Saga has completed the sale of AICL to Ageas, a key step in its strategic reset to simplify operations and exit underwriting risk. Net proceeds of £50m and a £10m pre-completion dividend were ahead of expectations, improving FY26 net debt to £520m and reducing YR1 leverage to 4.0x (vs 4.3x). We like Saga for its pivot to higher-margin travel, cleaner balance sheet, and exposure to the affluent over-50s demographic. Some may argue they’ve missed the share price rally, but with the stock trading on just 10x YR1 P/E, falling to 6.5x, and offering a 10%/16% FCF yield, the valuation remains undemanding. With EPS projected to triple to 67p over the next five years and leverage to fall to 1.5x, we see substantial upside from here - BUY.
