Following its 2024 acquisition of DAS UK, ARAG is beginning to show the scale of the business it has assembled. Commercial before-the-event (BTE) legal expenses cover was a significant contributor as total UK income reached £244 million in 2025, although the legal expenses operation remained loss-making while the integration continued.
The figures offer the first full-year view of the combined operation following ARAG Group’s acquisition of DAS UK in January 2024. Total income was 11% higher than the separate results reported for 2024, with ARAG saying the performance continued during the first half of this year.
ARAG Legal Expenses Insurance Company reported premium income of £216.7 million for 2025. DAS had recorded £141.4 million in its final results before the ARAG rebrand, but the subsequent integration of ARAG plc means the increase cannot be read as like-for-like organic growth.
The company identified its BTE portfolio, particularly commercial products, as an important source of growth. That part of the book had already been expanding before the takeover: ARAG plc’s income increased from £60.9 million in 2022 to £66.1 million in 2023, when commercial BTE risks grew by more than 26%.
The combined operation now provides legal expenses cover to approximately two million UK businesses, alongside more than 10 million families. For brokers, the scale of that commercial book is more telling than the headline percentage increase, which still reflects changes to the structure of the business.
The expanded operation has not yet produced a profit at the legal expenses company. It recorded a pre-tax loss of £4.1 million for 2025, although that narrowed from £5.5 million the previous year.
ARAG attributed the loss mainly to the cost of bringing the former DAS UK and ARAG plc operations together at Trinity Quay in Bristol. The consolidated UK businesses, including ARAG plc and ARAG Law, nevertheless contributed £8.9 million net of reinsurance to the international group.
David Haynes, chief executive of ARAG UK, said the continued growth “underscores the success of our strategy”. He added that the integration work had not been allowed “to disrupt the ongoing expansion of our business”.
Haynes took over in April 2025 after almost a decade as underwriting director at ARAG plc. He had previously worked at DAS Legal Expenses, giving him experience of both sides of the combined operation.
The UK business now generates more than €250 million in income, making it ARAG’s largest operation outside Germany. The international group reported income of approximately €3.2 billion for 2025, passing a target it had set for 2030.
ARAG is also trying to give legal expenses insurance a larger role in the access-to-justice debate. Its Insuring Justice report, produced with the Purpose Coalition and launched at the House of Commons, argued that the product could fund early legal advice and action where public provision is limited.
Its proposals for widening access to justice give the expansion a broader context, but the commercial test is more immediate. ARAG’s next results should give brokers a clearer view of whether commercial BTE growth can translate into profit as the integration progresses.
