ARAG has posted an 11% growth increase as its consolidated income grew from £11.1 million in 2015 to £12.3 million in 2016.
The improved results gave ARAG UK – in its tenth year in business – a pre-tax profit of £2.4 million and were attributed to strong growth in the BTE sector and moderate underlying growth in ATE business.
The legal protection and assistance company’s combined income (including reinsurance business generated back into ARAG SE in Germany) increased by 19% from £26.5 million to £31.5 billion.
Managing director Tony Buss said that the results were particularly pleasing as they had come at a challenging time for the legal expenses insurance sector.
“While we have maintained our cautious but flexible approach to the market, ARAG has generated excellent growth in our before-the-event business, particularly with our commercial, family and home assistance policies,” said Buss.
He warned however, that the challenging market environment showed no signs of abating and that with political, economic and regulatory uncertainty ahead of Brexit, ARAG had to be positioned to be both “innovative” and “flexible” to help it adapt to any more change.