ARAG Holding SE has remained profitable, albeit at a lower level in 2020 compared to the prior year.
Releasing its 2020 key business figures, the ARAG Group said its gross written premium grew 4.8% to €1.85 billion (around £1.55 billion). The growth in premium income was mainly attributed to the strong legal insurance segment, which is the insurer’s biggest unit.
In the German group’s home market, premium income climbed 6.1% in 2020 while its international business saw a 3.1% improvement.
“Record” underwriting result, meanwhile, amounted to €112 million – a 13.8% rise from 2019’s €98.5 million. Group net income, however, was halved from €77.5 million previously to €38.2 million.
Commenting on the numbers, management board speaker Dr Renko Dirksen stated: “Legal insurance is a crisis product. The key figures show: We deliver real added value for our customers and are in control of our business.
“ARAG is gaining significant new customers and at the same time is operating the business with growing profitability.”
It was noted that consolidated turnover stood at €1.87 billion while ARAG’s combined ratio improved to 87.6%. In its global portfolio, the insurer had a total of 10.5 million policies at the end of 2020.
Meanwhile, in the first quarter of 2021, ARAG said the business posted its “best start to the year ever,” with premium income up 7.4%
“In conclusion,” declared Dirksen, “we can say that the ARAG Group is a company on the move at the beginning of the new decade. We continue to pursue ambitious objectives, remain hungry for success.
“The pandemic crisis has done nothing to change this. On the contrary: we perform and we deliver. ARAG is expanding its customer base significantly even under difficult conditions – both nationally and internationally.”