Arag posts turnover rise for 2019

Legal expenses provider Arag has posted a 14.7% rise in turnover to £14.1m for the full year 2019 (2018: £12.3m).

In addition, the business stated that its gross written premium under management has increased by more than 6% in 2019 to £40.1m (2018: £37.8m).

However, in a filing on Companies House, the UK business also revealed a slight drop in profit to £377,596 in 2019 from £463,079 in the preceding year.

In addition, operating profit also slipped to £480,364 in 2019 (2018: £570,151), while its administrative expenses grew to £10.1m (2018: £8.9m).

Growth
Arag detailed that it had seen the strongest growth in its before the event (BTE) sales division.

It grew the number of individual risks covered in its BTE Commercial division by 4.7% during 2019, taking the total up to 470,000.

For family, the number rose by 8.2% to 504,000 in 2019, while motor also saw an increase of 1.6% to 455,000. However, in the assistance segment numbers fell by 7% to 597,000.

Arag’s after the event division also saw a fall in the number of individual risks covered. The total dropped by 5.4% to 27,840.

Pandemic
The provider said in a statement that it has identified a number of challenges as a result of the Covid-19 pandemic, but argued that its high solvency ratio put the business “in a good place to overcome them”.

It added that the UK business had generated a total of £3.7m in profit for the Arag international group.

In February 2019, Arag Group bought Das Legal Expenses Insurance’s Republic of Ireland operation, and according to the statement the UK arm has had an “instrumental” role in the deal and the subsequent launch of Arag in Ireland.

Managing director, Tony Buss, commented: “Our success in 2019 inevitably looks almost irrelevant in the light of the huge challenges facing our industry and the whole world amidst the continuing pandemic.

“However, the decade of restrained growth and the strength of our international group mean that we are in the best possible position to confront them.”

He explained that the business had revised its expectations for 2020, adding that trading conditions will be “extremely difficult”.

Buss continued: “We’re preparing for an increase in claims, especially for employment and commercial contract disputes, while the uncertainties of Brexit and the recently postponed implementation of the Civil Liability Act remain.

“However, our teams have adapted exceptionally well to the new working world that we all have to accommodate, and the pandemic has highlighted the value of legal protection and assistance products. So, we remain cautious but optimistic about Arag’s future success.”

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