The ARAG Group reported a 7.9% increase in gross premium income for 2023, amounting to €2.37 billion, an increase of €174 million.
Including sales from service companies, total revenues for the insurance group exceeded €2.4 billion. The underwriting result was €138 million, which the group said is the second highest in its history. Profit from ordinary business activities rose by 40% to €137 million, and net profit doubled from the previous year to €86 million.
Dr Renko Dirksen, speaker of the management board of ARAG SE, stated at the financial statement presentation that ARAG was in a strong position in 2023, attributing this to the company’s focus on legal and health insurance, international diversification, and a modern product portfolio.
In the German market, demand for legal and health insurance drove business, with premium revenues increasing by 10.5% to €1.4 billion. International units saw a 4.3% rise in premiums, totalling €946 million.
By the end of 2023, the group held over 12 million policies. The combined ratio at group level remained steady at 87.6%. Due to growth, net claims incurred rose from €1.1 billion to €1.2 billion, and the group claims ratio increased from 50.2% to 51.2%.
The cost ratio slightly decreased to 36.4% from the previous year’s 36.5%. The group’s investment result improved to €121.5 million from €52 million the previous year, with hidden reserves of €216.5 million.
Premium growth was driven primarily by the legal insurance segment, which grew by 5.3% to €1.41 billion. The health insurance segment saw a 16.8% increase to €638 million in premium income, and the composite segment grew by 3.5% to €319 million.
In the first quarter of 2024, ARAG continued its dynamic growth, with total premiums and sales revenues increasing by 12.3% to €800 million compared to €712 million in the same period the previous year. Business in Germany grew by 11.7%, with the health insurance segment growing by 16.3% and the legal insurance segment by 9%.
International business, on the other hand, increased by 13.4%, including premium income from DAS UK, which was integrated into ARAG’s international business for the first time in 2024. ARAG expects the acquisition of DAS UK’s legal insurance business from ERGO to add over €150 million in premium income. The post-merger integration will see ARAG plc and DAS Holding Ltd. gradually merge.
“The ARAG Group remains on course. Business is running at full speed. Business development is already being noticeably shaped by our ARAG 5 to 30 program for the future. Here, too, we are acting, performing and delivering,” Dirksen said. “We are convinced that the future does not just happen. It is the result of hard work. We are happy to take on the associated efforts for the benefit and advantage of our more than 12 million customers.”
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