Aspen Reports Net Income Of $84.6 Million
Bermuda-based Aspen Insurance Holdings Limited reports net income after tax of $84.6 million, or $1.03 per diluted share, for the second quarter of 2012 with an increase in diluted book value per share of 3.7% from March 31, 2012 to $40.01.
Trading highlights in the quarter included low catastrophe levels, areas of pricing improvement, especially in loss affected and peak zone property lines, and net favorable reserve development. The insurance segment had a strong performance with targeted premium growth and a combined ratio of 92.2% while continuing to make progress in developing its US insurance footprint. The reinsurance segment had an excellent quarter with a combined ratio of 79.0%.
Chris O’Kane, Chief Executive Officer commented, “Our operating income for the second quarter was $106 million, or $1.32 per diluted share, the result of strong underwriting results in both reinsurance and insurance, supported by solid investment returns. Diluted book value per share grew 3.7% to over $40, a first for Aspen and we generated an annualized operating return on equity of 13.6%.
“I am very pleased with the strong results for the quarter as we enter the second half of the year, with a strong capital base and total assets now over $10 billion. We continue to be committed to returning capital to shareholders through our share repurchase program when we are not able to use our capital in a manner we believe to be sufficiently productive.”
In addition, the Board of Directors declared a quarterly cash dividend on Aspen’s ordinary shares of $0.17 per ordinary share. The dividend is payable on August 28, 2012 to the holders of record as of the close of trading on August 10, 2012. Aspen’s Board of Directors also declared a cash dividend on its 5.625% Perpetual Preferred Income Equity Replacement Securities of $0.703125 per Perpetual.
