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Aspen Reports Results For The Quarter And Full Year Ended December 31, 2011

Aspen Insurance Holdings Limited (“Aspen” or the “Company”) (NYSE: AHL) today reported net income after tax of $13.5 million, or $0.11 per diluted share, for the fourth quarter of 2011. For the full year 2011, net loss after tax was $105.8 million, or $1.82 per diluted share. Performance in Aspen’s insurance segment was strong, a result of significant growth in certain niche areas and improvement across a number of lines. Reinsurance results were materially impacted by a high frequency and severity of natural catastrophes in 2011, which were partially offset by a good performance in casualty and specialty reinsurance lines.

Operating highlights for the quarter ended December 31, 2011

  • Strong performance in the insurance segment with an improvement in the loss ratio to 58.0% in the fourth quarter of 2011 compared with 77.4% in the fourth quarter of 2010
  • Net earnings per diluted share of $0.11 for the quarter ended December 31, 2011 compared with $1.12 in the fourth quarter of 2010
  • Operating earnings per diluted share of $0.01 for the quarter ended December 31, 2011 compared with operating earnings per diluted share of $1.02 in the fourth quarter of 2010
  • Diluted book value per share of $38.43, down 1.2% from the fourth quarter of 2010 and up 0.4% from September 30, 2011
  • Annualized net income return on average equity of 1.2% for the fourth quarter of 2011 and annualized operating return on average equity of nil
  • Gross written premiums of $458.7 million for the fourth quarter of 2011, compared with $412.8 million for the fourth quarter of 2010
  • Combined ratio of 114.1%, or 89.2% excluding catastrophe losses for the quarter ended December 31, 2011 compared with a combined ratio of 95.3% or 88.3% excluding catastrophe losses for the fourth quarter of 2010
  • Prior year net reserve releases of $22.0 million for the quarter ended December 31, 2011 compared with $12.6 million of net reserve releases in the fourth quarter of 2010
         
Financial highlights, quarter ended December 31, 2011 (unaudited)

$ in millions, except per share amounts and percentages

 
Q4 2011   Q4 2010   Change
Gross written premiums $ 458.7 $ 412.8 11.1 %
Net earned premiums $ 489.4 $ 499.7 (2.1 )%
Net investment income $ 54.2 $ 57.0 (4.9 )%
Operating income after tax $ 6.1 $ 75.8 (92.0 )%
Net income after tax $ 13.5 $ 92.7 (85.4 )%
Diluted net income per share $ 0.11 $ 1.12 (90.2 )%
Diluted operating earnings per share $ 0.01 $ 1.02 (99.0 )%
Annualized net income return on equity 1.2 % 13.2 %
Annualized operating return on equity - % 10.8 %
Combined ratio 114.1 % 95.3 %
Book value per ordinary share $ 39.89 $ 40.96 (2.6 )%
Diluted book value per ordinary share $ 38.43     $ 38.90     (1.2 )%
 
         
Financial highlights, full year ended December 31, 2011 (unaudited)

$ in millions, except per share amounts and percentages

 
  2011       2010     Change
Gross written premiums $ 2,207.8 $ 2,076.8 6.3 %
Net earned premiums $ 1,888.5 $ 1,898.9 (0.5 )%
Net investment income $ 225.6 $ 232.0 (2.8 )%
Operating income/(loss) after tax $ (66.1 ) $ 258.9 (125.5 )%
Net income/(loss) after tax $ (105.8 ) $ 312.7 (133.8 )%
Diluted net income/(loss) per share $ (1.82 ) $ 3.62 (150.3 )%
Diluted operating earnings/(loss) per share $ (1.26 ) $ 2.94 (142.9 )%
Annualized net income/(loss) return on equity (5.3 )% 11.2 %
Annualized operating return/(loss) on equity (3.7 )% 9.1 %
Combined ratio   115.6 %     96.7 %    
 

Chris O’Kane, Chief Executive Officer commented, “A combination of natural catastrophes and global economic uncertainty made 2011 a very difficult year for our industry. Aspen reported an operating loss of $1.26 per share and a book value of $38.43 per share for 2011, down 1.2% from year end 2010.

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