ARAG Rechtsschutz Plans Conversion: Operative Holding Company to become a Societas Europeae (SE)

Düsseldorf (ots) - ARAG Allgemeine Rechtsschutz-Versicherungs-AG
has initiated the process of converting to a "Societas Europeae"
(SE). The Management Board has approved the corresponding conversion
plan. The operational holding company of the ARAG Group is to be
reincorporated as an SE in the course of 2011. Group headquarters
will remain in Düsseldorf, and the ARAG brand name is to be retained
as well.

ARAG Allgemeine Rechtsschutz Versicherungs-AG now plans to convert
to a new legal form and reincorporate as ARAG SE. This measure
reflects the progressive international expansion of ARAG
Rechtsschutz. Nearly one out of every two ARAG employees now works
outside Germany. The international legal insurance segment has been
the largest single business field of the ARAG Group for the past
three years. The Group currently operates in 13 European countries
and the United States.

"ARAG has changed dramatically in recent years. And we want to
respond appropriately to these changes by adopting a legal form that
gives us easier access to new markets in Europe. That will create
options that enable us to continue growing our business," explains
Dr. Paul-Otto Faßbender, Chairman of the Board of Management of the
ARAG Group. "ARAG SE will remain based in Düsseldorf," he adds.

This conversion will enable the Düsseldorf family enterprise to
strengthen its reputation as an international insurer and make itself
more attractive to European customers. As an SE, the company will
also be able to involve its German and international employees more
effectively in the Group's management bodies. Employees were informed
accordingly in a letter sent to the European subsidiaries of the ARAG
Group on 24 January 2011.

In step with the conversion of the operational management company
ARAG Rechtschutz to ARAG SE, the Group parent company ARAG
Aktiengesellschaft is to be reincorporated as ARAG Holding SE. ARAG
Holding SE will also retain its headquarters in Düsseldorf.

According to current plans, the dual management model consisting
of a Supervisory Board and a Management Board for both companies will
also remain in force.

In view of the statutory deadlines for the formation of European
employee representation bodies in companies undergoing
reincorporation, the Group expects to complete the conversion process
during the latter half of 2011.

The ARAG Group is the internationally recognized, independent
partner for legal matters and protection. ARAG is the largest
family-owned company in the German insurance industry. The Group
generates sales and premium revenues of over ? 1.4 billion. Outside
of Germany, ARAG is actively serving customers in 12 other European
countries and the United States. ARAG currently holds a leadership
position in the US legal insurance market. In addition, the ARAG
Group with its legal insurance products is the market leader in Spain
and Italy.

Contact:
ARAG Allgemeine Rechtsschutz-Versicherung-AG
ARAG Platz 1
40472 Düsseldorf
Klaus Heiermann
Leiter Hauptabteilung
Konzernkommunikation/Marketing
Telefon: +49 (0)211 963-2219
Fax: +49 (0)211 963-2220
klaus.heiermann@ARAG.de
www.ARAG.de