ARAG News

ARAG reports positive 2017 results despite challenging ATE market

13 August 2018

Leading legal expenses and assistance provider ARAG has reported a profit for the eighth successive year, in spite of what continue to be extremely challenging conditions in the after-the-event (ATE) market.

Managing Director, Tony Buss expressed his satisfaction with the positive result which saw the company hit the tough financial targets set for 2017 and increase its share of the before-the-event (BTE) market, with a particularly strong performance in the commercial sector.

The company’s consolidated income grew marginally to £12.3 million in 2017, while combined income (including reinsurance business generated back into ARAG SE in Germany) increased by 5 per cent to £32.5 million, generating a profit of £2.35 million before equalisation reserves.

Overall, the company’s gross written premium under management dropped to £34.8 million (£41.1 million in 2016) largely as a result of restating previous years’ ATE premiums for post-LASPO cases initiated since 2013, but GWP from ARAG’s BTE business increased by 17 per cent, to £24.7 million.

“This is an excellent result for ARAG, especially given the very difficult conditions that persist in the after-the-event market. I’m particularly pleased that our BTE business continues to grow strongly and that we have been able to deliver a profitable result for the eighth year in a row.

“2017 saw several law firms and even some ATE providers cease trading, so it is satisfying that ARAG has been able to withstand such challenges and continues to deliver a route to justice for those who are often most in need.

“The turbulence in the ATE market has continued into 2018 and the challenges there persist, but our BTE business continues to grow at a pace, and ARAG’s determination to deliver market-leading legal expenses and assistance solutions is proving as popular and successful as ever.”

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