** Shares of Saga SAGA.L up 5.3% at 130.2p

** The British holiday group enters into a 20-year motor and home insurance partnership with UK units of Belgium's Ageas AGES.BR

** Ageas will pay Saga 80 mln pounds ($101.04 mln) upfront under the partnership and acquire its Insurance Underwriting business for 65 mln pounds, Saga said

** Ageas will take on price-comparison website distribution, pricing and underwriting, claims and customer servicing activities, while Saga will retain marketing responsibilities

** SAGA shares down ~11% YTD

($1 = 0.7918 pounds)

(Reporting by Yamini Kalia in Bengaluru)

((Yamini.Kalia@thomsonreuters.com;))