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Aspen Reports Results For The Quarter And Six Months Ended June 30, 2012

Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) today reports net income after tax of $84.6 million, or $1.03 per diluted share, for the second quarter of 2012 with an increase in diluted book value per share of 3.7% from March 31, 2012 to $40.01.

Trading highlights in the quarter included low catastrophe levels, areas of pricing improvement, especially in loss affected and peak zone property lines, and net favorable reserve development. The insurance segment had a strong performance with targeted premium growth and a combined ratio of 92.2% while continuing to make progress in developing its US insurance footprint. The reinsurance segment had an excellent quarter with a combined ratio of 79.0%.

Operating highlights for the quarter ended June 30, 2012

  • Net earnings per diluted share of $1.03 for the quarter ended June 30, 2012 compared with net earnings per diluted share of $0.05 in the second quarter of 2011 (1)
  • Operating earnings per diluted share of $1.32 for the quarter ended June 30, 2012 compared with operating earnings per diluted share of $0.35 in the second quarter of 2011 (1)(2)
  • Diluted book value per share of $40.01, up 7.4% from the second quarter of 2011 and up 3.7% from March 31, 2012 (1)
  • Annualized net income return on average equity of 10.8% and annualized operating return on average equity of 13.6% for the second quarter of 2012 compared with 0.4% and 3.6% respectively in the second quarter of 2011 (2)
  • Gross written premiums in the second quarter of 2012 increased 15% from the second quarter of 2011 to $666.6 million with the majority of the growth resulting from a 25% increase in the insurance segment
  • Combined ratio of 87.3% for the second quarter of 2012 compared with a combined ratio of 105.3% (1)
  • Prior year net reserve releases of $28.6 million for the quarter compared with $32.8 million of net reserve releases in the second 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 June 30, 2012 (unaudited)

$ in millions, except per share amounts and percentages

 
 

Q2 2012  

    Q2 2011 (1)
Gross written premiums $666.6 $582.2
Net earned premiums $513.4 $459.8
Net investment income $52.8 $58.6
Net income after tax $84.6 $9.1
Operating income after tax $105.8 $30.8
Diluted net income per share $1.03 $0.05
Diluted operating earnings per share $1.32 $0.35
Annualized net income return on equity 10.8% 0.4%
Annualized operating return on equity 13.6% 3.6%
Combined ratio 87.3% 105.3%
Combined ratio excluding catastrophes (2) 87.3% 90.3%
Book value per ordinary share $41.41 $38.64
Diluted book value per ordinary share   $40.01     $37.24
 
 
Financial highlights, six months ended June 30, 2012 (unaudited)

$ in millions, except per share amounts and percentages

 
 

H1 2012  

    H1 2011 (1)
Gross written premiums $1,448.7 $1,253.5
Net earned premiums $1,008.8 $912.2
Net investment income $105.2 $114.1
Net income (loss) after tax $163.3 $(143.7)
Operating income (loss) after tax $176.3 $(130.9)
Diluted net income (loss) per share $2.02 $(2.19)
Diluted operating earnings (loss) per share $2.20 $(2.01)
Annualized net income (loss) return on equity 10.6% (11.2)%
Annualized operating return (loss) on equity 11.4% (10.2)%
Combined ratio 90.4% 126.8%
Combined ratio excluding catastrophes (2) 88.3% 87.9%
 

(1)

  See provision of ASU 2010-26 on page 12

(2)

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

Chris O’Kane, Chief Executive Officer commented, “Our operating income for the second quarter was $106 million, or $1.32 per diluted share, the result of strong underwriting results in both reinsurance and insurance, supported by solid investment returns. Diluted book value per share grew 3.7% to over $40, a first for Aspen and we generated an annualized operating return on equity of 13.6%. I am very pleased with the strong results for the quarter as we enter the second half of the year, with a strong capital base and total assets now over $10 billion. We continue to be committed to returning capital to shareholders through our share repurchase program when we are not able to use our capital in a manner we believe to be sufficiently productive.”

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