For the three months ended September 30, 2025, Aspen reports:
- Improvement of 8.4% percentage points in the combined ratio of 86.8% compared to September 30, 2024, resulting in underwriting income of $94 million
- Adjusted underwriting income of $91 million** with an adjusted combined ratio of 87.3%**
- Aspen Capital Markets fee income of $47 million*, growth of 6.4% compared to September 30, 2024
- Annualized operating return on average equity of 14.8%**
For the nine months ended September 30, 2025, Aspen reports:
- Net income available to ordinary shareholders of $166 million, or $1.82 per diluted ordinary share and operating income of $261 million or $2.86 per diluted ordinary share
- Underwriting income of $222 million, with a combined ratio of 89.5%
- Adjusted underwriting income of $233 million** and adjusted combined ratio of 89.0%**
- Aspen Capital Markets fee income of $146 million*, growth of 29.8% compared to September 30, 2024
- Book value per ordinary share of $30.21 as at September 30, 2025, an increase of $5.22, or 20.9%, compared to September 30, 2024
HAMILTON, Bermuda–(BUSINESS WIRE)–Aspen Insurance Holdings Limited (NYSE: AHL) (“Aspen,” the “Company,” “we,” or “us”) today reported results for the three and nine months ended September 30, 2025.
Mark Cloutier, Executive Chairman and Group Chief Executive Officer, commented: “Aspen delivered strong results for the third quarter of 2025 continuing the positive trend of the past several quarters, reflecting the quality and stability of our franchise. With market dynamics shifting, including increased competition across several lines of business, I am pleased that we recorded a significantly improved combined ratio. Looking forward, I am confident that the high caliber of our people and our culture means we continue to be well placed to deliver best-in-class solutions and products for our trading partners and customers through the market cycle.
On August 27, 2025, we announced the acquisition of Aspen by the Sompo Group. The acquisition is a testament to the sustainable performance and value we’ve created, and we continue to work diligently towards its successful completion, and we expect the transaction to close during the first half of 2026, subject to regulatory approval.”
Christian Dunleavy, Group President, said: “Aspen continues to be focused on underwriting discipline and robust cycle management. This is reflected in both our excellent underwriting result and our thoughtful approach to new business, which has seen our Gross Written Premiums grow modestly as we prioritize sustainable long-term profitability over growth. Our teams continue to dynamically allocate risk in response to customer need and the trading environment and, in this context, we were pleased to see fee income from Aspen Capital Markets increase once again. Our strong performance for the quarter means we are on track to deliver a mid-teens operating return on equity for the full year, as Aspen continues to create value for all its stakeholders. Thank you to all our colleagues for their hard work and commitment in delivering this result.”
|
* |
Reflected in our underwriting result as a reduction to acquisition costs. |
|
** |
Non-GAAP financial measures are used throughout this release, such as operating income, annualized operating return on average equity, underwriting income, adjusted underwriting income and adjusted combined ratio. These are non-GAAP financial measures as defined in SEC Regulation G. For additional information and reconciliation of non-GAAP financial measures, refer to the end of this press release. Refer to “Cautionary Statement Regarding Forward-Looking Statements” at the end of this press release. |
|
Consolidated Highlights for the Three and Nine Months Ended September 30, 2025 |
||||||||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||
|
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
||||||||||
|
|
|
($ in millions, except for percentages) |
|
($ in millions, except for percentages) |
