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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)

2020
Change
2019
2018
Sales
Gross premiums written 1,009,786 3.28 % 977,678 915,988
Earned premiums for own account 1,002,567 2.66 % 976,582 915,213
Costs
Cost of claims for own account 509,729 0.52 % 507,077 471,873
Claims ratio (basis: earned premiums) 50.8 % - 1.1 %-pts. 51.9 % 51.6 %
Cost of insurance business for own account 443,518 3.92 % 426,770 401,876
Cost ratio (basis: earned premiums) 44.2 % + 0.5 %-pts. 43.7 % 43.9 %
Overview of profit and loss
Underwriting result for own account 23,211 - 29.82 % 33,071 35,470
Income from capital investments 100,966 27.88 % 78,951 51,776
Other income/expenses - 43,207 14.39 % - 37,772 - 35,073
Profit on ordinary activities 80,970 9.05 % 74,251 52,174
Extraordinary operating result 0 n/a 0 0
Net income 64,216 23.85 % 51,848 31,598
Key Figures
Underwriting reserves/earned premiums (net) 149.1 % + 4.3 %-pts. 144.8 % 147.9 %
Equity/earned premiums 51.6 % + 2.2 %-pts. 49.4 % 49.3 %
 

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)

2020
Change
2019
2018
Sales
Gross premiums written 198,850 5.70 % 188,134 181,844
Earned premiums for own account 190,223 5.44 % 180,410 173,985
Costs
Cost of claims for own account 92,187 - 7.98 % 100,178 95,583
Claims ratio (basis: earned premiums) 48.46 % -7.07 %-pts. 55.53 % 54.94 %
Cost of insurance business for own account 83,662 12.33 % 74,481 73,254
Cost ratio (basis: earned premiums) 43.98 % 2.70 %-pts. 41.28 % 42.10 %
Overview of profit and loss
Gross underwriting result before fluctuation reserve 16,865 64.93 % 10,225 1,074
Underwriting result before fluctuation reserve for own account 13,736 162.71 % 5,228 4,779
Underwriting result after fluctuation reserve for own account 11,039 267.55 % 3,003 11,770
Income from capital investments 2,788 - 76.00 % 11,613 10,515
Other income/expenses - 3,145 0.31 % - 3,154 - 3,753
Profit on ordinary activities 10,682 - 6.80 % 11,462 18,532
Net income (before transfer of profits from profit transfer agreement) 10,726 - 4.92 % 11,282 18,525
Key Figures
Underwriting reserves/earned premiums for own account 141.37 % - 5.09 %-pts. 146.46 % 139.27 %
Equity/earned premiums for own account 29.08 % - 1.58 %-pts. 30.67 % 31.80 %
 

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)

2020
2019
2018
Insurance portfolio
Health (monthly debit) 37,395 33,355 31,657
Premiums
Gross premiums written 430,220 393,199 373,754
Earned premiums for own account 430,315 392,593 373,374
Costs
Cost of claims for own account 239,351 230,179 216,515
Cost of insurance business for own account 76,375 48,981 44,691
Overview of profit and loss
Underwriting result for own account 28,746 27,022 17,476
Profit on ordinary activities 24,958 22,146 13,085
Net income 9,400 13,100 7,800
Key figures
Administrative expense ratio 2.4 % 2.4 % 2.4 %
Net yield 2.0 % 3.4 % 2.5 %
Equity ratio 18.8 % 19.2 % 17.7 %