Saga acquires iconic British motorbike insurance company Bennetts
Saga plc ("Saga") today announces that it has agreed to acquire Bennetts, the UK's premier motorbike insurance specialist, as a further step in the implementation of Saga's strategy to enhance the range of insurance solutions it provides.
Bennetts, which Saga has agreed to acquire from BGL Group, provides insurance cover for more than 200,000 customers. 43% of its customers are over 50 years of age and 77% are over 40 years of age although Saga will continue to serve bikers of all ages under the highly-rated Bennetts brand, which is the most peer-recommended bike insurer in the market. It also hosts a successful online social network - 'bikesocial' - that sees over 180,000 visitors per month.
Bennetts will benefit from access to Saga's database of 10.6m people and from efficiencies gained by joining Saga's growing stable of insurance brands, which already includes Saga and Direct Choice.
Lance Batchelor, Group Chief Executive Officer, commented:
"We are delighted to add Bennetts to Saga's portfolio of highly-regarded brands. This fits with our strategic ambition to drive growth through our insurance broking operations. Bennetts sits perfectly within our business model: a capital light, cash generative business that will seamlessly integrate with our database to quickly deliver tangible returns.
"Our model works best where we can differentiate our service, leverage superior customer knowledge to tailor the best product for customers and create cross-selling opportunities. Bennetts will allow us to better meet the need for competitive bike insurance while also allowing us to increase our customer base."
Saga already provides insurance cover for around 20,000 motorbikes and together with Bennetts, Saga projects it will have a share of around 20% of the UK's motorbike insurance market.
Saga will pay £26.26 million in cash for the entire share capital of Bennetts, which reported revenue of £17 million and gross written premiums of £31 million in the year ended June 2014.