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Aspen reports half-year net income of $219m

Mark Cloutier, group executive chairman and chief executive of Aspen (File photograph)

Aspen Insurance Holdings Limited has reported first-half 2023 net income of $219 million, a 352 per cent jump over last year’s net income of $48 million over the same period.

Operating income for the Bermudian-based re/insurer increased 47 per cent to $191 million.

The annualised operating return on average equity was 22 per cent (June 30, 2022: 14 per cent).

Gross written premiums of $2,125 million in the six months ended June 30 represented a decrease of 10 per cent compared with $2,351 million in 2022.

Net written premiums of $1,351 million compared with $1,506 million in the first half of 2022.

Catastrophe losses of $53 million, or 4.1 percentage points on the combined ratio, for the first half included losses associated with floods in New Zealand, Cyclone Gabrielle, wildfires in Chile and other weather-related events. That compares with catastrophe losses of $93 million in the prior-year period.

Aspen’s underwriting income increased 33 per cent to $208 million from $157 million in 2022.

The combined ratio was 83.8 per cent (June 30, 2022: 88.2 per cent).

Aspen Capital Markets’ total fee income increased 28 per cent to $61 million. That compares with the 2022 first-half figure of $47 million.

Net investment income increased 46 per cent to $129 million.

Mark Cloutier, group executive chairman and chief executive, said: “While broadly trading conditions are strong, resulting in a 12 per cent rate increase across our whole portfolio, our focus remains on rate adequacy, terms and conditions rather than just rate change. Growing and maintaining our profitability as conditions shift will always be our first priority.”

He added: “Our diverse portfolio across our two underwriting segments, insurance and reinsurance, allows us to flexibly manage our business.

“Our underwriting income was well balanced across these two segments and their positive performance was further strengthened by continued expense discipline across the group, with general and administrative expenses decreasing by 9 per cent to $169 million, notwithstanding inflationary pressures on our cost base.”

Mr Cloutier said: “In the first half of the year, we again saw significant rate increases across our portfolio, and the outlook remains favourable. Our relentless focus on underwriting discipline and managing volatility means we are well placed to continue to take advantage of current market conditions.”

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Published August 23, 2023 at 7:16 am (Updated August 23, 2023 at 7:16 am)

Aspen reports half-year net income of $219m

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