Increased Profits and Growth in Total Premiums Reported by ARAG
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In a notable achievement, ARAG, a leading provider of legal protection services, reported a ninth year in profit for the 2021 financial year, despite challenging market conditions in the after-the-event (ATE) sector.
The international ARAG Group (ARAG SE) completed the acquisition of DAS UK at the start of January 2024, marking a significant milestone in ARAG's growth strategy. The acquisition has since been integrated, with the two businesses now operating as one entity.
The integration process, which began in 2023, has been largely completed, resulting in a stronger and more diversified business for ARAG. This integration has been a driving force behind the company's solid growth and profit in the 2024 financial year.
ARAG reported double-digit growth in its before-the-event (BTE) business for both the 2021 and 2022 financial years. The overall gross written premium under management for 2021 was £51.4 million, and it increased by 18.5% to £60.6 million in 2022. The growth continued in 2024, with the gross written premium under management reaching £77.8 million.
Commercial legal protection led the charge in the growth, and ARAG's presence in this market continues to grow. The success in 2024 was driven by strong growth in ARAG's BTE commercial and family legal expenses insurance books, insured assistance, and after-the-event (ATE) insurance products.
ARAG's business now operates from Trinity Quay in central Bristol. The company's profit before tax in 2024 was £1.8 million, more than double the previous year. However, precise figures for the revenue growth rate and profit for the 2023 financial year, prior to the DAS UK integration, cannot be determined from the available sources.
For precise figures, consult ARAG’s official financial statements or investor relations materials. Despite this gap in the data for 2023, ARAG's consistent growth and profitability demonstrate its resilience and commitment to its customers and the legal protection market.
- Following the integration of DAS UK, ARAG's growth strategy led to substantial expansion in various business sectors, such as investing in after-the-event insurance products and strengthening its commercial legal protection.
- The solid financial growth of ARAG, evident in the double-digit increase in their before-the-event business and the substantial profit before tax in 2024, signifies appealing opportunities for potential investors in the legal protection services sector.
