Financial information
It is now a decade since ARAG launched in the UK and, while the legal expenses insurance market has seen many changes and numerous challenges, we continue to build on the successful foundations established ten years ago.
Our 2015 results showed another strong performance, recovering from the disruption to our markets wrought by the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) in 2013.
Our gross written premium under management increased by 12% on the previous year, to more than £44 million, while the number of policies the company issued also increased, and by a similar margin.
The turbulence in our markets looks set to continue, with further legal and regulatory reforms on the horizon and a recent increase in insurance premium tax to contend with, but ARAG has established a robust competitive position by embracing such challenges and making opportunities of them.
The benefit of this approach is demonstrated in our continuing success and ability to deliver strong financial returns.
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2017
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2016
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2015
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2014
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Gross written premium (GWP)
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£38,820,114
|
£41,141,503
|
£44,348,298
|
£39,610,285
|
|
Number of policies
|
33,541
|
39,059
|
34,272
|
30,809
|
|
Units of risk
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2,219,452
|
1,989,863
|
2,031,027
|
2,058,098
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|
Number of claims
|
38,368
|
36,182
|
34,496
|
33,374
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|
Earned income
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£12,305,328
|
£12,222,253
|
£11,145,518
|
£11,837,766
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EBITDA*
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£1,343,173
|
£2,552,165
|
£2,403,953
|
£3,848,187
|
|
Indirect expenses/Earned income
|
69.3%
|
61.1%
|
58.5%
|
54.8%
|
* EBITDA = Earnings Before Interest payable, Taxes, Depreciation and Amortisation