||||||||||||||||||
|
Gross written premiums |
|
$ |
1,126.4 |
|
|
$ |
1,116.8 |
|
|
0.9 |
% |
|
$ |
3,652.5 |
|
|
$ |
3,598.6 |
|
|
1.5 |
% |
|
Net written premiums |
|
$ |
705.2 |
|
|
$ |
673.6 |
|
|
4.7 |
% |
|
$ |
2,172.4 |
|
|
$ |
2,225.6 |
|
|
(2.4 |
)% |
|
Net earned premiums |
|
$ |
717.1 |
|
|
$ |
698.3 |
|
|
2.7 |
% |
|
$ |
2,094.7 |
|
|
$ |
2,069.4 |
|
|
1.2 |
% |
|
Underwriting income (1) |
|
$ |
94.4 |
|
|
$ |
33.0 |
|
|
186.1 |
% |
|
$ |
222.0 |
|
|
$ |
202.8 |
|
|
9.5 |
% |
|
Adjusted underwriting income (1) |
|
$ |
90.8 |
|
|
$ |
59.7 |
|
|
52.1 |
% |
|
$ |
232.9 |
|
|
$ |
244.5 |
|
|
(4.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net investment income |
|
$ |
81.7 |
|
|
$ |
79.6 |
|
|
|
|
$ |
238.1 |
|
|
$ |
238.9 |
|
|
|
||
|
Net realized and unrealized investment (losses)/gains |
|
|
(2.4 |
) |
|
|
6.1 |
|
|
|
|
|
(12.0 |
) |
|
|
(21.0 |
) |
|
|
||
|
Interest expense |
|
|
(9.1 |
) |
|
|
(20.9 |
) |
|
|
|
|
(27.1 |
) |
|
|
(51.0 |
) |
|
|
||
|
Corporate and other expenses |
|
|
(26.5 |
) |
|
|
(18.6 |
) |
|
|
|
|
(77.3 |
) |
|
|
(83.3 |
) |
|
|
||
|
Non-operating expenses |
|
|
(7.4 |
) |
|
|
(7.6 |
) |
|
|
|
|
(63.0 |
) |
|
|
(19.3 |
) |
|
|
||
|
Net realized and unrealized foreign exchange gains/(losses) |
|
|
25.1 |
|
|
|
(8.5 |
) |
|
|
|
|
(19.7 |
) |
|
|
2.5 |
|
|
|
||
|
Income tax expense |
|
|
(33.8 |
) |
|
|
(6.4 |
) |
|
|
|
|
(55.7 |
) |
|
|
(32.1 |
) |
|
|
||
|
Net income |
|
$ |
122.0 |
|
|
$ |
56.7 |
|
|
|
|
$ |
205.3 |
|
|
$ |
237.5 |
|
|
|
||
|
Net income available to ordinary shareholders |
|
$ |
111.0 |
|
|
$ |
42.9 |
|
|
|
|
$ |
166.4 |
|
|
$ |
196.4 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss ratio |
|
|
51.8 |
% |
|
|
67.9 |
% |
|
|
|
|
57.6 |
% |
|
|
61.8 |
% |
|
|
||
|
Expense ratio |
|
|
35.0 |
% |
|
|
27.3 |
% |
|
|
|
|
31.9 |
% |
|
|
28.4 |
% |
|
|
||
|
Combined ratio |
|
|
86.8 |
% |
|
|
95.2 |
% |
|
|
|
|
89.5 |
% |
|
|
90.2 |
% |
|
|
||
|
Adjusted combined ratio (1) |
|
|
87.3 |
% |
|
|
91.5 |
% |
|
|
|
|
89.0 |
% |
|
|
88.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating income (1) |
|
$ |
99.5 |
|
|
$ |
86.5 |
|
|
|
|
$ |
260.8 |
|
|
$ |
287.5 |
|
|
|
||
|
Annualized net income available to ordinary shareholders on average equity |
|
|
16.4 |
% |
|
|
7.8 |
% |
|
|
|
|
8.7 |
% |
|
|
12.0 |
% |
|
|
||
|
Annualized operating return on average equity (1) |
|
|
14.8 |
% |
|
|
15.8 |
% |
|
|
|
|
13.5 |
% |
|
|
17.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income available to ordinary shareholders per diluted ordinary share |
|
$ |
1.21 |
|
|
$ |
0.47 |
|
|
|
|
$ |
1.82 |
|
|
$ |
2.16 |
|
|
|
||
|
Operating income per diluted ordinary share |
|
$ |
1.08 |
|
|
$ |
0.95 |
|
|
|
|
$ |
2.86 |
|
|
$ |
3.17 |
|
|
|
||
|
(1) |
Underwriting income, adjusted underwriting income, adjusted combined ratio, operating income and annualized operating return on average equity are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable U.S. GAAP financial measures and the rationale for the presentation of these items is provided later in this press release. |
Aspen Group Consolidated Results
Aspen is a specialty (re)insurer focused on generating consistent returns for our shareholders. Our ‘One Aspen’ approach is designed to provide bespoke solutions to complex issues by bringing together our expertise spanning different lines of business, segments and platforms, enabling us to develop enhanced and differentiated offerings to our distribution partners and customers. We are organized across two segments: Insurance and Reinsurance. We adopt a dynamic capital allocation approach, utilizing our platforms across the U.S., U.K., Lloyd’s and Bermuda to match risk with the most appropriate source of capital. In addition, through our Aspen Capital Markets team, Aspen generates fee income, which benefits our underwriting results as a reduction to our reinsurance costs, and offers third-party investors access to Aspen’s specialty insurance and reinsurance portfolios.
