ARAG Group has reported another year of double‑digit premium growth and an improved underwriting result for 2025, alongside a solid start to 2026, as demand for legal expenses and health cover continues to drive expansion in Germany and abroad.
In the 2025 financial year, the group generated gross written premiums of €3.16 billion, an increase of more than €340 million and up 13.2% on 2024. Legal insurance premiums grew by 11.5%, while health insurance once again showed strong momentum with an 18.4% rise. The composite segment also contributed, with premiums up 10.9 per cent to €430 million.
The underwriting result recovered after the prior‑year dip, improving from €96 million to €105 million. Profit from ordinary business activities increased by 6 per cent to nearly €150 million, compared with €141 million a year earlier. Consolidated net income remained at a solid level of €89 million.
“ARAG delivered a confident performance last year. The Group once again achieved substantial growth and further improved its results. Our growth target of €3 billion in premium income has already been exceeded. This milestone was reached five years earlier than planned,” said Renko Dirksen, chairman of the management board of ARAG SE, at the presentation of the group’s financial statements.
In Germany, premium income reached €1.75 billion in 2025, up 13% year on year, driven again by legal protection and health. Outside Germany, premium income totalled €1.41 billion, an increase of 13.5% compared with 2024. At the end of 2025, the group managed around 14 million contracts.
The combined ratio improved from 90.6% to 89.4%. Claims incurred net of reinsurance rose from €1.5 billion to more than €1.6 billion, but the group claims ratio remained stable at 54.6%. The cost ratio declined to 34.8% from 35.9% in the previous year, supporting the stronger technical result. Investment income was slightly lower at €157 million, compared with €161.5 million in 2024.
The legal expenses insurance segment, ARAG’s largest business unit, generated premium income of €1.82 billion in 2025, up 11.5%. Health insurance reported gross written premiums of €886.3 million, an 18.4% increase on 2024, reflecting continued demand for private health cover in Germany. The composite business also grew, with double‑digit premium expansion.
The group has carried its growth momentum into the current year. In the first quarter of 2026, ARAG recorded premium growth of 10 per cent, taking gross written premiums to €956 million, up from €868 million in the same period of 2025.
Business in Germany increased by 9% in the quarter. Health insurance was again the strongest performer, with premiums rising by 15%. Legal insurance in Germany increased its premium income by 12 per cent. International operations reported an 11 per cent increase in premiums, underlining the contribution from both domestic and overseas markets.
“Economic success is not a reason for ARAG to slow down. We look to the future with confidence. Our robust business model, our innovative strength, our strong market position and our excellent team form the basis for continued successful development. Our ambition remains unchanged: we perform and we deliver for our customers,” said Dirksen.
ARAG positions itself as the world’s largest legal expenses insurer, and recent expansion steps in key markets support that claim. In the UK, for example, ARAG has built scale through acquisitions and organic growth in legal protection, positioning itself as a leading provider alongside composite groups that treat legal expenses as a secondary line rather than a core focus.
Within Europe, legal expenses insurance remains concentrated in a handful of mature markets, with Germany the largest by premium volume. ARAG’s double‑digit growth and sub‑90 per cent combined ratio compare favourably with many multi‑line peers, which have faced pressure on expenses and claims inflation across personal and commercial lines.
In private health, ARAG’s 18.4% premium increase in 2025 significantly outpaced overall growth in the German private health insurance sector, where market‑wide premium income has been expanding at a mid‑single‑digit rate. That divergence points to ARAG gaining share in a line many European groups regard as strategically important because of its capital‑light characteristics and recurring fee income.
The figures highlight ARAG’s role as a scale specialist in legal protection and an increasingly relevant player in German private health at a time when many large carriers are also targeting these segments.
The combination of above‑market growth, a strengthened international footprint and an improved combined ratio suggests the group has room to continue expanding, provided that claims trends and legal cost inflation remain manageable.
