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Business Year 2017

As a result of the sale of its life insurance business, premium income for the ARAG Group decreased in purely arithmetical terms by 8.4 percent during the reporting period. The Group is now fully focused on its composite and health insurance business. Gross written premiums in these segments rose substantially by € 69 million (or 4.6 percent) to € 1.59 billion in 2017. Thus nearly one-third of the premium losses resulting from the sale of the life insurance business were offset. Total Group premiums and revenues – including revenues generated by the service companies, amounted to € 1.61 billion. The underwriting result improved markedly, with a 10.2-percent increase to € 73.5 million – the best figure reported in the last ten years. At € 81.2 million, profit on ordinary activities was also good and clearly exceeded the original expectations.

 

Annual Reports

Summary of key financial figures for the ARAG Group

The numbers speak for themselves. The steady growth achieved in past years provides us a solid foundation for future success.

ARAG Holding SE (in million euros)
2017
Change
2016*
2015
Sales
Gross premiums written 1,585.0 - 8.4 % 1,729.7 1,656.1
Earned premiums for own account 1,570.6 - 8.0 % 1,706.4 1,631.2
Sales revenues of non-insurance subsidiaries 25.4 - 53.7 % 54.8 66.6
Costs
Cost of claims for own account 854.0 - 15.9 % 1,014.9 974.6
Claims ratio (basis: earned premiums) 54.4 % - 5.1 %-pts. 59.5 % 59.7 %
Cost of insurance business for own account 558.4 2.2 % 546.5 530.7
Cost ratio (basis: earned premiums) 35.6 % 3.6 %-pts. 32.0 % 32.6 %
Overview of profit and loss
Underwriting result for own account 73.5 10.2 % 66.7 66.1
Income from capital investments 136.1 - 43.3 % 240.0 211.0
portion included in underwriting result 74.5 - 57.8 % 176.7 158.0
Other income/expenses - 52.2 8.1 % - 48.3 - 57.0
Profit on ordinary activities 81.2 - 6.6 % 87.0 66.7
Net income before external components 27,8 - 35.5 % 43.1 29.2
Underwriting reserves/earned premiums (net) 233.2 % - 116.4 %-pts. 349.6 % 350.8 %

*The prior-year figures include the life insurance business (with premium income of € 213.7 million), which was sold in 2017

Breakdown by insurance line and country

Successful international expansion strategy: The international legal insurance business is one of the Group’s growth drivers.

Self-contracted business 2017

Country/origin (in thousand euros)
Legal insurance
Property and accident
Health insurance
Germany 349,202 206,634 365,099
Netherlands 92,531
Spain 51,717 53,954
Italy 28,808 4,697
USA 87,806
Austria 61,073
Norway 38,935
UK* 3,663 125
Belgium 23,774
Greece 5,042
Sweden 4,340
Slovenia 2,277
Portugal 455 288
Denmark 160
Gesamt 749,783 265,698 365,099
 

Assumed reinsurance business 2017

Country/origin (in thousand euros)
Legal Insurance
Property and accident
Germany 125
Netherlands 49,929
Spain 19,078 14,843
Italy 89,678 336
USA 7,819
Austria
Norway
UK* 21,569
Belgium 743
Greece 44
Sweden
Slovenia
Portugal 165
Denmark
Kanada 68
Total 189,093 15,304
 

*The reinsurance business involving risk in the UK is underwriting by ARAG SE in Düsseldorf.