Consolidated Highlights for the Three Months Ended September 30, 2025
- The Group continues to deliver strong underwriting performance, achieving a net combined ratio of 86.8% and underwriting income of $94 million. On an adjusted basis, underwriting income was $91 million, with an adjusted combined ratio of 87.3%.
- Gross written premiums increased by $10 million compared to September 30, 2024, mainly driven by business growth in U.S. Excess Casualty, offset by a reduction in Property lines in our Reinsurance Segment. The growth has been further offset by rate decreases in U.S. Property in the Insurance Segment and management’s decision to be selective on business we underwrite given the current market conditions in U.S. Primary Casualty.
- Adjusted combined ratio improved by 4.2% percentage points compared to September 30, 2024, mainly due to benign catastrophe experience in the quarter and favorable development on our post LPT prior years across both our segments.
- Operating income of $100 million in the quarter, or $1.08 per diluted ordinary share, resulting in an annualized operating return on average equity of 14.8%.
Consolidated Highlights for the Nine Months Ended September 30, 2025
- Gross written premiums increased by $54 million, primarily driven by growth in the Insurance Segment, with growth in our existing cross-class partnerships within Financial and Professional Lines and U.S. Excess Casualty. This has been partially offset by reductions in certain Property lines within the Reinsurance Segment and U.S. Property in the Insurance Segment, due to rate decreases in the current market together with management’s decision not to underwrite business which did not meet our profitability expectations.
- Adjusted underwriting income of $233 million was $12 million adverse to the same period in the prior year. Favorable prior year development on post LPT years is offset by an increase in acquisition expenses due to business mix, increased compensation related expenses, increased depreciation charge linked to our continued investment in operational excellence enhancements, and higher professional and consulting fees.
- Net income available to ordinary shareholders was $166 million or $1.82 per diluted ordinary share and operating income of $261 million or $2.86 per diluted ordinary share.
- Third-party capital supporting Aspen Capital Markets grew to $2.5 billion, expanding our capacity and generating $146 million of fee income, an increase of 29.9% compared to September 30, 2024.
- Non-operating expenses of $63 million included a one-off charge of $43 million in relation to replacement share awards that were granted in substitution for legacy share options previously granted to certain employees upon the successful completion of the initial public offering (“IPO”).
- As of September 30, 2025, we had approximately $296 million (December 31, 2024: $379 million) of remaining limit available on our LPT contract, representing 27% of our 2019 and prior accident year outstanding reserves. This contract provides protection against deterioration on these accident years, significantly limiting Aspen’s exposure to the risk of unfavorable development from these accident years, and strengthens our balance sheet.
Insurance Segment
|
Operating Highlights for the Three and Nine Months Ended September 30, 2025 |
|||||||||||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||||||||||
|
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
||||||||||||
|
|
|
($ in millions, except for percentages) |
|
($ in millions, except for percentages) |
|||||||||||||||||||||
|
Underwriting Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross written premiums |
|
$ |
679.8 |
|
|
$ |
700.6 |
|
|
|
(3.0 |
)% |
|
$ |
2,059.8 |
|
|
$ |
2,001.8 |
|
|
|
2.9 |
% |
|
|
Net written premiums |
|
$ |
403.8 |
|
|
$ |
409.9 |
|
|
|
(1.5 |
)% |
|
$ |
1,172.1 |
|
|
$ |
1,173.6 |
|
|
|
(0.1 |
)% |
|
|
Net earned premiums |
|
$ |
412.5 |
|
|
$ |
