Annual results 2013, ARAG plc
Record profits +120%
ARAG plc, the UK arm of the worldwide legal expenses insurer ARAG Group, has announced record profits for its seventh complete trading year (2013).
Figures confirmed by its Dusseldorf-based parent company show that its Gross Written Premium (GWP) under management increased 9% over 2012 to £46.9m whilst pre-tax and pre-amortisation profits were up significantly to £3.3m. The novel alignment to risk, because of a reinsurance share with the parent company, adds extra stimulus to profitable growth.
The number of individual personal lines policies insured rose to just under 3.5 million (up 15%) and Commercial risks were up 32% with just under 200,000 businesses now insured.
“It has been a challenging trading year once again”, comments ARAG plc Managing Director Tony Buss, “with increasing demands to initiate and respond to new situations that may require regulation or other change. Yet it is also one where product redesign and re-writing has been at the fore, new initiatives have been rolled out, additional benefits have been unveiled that widen the array of legal services available to policyholders and where there has still been time to restructure and expand our office space”.
Earlier this year ARAG acquired a further 60% office space boosting their Clifton, Bristol, Head Office to over 10,000 sq ft before announcing a new wave of recruitment to ensure its award-winning quality and service standards are enhanced as business develops further.
ARAG also retained the best Personal Injury Provider Award in 2013 for it’s After the Event (ATE) service and added the best Before the Event (BTE) Underwriting Service Award provider as voted by industry experts. These accolades were achieved despite distractions relating to the implementation of new legislation which directly affected the business.
With a new suite of commercial products having just been launched and both Home Emergency and HNW products in high demand, there are expectations that the company will retain good margins for consistent profits year on year.
“It's impossible to look too far ahead as we await the results of post-LASPOA claims” adds Mr Buss. “There have been too few closed cases under the new rules in the past 12 months. After a record breaking year in 2013 we are buoyed up by our consistent ability to deliver strong returns and expect to do so again this year, in 2015 and beyond”.