Legal expenses insurer ARAG has reported a positive net result for 2022 as it attained an 18.4% growth in gross written premiums (GWP) for the year, equivalent to £60.6 million.
This figure means that ARAG has now profited for the 13th year in a row, with this year driven by the insurer’s strong before-the-event (BTE) legal expenses insurance and assistance business. To compare, last year, ARAG gained £51.4 million in GWP.
The business overall generated a profit of £0.5 million in 2022, which is lower than 2021’s £1.9 million but in line with the target. This trend was boosted by the settlement of many pre-legal aid, sentencing and punishment of offenders (LASPO) after-the-event (ATE) cases.
Speaking of ATE, ARAG noted that their risks under that line dropped marginally over the year, equivalent to roughly 1.5%. That said, the business also saw an increase for its BTE risks, with the gains at almost 9%. In terms of growth, however, it was ARAG’s book of family legal protection that reached new highs as it expanded by more than 20%.
ARAG managing director Tony Buss said that these numbers consolidate the strong position that the firm established as it emerged from the pandemic.
“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 well-placed to satisfy that growing demand,” Buss said.
Last month, the international ARAG Group posted a growth of 9% in addition to a premium income of more than €2.2 billion.
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