The ARAG Group has announced impressive financial results for the fiscal year 2024, showcasing a premium growth of 17.5%. This growth translated into an increase in revenue, which rose by €416 million to approximately €2.8 billion.
Despite facing higher claims expenses that led to a decline in underwriting results to €96 million, the company reported a record operating result of €141 million. Net profit held steady at €76 million, indicating solid overall performance.
Renko Dirksen, the management board speaker for ARAG SE, celebrated the year as a significant milestone. He highlighted that the consolidation of the former DAS UK business contributed to the largest growth leap in the company’s history. Even without this acquisition, ARAG achieved strong organic growth, exceeding their expectations from December.
In the German market, demand for legal and health insurance remained robust, with premium income climbing nearly 13% to €1.6 billion. International operations also saw a remarkable increase, contributing €1.18 billion in premiums, a 24% rise compared to the previous year. By the end of 2024, ARAG’s portfolio expanded to include over 13 million contracts.
However, the combined ratio at the group level increased to 90.6%, up from 87.6% the previous year. Claims payments surged from €1.2 billion to €1.5 billion, with the claims ratio rising from 51.2% to 54.6%. This was driven by growth, more frequent claims, and inflation.
Investment income saw a healthy growth of 33%, reaching €161.5 million, bolstered by favorable market conditions and restructuring gains. The legal insurance segment, the company’s largest, increased premiums by 17% to €1.65 billion, partly due to the acquisition in the UK. The health insurance segment also grew by 17%, generating €749 million in premiums.
Looking ahead, ARAG reported a more than 12% growth in premiums during the first quarter of 2025, totaling €898 million. The German business experienced a 12% increase, with health insurance up by 20% and legal insurance by 6%. International business also saw an increase of nearly 12%.
Dirksen acknowledged the challenges ahead but expressed confidence in ARAG’s preparedness. He emphasized that the strategic direction taken over the past decade has positioned the company well to meet customer needs as it approaches its 90th anniversary.