2018, Another Positive Year For ARAG

While the challenges of the legal expenses insurance market may not have diminished, ARAG has continued on a familiar path of steady growth, reinforcing our position as a leading provider in both the before-the-event (BTE) and after-the-event (ATE) sectors.

Financial Info

Despite many ATE premiums owed to the company remaining unpaid, as a consequence of legal challenges presented by the defendant in some clinical negligence cases, ARAG still managed to post a profit in 2018, for the ninth year in succession.

A subsequent, landmark judgment in the Court of Appeal has resoundingly confirmed the legality and pricing of ARAG’s block-rated premiums in such cases, which should result in us recovering the outstanding income over the course of the next 12-18 months.

Overall, the company’s gross written premium under management grew by more than 8 per cent to £37.8 million (2017: £34.8 million), while our BTE legal expenses insurance and emergency assistance business grew by more than 14 per cent during the year.

Financial Info3

Much of the growth in our BTE business was the result of very strong performance from our relaunched commercial products and our 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.

The profit that ARAG posted of £0.6 million before tax was better than forecast and would have been significantly higher, were it not for the outstanding ATE premiums.

As the company continues to expand in the UK, so our accommodation needs have grown, which is why we have recently acquired a neighboring building to our Bristol headquarters, that has now been fitted out and is already being occupied by several key functional teams.

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.