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TheStreet Open House

Aspen Reports Results For The Quarter And Year Ended December 31, 2012

The recording will be also available at www.aspen.co on the Event Calendar page within the Investor Relations section.

 

Aspen Insurance Holdings Limited

Summary consolidated balance sheet (unaudited)

$ in millions, except per share data

 
       

As at

December 31,

2012

     

As at

December 31,

2011

     
ASSETS
Total investments $6,692.4 $6,335.1
Cash and cash equivalents 1,463.6 1,239.1
Reinsurance recoverables 621.6 514.4
Premiums receivable 1,057.5 894.4
Other assets (1) 475.5       477.5
Total assets $10,310.6       $9,460.5
 
LIABILITIES
Losses and loss adjustment expenses $4,779.7 $4,525.2
Unearned premiums 1,120.8 916.1
Other payables 422.6 364.2
Long-term debt 499.1       499.0
Total liabilities 6,822.2 6,304.5
 
SHAREHOLDERS’ EQUITY
Total shareholders’ equity (1) 3,488.4       3,156.0
Total liabilities and shareholders’ equity (1) $10,310.6       $9,460.5
 
Book value per share (1) $42.12 $39.66
Diluted book value per share (treasury stock method) (1) $40.65       $38.21
 

(1) See provision of ASU 2010-26 on page 14

 
 

Aspen Insurance Holdings Limited

Summary consolidated statement of income (unaudited)

$ in millions, except ratios

 
            Three Months Ended

December 31,

2012

     

December 31,

2011 (1)

UNDERWRITING REVENUES      
Gross written premiums $576.2 $458.7
Premiums ceded (51.8)       (27.5)
Net written premiums 524.4 431.2
Change in unearned premiums 34.1       58.2
Net earned premiums 558.5       489.4
UNDERWRITING EXPENSES
Losses and loss adjustment expenses 437.4 394.5
Policy acquisition expenses 80.0 85.5
General, administrative and corporate expenses 86.1       79.3
Total underwriting expenses 603.5       559.3
Underwriting income (loss) including corporate expenses (45.0)       (69.9)
OTHER OPERATING REVENUE
Net investment income 51.1 54.2
Interest expense (7.7) (7.7)
Other income (expense) (6.2)       3.6
Total other operating revenue 37.2       50.1
 
OPERATING INCOME (LOSS) BEFORE TAX (7.8) (19.8)
 
Net realized and unrealized exchange gains (losses) (0.4) 2.3
Net realized and unrealized investment gains 5.6       6.0
INCOME (LOSS) BEFORE TAX (2.6) (11.5)
Income taxes benefit 4.6       23.9
NET INCOME AFTER TAX 2.0 12.4
Dividends paid on ordinary shares (12.0) (10.7)
Dividends paid on preference shares (8.5) (5.7)
Dividends paid to non-controlling interest
Proportion due to non-controlling interest (0.1)       (0.2)
Retained (loss) $(18.6)       $(4.2)
Components of net income (after tax)
Operating income (loss) $(2.9) $5.0
Net realized and unrealized exchange gains (losses) after tax (0.4) 3.7
Net realized investment gains after tax 5.3       3.7
NET INCOME AFTER TAX $2.0       $12.4
 
Loss ratio 78.3% 80.6%
Policy acquisition expense ratio 14.3% 17.5%
General, administrative and corporate expense ratio 15.4% 16.2%
Expense ratio 29.7% 33.7%
Combined ratio 108.0%       114.3%
 

(1) See provision of ASU 2010-26 on page 14

 
 

Aspen Insurance Holdings Limited

Summary consolidated statement of income (unaudited)

$ in millions, except ratios

 
            Twelve Months Ended

December 31,

2012

     

December 31,

2011 (1)

UNDERWRITING REVENUES      
Gross written premiums $2,583.3 $2,207.8
Premiums ceded (336.4)       (278.7)
Net written premiums 2,246.9 1,929.1
Change in unearned premiums (163.4)       (40.6)
Net earned premiums 2,083.5       1,888.5
UNDERWRITING EXPENSES
Losses and loss adjustment expenses 1,238.5 1,556.0
Policy acquisition expenses 381.2 347.0
General, administrative and corporate expenses 345.1       284.5
Total underwriting expenses 1,964.8       2,187.5
Underwriting income (loss) including corporate expenses 118.7       (299.0)
OTHER OPERATING REVENUE
Net investment income 204.9 225.6
Interest expense (30.9) (30.8)
Other income (expense) 0.9       (6.8)
Total other operating revenue 174.9       188.0
 
