Aspen Hit by Nat Cats as Q1 Net Income Falls to $18.3 Million

April 30, 2010

Bermuda-based Aspen Insurance Holdings Limited reported a net profit after tax for the first quarter of 2010 of $18.3 million and operating earnings of $0.01 per diluted ordinary share, compared to a net profit after tax of $91.4 million, and operating earnings of $1.18 per diluted share for the first quarter last year.

Aspen said losses from the “Chilean earthquake of $100.3 million, after tax and net of reinstatement premiums, accounted for a reduction of $1.25 in diluted earnings per share for the quarter.”

Operating income after tax for the first quarter was $6.1 Million, compared to $105.7 million in Q1 2009. Operating earnings per share were $0.01 for the quarter, compared with $1.18 for the first quarter of 2009.

Aspen also said its book value per share on a diluted basis is $34.62, an increase of 18.5 percent when compared to March 31, 2009 and by 1.4 percent since the end of December 2009, “mainly as a result of a $22.0 million increase in unrealized gains, net of tax, from the fixed income investment portfolio generated during the first quarter of 2010.”

The combined ratio for the period rose to 110.3 percent, compared to 84.5 percent in Q1, 2009.

CEO Chris O’Kane commented: “The first quarter of 2010 saw an exceptionally high number of natural catastrophes around the world. Catastrophic events in France, Australia and the U.S. had minimal impact on our performance, while our experience in the earthquake in Chile is in line with our expectations but nevertheless has had a significant impact on results in the quarter.

“Underwriting conditions generally have continued to deteriorate and we are therefore continuing with our approach, whereby we tend to reduce exposure where prices are falling while carefully allocating more capital where appropriate to the areas where prices are being maintained and to those few areas where we are seeing price increases.”

The complete first quarter earnings report, additional information and access to the earnings conference call, which will be webcast live in the ‘presentations’ section of the Investor Relations page of Aspen’s website, maybe be obtained at: www.aspen.bm.

Source: Aspen Insurance Holdings

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