Saga customers invited to be part of £3bn float

Saga has moved one step closer to a public flotation by appointing Bank of America Merrill Lynch as its advisers, according to the Telegraph.

The over-50s insurance broker, owned by Acromas, is said to be testing the waters this week with its 2.7 million customers to gauge their interest in the mooted £3bn stock market float.

Acromas chief executive Andrew Goodsell will feature in Saga Magazine to explain to its customers that in the coming months the ownership structure of the group will change with a likely London listing, according to the Telegraph.

Customers will receive a letter directing them to a website where they can register expressions of interest in becoming shareholders.

Goodsell confirmed in November his intentions to float the broker and, in December, appointed former Domino’s Pizza boss Lance Batchelor as the firm’s new chief executive.

Flotation would bring the end of Acromas, which was formed by the merger of Saga and the AA in a £6.2bn deal in 2007.

Saga and AA’s insurance broking operations are big players in the UK general insurance market. The combined operation ranks fifth in the Insurance Times Top 50 Brokers.