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Aspen’s H1 net income improves to $87mn off underwriting, investments

7th September 2021 - Author: Charlie Wood

Bermuda domiciled re/insurer Aspen has reported a net income for 2021’s opening six months of $87.4 million, rising from a $172.8 million prior period loss thanks in-part to superior underwriting performance.

Aspen logoUnderwriting profit for H120 stands at $33.3 million, compared to a loss of $109 million in 2020.

Investment income has been recorded as $68.7 million, down from $84.9 million, while net realised and unrealised investment gains of $3 million compare to H121’s loss of $114.5 million.

2021’s net income also included $7.5 million of net realised and unrealised foreign exchange gains, including foreign exchange contracts, compared with $3 million in the previous year.

Operating income after tax is a reported $88.9 million, an improvement from the $49 million loss announced in H120.

RMS

Gross written premiums decreased by 4.7% to $2,018.5 million while net written premiums decreased by 14.0% to $1,236.1 million.

Aspen says the retention ratio was 61.2% compared with 67.8% in the six months ended June 30, 2020.

The firm has also confirmed a loss ratio of 63.2%, which is down from 74.1% in the prior year period and includes $84.5 million of catastrophe losses, net of reinsurance recoveries. This compares to cat losses of $231.3 million in H120.

Cat losses include costs associated with the Texas winter storms and other weather-related events and compare to a $187.3 million hit from COVID-19 alone in the first six months of 2020.

Net unfavorable development on prior year loss reserves are reported to be $7.3 million and increased the loss ratio by 0.6 percentage points.

Accident year loss ratio excluding catastrophes of 55.1% compares with 54.7% for the opening six months of 2020.

Apsen’s reinsurance business achieved gross written premiums of $896.3 million, down 20.1% from the prior year period and driven by reductions in specialty reinsurance as a result of the group’s sale of its US crop business

Net written reinsurance premiums of $617.6 million represents a decrease of 26.7% from the previous year. The retention ratio was 68.9% compared with 75.1%.

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