ARAG and its multiple business lines
The ARAG Group is perhaps best known for its products and services in the field of legal insurance as the leading legal insurer worldwide. 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 Allgemeine and ARAG Kranken complement ARAG’s portfolio of quality insurance products outside the field of legal insurance.
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.
“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) |
2021 |
Change |
2020 |
2019 |
|---|---|---|---|---|
| Sales | ||||
| Gross premiums written | 1,092,403 | 8.18 % | 1,009,786 | 977,678 |
| Earned premiums for own account | 1,076,242 | 7.35 % | 1,002,567 | 976,582 |
| Costs | ||||
| Cost of claims for own account | 555,394 | 8.96 % | 509,729 | 507,077 |
| Claims ratio (basis: earned premiums) | 51.60 % | + 0.76 %-pts. | 50.84 % | 51.92 % |
| Cost of insurance business for own account | 484,434 | 9.23 % | 443,518 | 426,770 |
| Cost ratio (basis: earned premiums) | 45.01 % | + 0.77 %-pts. | 44.24 % | 43.70 % |
| Overview of profit and loss | ||||
| Underwriting result for own account | 26,535 | 14.32 % | 23,211 | 33,071 |
| Income from capital investments | 64,823 | - 35.80 % | 100,966 | 78,951 |
| Other income/expenses | - 45,373 | 5.01 % | - 43,207 | - 37,772 |
| Profit on ordinary activities | 45,985 | - 43.21 % | 80,970 | 74,251 |
| Extraordinary operating result | 0 | n/a | 0 | 0 |
| Net income | 23,491 | - 63.42 % | 64,216 | 51,848 |
| Key Figures | ||||
| Underwriting reserves/earned premiums (net) | 149.48 % | + 0.38 %-pts. | 149.10 % | 144.80 % |
| Equity/earned premiums | 47.44 % | - 4.13 %-pts. | 51.57 % | 49.44 % |
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 about 20 million leisure and competitive athletes insured.
Key figures for the business line
Key figures ARAG Allgemeine Versicherungs-AG (in thousand euros) |
2021 |
Change |
2020 |
2019 |
|---|---|---|---|---|
| Sales | ||||
| Gross premiums written | 210,578 | 5.90 % | 198,850 | 188,134 |
| Earned premiums for own account | 200,103 | 5.19 % | 190,223 | 180,410 |
| Costs | ||||
| Cost of claims for own account | 101,391 | 9.98 % | 92,187 | 100,178 |
| Claims ratio (basis: earned premiums) | 50.67 % | 2.21 %-pts. | 48.46 % | 55.53 % |
| Cost of insurance business for own account | 91,715 | 9.63 % | 83,662 | 74,481 |
| Cost ratio (basis: earned premiums) | 45.83 % | 1.85 %-pts. | 43.98 % | 41.28 % |
| Overview of profit and loss | ||||
| Gross underwriting result before fluctuation reserve | - 3,658 | - 121.69 % | 16,865 | 10,225 |
| Underwriting result before fluctuation reserve for own account | 6,282 | - 54.26 % | 13,736 | 5,228 |
| Underwriting result after fluctuation reserve for own account | 10,098 | - 8.52 % | 11,039 | 3,003 |
| Income from capital investments | 5,167 | 85.35 % | 2,788 | 11,613 |
| Other income/expenses | - 3,342 | - 6.27 % | - 3,145 | - 3,154 |
| Profit on ordinary activities | 11,923 | 11.63 % | 10,682 | 11,462 |
| Net income (before transfer of profits from profit transfer agreement) | 11,816 | 10.16 % | 10,726 | 11,282 |
| Key Figures | ||||
| Underwriting reserves/earned premiums for own account | 141.11 % | - 0.26 %-pts. | 141.37 % | 146.46 % |
| Equity/earned premiums for own account | 27.65 % | - 1.44 %-pts. | 29.08 % | 30.67 % |
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.
Key figures for the business line
Key figures ARAG Krankenversicherungs-AG (in thousand euros) |
2021 |
2020 |
2019 |
|---|---|---|---|
| Insurance portfolio | |||
| Health (monthly debit) | 42,382 | 37,395 | 33,355 |
| Premiums | |||
| Gross premiums written | 484,429 | 430,220 | 393,199 |
| Earned premiums for own account | 483,319 | 429,914 | 392,593 |
| Costs | |||
| Cost of claims for own account | 274,163 | 239,351 | 230,179 |
| Cost of insurance business for own account | 97,375 | 76,375 | 48,981 |
| Overview of profit and loss | |||
| Underwriting result for own account | 22,195 | 28,746 | 27,022 |
| Profit on ordinary activities | 16,460 | 24,958 | 22,146 |
| Net income | 9,200 | 9,400 | 13,100 |
| Key figures | |||
| Administrative expense ratio | 2.4 % | 2.4 % | 2.4 % |
| Net yield | 2.0 % | 2.0 % | 3.4 % |
| Equity ratio | 17.7 % | 18.8 % | 19.2 % |