ARAG plc, the UK legal protection and assistance specialist, has announced 11 per cent growth in consolidated income for 2016, after a decade of trading.
In the company’s tenth year in year business, consolidated income grew from £11.1 million in 2015 to £12.3 million in 2016, while combined income (including reinsurance business generated back into ARAG SE in Germany) increased by 19 per cent from £26.5 million to £31.5 million, generating a £4.2 million profit.
While the company’s gross written premium under management dropped off slightly from 2015 (from £44.3 million to £41.1 million) there was strong growth in the BTE sector and moderate underlying growth in ATE business, resulting in a pre-tax profit for ARAG UK of £2.4 million.
“I’m very pleased that our 10th year in business was such a successful one”, comments Managing Director Tony Buss, “in spite of what continued to prove challenging times for the legal expenses insurance sector.”
“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.”
“The challenging market environment that we face shows no sign of abating, with the political, economic and regulatory uncertainty of Brexit and further potential legislative changes on the horizon, but we have always positioned ARAG to be both innovative and flexible which enables the company to be highly adaptable in the face of such changes.“
During the year ARAG also continued to pick up key industry awards, retaining the Legal Expenses Team of the Year and MGA Team of the Year awards at the Underwriting Services Awards.