Earnings Reports: Aspen Insurance Holdings, Everest Re Group

July 26, 2012

Selected earnings highlights from Bermuda-based Aspen Insurance Holdings for the second quarter and the first six months of 2012 are as follows:
Q2 2012 Q2 2011
Gross premiums written ———— $666.6 mn $582.2 mn
Net premiums earned ———– $513.4 mn $459.8 mn
Net income after tax —————- $84.6 mn $9.1 mn
Operating income after tax ——- $105.8 mn $30.8 mn
Net investment income ————- $52.8 mn $58.6 mn

Q2 combined ratio including catastrophes – 87.3 percent (105.3 percent in Q2 2011)

1st Half 2012 1st Half 2011
Gross premiums written ———— $1.4487 bn $1.2535 bn
Net premiums earned ———– $1.0088 bn $912.2 mn
Net income (loss) after tax ——- $163.3 mn ($143.7 mn)
Operating income (loss) after tax — $176.3 mn ($130.9 mn)
Net investment income ————– $105.2 mn $114.1 mn
1st half combined ratio including catastrophes – 90.4 percent (126.8 percent in 1st half 2011)

CEO Chris O’Kane commented: “Our operating income for the second quarter was $106 million, or $1.32 per diluted share, the result of strong underwriting results in both reinsurance and insurance, supported by solid investment returns. Diluted book value per share grew 3.7 percent to over $40, a first for Aspen and we generated an annualized operating return on equity of 13.6 percent.

“I am very pleased with the strong results for the quarter as we enter the second half of the year, with a strong capital base and total assets now over $10 billion. We continue to be committed to returning capital to shareholders through our share repurchase program when we are not able to use our capital in a manner we believe to be sufficiently productive.”

Source: Aspen Insurance Holdings

Selected earnings highlights from the Bermuda-based Everest Re Group for the second quarter and the first half of 2012 are as follows:
Q2 2012 Q2 2011
Gross premiums written ———— $909 mn $981.72 mn (est)
Premiums earned ——————- $1.0378 bn $1.035835 bn
Net income —————————– $214.551 mn $131.312 mn
Operating income after tax ———- $223.013 mn $133.971 mn
Net realized gain/loss —————— ($8.462 mn) ($2.661 mn)
Net investment income —————- $149.329 mn $158.618 mn
Q2 combined ratio – 89 percent (98 percent in Q2 2011
1st Half 2012 1st Half 2011
Premiums earned —————– $2.035778 bn $2.081851 bn
Net income (loss)——————— $519.255 mn ($184.582 mn)
Operating income (loss) after tax — $462.941 mn ($189.59 mn)
Net realized gain/loss after tax —– $56.314 mn $5.007 mn
Net investment income ————- $301.767 mn $337.323 mn

Chairman and CEO Joseph V. Taranto commented: “This has been an exceptional year with 10 percent growth in book value per share, adjusted for dividends, through the first six months of the year. Strong market dynamics coupled with the strategic positioning of our underwriting portfolio has provided significant margin expansion as evidenced by our underwriting results, with a combined ratio of 89 percent.

“Add to this the investment earnings generated off of our sizable portfolio and we produced an annualized operating return on equity of 16 percent. These are all strong metrics and point to the strength of our franchise and our operating strategy.”

Source: Everest Re Group

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