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ARAG Group Doubles Net Income

  • ARAG Group again posts significant growth in 2023 (up 7.9 percent)
  • Continued strong premium growth at 10.5 percent in the German market
  • Health insurance business with dynamic growth of 16.8 percent
  • Group expands contract portfolio by 400,000 units on balance
  • Profit from ordinary activities increased by 40 percent
  • Another promising start to the current financial year

The ARAG Group again increased its gross premium income strongly in 2023 – by 7.9 percent (€ 174 million) to € 2.37 billion. Including sales of service companies, total revenues amounted to over € 2.4 billion. The underwriting result of € 138 million is the second strongest in the Group’s history. Profit from ordinary business activities increased by 40 percent to € 137 million and net profit doubled compared to the previous year to reach € 86 million. “All in all, ARAG was once again in very good shape in 2023. Our capable team, our clear focus on legal and health insurance, and our extensive international diversification, combined with a modern product portfolio and well-established processes, create a resilient recipe for success,” explained Dr. Renko Dirksen, Speaker of the Management Board of ARAG SE, at the presentation of the ARAG Group’s financial statements.

In the German market, strong demand for legal and health insurance continued to drive the ARAG Group’s business. Premium revenues rose by 10.5 percent to € 1.4 billion. The international units generated premiums of € 946 million, an increase of 4.3 percent. At the end of 2023, the Group had a total of over 12 million policies in its portfolio. At Group level, the combined ratio remained at a very good level of 87.6 percent. Due to the strong growth, claims incurred net of reinsurance increased from € 1.1 billion to € 1.2 billion, while the Group claims ratio rose from 50.2 percent to 51.2 percent. At 36.4 percent, however, the cost ratio was slightly below the previous year's figure of 36.5 percent. Due to the overall positive development on the markets, the Group reported a well-recovered investment result of € 121.5 million (previous year: € 52 million) and had hidden reserves of € 216.5 million. The continued high premium growth is primarily due to the strong legal insurance segment – the largest unit in the Group. This delivered growth of 5.3 percent to € 1.41 billion. The health insurance segment also contributed a strong growth impulse with an increase of 16.8 percent to € 638 million in premium income. The composite segment increased its premium income by 3.5 percent to € 319 million.