Over-50s travel specialists Saga says its cruise ship business is back to full steam ahead, after being decimated by the pandemic.

It comes as the firm - which was founded in Folkestone - confirmed it is holding talks to sell its insurance underwriting business.

It is in exclusive negotiations with Belgium-headquartered insurance firm Ageas with a view to securing a 20-year partnership for motor in a deal worth £80 million on completition and up to £60m over the next 10 years if profitability targets are met.

Ageas would also aquire Acromas Insurance - Saga’s underwriting business - for £67.5m.

While negotiations continue there was encouraging news from its holidays division.

In Saga’s latest financial figures for the six months ending July 31, its ocean cruises division more than doubled its underlying profit before tax to £28m. In the period prior it was £12.9m.

Bookings were 90% to capacity - up on last year - with revenues shooting up 17% to £121.5m. Meanwhile, its river cruise sector reported profit before tax of £2.9m - 93% up on the same period last year.

Mike Hazell, Saga's group chief executive officer, said: “Saga made significant progress in the first half of the financial year, with ocean and river cruise delivering exceptional growth, while we continued to position the group for long-term success through the exploration of potential partnership opportunities.

"The goup delivered an underlying profit before tax that increased more than threefold when compared with the same six months in the prior year and we reduced net debt by £42.8m over the same period. In line with our debt reduction plans, we also repaid our £150m senior unsecured bond in May.

"We are in exclusive negotiations with Ageas for a 20-year affinity partnership for our motor and home Insurance broking operations and the sale of our Insurance underwriting business. Our strong brand and 40 years' experience in providing motor and home insurance, combined with Ageas's extensive knowledge of the insurance needs of people over 50 and experience in operating successful affinity partnerships, offers the potential to create a winning partnership and, for us, a capital-light route to growth.”

The company previously had its head office in its traditional home of Folkestone, before selling the site last year.

It currently operates staff in Kent through a number of hub offices.