Specialist insurer ARAG has posted a 12% annual growth last year amid turbulent times for the legal expenses insurance sector.
The company has announced that its UK unit generated a pre-tax profit of £2.7 million after its gross written premium increased from £39.6 million in 2014 to £44.3 million in 2015.
ARAG managing director Tony Buss said that the company’s commercial legal protection and home emergency products have achieved continued growth.
After-the-event (ATE) policies, particularly for motor, employers and public liability risks, also posted an 18% growth, Buss added.
Buss said 2015 was another “highly successful year” for the company despite the continued contraction of the ATE market following the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act in 2013.
He said ARAG is poised to weather market turbulence that is expected to persist.
“The challenging market conditions look set to continue, with greater regulation, further legislation and the recent Insurance Premium Tax increase all playing their part,” Buss said.
“But ARAG’s positive and highly proactive approach to market challenges puts the company in a highly competitive position,” he added.
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