Aspen posts strong mid-year performance

Aspen posts strong mid-year performance | Insurance Business Asia

Insurance News

Aspen posts strong mid-year performance

Chief executive attributes significant growth to disciplined writing approach

Insurance News

By
Althea Javellana

Aspen Insurance Holdings Limited, which is headquartered in Hamilton, Bermuda, has shared its financial performance for the first half of 2024. The company reported solid results for both the second quarter and the initial six months of the year, demonstrating consistent strength despite significant industry-wide challenges during the period.

For the first half of 2024, Aspen reported a net income of US$154 million and an operating income of US$201 million, with shareholders seeing a US$55 million net income in the second quarter alone. Key financial metrics for the period include an operating return on average equity of 18.7% and an adjusted combined ratio of 86.5%.

Mark Cloutier, the executive chairman and group chief executive officer, stated that Aspen has maintained a strong trajectory in its business operations. Over the six months leading up to June 30, 2024, the company achieved substantial revenue growth and maintained a strong operating return on average equity along with a sound combined ratio.

Specifically, during the first half of 2024, Aspen increased its gross written premium by 17% to US$2.5 billion, up from US$2.1 billion in the corresponding period of 2023. This growth was attributed to a disciplined approach to selecting business opportunities and robust underwriting practices.

In addition, Aspen Capital Markets contributed to the firm’s income with US$68 million in fee income, marking a 13% increase. The company also saw a significant 23% rise in net investment income, amounting to US$159 million. Consequently, Aspen reported an operating income of US$201 million, which was a 5% increase from the previous year.

The adjusted combined operating ratio for the period stood at 86.5%, reflecting the impact of significant loss events that occurred mainly in the first quarter of the year. This ratio had a slight increase from 84.8% in the first half of 2023, indicating the financial repercussions of these industry events.

Despite these challenges, the outlook for Aspen remains generally positive. Cloutier expressed confidence in the company’s potential for continued profitable expansion, supported by the current portfolio and business appetite.

The report also noted that Aspen uses several non-GAAP financial measures, such as operating income and adjusted combined ratios, to provide clearer insights into its financial health. These measures are detailed further at the end of their release, in accordance with SEC Regulation G.

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