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TheStreet Open House

Aspen Reports Results For The Quarter Ended March 31, 2012

Stocks in this article: AHL

Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) today reports net income after tax of $78.7 million, or $0.99 per diluted share, for the first quarter of 2012.

Trading highlights in the quarter included areas of improved pricing, especially in loss affected and peak zone property lines, targeted premium growth and net favorable reserve development. The reinsurance segment performed strongly and recorded a loss ratio of 50% with good performance in each of the property, casualty and specialty lines. The insurance segment continues to make good progress, in particular in developing its US insurance footprint, although results overall in the insurance segment were impacted by the Costa Concordia event.

Operating highlights for the quarter ended March 31, 2012

  • Net earnings per diluted share of $0.99 for the quarter ended March 31, 2012 compared with a net loss per diluted share of $2.25 in the first quarter of 2011 (1)
  • Operating earnings per diluted share of $0.88 for the quarter ended March 31, 2012 compared with an operating loss per diluted share of $2.38 in the first quarter of 2011 (1)
  • Diluted book value per share of $38.58, up 5.8% from the first quarter of 2011 and up 1.0% from December 31, 2011 (1)
  • Annualized net income return on average equity of 10.4% and annualized operating return on average equity of 9.2% for the first quarter of 2012 (2)
  • Gross written premiums of $782.1 million for the first quarter of 2012 compared with $671.3 million for the first quarter of 2011
  • Combined ratio of 93.8%, or 90.1% excluding natural catastrophe losses for the first quarter of 2012 compared with a combined ratio of 148.7%, or 85.3% excluding natural catastrophe losses for the first quarter of 2011. (1) The Costa Concordia event represented 6.3 points on the combined ratio for the first quarter of 2012
  • Prior year net reserve releases of $37.0 million for the quarter compared with $21.9 million of net reserve releases in the first quarter of 2011

(1) See provision of ASU 2010-26 on page 12

(2) See definition of non-GAAP financial measures on pages 11 and 12

 

Financial highlights, quarter ended March 31, 2012 (unaudited)

$ in millions, except per share amounts and percentages

 
       

Q1 2012

   

Q1 2011 (1)

    Change
Gross written premiums $ 782.1     $ 671.3     16.5 %
Net earned premiums $ 495.4 $ 452.4 9.5 %
Net investment income $ 52.4 $ 55.5 (5.6 )%
 
Net income (loss) after tax $ 78.7 $ (152.8 ) NM
Operating income (loss) after tax $ 70.5 $ (161.7 ) NM
Diluted net income (loss) per share $ 0.99 $ (2.25 ) NM
Diluted operating earnings (loss) per share $ 0.88 $ (2.38 ) NM
Annualized net income return on equity 10.4 % (22.8 )%
Annualized operating return on equity 9.2 % (24.0 )%
Combined ratio 93.8 % 148.7 %
Book value per ordinary share $ 39.96 $ 37.96 5.3 %
Diluted book value per ordinary share $ 38.58       $ 36.48       5.8 %
 

NM: not meaningful

(1) See provision of ASU 2010-26 on page 12

 

Chris O’Kane, Chief Executive Officer commented, “Our overall results this quarter are encouraging on a number of fronts. The quarter saw strong performance in reinsurance whereas insurance results were impacted by the Costa Concordia event. We continue to execute our strategy of ensuring that our capital, products and people are well aligned with our customers, especially those who are paying good or improving prices for our products.

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