Saga has increased its dividend by 18% year-on-year after reporting a satisfactory result for the full financial year 2016.

The insurance broker and cruiseship owner posted annual pre-tax underlying profit of £187.4m ($233m), an improvement of 5.6% compared to 2015.

Saga has proposed a final dividend of 5.8p per share, meaning a total yearly dividend of 8.5p per share.

The London-listed company has also reduced its net debt by 15.1%