Bermuda re/insurer Aspen Insurance Holdings Ltd reported net income after tax of $90.0 million, or $1.21 diluted net income per share, for the fourth quarter of 2013.

Aspen, whose reinsurance business consists of property catastrophe reinsurance, other property reinsurance, casualty reinsurance and specialty reinsurance, saw an improvement in its combined ratio to 91.9 percent from 108 percent in the same quarter in 2012. Gross written premiums improved quarter over quarter, and annualised net income return was also up on 2012.

Chris O’Kane, chief executive officer, was quoted in the release of the results saying: “In 2013 we continued to advance our three levers for enhancing return on equity — capital management, enhancing investment returns and business portfolio optimisation. Our insurance segment benefited from the success of the build out of our US platform, which achieved profitability in each quarter last year and is positioned to drive meaningful operating leverage going forward. The Reinsurance business had outstanding results in 2013 and we are pleased with our January 1 renewals, which show that clients recognised the strength of Aspen Re’s capabilities and our importance as a trading partner.”

Aspen pointed to highlights which included:

Gross written premiums increased overall by 4.9 percent to $604.4 million in the fourth quarter of 2013 from the fourth quarter of 2012. Gross written premiums in reinsurance for the fourth quarter of 2013 decreased by 9.4 percent while insurance grew 12.2 percent.

A combined ratio of 91.9 percent for the fourth quarter of 2013 compared with a combined ratio of 108 percent for the fourth quarter of 2012. There were $34.7 million, or 6.1 combined ratio points, of catastrophe losses pre-tax net of reinsurance recoveries and reinstatement premiums in the fourth quarter of 2013 compared with $185.2 million, or 33.5 combined ratio points, in the fourth quarter of 2012

Net favourable development on prior year loss reserves of $20.5 million, or 3.6 combined ratio points, for the fourth quarter of 2013 compared with $42.0 million, or 7.5 combined ratio points, for the fourth quarter of 2012.

Annualised net income return on average equity of 12.0 percent and annualised operating return on average equity of 11.2 percent for the fourth quarter of 2013 compared with (0.8) percent and (1.6) percent, respectively, for the fourth quarter of 2012(1).

?Net income return on average equity of 10.6 percent and operating return on average equity of 9.7 percent for 2013 compared with 8.5 percent and 8.5 percent, respectively, for 2012.

Net income per share of $1.21 for the quarter ended December 31, 2013 compared with a net loss per share of $0.09 for the fourth quarter of 2012, and net income per share of $4.14 for the year ended December 31, 2013 compared with $3.39 per share for 2012.