Strong growth pushes ARAG beyond £60 million

2022 was another highly productive year for ARAG, during which the company’s overall premium income grew to more than £60 million, generating a profit for the 13th year in succession.

Emerging from the pandemic in a very strong position, ARAG was able to consolidate its place as a leading legal expenses insurer, in both the before-the-event (BTE) and after-the-event (ATE) markets and continued to grow its extensive emergency assistance business.

As a result of meeting and exceeding targets over recent years, the company has been able to make significant investments in a range of technological platforms and solutions that are already proving highly beneficial and popular with ARAG’s partners and policyholders.

During the year, the company’s gross written premium under management grew by 18.5% to £60.6 million (2021: £51.4 million), driven by strong growth in its BTE legal expenses insurance and insured assistance business.

ARAG generated a profit of £0.5 million in 2022 (2021: £1.9 million), which was in line with the target but down on the 2021 result which had been boosted by the settlement of many pre-LASPO ATE cases.

The number of ATE risks that ARAG insures dropped marginally over the year, by roughly 1.5.% but the number of BTE risks continued to grow, increasing by almost 9%. ARAG’s book of Family Legal Protection business saw the strongest growth, expanding by more than 20%.

ARAG UK’s success in 2022 mirrors that of its parent company, the international ARAG Group (ARAG Holding SE) based in Düsseldorf, which reported growth of 9% for the year and a premium income of more than €2.2 billion.

“I’m very pleased that we have been able to consolidate the strong position that ARAG had established as we emerged from the pandemic.” Managing Director, Tony Buss commented, in June. “The last couple of years have heightened people’s awareness of the legal risks that they face and the need for legal protection. ARAG was very well-placed to satisfy that growing demand.”

“Our great relationships with brokers and MGAs coupled with the reputation we have worked hard to build, over many years, has enabled us to grow accounts with existing partners while winning a significant volume of new business.”