404.8 |
|
|
|
1.9 |
% |
|
$ |
1,212.0 |
|
|
$ |
1,144.1 |
|
|
|
5.9 |
% |
|
|
Underwriting Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current accident year net losses and loss expenses |
|
$ |
(227.1 |
) |
|
$ |
(229.7 |
) |
|
|
|
$ |
(680.6 |
) |
|
$ |
(681.4 |
) |
|
|
|
||||
|
Catastrophe losses |
|
|
(13.0 |
) |
|
|
(9.7 |
) |
|
|
|
|
(41.3 |
) |
|
|
(26.3 |
) |
|
|
|
||||
|
Prior year reserve development, post LPT years |
|
|
6.9 |
|
|
|
(4.1 |
) |
|
|
|
|
9.3 |
|
|
|
(0.6 |
) |
|
|
|
||||
|
Adjusted losses and loss adjustment expenses (1) |
|
|
(233.2 |
) |
|
|
(243.5 |
) |
|
|
|
|
(712.6 |
) |
|
|
(708.3 |
) |
|
|
|
||||
|
Impact of the LPT (2) |
|
|
18.2 |
|
|
|
(22.1 |
) |
|
|
|
|
10.4 |
|
|
|
(17.6 |
) |
|
|
|
||||
|
Losses and loss adjustment expenses |
|
|
(215.0 |
) |
|
|
(265.6 |
) |
|
|
|
|
(702.2 |
) |
|
|
(725.9 |
) |
|
|
|
||||
|
Acquisition costs |
|
|
(67.5 |
) |
|
|
(47.8 |
) |
|
|
|
|
(162.8 |
) |
|
|
(131.7 |
) |
|
|
|
||||
|
General and administrative expenses |
|
|
(82.3 |
) |
|
|
(58.2 |
) |
|
|
|
|
(223.9 |
) |
|
|
(183.8 |
) |
|
|
|
||||
|
Underwriting income (1) |
|
$ |
47.7 |
|
|
$ |
33.2 |
|
|
$ |
14.5 |
|
|
$ |
123.1 |
|
|
$ |
102.7 |
|
|
$ |
20.4 |
|
|
|
Adjusted underwriting income (1) |
|
$ |
29.5 |
|
|
$ |
55.3 |
|
|
|
|
$ |
112.7 |
|
|
$ |
120.3 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current accident year loss ratio, excluding catastrophe losses |
|
|
55.0 |
% |
|
|
56.7 |
% |
|
|
|
|
56.2 |
% |
|
|
59.5 |
% |
|
|
|
||||
|
Current accident year catastrophe loss ratio |
|
|
3.2 |
|
|
|
2.4 |
|
|
|
|
|
3.4 |
|
|
|
2.3 |
|
|
|
|
||||
|
Current accident year loss ratio |
|
|
58.2 |
|
|
|
59.1 |
|
|
|
|
|
59.6 |
|
|
|
61.8 |
|
|
|
|
||||
|
Prior year reserve development ratio, post LPT years |
|
|
(1.7 |
) |
|
|
1.0 |
|
|
|
|
|
(0.8 |
) |
|
|
0.1 |
|
|
|
|
||||
|
Adjusted loss ratio (1) |
|
|
56.5 |
|
|
|
60.1 |
|
|
|
|
|
58.8 |
|
|
|
61.9 |
|
|
|
|
||||
|
Impact of the LPT (2) |
|
|
(4.4 |
) |
|
|
5.5 |
|
|
|
|
|
(0.9 |
) |
|
|
1.5 |
|
|
|
|
||||
|
Loss ratio |
|
|
52.1 |
|
|
|
65.6 |
|
|
|
|
|
57.9 |
|
|
|
63.4 |
|
|
|
|
||||
|
Acquisition cost ratio |
|
|
16.4 |
|
|
|
11.8 |
|
|
|
|
|
13.4 |
|
|
|
11.5 |
|
|
|
|
||||
|
General and administrative expense ratio |
|
|
20.0 |
|
|
|
14.4 |
|
|
|
|
|
18.5 |
|
|
|
16.1 |
|
|
|
|
||||
|
Combined ratio |
|
|
88.5 |
% |
|
|
91.8 |
% |
|
|
|
|
89.8 |
% |
|
|
91.0 |
% |
|
|
|
||||
|
Adjusted combined ratio (1) |
|
|
92.9 |
% |
|
|
86.3 |
% |
|
|
|
|
90.7 |
% |
|
|
89.5 |
% |
|
|
|
||||
|
(1) |
Adjusted losses and loss adjustment expenses, underwriting income, adjusted underwriting income, adjusted loss ratio and adjusted combined ratio are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable U.S. GAAP financial measures are shown above and a discussion of the rationale for the presentation of these items is provided later in this press release. |
|
(2) |
Impact of the LPT includes the impact of prior year development on 2019 and prior accident years, net of the change in the deferred gain recognized in relation to retroactive reinsurance contracts as per accounting requirements for retroactive reinsurance under U.S. GAAP. |
Insurance Segment Results
Aspen Insurance operates on a global and regional product basis, delivers service excellence from underwriting through to claims, thereby transforming risk for our customers into opportunities. Aspen Insurance focuses on market segments with high barriers to entry that require bespoke underwriting expertise and customized solutions to address client needs. Aspen Insurance has long-standing partnerships with brokers and other distribution partners, and our responsiveness and innovative mindset make us an ideal partner to deliver effective risk management solutions. Aspen Insurance is organized into five portfolios of business: First Party Insurance, Specialty Insurance, Casualty and Liability Insurance, Financial and Professional Lines Insurance and Other Insurance.
