Legal expenses insurance and assistance provider ARAG has reported its twelfth profitable year in succession, during which the company’s GWP passed £50m for the first time.
Despite the significant challenges presented by the ongoing pandemic, ARAG’s performance in 2021 was boosted by the receipt of some outstanding after-the-event (ATE) income following successful outcomes to premium challenge cases in previous years and strong BTE growth, particularly in the commercial legal expenses insurance market.
The company’s overall GWP increased by 20% to £51.6m (2020: £42.8m) as the business recorded a pre-tax profit in the UK of £1.9m (2020: £0.5m).
The company experienced a huge spike in legal advice calls from families and businesses during the first months of the pandemic, but the subsequent influx of employment and contract claims was not as great as anticipated.
“We expected that small businesses closing during the pandemic while others were forced to tighten their belts, would negatively impact our commercial business,” managing director, Tony Buss said. “However, any loss of business has been more than offset by increased awareness and appetite for legal protection products.”
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