Legal expenses insurer AmTrust has acquired independent provider Arc Legal Assistance for an undisclosed sum.
Arc Legal is a managing general agent that provides a range of legal expenses insurance (LEI) and assistance products. It manages over 14 million legal expenses policies covering personal, motor, commercial, affinity, property owners, travel and leisure risks. Products are distributed in partnership with insurance companies, brokers, financial institutions and affinity groups.
Helen Withers, managing director of Arc Legal, said: “AmTrust provides us with a robust and supportive structure from which to continue our growth. They share our commitment to developing LEI products and services to respond to the evolving legal and regulatory structures, and support the expansion of our portfolio with new products.
“We also both see significant opportunities from investing in technology to improve the customer claims journey.”
AmTrust’s head of law, Matthew Williams, said: “Arc Legal has established a reputation for quality and integrity in the products and services it provides to a significant customer base. As an existing capacity provider to Arc Legal, we already recognised how their approach and experienced team has established them as a leading provider delivering consistent underwriting performance with outstanding customer service delivery.
“This acquisition affirms our appetite to continue to build a significant legal expenses presence.”
Meanwhile, fellow legal expenses insurer ARAG plc yesterday announced a 12% growth in premium under management for 2015.
Gross written premium under management increased from £39.6m to £44.3m, generating a pre-tax profit of £2.7m.
Managing director Tony Buss said he was particularly pleased with the results given the contraction of the after-the-event insurance market since LASPO.
“I am particularly pleased with the continued growth that our commercial legal protection and home emergency products have achieved, as well as a strong 18% increase in ATE policies, particularly for motor, employers and public liability risks.”
Mr Buss said the challenging market conditions looked set to continue, “with greater regulation, further legislation and the recent insurance premium tax increase all playing their part”, but he was confident of the company’s ability to respond.
During the year ARAG retained both the overall team of the year and legal expenses team of the year awards at the Underwriting Services Awards, as well as winning the managing general agent team of the year award for the first time. The company also secured ISO 27001 certification for information security management during 2015.