Turbulence in after-the-event market goes on, says ARAG’s Buss
Legal expenses and assistance provider ARAG has grown its before-the-event (BTE) business in 2017 but said that the turbulences in the after-the-event (ATE) market continue.
“The turbulence in the ATE market has continued into 2018 and the challenges there persist,” said ARAG managing director Tony Buss.
“2017 saw several law firms and even some ATE providers cease trading, so it is satisfying that ARAG has been able to withstand such challenges and continues to deliver a route to justice for those who are often most in need,” Buss added.
The company’s consolidated income grew marginally to £12.3 million in 2017, while combined income (including reinsurance business generated back into ARAG SE in Germany) increased by 5 per cent year on year to £32.5 million, generating a profit of £2.35 million before equalisation reserves.
Overall, the company’s gross written premium under management dropped to £34.8 million from £41.1 million in 2016 largely as a result of restating previous years’ ATE premiums for post-LASPO cases initiated since 2013, but gross written premium from ARAG’s BTE business increased by 17 per cent year on year to £24.7 million, according to the statement.
“This is an excellent result for ARAG, especially given the very difficult conditions that persist in the after-the-event market,” Buss said. “I’m particularly pleased that our BTE business continues to grow strongly and that we have been able to deliver a profitable result for the eighth year in a row.”
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