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%.
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