They might lack the daring ambition of Evel Knievel, but motorbike enthusiasts over the age of 50 have not escaped the notice of Saga, which has bought up specialist insurer Bennetts in a £26m cash deal that it hopes will benefit from this growing market.
Bennetts, part of the BGL Group, provides motorbike insurance for more than 200,000 customers. Almost half of these are over the age of 50, and 77% are over the age of 40.
Bennetts will continue to target bikers of all ages but the acquisition will give it access to Saga’s database of 10.6 million people, which Saga believes will allow it to drive further growth.
“There is a growing interest in motorbiking among the over-50s,” said a Saga spokesman. “A growing proportion are taking a motorbike test, and their spending on motorbikes represents a third of total motorbike spend in the UK.”
In a report for Saga to be published next month, figures from the Centre for Economics and Business Research show that 2.8% of all UK households owned a motorcycle in 2014, a proportion that has remained largely stable since 2000. However, while the share of UK households owning a motorcycle is not on the rise, the over-50s age group is increasingly engaging in the sector.
In 2014, the over-50s in the UK spent a total of £340m on motorcycle purchases – nearly a third of total motorcycle spending. This compares to 17% of the total spent in the UK by over-50s seven years ago.
In the period 2008-2014, growth in annual motorcycle spending among the over-50s averaged 41%, compared to 4% for those under 50.
Saga provides insurance services for 20,000 customers with motorbikes and hopes the acquisition will give it a 20% share of the UK’s total motorbike insurance market.
“We are delighted to add Bennetts to Saga’s portfolio of highly regarded brands,” said Lance Batchelor, group chief executive officer.
“This fits with our strategic ambition to drive growth through our insurance-broking operations. Bennetts sits perfectly within our business model: a capital-light, cash-generative business that will seamlessly integrate with our database to quickly deliver tangible returns.”