OPERATING INCOME (LOSS) BEFORE TAX 293.6 (111.0)
 
Net realized and unrealized exchange (losses) (2.0) (2.2)
Net realized and unrealized investment gains (losses) 3.8       (34.1)
INCOME (LOSS) BEFORE TAX 295.4 (147.3)
Income taxes (expense) benefit (15.0)       37.2
NET INCOME (LOSS) AFTER TAX 280.4 (110.1)
Dividends paid on ordinary shares (47.0) (42.5)
Dividends paid on preference shares (31.1) (22.8)
Dividends paid to non-controlling interest (0.1) (0.1)
Proportion due to non-controlling interest 0.2       0.1
Retained income (loss) $202.4       $(175.4)
Components of net income (loss) (after tax)
Operating income (loss) $279.9 $(70.4)
Net realized and unrealized exchange (losses) after tax (2.2) (0.1)
Net realized investment gains (losses) after tax 2.7       (39.6)
NET INCOME (LOSS) AFTER TAX $280.4       $(110.1)
 
Loss ratio 59.4% 82.4%
Policy acquisition expense ratio 18.3% 18.4%
General, administrative and corporate expense ratio 16.6% 15.1%
Expense ratio 34.9% 33.5%
Combined ratio 94.3%       115.9%
 

(1) See provision of ASU 2010-26 on page 14

 
 
Aspen Insurance Holdings Limited
Summary consolidated financial data (unaudited)
$ in millions, except number of shares
 
      Three Months Ended     Twelve Months Ended
December 31,     December 31, December 31,     December 31,
2012

2011 (1)

2012

2011 (1)

 
Basic earnings per ordinary share
Net income/(loss) adjusted for preference share dividend $(0.09) $0.09 $3.51 $(1.88)
Operating income/(loss) adjusted for preference dividend $(0.15) $(0.01) $3.50 $(1.32)
Diluted earnings per ordinary share
Net income/(loss) adjusted for preference share dividend $(0.09) $0.09 $3.38 $(1.88)
Operating income/(loss) adjusted for preference dividend $(0.15) $(0.01) $3.37 $(1.32)
 
Weighted average number of ordinary shares outstanding (in millions) (2) 71.007 70.615 71.096 70.665
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions) (2)
73.558 73.258 73.689 70.665
 
Book value per ordinary share $42.12 $39.66
Diluted book value (treasury stock method) $40.65 $38.21
 
Ordinary shares outstanding at end of the period (in millions) 70.754 70.656
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (treasury stock method) (in millions)
73.312 73.339
 
(1) See provision of ASU 2010-26 on page 14
 
(2) The basic and diluted number of ordinary shares for the twelve months ended December 31, 2011 is the same, as the inclusion of dilutive shares in a loss-making period would be anti-dilutive
 
 
Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios
 
        Three Months Ended December 31, 2012         Three Months Ended December 31, 2011
Reinsurance     Insurance     Total Reinsurance     Insurance     Total
               
Gross written premiums $194.4 $381.8 $576.2 $186.3 $272.4 $458.7
Net written premiums 193.7 330.7 524.4 182.3 248.9 431.2
Gross earned premiums 317.2 328.2 645.4 311.9 245.7 557.6
Net earned premiums 299.8 258.7 558.5 288.7 200.7 489.4
Losses and loss adjustment expenses 248.9 188.5 437.4 278.1 116.4 394.5
Policy acquisition expenses 41.0 39.0 80.0 47.4 38.1 85.5
General and administrative expenses (1) 31.3     41.9     73.2 33.2     33.5     66.7
Underwriting income/(loss) $(21.4)     $(10.7) $(32.1) $(70.0)     $12.7 $(57.3)
 
