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Aspen reports results for the six months ended June 30, 2019

16th August

Hamilton, Bermuda, August 15, 2019 - Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) reported today operating income of $101.8 million, and a net loss of $(37.3) million, for the six months ended June 30, 2019.

Mark   Cloutier,   Chief  Executive  Officer,  commented:  “We  continue  to  see  improvement  in  our  underwriting performance as a result of our focus on underwriting discipline and active management of the underwriting portfolio, which  have  been  underpinned  by  improving  market  conditions.  We  have  seen  good  results  across  both  our insurance and reinsurance businesses and we are particularly encouraged by the strong improvement in the ex-cat accident year loss ratio from our continuing insurance lines at 55.4% compared to 64.5% from our total insurance book during the six months ended June 30, 2018.

“While  we  are  seeing  rate  and  terms  improving  in  some  classes,  particularly  where  there  has  been  substantial withdrawal of capacity, we will continue to approach a number of the specialty classes cautiously as evidenced in the 5.9% reduction in gross written premium year on year.

“In my short period of time with Aspen I have come to appreciate the depth of talent and experience in the group and  firmly  believe  we  can  show  the  right  combination  of  entrepreneurialism  and  discipline  the  current  market conditions and trends demand of us in order to build a successful business into the future.”

Operating highlights for the six months ended June 30, 2019

•      Gross  written  premiums  decreased  by  5.9%  to  $1,854.4  million  in  the  first  half  of  2019  compared  with $1,970.6 million in the first half of 2018.

•      Net written premiums increased by 7.6% to $1,206.9 million in the first half of 2019 compared with $1,121.5 million in the first half of 2018. The retention ratio in the first half of 2019 was 65.1% compared with 56.9% in the first half of 2018.

•      Loss ratio of 60.7% for the first half of 2019 compared with 58.9% for the first half of 2018. The loss ratio for the  first  half  of  2019  included  $29.7  million,  or  2.9  percentage  points,  of  pre-tax  catastrophe  losses,  net  of reinsurance recoveries, compared with $42.4 million or 4.0 percentage points in the first half of 2018.

•      Net  favorable  development  on  prior  year  loss  reserves  of  $9.1  million  benefited  the  loss  ratio  by  0.9 percentage  points  in  the  first half  of  2019,  compared  with  net  favorable development  of  $80.2  million  which benefited the loss ratio by 7.6 percentage points in the first half of 2018.

•      Accident year loss ratio excluding catastrophes of 58.7% for the first half of 2019 compared with 62.5% for the first half of 2018.

•      Total expense ratio of 43.7% and total expense ratio (excluding non-operating expenses) of 37.7% for the first  half  of  2019  compared  with  38.8%  and  36.7%,  respectively,  for  the  first  half  of  2018.  Non-operating expenses in the first half of 2019 were $61.9 million compared with $21.2 million in the first half of 2018. Non-operating expenses in the first half of 2019 included $43.9 million of expenses related to or triggered by the  transaction  with  affiliates  of  certain  investment  funds  ("the  Apollo  Funds")  affiliated  with  Apollo  Global Management, LLC, $6.0 million of expenses related to the operational effectiveness and efficiency program and $12.0 million of expenses in relation to severance, amortization and other non-recurring costs.

•      Net loss after tax of $(37.3) million for the six months ended June 30, 2019 compared with a net income of $16.1 million, for the six months ended June 30, 2018. The net loss includes $99.2 million of investment income, compared with $97.7 million for the first half of 2018, which was offset by the above-mentioned underwriting and expense movements, as  well as $(58.2) million of net realized and unrealized investment losses  largely attributable  to  net  realized  and  unrealized  gains  and  losses  from  interest  rate  swaps  entered  into  in  2019, compared with net realized and unrealized investment losses of $(58.4) million in the first half of 2018.

The net loss in the first half of 2019 also included $(27.0) million of net realized and unrealized foreign exchange losses compared with $(22.1) million of net realized and unrealized foreign exchange losses in the first half of 2018.

•      Operating  income  after  tax  of  $101.8  million  for  the  six  months  ended  June 30,  2019  compared  with  an operating income of $119.3 million for the six months ended June 30, 2018.

•      Annualized net income return on average equity of (4.6)% and annualized operating return on average equity of 8.0% for the first half of 2019 compared with 0.1% and 8.8%, respectively, for the first half of 2018.

Read the full press release here