ARAG grows premium and reports profit for 2020 despite pandemic
Legal expenses insurance and assistance provider ARAG has reported a profit for 2020 and an increase in its premium under management for the year, despite the huge challenges presented by the global pandemic.
The company's gross written premium under management increased by almost 7 per cent to £42.8 million (2019: £40.1 million) and the business recorded a pre-tax profit of £0.5 million in the UK, very similar to its result in 2019, delivering ARAG's 11th profitable year in succession.
Delays in resolving some premium challenge cases in the After the Event (ATE) sector did impact ARAG's overall income, which reduced by 3.7% from £14.1m to £13.6m, but income from the company's Before the Event (BTE) business continued to grow, increasing by 7%.
The economic uncertainties created by the pandemic resulted in huge volumes of calls for legal advice on employment, contract and tenancy-related matters, especially during the second quarter of 2020.
While ARAG is managing significant challenges created by the current economic climate and wider consequences of the pandemic, its high level of solvency and the very strong financial position recently reported by the global ARAG Group place the company in the best possible position to address them.
"Despite the global pandemic having a significant impact on our business," comments Managing Director, Tony Buss. "ARAG has managed to maintain its trajectory of steady growth while delivering an outstanding service to our policyholders at a time when they have needed it most."
"Trading conditions continue to be very difficult in many sectors and we have started to see the claims that inevitably result from the wider economic situation. However, ARAG has proved highly agile in adapting to meet these and other challenges, so we remain optimistic about our continued success."
Authored by ARAG
ARAG UK is a specialist legal insurance provider and is part of the internationally recognised ARAG Group which serves 14 countries worldwide.
Providing several emergency assistance insurance products and an innovative range of Before-the-Event and After-the-Event legal insurance products and services, ARAG UK prides itself on its client-focused approach. This has been recognised by the industry following the results of the Insurance 360 Legal Expenses Insurers Study in which ARAG UK was voted 'best legal insurance provider'. youTalk-insurance sharing ARAG UK insurance news.
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