Net investment income 51.1 54.2
Net realized and unrealized investment gains (2) 5.6 6.0
Corporate expenses (12.9) (12.6)
Other income/(expenses) (6.2) 3.6
Interest expenses (7.7) (7.7)
Net realized and unrealized foreign exchange gains/(losses) (3) (0.4) 2.3
Income/(loss) before tax (2.6) (11.5)
Income tax benefit 4.6 23.9
Net income $2.0 $12.4
 
Ratios
Loss ratio 83.0% 72.9% 78.3% 96.3% 58.0% 80.6%
Policy acquisition expense ratio 13.7% 15.1% 14.3% 16.4% 19.0% 17.5%
General and administrative expense ratio (4) 10.4% 16.2% 15.4% 11.5% 16.7% 16.2%
Expense ratio 24.1% 31.3% 29.7% 27.9% 35.7% 33.7%
Combined ratio 107.1%     104.2%     108.0%         124.2%     93.7%     114.3%
 
(1) See provision of ASU 2010-26 on page 14
(2) Includes realized and unrealized capital gains and losses and realized and unrealized gains and losses on interest rate swaps
(3) Includes realized and unrealized foreign exchange gains and losses and realized and unrealized gains and losses on foreign exchange contracts
(4) The total group general and administrative expense ratio includes the impact from corporate expenses
 
 
Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios
 
        Twelve Months Ended December 31, 2012         Twelve Months Ended December 31, 2011
Reinsurance     Insurance     Total Reinsurance     Insurance     Total
               
Gross written premiums $1,227.9 $1,355.4 $2,583.3 $1,187.5 $1,020.3 $2,207.8
Net written premiums 1,156.9 1,090.0 2,246.9 1,098.1 831.0 1,929.1
Gross earned premiums 1,208.0 1,177.0 2,385.0 1,190.6 950.5 2,141.1
Net earned premiums 1,132.4 951.1 2,083.5 1,108.3 780.2 1,888.5
Losses and loss adjustment expenses 635.3 603.2 1,238.5 1,083.3 472.7 1,556.0
Policy acquisition expenses 207.8 173.4 381.2 197.7 149.3 347.0
General and administrative expenses (1) 123.9     168.2     292.1 111.8     128.0     239.8
Underwriting income/(loss) $165.4     $6.3 $171.7 $(284.5)     $30.2 $(254.3)
 
Net investment income 204.9 225.6
Net realized and unrealized investment gains/(losses) (2) 3.8 (34.1)
Corporate expenses (53.0) (44.7)
Other income/(expenses) 0.9 (6.8)
Interest expenses (30.9) (30.8)
Net realized and unrealized foreign exchange (losses) (3) (2.0) (2.2)
Income/(loss) before tax 295.4 (147.3)
Income tax (expense)/benefit (15.0) 37.2
Net income/(loss) $280.4 $(110.1)
 
Ratios
Loss ratio 56.1% 63.4% 59.4% 97.7% 60.6% 82.4%
Policy acquisition expense ratio 18.4% 18.2% 18.3% 17.8% 19.1% 18.4%
General and administrative expense ratio (4) 10.9% 17.7% 16.6% 10.1% 16.4% 15.1%
Expense ratio 29.3% 35.9% 34.9% 27.9% 35.5% 33.5%
Combined ratio 85.4%     99.3%     94.3%         125.6%     96.1%     115.9%
 
(1) See provision of ASU 2010-26 on page 14
(2) Includes realized and unrealized capital gains and losses and realized and unrealized gains and losses on interest rate swaps
(3) Includes realized and unrealized foreign exchange gains and losses and realized and unrealized gains and losses on foreign exchange contracts
(4) The total group general and administrative expense ratio includes the impact from corporate expenses
 

About Aspen Insurance Holdings Limited

Aspen provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Germany, Ireland, Singapore, Switzerland, the United Kingdom and the United States. For the year ended December 31, 2012, Aspen reported $10.3 billion in total assets, $4.8 billion in gross reserves, $3.5 billion in total shareholders’ equity and $2.6 billion in gross written premiums. Its operating subsidiaries have been assigned a rating of “A” (“Strong”) by Standard & Poor’s, an “A” (“Excellent”) by A.M. Best and an “A2” (“Good”) by Moody’s Investors Service.

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