Aspen takes $187m hit from Covid-19
Aspen Insurance Holdings Ltd posted an after-tax net loss of $168.7 million for the first six months of the year, driven by $187.3 million of losses related to Covid-19.
The Bermudian-based insurer, which is owned by American private-equity firm Apollo Global Management, said that excluding pandemic-related losses, net income for the period would have been $18.6 million.
Aspen said its half-year operating loss after tax was $48.2 million and its combined ratio — reflecting the proportion of premium income spent on claims and expenses — was 109.2 per cent.
Mark Cloutier, Aspen's chief executive officer, said: “The Covid-19 pandemic with its tragic human toll will have a meaningful and lasting impact on our lives and businesses. From the very onset of the pandemic, our team at Aspen were committed to doing our part to help ease the burden on those most affected by the pandemic and we will steadfastly maintain that commitment through to what will hopefully be an end to this terrible event.
“I am very proud of the commitment our people have shown to supporting those less fortunate and or deeply impacted by the pandemic and equally proud of how our people have responded to the sudden change in business practices, pivoting quickly to new ways of working and demonstrating exceptional professionalism, commitment and customer service, all while continuing to live our shared values and principles.”
Mr Cloutier said work to streamline and refocus the business was bearing fruit.
He said: “Our efforts to simplify and gain efficiencies in the business are also showing results with our operating expense ratio at 15.7 per cent versus prior year of 19.4 per cent.
“We have also seen growth in gross written premium notwithstanding having exited several non or underperforming lines of business. This performance is a testament to Aspen's strong brand and ability to grow in those classes of business we have focused upon as core to our success.”
Insurers have reported improving rates for their products and Aspen is no exception.
Mr Cloutier said: “Market conditions are definitely improving and while some lines of business still have some distance to achieve adequacy, we have seen strong risk adjusted rate change across both our insurance and reinsurance segments.”