Legal expenses insurance and assistance provider ARAG plc has today revealed it turned a profit for 2020, despite the complications of the COVID crisis, and saw an increase in its premium under management for the year.
ARAG’s gross written premium under management rose from £40.1 million in 2019 to £42.8 million in 2020, an increase of almost 7%, while the business recorded a pre-tax profit of almost £0.5 million in the UK, delivering its 11th profitable year in succession.
In a Press release, ARAG noted that delays in resolving some premium challenge cases in the After the Event (ATE) sector did impact its overall income, which reduced by 3.7% from £14.1 million to £13.6 million, but that income from the company’s Before the Event (BTE) business continued to grow, increasing by 7%.
The firm highlighted that the financial uncertainty created by COVID had resulted in calls for legal advice on employment, contract and tenancy-related matters, particularly during Q2 2020. ARAG stated that the high level of solvency and strong financial position recently reported by the global ARAG Group put the business in the best possible position to address the significant challenges created by the current economic climate.
“Despite the global pandemic having a significant impact on our business,” said managing director, Tony Buss, “ARAG has managed to maintain its trajectory of steady growth while delivering an outstanding service to our policyholders at a time when they have needed it most.”
Trading conditions continue to be very difficult in many sectors, Bess said. However, he noted that ARAG has proven to be very agile when it comes to adapting to meet such challenges and that it remains optimistic about its continued success.