Aspen Re reported a steep drop in quarterly profit, as catastrophe losses and a weaker underwriting performance weighed heavily on results, despite solid growth in premiums.

Net income for the three months ending March 31, 2025 fell to $36.8 million, down sharply from $111.8 million in the same period last year. Earnings per share slid to $0.22 from $1.08.

The decline came as the company’s combined ratio, a key measure of underwriting profitability, worsened to 96.1 per cent, up from 86.6 per cent a year earlier. In its reinsurance segment, the combined ratio rose above the break-even point to 101.4 per cent, reflecting deteriorating underwriting results amid natural disasters and inflation.

Underwriting income plummeted to $27.2 million, compared to $89.5 million in Q1 2024. This was driven largely by a $4 million underwriting loss in the reinsurance segment, a major swing from the $55.5 million gain recorded a year earlier.

Catastrophe losses surged to $91.4 million, nearly triple the $32.4 million reported in Q1 2024. These included claims related to the California wildfires and other severe weather events.

Despite the challenges, Aspen reported robust premium growth. Gross written premiums rose to $1.28 billion, with the reinsurance segment contributing $600.7 million and the insurance segment accounting for $686.5 million. Net written premiums also climbed to $751.7 million, up from $690.9 million in the prior-year quarter.

Total revenue rose to $789.1 million, supported by steady net investment income of $75.9 million. However, total expenses soared to $742 million, driven by higher loss and operating costs.