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Business Year 2018

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)
2018
Change
2017
2016*
Sales
Gross premiums written 1,653.7 4.3 % 1,585.0 1,729.7
Earned premiums for own account 1,640.0 4.4 % 1,570.6 1,706.4
Sales revenues of non-insurance subsidiaries 24.1 - 5.1 % 25.4 54.8
Costs
Cost of claims for own account 870.0 1.9 % 854.0 1,014.9
Claims ratio (basis: earned premiums) 53.1 % - 1.4 %-pts. 54.4 % 59.5 %
Cost of insurance business for own account 582.7 4.4 % 558.4 546.5
Cost ratio (basis: earned premiums) 35.5 % - 0.1 %-pts. 35.6 % 32.0 %
Overview of profit and loss
Underwriting result for own account 97.4 32.5 % 73.5 66.7
Income from capital investments 81.2 - 40.4 % 136.1 240.0
portion included in underwriting result 52.8 - 29.1 % 74.5 176.7
Other income/expenses - 51.7 - 1.0 % - 52.2 - 48.3
Profit on ordinary activities 70.2 - 13.6 % 81.2 87.0
Net income before external components 34.7 24.9 % 27.8 43.1
Underwriting reserves/earned premiums (net) 234.0 % 0.8 %-pts. 233.2 % 349.6 %

*The prior-year figures 2016 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 2018

Country/origin (in thousand euros)
Legal insurance
Property and accident
Health insurance
Germany 372,598 209,479 373,740
Netherlands 99,274
Spain 56,062 48,358
Italy 30,316 4,772
USA 97,963
Austria 64,896
Norway 41,617
UK* 3,194 181
Belgium 24,431
Greece 4,885
Sweden 4,689
Slovenia 2,682
Portugal 491 453
Denmark 147
Gesamt 803,245 263,243 373,740
 

Assumed reinsurance business 2018

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
Canada 68
Total 189,093 15,304
 

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