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Press Releases by Date  |   Press Releases by Company Name

View More Press Releases by ARAG Group

Press release:

ARAG Group Acquires LawPhone

Issued by: ARAG Group

Date: Nov. 6, 2003

– Legal insurance group acquires second competitor in two years to help solidify market leader status –
– LawPhone customers benefit from ARAG Group’s strong customer experience philosophy –
– ARAG Group continues strong growth campaign –

DES MOINES, Iowa – Nov. 6, 2003 – ARAG Group, a leading legal insurance and supportive services administrator, announces today that ARAG North America has acquired Advisory Communications Systems, Inc. (ACS), a legal benefits plan provider, and its legal services delivery system, LawPhone. ARAG North America is a member company of ARAG Group.

LawPhone is headquartered in Lanham, Md., with an additional office in Vancouver, British Columbia. The acquisition allows ARAG Group to expand its market share in the corporate group legal insurance market, grow its presence in the consumer and affinity marketplaces, while at the same time open new markets for the company in the Employee Assistance Program (EAP) and Canadian business arenas, which are areas of expertise for LawPhone.

“By acquiring LawPhone, ARAG Group is positioning itself as the legal insurance industry leader,” said Jim Brennan, president of ARAG Group. “We’re extremely excited about the opportunity this acquisition provides. LawPhone has built tremendous strengths in specific markets, and ARAG Group will reap the benefits by adding business from new corporate sponsorships, while also expanding our product offerings and distribution channels.”

David Thompson, president of LawPhone, shared the sentiments. “We always respected ARAG Group’s position in the legal insurance marketplace,” Thompson said. “ARAG Group's acquisition of LawPhone will provide them with a new dimension, adding unique and strong distribution channels to an already strong market leadership position.

“We share a remarkably common culture and customer focus, which will result in a smooth transition and an even stronger provider for both our and their customers,” Thompson added. “This acquisition clearly positions ARAG Group as an industry leader.”

LawPhone has established itself as an industry expert in serving the legal needs of Employee Assistance Programs (EAPs), while also having a strong direct-to-consumer business model. With the company’s Vancouver office and call center, its Canadian business and experience will also be a tremendous asset to ARAG Group as it expands its North American services.

The terms of the acquisition, which are subject to final shareholder and regulatory approvals, are not being disclosed.

This acquisition for ARAG Group marks the second one for the company. In 2002, ARAG Group acquired the assets of LegalWise North America, a national legal insurance provider, headquartered in Tampa, Fla.

Brennan added that ARAG Group might seek out other acquisition targets in the near future. “ARAG Group initiated an ambitious five-year growth plan in 2001 that called for expansion in our core employer sponsored group legal segment and diversification in other distribution channels and alliances,” he said. “We recognize that while most of our growth will be internally developed, acquisitions will play a role. We are identifying organizations that further enhance our core competencies, while allowing us expansion opportunities in new markets.”

About ARAG Group
Founded in 1973, ARAG Group ( is a leading provider of legal and supporting solutions, and maintains its domestic headquarters in Des Moines, Iowa. In 2002, the American Bar Association awarded the company meritorious recognition in the Louis M. Brown Award for Legal Access. Also in 2002, the A.M. Best Company assigned ARAG Insurance Company a Best’s Rating of A (Excellent). The company’s current corporate clients include industry leaders such as Ford Motor Company, Microsoft Corporation, Nokia, Oracle Corporation, The Procter & Gamble Company and Wachovia (formerly First Union Corporation). The parent company, Allgemeine Rechtsschutz Versicherungs Aktien Gesellschaft (ARAG), is headquartered in Germany with locations in 14 countries in addition to the United States. It maintains 12 million plan members and insureds worldwide.

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For more information:

View More Press Releases by ARAG Group

This is a press release issued by the company named above. BenefitsLink is not the author. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by BenefitsLink.

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