The ARAG Group and ERGO Versicherung AG – ERGO Group’s property & casualty insurer in Germany – today revealed that they have signed an agreement regarding the acquisition of D.A.S. UK, ERGO’s legal protection insurance business in the UK. The financial terms of the agreement have not been disclosed.
In a Press release, ARAG noted that it has run its UK operations via ARAG plc as a managing general agent (MGA) since 2006, reporting gross written premium (GWP) under management of £61 million in 2022.
D.A.S. UK launched over four decades ago and currently runs a legal expenses insurance company (D.A.S. Legal Expenses Insurance Company Limited) as well as a law firm servicing legal expense claims (D.A.S. Law Limited). Both businesses are both supported by an administrative services company ( D.A.S. Services Limited). The total GWP of D.A.S. Legal Expenses Insurance Company Limited was £129 million in 2022.
Commenting on the deal, Dr. Renko Dirksen, speaker of the board of management of ARAG SE and non-executive director at ARAG plc said: "The international business of the ARAG Group is a substantial part of our strategic positioning.
“This said, the planned acquisition of D.A.S. UK is a unique opportunity acquiring a complementary UK business and offering new perspectives for our customers and employees alike. Combining the profound knowledge and extraordinary skills of both entities will result in top-notch products and services for the benefit of all customers.”
ARAG noted that the agreement reached is subject to regulatory approval and until this is received, ARAG plc and D.A.S. UK will continue to operate independently without any changes to business and operations.
ARAG Plc CEO Tony Buss also commented on the deal and said: “We are excited about the opportunities this intended acquisition offers since we are pursuing a long-term strategy, strongly investing in the UK legal expenses insurance segment. We intend to offer a ‘best of breed’ portfolio to deliver even broader and better products as well as services to a wider customer base – always putting our customers and business partners first.”
The ARAG Group previously acquired the operations and business of D.A.S. UK’s branch in the Republic of Ireland in 2019, as well as the entirety of ERGO Group’s D.A.S. business in Canada in 2021.
ARAG was awarded as The Best MGA in Insurance in the UK. To learn more about the winners, see the full report in IB's Brokers on MGAs 2023.
