Aspen Insurance Report Six Month Results
Aspen Insurance Holdings reported an operating loss after tax of $48.2 million and a 109.2% combined ratio for the six months ended June 30, 2020, which included losses associated with COVID-19 totaling $187.3 million or 15.7%.
Excluding COVID-19 losses, the Company reported an operating gain after tax of $139.1 million and a combined ratio of 93.5%. The Company also reported a 14.2% increase in gross written premiums for the period.
Mark Cloutier, Chief Executive Officer, commented: “The COVID-19 pandemic with its tragic human toll will have a meaningful and lasting impact on our lives and businesses.
“From the very onset of the pandemic, our team at Aspen were committed to doing our part to help ease the burden on those most affected by the pandemic and we will steadfastly maintain that commitment through to what will hopefully be an end to this terrible event.
“I am very proud of the commitment our people have shown to supporting those less fortunate and or deeply impacted by the pandemic and equally proud of how our people have responded to the sudden change in business practices, pivoting quickly to new ways of working and demonstrating exceptional professionalism, commitment and customer service, all while continuing to live our shared values and principles.”
“Despite the many challenges we faced in the first half of the year, including a COVID-19 reserve of $187.3 million [15.7% combined ratio points], we are pleased with the progress we have made as we continue to reshape the business with a clear focus on total value creation. Underlying key performance ratios illustrate clearly the progress we are making with our accident year ex-cat combined ratio and accident year ex-cat loss ratio of 90.7% and 54.7%, respectively, comparing very favourably to prior year at 102.4% and 58.7% respectively.
“Our efforts to simplify and gain efficiencies in the business are also showing results with our operating expense ratio at 15.7% versus prior year of 19.4%. We have also seen growth in Gross Written Premium notwithstanding having exited several non or underperforming lines of business. This performance is a testament to Aspen’s strong brand and ability to grow in those classes of business we have focused upon as core to our success.”
“In Aspen Capital Markets, which is becoming ever more important to both PML1 management and product offerings, we continue to build on its contribution to our group wherein we expect both AUM2 and fee income will grow over the prior year through a combination of renewal and expansion of existing structures and the introduction of some new and innovative structures.”
“Market conditions are definitely improving and while some lines of business still have some distance to achieve adequacy, we have seen strong risk adjusted rate change across both our insurance and reinsurance segments. Seizing upon the opportunities in this improving rate environment while having the benefit of the Adverse Development Cover, completed in the first half of the year, protecting the group against potential adverse impacts from 2019 and prior underwriting years will position us well as we continue our work to simplify the business and build for the future.”
“Looking ahead, I believe that we have the right combination of entrepreneurialism, talent and discipline to build our business and position Aspen as a leading International Specialty [re]insurer. Our ambition is underpinned by a determination to build a culture that embraces and advocates for greater diversity, inclusion and corporate responsibility and recognizes their importance as pillars of future success.”
