Aspen Reports 2016 Q3 Net Income: $95.6M
Bermuda-based Aspen Insurance Holdings Limited reported net income after tax of $95.6 million, or $1.40 per diluted share, and operating income after tax of $69.3 million, or $0.97 per diluted share, for the third quarter of 2016.
Chris O’Kane, Chief Executive Officer, commented, “Aspen’s results this quarter reflect good underwriting profitability across our business. This was demonstrated by our 93.8% combined ratio and the improved accident year ex-cat loss ratios achieved by both business segments.
“Premium growth in the quarter was driven by Aspen Re, where the AgriLogic business is being successfully integrated and is performing well.
“At Aspen Insurance, we continued our efforts to reduce volatility, while also delivering growth in targeted areas such as in our Financial and Professional lines portfolio. We remain very disciplined in our selection of risk and continue to enhance our range of products.”
Operating highlights for the quarter ended September 30, 2016
- Gross written premiums increased by 6.0% to $763.5 million in the third quarter of 2016 compared with $720.5 million in the third quarter of 2015
- Combined ratio of 93.8% for the third quarter of 2016 compared with 93.4% for the third quarter of 2015
- Net favorable development on prior year loss reserves of $35.4 million, or 5.2 combined ratio points, for the third quarter of 2016 compared with $39.0 million, or 6.1 combined ratio points, in the comparable period
- Pre-tax catastrophe losses, net of reinsurance recoveries, totaled $24.9 million, or 3.7 combined ratio points, in the third quarter of 2016 compared with $19.1 million, or 3.0 combined ratio points, of pre-tax catastrophe losses, net of reinsurance recoveries, in the third quarter of 2015
- Expense ratio of 36.6% in the third quarter of 2016 compared with the 36.3% in the third quarter of 2015, reflecting an increase in the general and administrative expense ratio offset by a decrease in the policy acquisition expense ratio
Operating highlights for the nine months ended September 30, 2016
- Gross written premiums increased by 7.6% to $2,540.9 million in the first nine months of 2016 compared with $2,362.5 million in the first nine months of 2015
- Combined ratio of 95.4% for the first nine months of 2016 compared with 92.0% for the first nine months of 2015
- Net favorable development on prior year loss reserves of $78.2 million, or 3.9 combined ratio points, for the first nine months of 2016 compared with $97.6 million, or 5.3 combined ratio points, for the first nine months of 2015
- Pre-tax catastrophe losses, net of reinsurance recoveries and $3.1 million of reinstatement premiums, totaled $108.7 million, or 5.4 combined ratio points, in the first nine months of 2016 compared with $44.5 million, or 2.4 combined ratio points, of pre-tax catastrophe losses, net of reinsurance recoveries, in the first nine months of 2015
- Expense ratio of 36.7% for the first nine months of 2016 compared with 36.0% for the first nine months of 2015, reflecting an increase in the general and administrative expense ratio offset by a decrease in the policy acquisition expense ratio
Financial highlights for the quarter and nine months ended September 30, 2016
- Annualized net income return on average equity of 11.2% and annualized operating return on average equity of 8.0% for the quarter ended September 30, 2016 compared with 2.8% and 8.4%, respectively, for the third quarter of 2015
- Annualized net income return on average equity of 10.9% and annualized operating return on average equity of 7.3% for the first nine months of 2016 compared with 8.3% and 9.7%, respectively, for the first nine months of 2015
- Net income per diluted share of $1.40 for the quarter ended September 30, 2016 compared with net income per diluted share of $0.30 for the quarter ended September 30, 2015, and net income per diluted share of $3.97 for the nine months ended September 30, 2016 compared with net income per diluted share of $2.80 for the nine months ended September 30, 2015
- Operating income per diluted share of $0.97 for the quarter ended September 30, 2016 compared with operating income per diluted share of $0.93 for the quarter ended September 30, 2015, and operating income per diluted share of $2.65 for the nine months ended September 30, 2016 compared with operating income per diluted share of $3.31 for the nine months ended September 30, 2015
- Diluted book value per share of $50.49 as at September 30, 2016 up 9.8% from December 31, 2015
