HDI Global Specialty has strengthened its legal insurance offering in the Australian market, signing a deal with German insurer ARAG Group to launch an underwriting agency.

ARAG Services Australia will target the broking market and establish policies and handle claims for legal insurance policies on HDI’s behalf.

Antoinette von Wendt has been appointed CEO of the new operation, which marks ARAG’s first move into the Australian market. She previously worked in ARAG’s corporate development department.

HDI Global Specialty began operating this year as a joint venture between HDI Global and Hannover Re, covering business lines such as legal expenses, errors and omissions, directors’ and officers’ insurance, sports and entertainment, aviation, offshore energy and animal insurance.

HDI Global Chairman Christian Hinch said at the time the specialty business was growing faster than “classic” industrial lines and had above-average margins.

ARAG’s international legal insurance business now accounts for 60% of total legal insurance revenue.

ARAG CEO Dr Paul-Otto Faßbender says the Australian legal expense insurance market “offers interesting growth opportunities and we are eager to get started on the continent”.

The insurer now has operations in 18 countries.