Insurance Segment Highlights for the Three Months Ended September 30, 2025
- Underwriting income was $48 million with a combined ratio of 88.5%, a 3.3 percentage point improvement from the same period in prior year. Adjusted underwriting income was $29 million with an adjusted combined ratio of 92.9%.
- Gross written premiums were $21 million lower than the prior year as a result of industry rate decreases in U.S. Property and management’s decision to be selective on business we underwrite in U.S. Primary Casualty given the current market conditions.
- Adjusted loss ratio of 56.5% improved by 3.6 percentage points with current accident year ex-catastrophe performance improving 1.7 percentage points. This is driven by lower loss activity in Financial and Professional Lines, coupled with favorable development on post LPT years in Specialty and Financial & Professional Lines.
- The acquisition cost ratio of 16.4% increased by 4.6 percentage points, mainly due to a reduction in performance related ceded commission, resulting in an increase to acquisition costs relative to the prior period. General and administrative expense ratio increased by 5.6 percentage points from prior year, mainly due to the timing of compensation related expenses based on the Company’s performance during the quarter and higher professional and consulting fees.
Insurance Segment Highlights for the Nine Months Ended September 30, 2025
- Underwriting income was $123 million with a combined ratio of 89.8%, a 1.2 percentage point improvement from prior year. Adjusted underwriting income was $113 million with an adjusted combined ratio of 90.7%.
- Gross written premiums increased by $58 million compared to the same period in prior year. This is mainly attributable to growth in existing program partnerships, partially offset by slower trading conditions within the U.S. property market.
- Adjusted loss ratio of 58.8% improved by 3.1 percentage points with the current accident year ex catastrophe performance improving 3.3 percentage points driven by lower loss activity in Financial and Professional Lines. This is partially offset by an increase in catastrophe losses of 1.1 percentage points, mainly driven by losses on the California Wildfires in the first quarter.
- The general and administrative expense ratio of 18.5%, increased by 2.4% percentage points. This is mainly due to compensation related expenses, increased depreciation charge linked to our continued investment in operational excellence enhancements, and higher professional and consulting fees.
Reinsurance Segment
|
Operating Highlights for the Three and Nine Months Ended September 30, 2025 |
||||||||||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||
|
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
||||||||||||
|
|
|
($ in millions, except for percentages) |
|
($ in millions, except for percentages) |
||||||||||||||||||||
|
Underwriting Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross written premiums |
|
$ |
446.6 |
|
|
$ |
416.2 |
|
|
|
7.3 |
% |
|
$ |
1,592.7 |
|
|
$ |
1,596.8 |
|
|
|
(0.3 |
)% |
|
Net written premiums |
|
$ |
301.4 |
|
|
$ |
263.7 |
|
|
|
14.3 |
% |
|
$ |
1,000.3 |
|
|
$ |
1,052.0 |
|
|
|
(4.9 |
)% |
|
Net earned premiums |
|
$ |
304.6 |
|
|
$ |
293.5 |
|
|
|
3.8 |
% |
|
$ |
882.7 |
|
|
$ |
925.3 |
|
|
|
(4.6 |
)% |
|
Underwriting Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current accident year net losses and loss expenses |
|
$ |
(153.3 |
