Aspen Posts $107.4 Million Q3 Net Income

November 1, 2013

Bermuda-based Aspen Insurance Holdings Limited reported net income after tax of $107.4 million, or $1.43 diluted net income per share, for the third quarter of 2013.

The earnings report for the quarter listed the following g highlights:
– Gross written premiums increased overall by 4.2 percent to $581.6 million in the third quarter of 2013 from the third quarter of 2012.
– Gross written premiums in Reinsurance decreased by 15.4 percent while Insurance grew 21.1 percent
– Combined ratio of 91.8 percent for the third quarter of 2013 compared with a combined ratio of 87.0 percent for the third quarter of 2012.
– There were $14.2 million, or 2.6 combined ratio points, of catastrophe losses pre-tax net of reinsurance recoveries and reinstatement premiums in the third quarter of 2013 compared with minimal catastrophe losses in the third quarter of 2012.
– Catastrophe losses included hailstorms in Germany of $14.9 million, $5.7 million related to floods in Toronto and Mexico, and a $6.4 million net reduction in loss estimates for natural catastrophe losses which occurred in the first half of 2013
– Net favorable development on prior year loss reserves of $33.6 million, or 6.2 combined ratio points, for the third quarter of 2013 compared with $29.8 million, or 5.8 combined ratio points, for the third quarter of 2012

Financial highlights for the quarter and nine months ended September 30, 2013 were listed as follows:
– Annualized net income return on average equity of 14.8 percent and annualized operating return on average equity of 10.8 percent for the third quarter of 2013 compared with 14.4 percent and 13.2 percent, respectively in the third quarter of 2012
– Annualized net income return on average equity of 10.1 percent and annualized operating return on average equity of 9.2 percent for the first nine months of 2013 compared with 11.9 percent and 12.0 percent, respectively in the first nine months of 2012
– Diluted net income per share of $1.43 for the quarter ended September 30, 2013 compared with diluted net income per share of $1.45 for the third quarter of 2012, and diluted net income per share of $2.95 for the nine months ended September 30, 2013 compared with diluted net income per share of $3.47 for the nine months ended September 30, 2012
– Diluted operating income per share of $1.05 for the quarter ended September 30, 2013 compared with diluted operating income per share of $1.34 for the third quarter of 2012 and diluted operating income per share of $2.78 for the nine months ended September 30, 2013 compared with diluted net income per share of $3.53 for the nine months ended September 30, 2012
– On an after-tax basis, net catastrophe losses were $13.3 million, or $0.20 per share, for the third quarter of 2013, and $62.5 million, or $0.93 per share, for the first nine months of 2013
– Diluted book value per share of $40.43 at September 30, 2013, up 4.0 percent from June 30, 2013

CEO Chris O’Kane commented: “In the third quarter, Aspen continued to make good progress in terms of strategic execution, operating results and profitability. We are pleased with the headway we are making on the three levers we outlined earlier this year. We repurchased $296 million of ordinary shares to date and continued to reallocate a portion of our investment portfolio to achieve higher risk-adjusted returns.”

Source: Aspen Insurance Holdings

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