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ARAG and its multiple business lines

The ARAG Group is perhaps best known for its products and services in the field of legal insurance. But it has also gained a solid reputation as an attractive multi-segment insurance provider in its German home market.

And thereby, ARAG SE plays an important role as operational holding company for the ARAG Group: The members of its Board of Management are responsible for the strategic management of the Group, for German business operations in the field of legal insurance and for the international companies.

The composite and health insurance segments are served by ARAG subsidiaries. ARAG Allgemeineand ARAG Kranken complement ARAG’s portfolio of quality insurance products outside the field of legal insurance.

ARAG Business Segments

Business Line Legal Insurance

Since its early years as a legal insurance pioneer, ARAG has dedicated itself to serving as a partner to its customers. The company most recently redfined the German market with its innovative new legal insurance products.

Hanno Petersen

“We aim for continuous improvement.”

Hanno Petersen, Group Board Member, IT/Operations

“ARAG offers comprehensive, affordable cost coverage for legal disputes. We also support our legal insurance customers with numerous supplemental benefits and useful services in connection with legal matters of all kinds. Our goal is to upgrade this unique program of benefits and services continuously in the interest of customers and consumers.”

Key business figures for this line.

Key figures ARAG SE

(in thousand euros)

2017
Change
2016
2015
Sales
Gross premiums written 870,004 5.50 % 824,616 766,127
Earned premiums for own account 868,041 6.61 % 814,252 756,133
Costs
Cost of claims for own account 462,746 11.40 % 415,393 400,070
Claims ratio (basis: earned premiums) 53.3 % 2.3 %-pts. 51.0 % 52.9 %
Cost of insurance business for own account 389,181 6.80 % 364,385 344,781
Cost ratio (basis: earned premiums) 44.8 % 0.0 %-pts. 44.8 % 45.6 %
Overview of profit and loss
Underwriting result for own account 14,841 - 51.14 % 30,377 11,267
Income from capital investments 73,016 0.46 % 72,679 71,620
Other income/expenses - 31,066 - 11.31 % - 35,028 - 39,291
Profit on ordinary activities 56,791 - 16.52 % 68,028 43,596
Extraordinary operating result 0 n/a 0 0
Net income 32,031 1.16 % 31,663 22,963
Key Figures
Underwriting reserves/earned premiums (net) 151.7 % - 4.8 %-pts. 156.5 % 166.2 %
Equity/earned premiums 50.6 % - 1.3 %-pts. 51.9 % 53.7 %
 

Security in all legal matters

With an ARAG legal insurance policy, you are always in good hands whenever legal problems arise. With our innovative legal insurance concepts, we continually generate new impulses in both the German and international markets.

Business Line Composite Insurance

ARAG’s composite insurance business is concentrated primarily in Germany. The segment is served by ARAG Allgemeine. ARAG Allgemeine has demonstrated its strength as a provider of property, liability and accident insurance in a highly competitive market. The company is also Europe’s largest sports insurer with some 21 million leisure and competitive athletes insured.

Christian Vogée

"Customer satisfaction is the central focus of our daily work."

Christian Vogée, Board Member, Sales/Operations/Claims/Sports Insurance

“Customer satisfaction and service quality are not just hollow phrases at ARAG. They are the central focus of our daily work.”

Key figures for the business line

Key figures ARAG Allgemeine Versicherungs-AG

(in thousand euros)

2017
Change
2016
2015
Sales
Gross premiums written 180,036 2.37 % 175,870 168,476
Earned premiums for own account 173,822 3.34 % 168,212 162,766
Costs
Cost of claims for own account 96,921 6.28 % 91,197 81,150
Claims ratio (basis: earned premiums) 55.76 % 1.54 %-pts. 54.22 % 49.86 %
Cost of insurance business for own account 67,077 3.71 % 64,675 64,264
Cost ratio (basis: earned premiums) 38.59 % 0.14 %-pts. 38.45 % 39.48 %
Overview of profit and loss
Gross underwriting result before fluctuation reserve 10,440 - 44.08 % 18,671 19,006
Underwriting result before fluctuation reserve for own account 9,813 - 20.51 % 12,345 17,114
Underwriting result after fluctuation reserve for own account 11,404 55.76 % 7,322 14,656
Income from capital investments 11,229 25.97 % 8,914 6,994
Other income/expenses - 4,672 - 112.28 % - 2,201 - 6,612
Profit on ordinary activities 17,962 27,98 % 14,035 15,037
Net income (before transfer of profits from profit transfer agreement) 17,964 27.98 % 14,019 15,015
Key Figures
Underwriting reserves/earned premiums for own account 141.81 % - 0.96 %-pts. 142.78 % 139.72 %
Equity/earned premiums for own account 31.83 % - 1.06 %-pts. 32.89 % 33.99 %
 

Innovative products and reliable insurance solutions

In every case – from accidents to burglary to sports injuries – you are on the safe side with ARAG Allgemeine insurance. We offer our customers security they can rely on with innovative, needs-based products.

Business Line Health Insurance

ARAG Health Insurance offers customers and agents a truly attractive price-performance spectrum in both private full-coverage and supplemental health and nursing care insurance. ARAG has been rated as the most popular health insurer in recognition of its product and service quality in a number of independent surveys.

Dr. Roland Schäfer - ARAG

“Ideal solutions for your health – to help you get well and stay well.”

Dr. Roland Schäfer, Board Member, Product Development, Underwriting and Sales

“You’re looking for attractive solutions that will help you get well or stay healthy – with a trustworthy partner at your side.”

Key figures for the business line

Key figures ARAG Krankenversicherungs-AG

(in thousand euros)

2017
2016
2015
Insurance portfolio
Health (monthly debit) 30,831 30,150 29,349
Premiums
Gross premiums written 356,099 356,873 347,450
Earned premiums for own account 364,545 356,456 346,893
Costs
Cost of claims 222,785 202,796 193,784
Cost of insurance business for own account 40,670 38,204 38,088
Overview of profit and loss
Underwriting result for own account 17,334 8,565 14,515
Profit on ordinary activities 12,638 6,757 11,114
Net income 8,900 6,700 8,000
Key figures
Administrative expense ratio 2.4 % 2.4 % 2.8 %
Net yield 3.8 % 3.8 % 3.1 %
Equity ratio 16.9 % 15.5 % 15.0 %