiven the size of the rate change, there will be a one-off, pre-tax impact on profit of £4m on the Group's results for the year ended 31 January 2017. This will not impact the Board's deliberations regarding the proposed final dividend recommendation and the Group remains well capitalised. \n \nSaga's older demographic provides the Group with a defensive advantage, with lower claims frequency generating less exposure to large and small bodily injury claims, and to periodic payment orders (PPOs). The Group does not expect the Ogden rate change to have a material impact on its financial outlook. \n \nEND\n \n \nFor further information please contact:\n\n\n\n\n\nSaga plc\n\n\n\n\n\n\n\nTim McCall, Director of Corporate Affairs\n\n\nTel: 07753561862\n\n\n\n\n\n\n\nEmail: [email protected]\n\n\n\n\n\n\n\n\n\n\n\n\nDuncan Browne, Investor Relations Manager\n\n\nTel: 07710440528\n\n\n\n\n\n\n\nEmail: [email protected]\n\n\n\n\nMHP Communications\n\n\n\n\n\n\n\nTim Rowntree/Simon Hockridge\n\n\nTel: 020 3128 8100\n\n\n\n\n\n\n\nEmail: [email protected]\n\n\n\n\n \n \nNotes to editors\n \nSaga is a specialist in the provision of products and services for life after 50. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award winning products and services including cruises and holidays, insurance, personal finance and publishing. saga.co.uk\n\nThis information is provided by RNSThe company news service from the London Stock Exchange END MSCFMGZZZNLGNZZ\n ","length":5444,"tagName":"div"}]