Strong BTE growth pushes ARAG past £60m mark

Legal expenses insurance and assistance provider ARAG has reported another positive result for 2022, its thirteenth successive year in profit.

During the year, ARAG’s overall gross written premium under management increased by 18.5% to £60.6 million (2021: £51.4 million).

Strong growth in its before-the-event (BTE) legal expenses insurance and assistance business drove this increase.

ARAG generated a profit of £500,000 in 2022 (2021: £1.9 million), in line with target but down on the previous year, which was boosted by the settlement of many pre-LASPO after-the-event (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%.

Last month, the international ARAG Group based in Düsseldorf reported growth of 9% in 2022, and premium income of more than €2.2 billion.

ARAG managing director Tony Buss said: “I’m really pleased that we have been able to consolidate the strong position that ARAG had established as we 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.”

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

Image: © HYWARDS via Canva

Mark Dugdale