Aspen Q1 Operating Income Decreases to $89.9M from $98M in Q1 2015

Bermuda-based Aspen Insurance Holdings Ltd. reported net income after tax of $114.4 million, or $1.68 per diluted share for the first quarter of 2016, compared with $128.0 million reported for the same quarter in 2015. Operating income after tax for the first quarter was $89.9 million, or $1.29 per diluted share, compared with $98.0 million for the first quarter of 2015.

“Aspen has started the year well, with solid first quarter underwriting results from our insurance and reinsurance businesses contributing to an annualized operating return on equity of 11.2 percent and 4.8 percent growth in diluted book value per share,” said Chris O’Kane, chief executive officer.

“Our insurance teams are successfully executing our global products line strategy and delivered growth in targeted lines of business. At the same time, we continued to pull back from areas where we do not feel returns are adequate or are historically more volatile,” he said.

“Within Aspen Re, our teams had successfulJanuary and April renewals, again demonstrating our ability to maintain relevance with clients whilenavigating a challenging and changing market,” O’Kane added.

During the first quarter, the company purchased Kansas-based specialist crop insurer, AgriLogic and opened a Dubai office to serve as a hub for the Middle East and Africa, he said. “As we move forward, we remain focused on consistently delivering value for our shareholders.”

Other highlights for the quarter ended March 31, 2016 include:

• A 6.1 percent increase in gross written premiums to $975.7 million, compared with $919.2 million in the first quarter of 2015
• A combined ratio of 91.6 percent, compared with 88.9 percent for the first quarter of 2015. Net favorable development on prior year loss reserves was $21.6 million, or 3.3 combined ratio points, compared with $27.5 million, or 4.6 combined ratio points, in the comparable period in 2015.
• Pre-tax catastrophe losses, net of reinsurance recoveries, totaled $18.7 million, or 2.8 combined ratio points, compared with $13.5 million, or 2.3 combined ratio points, of pre-tax catastrophe losses, net of reinsurance recoveries, in the first quarter of 2015.
• Annualized net income return on average equity was 14.4 percent, while annualized operating return on average equity was 11.2 percent for the quarter, compared with 16.4 percent and 12.4 percent, respectively, for the first quarter of 2015
• Net income per diluted share was $1.68, compared with net income per diluted share of $1.87 for the first quarter in 2015.
• Operating income per diluted share of $1.29, compared with operating income per diluted share of $1.39 for the first quarter in 2015.

Source: Aspen Insurance Holdings

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