Legal protection and assistance specialist
ARAG has seen 11% growth in consolidated income for 2016 – its tenth year of trading – the firm revealed today.
ARAG UK, part of the global ARAG Group, saw the figure grow to £12.3 million last year, compared to £11.1 million in 2015. Gross written premium saw a slight drop-off at £41.1 million, compared to £44.3 million in 2015, but strong growth in the BTE sector and moderate underlying growth in ATE business gave ARAG UK a pre‐tax profit of £2.4 million.
Combined income, including reinsurance business generated back into ARAG SE in Germany, produced £4.2 million in profit – increasing by 19% from £26.5 million in the previous year to £31.5 million.
Managing director Tony Buss said the firm had had a successful year despite “what continued to prove challenging times for the legal expenses insurance sector.” He warned that the challenging market environment shows no sign of abating, with the political, economic and regulatory uncertainty of Brexit and other potential legislative changes looming, but said that ARAG has been positioned to be “both innovative and flexible,” enabling it to be adaptable in the face of changes.
“While we have maintained our cautious but flexible approach to the market, ARAG has generated excellent growth in our before-the-event business, particularly with our commercial, family and home assistance policies, and some growth in the after-the-event sector, once we have allowed for the release of provision for pre-LASPO cancellations that occurred in 2015,” Buss commented.
During its tenth year of business, ARAG also picked up a number of industry awards including Legal Expenses Team of the Year and MGA Team of the Year at the Underwriting Services Awards.
Related stories:
Four Seasons Hotels announces hack
XL Catlin announces major international appointment
