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ARAG Group Defies COVID-19 Crisis Recording Significant Growth
  • ARAG Group records significant premium growth of 4.8 percent in business year 2020
  • German business grows by 6.1 percent
  • More than 80,000 new customers in the German legal insurance business alone
  • Customer increase underscores importance of legal insurance for cosumers in times of crisis
  • Income from international business up by 3.1 percent
  • Record underwriting result with €112.0 million
  • Online business is important growth driver – 8 percent increase in new customers

"Legal insurance is a crisis product. The key figures show: We deliver real added value for our customers and are in control of our business. ARAG is gaining significant new customers and at the same time is operating the business with growing profitability," explained Dr. Renko Dirksen, Speaker of the Management Board of ARAG SE at the annual press conference of the ARAG Group. The ARAG Group increased its gross premium income in 2020 by 4.8 percent from €1.76 billion to €1.85 billion. Consolidated turnover – including revenue from service companies – came to €1.87 billion. The underwriting result again improved significantly by 13.8 percent, reaching a new record level of €112.0 million. Income on ordinary activities was €83.2 million.

Despite the pandemic crisis, the ARAG Group posted significant growth in Germany in 2020. Premium income rose by 6.1 percent exceeding the market average. Growth in international business was rather moderate at 3.1 percent due to the obvious sharp decline in the travel-related Special Service Package business. International legal insurance business, on the other hand, continued to grow with premium growth of 6.8 percent. At the end of 2020, the ARAG Group had a total of 10.5 million policies in its portfolio. The Group's combined ratio improved further to 87.6 percent, down from 88.7 percent in 2019, while claims expenses were on a par with the previous year at €935.6 million. As a result of the strong premium growth, the Group claims ratio thus decreased significantly from 53.5 percent to 50.9 percent. The cost ratio increased from 35.3 percent to 36.7 percent as a result of the dynamic growth. At €78.5 million, income from capital investments was back at the normal level of previous years. The 2019 figure had been twice as high on account of a very favorable market development and special effects. As expected, the profit on ordinary activities of €83.2 million was clearly below the previous year's figure of €119.9 million (which was due to special effects). Group equity capital rose slightly to €574.2 million (previous year: €558.1 million).


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