Pandemic-related uncertainties drive profits at ARAG

ARAG has reported a profit for 2020 and an increase in its premium under management for 2020, as economic uncertainties created by the pandemic resulted in considerable volumes of calls for legal advice on employment, contract and tenancy-related matters – particularly in Q2.

The legal expenses insurance and assistance provider’s GWP increased by almost 7% to £42.8m (2019: £40.1m), with a pre-tax profit of £0.5m in the UK.

"Despite the global pandemic having a significant impact on our business," said managing director, Tony Buss. "ARAG has managed to maintain its trajectory of steady growth while delivering an outstanding service to our policyholders at a time when they have needed it most."

"Trading conditions continue to be very difficult in many sectors and we have started to see the claims that inevitably result from the wider economic situation. However, ARAG has proved highly agile in adapting to meet these and other challenges, so we remain optimistic about our continued success."

Delays in resolving some premium challenge cases in the ATE sector did impact ARAG's overall income, which reduced by 3.7% from £14.1m to £13.6m. Income from the company's BTE business increased by 7%.

    Share Story:

Recent Stories

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021