A specialist insurance firm that has employed hundreds of people in its Bristol head office for more than four decades looks set to be acquired by a rival which also has its headquarters in the city.
DAS, which has been a pioneer in the legal expenses insurance market since the concept was first introduced to the UK in 1975, has agreed to be taken over by ARAG.
The firms, both owned by major German financial groups, are awaiting regulatory approval of the deal, which was confirmed this morning.
Until then they will continue to operate independently without any changes to business and operations.
DAS, part of the ERGO Group – one of Europe’s largest insurance groups whose majority shareholder is insurance giant Munich Re, employs around 550 people in its Bristol head office.
As well as its legal expenses insurance company it also owns a law firm servicing legal expense claims. Both are supported by an administrative services company DAS Services.
Total gross written premiums of its legal expenses insurance operation were £129m in 2022.
ARAG, which launched in the UK from Bristol in 2006, provides a comprehensive suite of before-the-event and after-the-event legal insurance products and assistance to protect businesses and individuals.
It is part of the global ARAG Group, which employs more than 4,700 people in 19 countries around the world.
Since 2006, the ARAG Group runs its UK operations via ARAG plc as managing general agent, reporting gross written premium under management of £61m in 2022.
ARAG SE board of management speaker Dr Renko Dirksen, who is also a non-executive director of ARAG plc, said: “The international business of the ARAG Group is a substantial part of our strategic positioning.
“This said, the planned acquisition of DAS UK is a unique opportunity to acquire a complementary UK business and offering new perspectives for our customers and employees alike.
“Combining the profound knowledge and extraordinary skills of both entities will result in top-notch products and services for the benefit of all customers.”
ARAG managing director Tony Buss added: “We are excited about the opportunities this intended acquisition offers since we are pursuing a long-term strategy, strongly investing in the UK legal expenses insurance segment.
“We intend to offer a ‘best-of-breed’ portfolio to deliver even broader and better products as well as services to a wider customer base – always putting our customers and business partners first.”
The ARAG Group acquired the operations and business of DAS UK’s Irish operations in 2019 and two years later took over the entirety of ERGO Group’s DAS business in Canada.
Financial details of the acquisition have not been disclosed.
