Aspen Q2 Net Steady at $109 Million; Operating $105 Million

Bermuda-based Aspen Insurance Holdings Limited reported net income after tax for the second quarter of 2010 of $108.9 million, or $1.28 per diluted share. Operating earnings, which excludes capital gains/losses, was up slightly at $104.9 million, or $1.23 per diluted ordinary share. This compares to net income after tax of $110.4 million and operating earnings of $103.8 million, or $1.14 per diluted share for the second quarter last year.

Aspen also noted that “book value per share on a diluted basis of $36.96 increased by 21.3 percent when compared to June 30, 2009 and by 6.8 percent since the end of March 2010 as a result of $91.5 million of retained income and a $77.9 million increase in unrealized gains, net of tax, from the fixed income investment portfolio in the quarter.”

Gross written premiums for the quarter rose by 2.1 percent to $545.4 million from 534.3 million in Q2 2009. Annualized return on equity was 16.4 percent, compared to 17.6 percent in Q2 2009. Aspen posted a combined ratio of 86.9 percent for the period, compared to 87.7 percent for Q2 2009.

Aspen also noted the following operating highlights for the second quarter:
— Chilean earthquake losses, net of reinstatement premiums and tax, remained unchanged from the first quarter of 2010 at $100.3 million.
— Reserves attributable to the Deepwater Horizon loss at $18.6 million, net of tax and reinstatement premiums, across reinsurance and insurance.
— Cash flows from operating activities were $147.5 million for the quarter and $247.9 million for the six months in 2010 compared with $99.1 million and $302.3 million respectively in 2009.
— Reserve releases were $2.1 million for the quarter and $15.0 million for the six months in 2010, compared with $16.9 million and $26.8 million respectively in 2009.
— Unrealized gains in the available-for-sale fixed income portfolio increased by $77.9 million this quarter to $255.0 million, net of tax, compared with unrealized gains of $37.4 million in the second quarter of 2009.
— Completed $200.0 million accelerated share repurchase entered into in the first quarter of 2010 resulting in the repurchase and cancellation of a total of 7.2 million ordinary shares during the first half of 2010.

CEO Chris O’Kane commented: “I am pleased to report that our diversified portfolio of insurance and reinsurance business generated an annualized operating return on equity of 15.6 percent for the second quarter notwithstanding challenging market conditions. We do not expect rating pressure to abate and underwriting discipline remains our watchword.”

The full report and additional information, including details on accessing today’s earnings conference call to be held at 8:30 a.m. EDT, may be obtained on the Company’s web site at: www.aspen.bm .

Source: Aspen Holdings

Topics Profit Loss