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Aspen Reports Results For The Quarter And Nine Months Ended September 30, 2012 And Announces A $400 Million Share Repurchase Authorization

Stocks in this article: AHL

Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) today reported net income after tax of $115.1 million and diluted earnings per share of $1.45 for the third quarter of 2012. Diluted book value per share increased by 3.8% from June 30, 2012 to $41.53.

Trading highlights in the quarter included low catastrophe levels, areas of pricing improvement, and net favorable reserve development with profitable performance in both the reinsurance and insurance segments.

Operating highlights for the quarter ended September 30, 2012

  • Diluted net earnings per share of $1.45 for the quarter ended September 30, 2012 compared with diluted net earnings per share of $0.21 in the third quarter of 2011 (1)
  • Diluted operating earnings per share of $1.34 for the quarter ended September 30, 2012 compared with diluted operating earnings per share of $0.68 in the third quarter of 2011 (1)(2)
  • Diluted book value per share of $41.53, up 9.1% from the third quarter of 2011 and up 3.8% from June 30, 2012 (1)(2)
  • Annualized net income return on average equity of 14.4% and annualized operating return on average equity of 13.2% for the third quarter of 2012 compared with 2.4% and 7.2%, respectively in the third quarter of 2011 (1)(2)
  • Gross written premiums in the third quarter of 2012 increased 12.7% from the third quarter of 2011 to $558.4 million with the majority of the growth resulting from a 36.2% increase in the insurance segment
  • Combined ratio of 87.0% for the third quarter of 2012 compared with a combined ratio of 96.9% (1) for the third quarter 2011
  • Net favorable development on prior year loss reserves of $29.8 million, or 5.8 combined ratio points, for the quarter compared with $15.6 million, or 3.2 combined ratio points, for the third quarter of 2011

(1) See provision of ASU 2010-26 on page 13

(2) See definition of non-GAAP financial measures on pages 12 and 13

       

Financial highlights, quarter ended September 30, 2012 (unaudited)

$ in millions, except per share amounts and percentages

 

Q3 2012

    Q3 2011 (1)
Gross written premiums $558.4 $495.6
Net earned premiums $516.2 $486.9
Net investment income $48.6 $57.3
Net income after tax $115.1 $21.2
Operating income after tax $106.5 $55.5
Diluted net income per share $1.45 $0.21
Diluted operating earnings per share $1.34 $0.68
Annualized net income return on equity 14.4% 2.4%
Annualized operating return on equity 13.2% 7.2%
Combined ratio 87.0% 96.9%
Combined ratio excluding catastrophes (2) 86.6% 85.8%
Book value per ordinary share $42.90 $39.41
Diluted book value per ordinary share $41.53     $38.07
 
       

Financial highlights, nine months ended September 30, 2012 (unaudited)

$ in millions, except per share amounts and percentages

 
YTD 2012     YTD 2011 (1)
Gross written premiums $2,007.1 $1,749.1
Net earned premiums $1,525.0 $1,399.1
Net investment income $153.8 $171.4
Net income (loss) after tax $278.4 $(122.5)
Operating income (loss) after tax $282.8 $(75.4)
Diluted net income (loss) per share $3.47 $(1.98)
Diluted operating earnings (loss) per share $3.53 $(1.32)
Annualized net income (loss) return on equity 11.9% (6.7)%
Annualized operating return (loss) on equity 12.0% (4.4)%
Combined ratio 89.3% 116.4%
Combined ratio excluding catastrophes (2) 87.2% 87.1%
 

(1) See provision of ASU 2010-26 on page 13

(2) See definition of non-GAAP financial measures on pages 12 and 13

 

Chris O’Kane, Chief Executive Officer commented, “Our operating income for the third quarter was $106.5 million, equivalent to diluted earnings per share of $1.34 and the result of positive performances in both reinsurance and insurance. Diluted book value per share grew 3.8% in the quarter to $41.53 and we generated an annualized operating return on equity of 13.2%. We enter the final quarter of the year with positive momentum and a strong capital position as we continue to execute our diversified business strategy and to manage capital effectively.”

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