Reinsurance News

Aspen CEO “deeply disappointed” with 2017 performance

26th January 2018 - Author: Staff Writer

Chris O’Kane, Chief Executive Officer, Aspen Insurance (CEO) said the firm is “deeply disappointed” with its financial performance in 2017 after the firm reported a pre-tax loss estimate of $135 million from California wildfires, net of reinsurance and reinstatement premiums,and a $245 million underwriting loss in Q4.

Aspen’s Q4 losses from the wildfires will largely be covered by its reinsurance segment.

The results reflect the firm’s natural catastrophe losses as well as an increased frequency of mid-sized and attritional losses primarily in Aspen’s Insurance segment, including property and fire-related losses in the U.K. and the U.S., cyber losses and an increase in a previously reported surety loss.

O’Kane said the firm had “taken a number of actions to improve our underwriting performance and expect to see the impact of these reflected in our 2018 underwriting year results and beyond.”

Aspen said its reserves for losses and loss adjustment expenses remain strong and the expected fourth quarter 2017 underwriting loss includes a release of reserves from prior years.

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“We believe our capital position is appropriate to support our ongoing business and underpins our financial strength ratings,” O’Kane added.

Aspen’s preliminary estimates of losses in Q4 2017 are based on a review of the individual treaties and policies expected to be impacted, information available to date from clients and brokers, market intelligence, initial loss reports, modelled loss projections, exposure analysis and other factors.

Due to the complexity of losses from natural catastrophes, Aspen’s actual losses may differ materially from the preliminary estimates.

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