Shares in insurance group Saga shot up by 10.8 per cent yesterday after the firm announced it had bought motorbike insurer Bennetts for £26.26m.
Saga, which specialises in cover for the over-50s, said the deal was in line with its strategy to expand its offering via broker services.
Bennetts, which was previously owned by BGL Group, covers more than 200,000 customers, 43 per cent of whom are over 50 years of age.
Lance Batchelor, Saga’s group chief executive, said the purchase would allow the firm to provide competitive bike insurance while also increasing its customer base.
He added: “Our model works best where we can differentiate our service, leverage superior customer knowledge to tailor the best product for customers and create cross-selling opportunities.
Following the acquisition, Saga predicts it will control around 20 per cent of the UK’s motorbike insurance market.