Saga (LSE: SAGA) has confirmed that it is in exclusive talks with Open Insurance Technologies over the possible sale of its Acromas Insurance unit.

The company stated that there is no guarantee of a transaction and any sale would require approvals from regulators and shareholders.

Saga's shares rose 5% to 180p as the firm announced discussions to sell the underwriting arm of its insurance division in an effort to reduce its debts.

Last month, Saga noted some pressure on its underwriting business and has since taken cost-saving measures, such as the closure of its major head office building in Folkestone, Kent.

The discussions with Open Insurance Technologies are ongoing, and there is no certainty that a transaction will take place. However, if it does, it will require the approval of both regulators and shareholders.