Bermudian re/insurer Aspen Insurance Holdings has announced a $40.1 million net loss for 2020, driven by above average catastrophe losses and $181.2 million in costs associated with COVID-19.
These factors, as well as an incurred cost on interest rate swaps totalling $81.1 million, were also a driver in the company’s $37.2 million operating loss.
Cat losses totalled $360.8 million for the year, up from the $143.2 million in 2019.
Meanwhile, Aspen’s combined ratio has been reported at 106.0%, excluding non-operating expenses, and compares to 108.5% in 2019. This result was impacted by 2.2% percentage points from legacy business.
Gross written premiums totalled $3.7 billion, an increase of 7.6% from the previous year. This uptick has been attributed to improved market conditions.
Investment income stood at $154.6 million for 2020, a dip from the $197.3 million a year previous.
“COVID-19 meant that 2020 was a year more challenging than many of us can remember with both profound human and economic consequences, said Mark Cloutier, Group Executive Chairman and Chief Executive Officer.
“While the vaccine program gives cause for optimism, there can be no doubts that the pandemic will have a deep and lasting impact on business and society.
“I am very proud of the way our team at Aspen responded to the events of last year; we stood by our clients to pay valid claims, continued to selectively write new business to give our trading partners support and confidence, and saw our people demonstrate admirable commitment, determination and expertise in what were extremely trying circumstances for many.
“I am also proud of and humbled by the generosity and care displayed by so many Aspen team members in their response to the needs of those less fortunate and more severely impacted by the pandemic.”