Saga boss steps down after profit warning sees shares dive

Under-pressure Saga boss Lance Batchelor quit on Wednesday to make way for a new broom who can lead a crucial shake-up of the struggling company.

Batchelor will leave in January 2020 after six years running the over-50s insurance to holidays provider.

Sources close to the company said the exit was amicable and stemmed from Batchelor’s wish to not lead the group’s arduous turnaround for another five years.

He is expected to move into non-executive roles.

The 55-year-old came under pressure after a profit warning in April.

Shares fell 40% after plans to offer fixed three-year contracts instead of cheaper products failed to win over shareholders.

Batchelor’s retail background - he used to run Domino’s Pizza - possibly made his attempt to revamp the insurance division harder due to his lack of insurance experience.

The group also recently hired a new chairman Patrick O’Sullivan and finance chief James Quin, laying the ground for a shake-up.

Batchelor said: “Over the coming months, I look forward to continuing to execute the new strategy in our insurance business.”

Shares fell 3% down 1p to 38.98p.