Saga has more than two million customers

The family run firm, which targets the over-50s, is being sold after chairman Roger De Haan announced his retirement.

The De Haan family has appointed investment bank UBS to advise on the best way forward, which may include a stock market flotation.

Kent-based Saga also has a best-selling magazine, offers health advice, and runs a number of radio stations.

Sale options

Although the company has not put a figure on its value, analysts say it could be worth more than �1bn.

Andrew Goodsell, who is stepping up as deputy manager at Saga, said: "We've looking at everything from an initial public offering (IPO) through venture capital, to a trade sale."

Saga was founded in 1951 as a single hotel in Folkestone.

Today specialising in a wealth of services for the over-50s, it has more than two million UK customers.

It made a pre-tax profit of �48m in the 12 months to 31 January, a 35% increase on the previous year.