Bermuda-based insurer and reinsurer Aspen Insurance Holdings Limited has reported an operating loss of $48.2 million for the first six months of 2020, after taking $187.3 million of losses associated with the COVID-19 pandemic.
Overall, COVID-19 related losses contributed 15.7% to Aspen’s combined ratio of 109.2% during this period.
Excluding COVID-19 losses, the company reported an operating gain after tax of $139.1 million and a combined ratio of 93.5%.
At the same time, Aspen reported a 14.2% increase in gross written premiums, which stood at $2.12 billion in H1 2020, versus $1.85 billion for the same period last year.
Pre-tax catastrophe losses totaled $231.3 million, including those losses associated with the pandemic.
Looking at Aspen’s reinsurance segment specifically, the firm recorded gross written premiums of $1.12 billion, an increase of 27.3% in the first half of 2020 compared with $881.8 million in the first half of 2019.
This increase was primarily due to growth in specialty reinsurance, property catastrophe reinsurance and casualty reinsurance.
The loss ratio for this segment was 79.7% compared with 59.2% in the first half of 2019, and included pre-tax catastrophe losses of $160.9 million or 28.5 percentage points, of which $130.9 million were COVID-19 losses.
“Despite the many challenges we faced in the first half of the year, including a COVID-19 reserve of $187.3 million (15.7% combined ratio points), we are pleased with the progress we have made as we continue to reshape the business with a clear focus on total value creation,” said CEO Mark Cloutier.
“This performance is a testament to Aspen’s strong brand and ability to grow in those classes of business we have focused upon as core to our success. Market conditions are definitely improving and while some lines of business still have some distance to achieve adequacy, we have seen strong risk adjusted rate change across both our insurance and reinsurance segments,” he continued.
“Seizing upon the opportunities in this improving rate environment while having the benefit of the Adverse Development Cover, completed in the first half of the year, protecting the group against potential adverse impacts from 2019 and prior underwriting years will position us well as we continue our work to simplify the business and build for the future.”
