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Aspen reports results for 2Q13

24th July

Aspen Insurance Holdings Limited today reported net income after tax of $40.1 million, or $0.36 diluted net income per share, for the second quarter of 2013.

Chris O'Kane, Chief Executive Officer commented, "In the second quarter, Aspen delivered solid operating results in an above average catastrophe quarter, with our combined ratio excluding catastrophes improving modestly from last year. We continue to make progress on the three initiatives we outlined earlier this year to drive increased profitability. We have released $70 million of capital in our U.S. property insurance line and our U.S. operations overall continue to gain scale and momentum towards sustainable profitability. We executed over $240 million of share repurchases in the first six months of the year and continued to carefully reallocate a portion of our investment portfolio to achieve higher risk-adjusted returns. We remain intensely focused on executing these initiatives and achieving increased profitability."

Operating highlights for the quarter ended June 30, 2013

  • Gross written premiums increased overall by 3.1% to $687.3 million in the second quarter of 2013 from the second quarter of 2012. Gross written premiums in Reinsurance were flat while Insurance grew 6.0%
  • Combined ratio of 97.1% for the second quarter of 2013 compared with a combined ratio of 87.3% for the second quarter of 2012. This increase was due to $58.7 million or 10.9 percentage points, of pre-tax catastrophe losses net of reinsurance recoveries and $5.2 million of reinstatement premiums in the second quarter of 2013 compared with no catastrophe losses in the second quarter of 2012
  • Net favorable development on prior year loss reserves of $27.4 million, or 5.0 combined ratio points, for the second quarter of 2013 compared with $28.6 million, or 5.6 combined ratio points, for the second quarter of 2012

Reinsurance Segment Highlights

Operating highlights for Reinsurance for the quarter ended June 30, 2013 include:

  • Gross written premiums of $298.6 million, largely flat compared with $299.8 million for the second quarter of 2012
  • Combined ratio of 88.9% compared with 79.0% for the second quarter of 2012
  • Favorable prior year loss reserve development of $24.1 million, or 8.7 combined ratio points, compared with $14.1 million favorable prior year loss reserve development, or 5.0 combined ratio points, for the second quarter of 2012

The combined ratio of 88.9% for the second quarter of 2013 included $51.8 million, or 19.4 percentage points, of pre-tax catastrophe losses, net of reinsurance recoveries and $5.2 million of reinstatement premiums, related to flooding in Central Europe, Canada and India, and tornadoes and hailstorms in the U.S. The combined ratio of 79.0% for the second quarter of 2012 included no natural catastrophe losses.

Insurance Segment Highlights

Operating highlights for Insurance for the quarter ended June 30, 2013 include:

  • Gross written premiums of $388.7 million, up 6.0% compared with $366.8 million for the second quarter of 2012
  • Combined ratio of 99.8% compared with 92.2% for the second quarter of 2012
  • Favorable prior year loss reserve development of $3.3 million, or 1.2 combined ratio points, compared with $14.5 million, or 6.3 combined ratio points, for the second quarter of 2012

The increase in gross written premiums was mainly attributable to growth in Marine, Energy and Construction Liability, Global Casualty, as well as the U.S.-based insurance teams specifically in Programs, Professional Liability and Marine. The combined ratio for the second quarter of 2013 included $6.9 million, or 2.6 percentage points, of pre-tax catastrophe losses net of reinsurance recoveries and reinstatement premiums related to tornadoes and hailstorms in the U.S. The combined ratio for the second quarter of 2012 included no natural catastrophe losses.

Read full press release