Aggada Gladdens The Heart
Aggada gladdens the heart. The Midrash relates that a man who knew the Chumash came before the heavenly court. Hashem said to him, "Why didn't you study Aggada? When Aggada is expounded before the congregation, I forgive the Jewish people for all their sins." In gematria Aggada (אגדה) is equal to Love (אהבה) - to hint that through Aggada the sins of Israel are atoned and Hashem's love for Israel is restored... By cleansing Israel of sin, Aggada makes peace between the Jewish people and its Father in Heaven.
(Ben Ish Chai)