Saga (LON:SAGA) has poached Old Mutual’s (LON:OML) chairman, the cruises-to-insurance group for the over-50s has said. The move came after the mid-cap group recently inked a new quota share agreement with NewRe and Hannover Re.
Saga’s share price has been steady in London in today’s session, having added 0.34 percent to 116.40p as of 10:28 GMT. The group’s shares are outperforming the mid-cap FTSE 250 index which has fallen into the red and currently stands 0.05 percent in the red at 19,724.37p. Old Mutual’s share price meanwhile is 0.24 percent up at 247.00p, as compared with a 0.12-percent dip in the benchmark FTSE 100 index.
Saga appoints new chairman
Saga announced in a statement this morning that it had appointed Patrick O’Sullivan as chairman with effect from May 1. He has been chairman of Old Mutual since January 2010, as well as chairman of ERS, a Lloyd's market specialist motor insurer.
“We are delighted to welcome Patrick to the Board of Saga. He brings many years of highly relevant commercial and board experience, working with companies in the financial services and insurance sectors,” Orna NiChionna, Senior Independent Director, commented in the statement. The mid-cap lifestyle group said that O’Sullivan will receive a fee of £325,000 per annum from appointment and will not be entitled to any additional compensation or benefits.
Old Mutual confirmed the appointment in a separate statement, saying that O’Sullivan will continue in his role as chairman of the group until the managed separation process has been concluded.
Analysts on mid-cap group
The nine analysts offering 12-month price targets for Saga for the Financial Times have a median target of 135.00p on the shares, with a high estimate of 195.00p and a low estimate of 120.00p. As of February 17, the consensus forecast amongst nine polled investment analysts covering the lifestyle group advises investors to hold their position in the company.