A good result for 2020, despite the pandemic

ARAG continued its successful strategy of steady underlying growth in 2020, reinforcing our position as a leading provider in both the before-the-event (BTE) and after-the-event (ATE) legal expenses insurance sectors.

Despite the impact of the global pandemic, ARAG UK was still able to post a profit for 2020, marking our eleventh profitable year in succession.

The company’s gross written premium under management increased to £42.8m, from 40.1m in 2019, and our BTE legal expenses insurance and emergency assistance business also grew by 7% cent during the year. Underlying growth remains strong and is expected to continue despite some uncertainties arising from the wider prevailing economic situation.

Overall income declined slightly from £14.1m to £13.6m as a result of reduced revenue from the ATE sector. Delays to premium challenge cases have contributed to this shortfall, as have court delays during the first Covid lockdown, in early 2020.

The result for 2020 showed a pre-tax profit of £480k, very similar to the 2019 result of £497k.

Much of the growth in our BTE business was the result of very strong performance from our relaunched commercial products and emergency assistance range. We have also seen a marked increase in the business that we are doing with other MGAs and the London Market, since we opened an office in the City of London in 2016.

While the legal expenses insurance market continues to experience many challenges, not least from the implementation of the Civil Liability Act and ongoing political uncertainty in the UK, ARAG is very well-placed to cement our position as a leading provider and remains wholly committed to our driving principle of delivering access to justice for all.