Folkestone-based over-50s specialist Saga has agreed a new £50 million loan deal with the son of its founder.

Sir Roger De Haan took over the company, along with his brother, in 1984 when his father and the man who started Saga, Sidney, retired.

He then became one of the richest men in the UK when he sold the entire Saga empire, having acquired his brother's shares, for £1.4 billion in 2004. He then dedicated much of his fortune to breathing new life into Folkestone.

But after the company hit choppy waters during the pandemic - which decimated its cruise business - Sir Roger invested £100m through a stock purchase in the company, returning as its chairman.

Now he has agreed a further £50m loan facility, allowing the company to draw on the funds - if needed - between January 1, 2024 and June 30, 2025.

It comes after the company reported a sizeable loss due to changes in the insurance market.

In its latest financial figures for the 12 months up to January 31, it saw a pre-tax loss of £254.2million - up from just £23.5m the year before.

It was stung by a £269m impairment - in other words a reduction in value - of its insurance business. It blamed tighter regulation and increased competition.

A key part to this decision to write down the value of its insurance business - one of the main pillars of its operation - were changes to regulations ushered in by the Financial Conduct Authority designed to prevent existing customers paying more for their premiums than new ones.

However, it disguises an otherwise positive set of results for the firm which in February announced it was closing its headquarters in Folkestone. It has been replaced with smaller 'hub' offices in Ashford and Sandwich to reflect its shift to hybrid working.

The return of travel, after the pandemic hit its cruise business hard, meant revenues soared by 54% to £581.1m. While profits, before tax, rose 421% to £21.5m from a loss of £6.7m the previous year.

Euan Sutherland, Saga's group chief executive officer, said: "Over the past year, through what continued to be a particularly challenging external backdrop, Saga made progress against its strategy while achieving significant revenue growth and returning to underlying profit.

"Our ocean cruise business continued to see strong customer demand and bookings for 2023/24 are on track to meet our targets. In travel, bookings are significantly ahead of the same point last year and that business will return to profit this year.

"Our insurance underwriting business took pricing action to reflect the rise in claims inflation, while our insurance broking business navigated a challenging landscape, adjusting to significant regulatory changes and increased competitive pressure.

"We also took a number of key steps to reposition the business, consistent with the strategy we set out 12 months ago to create 'The Superbrand' for older people. Our top priorities for the next 12 months are to strengthen our financial position and continue to build Saga into the largest and fastest-growing business for older people in the UK, delivering long-term, sustainable growth for our stakeholders."

Saga sold its call centre near Westwood Cross in Thanet in 2021.