Saga could file for £3bn float next week – report

Over-50s insurance broker and travel provider Saga could file for an initial public offering (IPO) on the London Stock Exchange as early as next week.

Citing sources familiar with the matter, the Financial Times reported that the filing would follow the completion of a debt refinancing and would value the company at £3bn.

It also said that the IPO would result in a large pay-off for parent company Acromas’s chief executive Andrew Goodsell and its staff, who own a 20% stake in the firm.

The paper said Saga hopes to raise £430m from the float, which will help pay down its £1.25bn debt.

Saga’s flotation would mark the long-expected split of Acromas, which was created in 2007 with private equity backing to house Saga and sister company AA, a roadside assistance firm and insurance broker.

Saga and AA’s combined insurance broking operations ranked fifth in the 2013 Insurance Times Top 50 Brokers.