Bermuda-based Aspen Insurance Holdings Limited reported net after tax income for the first quarter of 2006 of $61.8 million, a 13.4 percent decline from the $70.1 million it earned in the same period of 2005. While investment income rose to $44.5 million from $25.5 million for the period, underwriting income declined to $38.7 million from $71.7 million for Q1 2005.
Other highlights included the following:
— Major successful risk management initiative reduces catastrophe exposures
— First quarter 2006 combined ratio of 90.4 percent
— Gross written premiums were $678.7 million for the first quarter 2006 [compared to $804.1 million in Q1 2005].
CEO Chris O’Kane commented: “During the first quarter we experienced a benign period for losses, which is reflected in our loss ratio for the period. Additionally, we were extremely active in re-focusing our property catastrophe exposures, which resulted in a major reduction in critical zone exposures beyond what we had contemplated in our planning.
“This also resulted in a meaningful reduction in premium. At January 1, in many cases, prices for catastrophe risk did not move sufficiently, but as the quarter progressed, we observed considerable strengthening of critical zone catastrophe pricing. We are encouraged by this trend and believe it will enable us to replace considerable parts of the business we have rejected with similar exposures at much better prices as the year advances.”
The bulletin also noted that “Shareholders’ equity increased from $2,039.8 million at December 31, 2005 to $2,075.0 million at March 31, 2006.
“During the quarter the Company raised $29.1 million through the issuance of Perpetual Preferred Income Equity Replacement Securities.
As previously announced Aspen will host an earnings conference call today, April 27, at 8:30 a.m. Eastern Time (See IJ Website April 26 for conference details
The conference call will be webcast live on the ‘Investor Relations’ section of Aspen’s web site, which is located at http://www.aspen.bm. Further details of the Company’s financial statement may also be obtained there.
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