ARAG Group, a legal expenses insurance (LEI) provider with operations in 19 countries, has announced its acquisition of DAS Legal Protection Inc., a Toronto-based managing general agent (MGA) which is part of the Munich Re / ERGO Group.
The deal brings together two rival MGAs in Canada’s LEI market: the ARAG Group’s Canadian subsidiary, ARAG Services Corporation, which was launched in 2016; and DAS, which was founded in 2010.
Both MGAs are based in Toronto and offer a comprehensive range of legal expense products and legal services for brokers, underwriting agents and insurers in Canada, targeting businesses, families and landlords. ARAG Services Corporation’s products are underwritten by HDI Global Specialty SE.
“With this acquisition, we’re striving to expand and strengthen our existing operations in Canada,” said Dr. Renko Dirksen, speaker of the management board of ARAG SE. “The Canadian LEI market offers promising opportunities with sound growth potential. Thus, ARAG advances its successful international expansion strategy.
“With the DAS sales network and experienced team, we’re complementing our current Canadian activities. It will also allow us to leverage synergies, accelerate growth as well as support economies of scale and scope.”
Following the deal, all of DAS’s current Canadian staff will be retained and the two teams will be integrated.
“We will strengthen our presence while keeping up our top-notch service to our customers as well as our excellent relationships with our business partners,” said Barbara Haynes, CEO of ARAG Canada. “After the successful integration of the two teams, we look forward to improving our operations through technology and digital tools - and continuing to develop best-in-class legal expenses insurance products and services, building on the international skills of the ARAG Group.”
This isn’t the first unit of DAS that ARAG has snapped up from Munich Re / ERGO. The Germany-based firm recently acquired DAS’s operations in the Republic of Ireland.
“This is great news for the ARAG Group and for the future of legal expenses insurance in Canada,” added Tony Buss, managing director of ARAG plc in the UK. “ARAG UK was instrumental in the launch of ARAG in Canada, five years ago, and we’re working with our colleagues in Toronto to assist with the IT requirements created by this acquisition and developments for the future.”