Bermuda-based Aspen Insurance Holdings Limited reported net Income of $70.1 million, or $0.98 per diluted share, for the first quarter of 2005, compared to $85 million in the same period last year, a 17.5 percent decrease.
Gross written premiums rose more than 20 percent to $804.1 million for the first quarter 2005, compared to $640.2 million in Q1 2004, while net investment income more than doubled to $25.5 million for the first quarter 2005, compared to $12 million in the same period last year. Aspen’s combined ratio in the first quarter was 81percent.
CEO Chris O’Kane commented: “I am pleased with our continued progress in executing our diversified specialty insurance and reinsurance strategy. The strength of our first quarter results is encouraging and I believe we have established a solid foundation from which to build throughout the remainder of the year. In general, we have seen pricing discipline maintained in our industry and we remain highly focused on ensuring the business we write is appropriately rated.”
The net earnings decline was largely caused by increases in underwriting expenses. Losses and loss expenses rose from $124.1 million in Q1 2004 to $207.4 million in the first quarter of 2005. Acquisition expenses and general and administrative costs also increased. As a result underwriting income dropped more than 30 percent from $104.6 million in Q1 2004 to $71.7 million in the first quarter of 2005.
The entire report may be obtained on the company’s Website at:http://www.aspen.bm.
Aspen will hold a conference call today, April 29, 2005 at 8:30 a.m. (ET) to discuss first quarter 2005 financial results. Investors may participate in the live conference call by dialing 800-473-6123 (toll-free domestic U.S.) or 973-582-2706 (international). Please call to register at least 10 minutes before the conference call begins. A replay of the call will be available for 10 days via telephone starting approximately two hours following the live call on April 29, 2005, and can be accessed at 877-519-4471 (toll-free domestic U.S.) or 973-341-3080 (international); passcode: 5903987. The live call and a replay can also be heard via Aspen’s Website, as indicated above.
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