The ARAG Group reported positive results for fiscal year 2024, with premium growth of 17.5%.
Revenue for the fiscal year was up by €416 million to around €2.8 billion. The underwriting result fell to €96 million, reflecting increased claims expenses. However, the result of normal business activities reached a record €141 million, while net profit remained steady at €76 million.
Renko Dirksen, speaker of the management board of ARAG SE, said the year marked a significant milestone for the Group.
“For the first time, we consolidated the business of the former DAS UK. This has resulted in the largest growth leap in our company’s history. But even without the acquisition, the group achieved solid organic growth. Our earnings performance developed better than we had forecasted in December. In short, we look back on a very successful financial year,” he said.
In the German market, the legal and health insurance sectors continued to show strong demand, with premium income increasing by nearly 13% to €1.6 billion. International operations contributed €1.18 billion in premiums, up 24%. By the end of 2024, the group’s portfolio included more than 13 million contracts.
The combined ratio at group level rose to 90.6% from 87.6% the previous year. Claims payments increased from €1.2 billion to €1.5 billion. Claims ratio rose from 51.2% to 54.6%, driven by growth, higher claims frequency and inflation.
Meanwhile, investment income grew by 33% to €161.5 million, supported by market conditions and gains from restructuring. The legal insurance segment, the group’s largest, increased premiums by 17% to €1.65 billion, partly due to the UK acquisition. The health insurance segment also grew by 17%, generating €749 million in premiums. The UK reorganization contributed to a 21.5% rise in the composite segment to €388 million.
In the first quarter of 2025, ARAG reported premium growth of more than 12% to €898 million. The German business grew by 12%, with health insurance rising 20% and legal insurance 6%. International business increased by nearly 12%.
“These are demanding times, and the challenges will continue. ARAG is well prepared. Thanks to the strategic course we have set over the past 10 years, we are now exactly where our customers need us to be. We will continue to build on this advantage as we enter the 90th year of our company’s history,” Dirksen said.
