Aspen Net Income Bounces Back; $474 Million Full Year, $126 Million Q4

Aspen Insurance Holdings reported greatly improved results for the fourth quarter of 2009 and for the full year. The Bermuda-based Company listed the following earnings highlights:
— Diluted book value per share of $34.04, up 21.1 percent over 2008 and 2.9 percent over the third quarter of 2009.
— Full year net income after tax of $473.9 million and fourth quarter net income after tax of $126.3 million, up 356.6 percent on 2008 and 479.4 percent over the same quarter last year.
— Full year net investment income of $248.5 million and fourth quarter net investment income of $58.2 million, up 78.5 percent on 2008 and 465.0 percent over the same quarter last year.
— Diluted operating earnings per share of $5.16 for 2009, up 258.3 percent on 2008 and $1.44 for the quarter, up 747.1 percent on the fourth quarter of 2008.
— Operating return on equity of 18.0 percent for 2009, up from 5.4 percent for 2008, and annualized 18.8 percent for the quarter, up from 2.4 percent for the fourth quarter of 2008.
— Combined ratio for the twelve months of 84.1 percent and 84.7 percent for the quarter down from 95.6 percent and 93.4 percent for the respective periods in 2008.

CEO Chris O’Kane commented: “2009 was a very good year and I am delighted to report a combined ratio of 84.1 percent and an operating return on equity of 18.0 percent for the group against a challenging pricing environment and historically low interest rates.

“We have entered 2010 in a very strong position and our $200 million share buy-back in early January demonstrated our continued commitment to active capital management. Trading conditions are demanding but I remain confident of achieving a 2010 ROE that reaches into the teens assuming normal loss experience as we seek to maximize the advantages of our diversified business model.”

The report also gave a preliminary synopsis for 2010. It stated: “At this early stage in the year and given the state of the market, the Company anticipates gross written premium for the full year to be $2.2 billion +/- 5 percent, premium ceded to be between 8 percent and 12 percent of gross earned premium and the combined ratio to be in the range of 88 percent-94 percent including a cat load of $170 million assuming normal loss experience in the year. The Company expects the effective tax rate to be in the range of 10 percent to 14 percent.”

The full report, and details on accessing the earnings conference call, held on February 10, may be obtained on the Company’s web site at: www.aspen.bm .

Source: Aspen Insurance Holdings

Topics Profit Loss