) |
|
$ |
(157.8 |
) |
|
|
|
$ |
(423.9 |
) |
|
$ |
(422.4 |
) |
|
|
||||
|
Catastrophe losses |
|
|
(2.4 |
) |
|
|
(45.1 |
) |
|
|
|
|
(89.1 |
) |
|
|
(109.1 |
) |
|
|
||||
|
Prior year reserve development, post LPT years |
|
|
13.7 |
|
|
|
(1.1 |
) |
|
|
|
|
30.5 |
|
|
|
2.6 |
|
|
|
||||
|
Adjusted losses and loss adjustment expenses (1) |
|
|
(142.0 |
) |
|
|
(204.0 |
) |
|
|
|
|
(482.5 |
) |
|
|
(528.9 |
) |
|
|
||||
|
Impact of the LPT (2) |
|
|
(14.6 |
) |
|
|
(4.6 |
) |
|
|
|
|
(21.3 |
) |
|
|
(24.1 |
) |
|
|
||||
|
Losses and loss adjustment expenses |
|
|
(156.6 |
) |
|
|
(208.6 |
) |
|
|
|
|
(503.8 |
) |
|
|
(553.0 |
) |
|
|
||||
|
Acquisition costs |
|
|
(45.7 |
) |
|
|
(43.9 |
) |
|
|
|
|
(136.1 |
) |
|
|
(158.5 |
) |
|
|
||||
|
General and administrative expenses |
|
|
(55.6 |
) |
|
|
(41.2 |
) |
|
|
|
|
(143.9 |
) |
|
|
(113.7 |
) |
|
|
||||
|
Underwriting income (1) |
|
$ |
46.7 |
|
|
$ |
(0.2 |
) |
|
$ |
46.9 |
|
|
$ |
98.9 |
|
|
$ |
100.1 |
|
|
$ |
(1.2 |
) |
|
Adjusted underwriting income (1) |
|
$ |
61.3 |
|
|
$ |
4.4 |
|
|
|
|
$ |
120.2 |
|
|
$ |
124.2 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current accident year loss ratio, excluding catastrophe losses |
|
|
50.3 |
% |
|
|
53.8 |
% |
|
|
|
|
48.0 |
% |
|
|
45.7 |
% |
|
|
||||
|
Current accident year catastrophe loss ratio |
|
|
0.8 |
|
|
|
15.4 |
|
|
|
|
|
10.1 |
|
|
|
11.8 |
|
|
|
||||
|
Current accident year loss ratio |
|
|
51.1 |
|
|
|
69.2 |
|
|
|
|
|
58.1 |
|
|
|
57.5 |
|
|
|
||||
|
Prior year reserve development ratio, post LPT years |
|
|
(4.5 |
) |
|
|
0.3 |
|
|
|
|
|
(3.4 |
) |
|
|
(0.3 |
) |
|
|
||||
|
Adjusted loss ratio (1) |
|
|
46.6 |
|
|
|
69.5 |
|
|
|
|
|
54.7 |
|
|
|
57.2 |
|
|
|
||||
|
Impact of the LPT (2) |
|
|
4.8 |
|
|
|
1.6 |
|
|
|
|
|
2.4 |
|
|
|
2.6 |
|
|
|
||||
|
Loss ratio |
|
|
51.4 |
|
|
|
71.1 |
|
|
|
|
|
57.1 |
|
|
|
59.8 |
|
|
|
||||
|
Acquisition cost ratio |
|
|
15.0 |
|
|
|
15.0 |
|
|
|
|
|
15.4 |
|
|
|
17.1 |
|
|
|
||||
|
General and administrative expense ratio |
|
|
18.3 |
|
|
|
14.0 |
|
|
|
|
|
16.3 |
|
|
|
12.3 |
|
|
|
||||
|
Combined ratio |
|
|
84.7 |
% |
|
|
100.1 |
% |
|
|
|
|
88.8 |
% |
|
|
89.2 |
% |
|
|
||||
|
Adjusted combined ratio (1) |
|
|
79.9 |
% |
|
|
98.5 |
% |
|
|
|
|
86.4 |
% |
|
|
86.6 |
% |
|
|
||||
|
(1) |
Adjusted losses and loss adjustment expenses, underwriting income, adjusted underwriting income, adjusted loss ratio and adjusted combined ratio are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable U.S. GAAP financial measures are shown above and a discussion of the rationale for the presentation of these items is provided later in this press release. |
|
(2) |
Impact of the LPT includes the impact of prior year development on 2019 and prior accident years, net of the change in the deferred gain recognized in relation to retroactive reinsurance contracts as per accounting requirements for retroactive reinsurance under U.S. GAAP. |
Reinsurance Segment Results
Aspen Reinsurance offers a full suite of products organized around core products in Property Catastrophe Reinsurance, Other Property Reinsurance, Casualty Reinsurance and Specialty Reinsurance. Through our highly experienced underwriting teams which are supported by claims, modelling and actuarial functions, we have developed longstanding relationships with our clients and brokers. We also provide innovative solutions to risk including utilizing Aspen Capital Markets to access additional third-party capital.
