Saga Plc signed a quota-share arrangement with Hannover Re and Munich Re Co. unit NewRe to cover 80% of the underwriting risk of the motor policies of its in-house underwriter, Acromas Insurance Co. Ltd., from Feb. 1, 2019.

The deal adds Hannover Re to Saga's current reinsurance partner NewRe, and replaces the existing 75% quota-share arrangement due to expire Jan. 31, 2019. The new agreement provides three years of cover on a rolling basis.

Saga said the new agreement will further reduce its exposure to underwriting risk and will continue to support the withdrawal of capital from AICL. Saga is due to announce its preliminary results April 12.