Over-50s travel and insurance group Saga (SAGA) has rebounded strongly of late, gaining 120% in just three months.

This increase in the share price is from all-time lows below 100p and the shares are still, once you adjust for a 2020 share consolidation, down more than 90% on the price at which they listed in 2014.

This isn’t really a recovery of Saga’s own making and has been led by wider positivity towards the travel space. The company, often the author of its own misfortune, did post a relatively reassuring update on 24 January, though a 10-fold increase in revenue for its travel and cruises business is still expected to translate into a small loss in the 12 months to 31 January. The insurance underwriting division is also set to be loss-making.

Saga is considering a sale of the underwriting business with the proceeds used to pay down borrowings. While this could boost sentiment, it might not make too much of an impression in its £721.3 million net debt pile given a large portion of the underwriting function for its insurance business had been outsourced.

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