The ARAG Group and ERGO Versicherung have signed an agreement to acquire the ERGO Group’s UK-based legal protection insurance business unit DAS UK for an undisclosed sum.

ERGO Group has been carrying out its operations in the UK through ARAG plc since 2006 as managing general agent. 

Founded more than 40 years ago, DAS UK currently operates a legal expenses insurance firm, DAS Legal Expenses Insurance Company; DAS Law which oversees a law firm’s legal expense claims; and DAS Services, an administrative services company.

Last year, DAS Legal Expenses Insurance Company’s total gross written premium stood at £129m ($168.8m).

ERGO Versicherung is ERGO Group’s property and casualty insurer in Germany.

ARAG took over the business of the Ireland branch of DAS UK in 2019 and acquired DAS’ Canadian operations in 2021.

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The completion of the deal is subject to obtaining regulatory clearance. 

The parties will continue their respective operations independently with no changes in business until approval.

The companies did not disclose any financial details or other terms of the deal.

ARAG non-executive director Dr Renko Dirksen 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 in acquiring 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.”