Reinsurance Segment Highlights for the Three Months Ended September 30, 2025
- Underwriting income was $47 million with a combined ratio of 84.7%. Adjusted underwriting income was $61 million with an adjusted combined ratio of 79.9%.
- Gross written premiums of $447 million increased by $30 million compared to the same period in the prior year. This is mainly driven by continued business growth in U.S. Casualty. This is partially offset by a reduction in Property lines where we chose to be selective on businesses we underwrite given the current market conditions.
- Adjusted loss ratio of 46.6% improved by 22.9 percentage points from prior year, mainly due to benign catastrophe experience in the quarter coupled with favorable development coming through on Property lines.
- General and administrative expense ratio of 18.3%, deteriorated by 4.3 percentage points from the prior year period. This is mainly driven by the timing of compensation related expenses based on the Company’s performance during the quarter and higher professional and consulting fees.
Reinsurance Segment Highlights for the Nine Months Ended September 30, 2025
- Underwriting income was $99 million with a combined ratio of 88.8%. Adjusted underwriting income was $120 million with an adjusted combined ratio of 86.4%.
- Gross written premiums of $1,593 million decreased by $4 million compared to the same period in the prior year, driven by a reduction in Property lines due to property rate decreases in the current market, and as we remain selective on writing business which does not meet our profitability expectations, partially offset by business growth in U.S. Casualty.
- Adjusted loss ratio of 54.7% improved by 2.5 percentage points from prior year driven by benign catastrophe activity at Q3 offset partially by the California Wildfires losses in Q1. We have experienced favorable prior year reserve development on post LPT years on Property and Specialty classes.
- Acquisition cost ratio improved by 1.7 percentage points from the prior year period, driven by higher ceding commissions resulting from increased cessions from Casualty lines to our Aspen Capital Market partners.
- General and administrative expense ratio increased by 4.0 percentage points from prior year due to performance based compensation, increased depreciation charge linked to our continued investment in operational excellence enhancements, and higher professional and consulting fees.
Investment Performance
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
($ in millions) |
|
($ in millions) |
||||||||||||
|
Net investment income |
|
$ |
81.7 |
|
|
$ |
79.6 |
|
|
$ |
238.1 |
|
|
$ |
238.9 |
|
|
Net realized and unrealized investment (losses)/gains recognized in net income (1) |
|
|
(2.4 |
) |
|
|
6.1 |
|
|
|
(12.0 |
) |
|
|
(21.0 |
) |
|
Change in unrealized gains on available for sale investments (before tax) (2) |
|
|
37.2 |
|
|
|
120.7 |
|
|
|
168.8 |
|
|
|
103.6 |
|
|
Total return on investments |
|
$ |
116.5 |
|
|
$ |
206.4 |
|
|
$ |
394.9 |
|
|
$ |
321.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average cash and investments (3) |
|
$ |
7,975.9 |
|
|
$ |
7,544.8 |
|
|
$ |
7,842.0 |
|
|
$ |
7,586.3 |
|
|
Total return on average cash and investments, pre-tax (4) |
|
|
1.5 |
% |
|
|
2.7 |
% |
|
|
5.0 |
% |
|
|
4.2 |
% |
|
Fixed Income Portfolio Characteristics |
|
As at September 30, 2025 |
|
As at December 31, 2024 |
|
|
|
|
|
|
|
Book yield |
|
4.5 % |
|
4.2 % |
|
Average duration |
|
3.2 years |
|
2.9 years |
|
Average credit rating |
|
AA- |
|
AA- |
|
(1) |
Includes net unrealized gains of $5.5 million and $29.6 million for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024 — gains of $29.4 million and $36.2 million, respectively). |
|
(2) |
The tax impact of the change in unrealized gains on available for sale investments was an expense of $11.0 million and $38.0 million for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024 — expense of $15.1 million and $13.1 million, respectively). |
|
(3) |
Average cash and investments are calculated by taking the average of the opening period and closing period balances for total investments plus cash and cash equivalents. |
|
(4) |
Total return on average cash and investments, pre-tax represents total pre-tax return/(loss) on investments as a percentage of average cash and investments. |
Contacts
For further information please contact
Mariza Costa, Head of Investor Relations
[email protected]
+1 201 539 2668
Jo Scott, Group Head of Corporate Communications
[email protected]
+44 20 3900 5744
