Bristol-based legal expenses insurer ARAG achieved an 11% growth in consolidated income to £12.3m last year despite challenging times for its sector.
The firm, the UK arm of the giant ARAG German insurance group, said it expected further challenges over the coming year due to a combination of political uncertainty, new regulations arising Brexit, the slowing economic outlook and further legislation. 
Its combined income grew by 19% to £31.5m last year, generating a £4.2m profit. The figure includes reinsurance business generated back into ARAG in Germany.
However, its gross written premium under management fell slightly from £44.3m in 2015 to £41.1m last year.
Overall, pre-tax profits came in at £2.4m following strong growth in the ‘before-the-event’ sector and moderate underlying growth in ‘after-the-event’ business.
ARAG launched in the UK in 2006 and provides a comprehensive suite of before-the-event and after-the-event legal insurance products and assistance to protect businesses and individuals.
ARAG managing director Tony Buss, pictured, said: “I’m very pleased that our 10th year in business was such a successful one, in spite of what continued to prove challenging times for the legal expenses insurance sector.
“While we have maintained our cautious-but-flexible approach to the market, ARAG has generated excellent growth in our before-the-event business, particularly with our commercial, family and home assistance policies, and some growth in the after-the-event sector, once we have allowed for the release of provision for pre-LASPO (Legal Aid, Sentencing and Punishment of Offenders Act) cancellations that occurred in 2015.
“The challenging market environment that we face shows no sign of abating, with the political, economic and regulatory uncertainty of Brexit and further potential legislative changes on the horizon. 
“But we have always positioned ARAG to be both innovative and flexible, which enables the company to be highly adaptable in the face of such changes.”
During the year ARAG also continued to pick up key industry awards, retaining the Legal Expenses Team of the Year and MGA Team of the Year awards at the Underwriting Services Awards.
The global ARAG group is the largest family-owned enterprise in the German insurance industry.
It was founded in 1935 on the principle that every citizen should be able to assert their legal rights. Today it employs 4,000 people around the world and generates premium income of about €1.8bn (£1.6bn).
