Aspen Announces Estimated Impact of Ogden Rate Change
March 29 2017 - 4:15PM
Business Wire
Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) announced
today the estimated financial impact of the recent U.K. Ministry of
Justice decision to decrease the discount rate used to calculate
lump sum awards in U.K. bodily injury cases, known as the Ogden
rate.
Aspen expects to increase carried reserves for impacted lines of
business by approximately $30 million, on a pre-tax basis, in the
first quarter of 2017 as a result of the change in the Ogden rate.
Approximately half of the impact relates to business that Aspen has
either exited and is in run-off or where Aspen has scaled back
significantly over a number of years.
The Ogden rate change impacts Aspen’s Insurance segment via its
U.K. employer’s liability and U.K. public liability business. In
Aspen Reinsurance, exposure to the Ogden rate change comes from
reinsurance of U.K. employer’s liability and U.K. public liability
business and to a lesser degree U.K. motor liability reinsurance.
Aspen has not been a significant reinsurer of U.K. motor liability
for a number of years and has limited exposure to this
business.
Aspen’s estimate of the financial impact of the Ogden rate
change for the first quarter of 2017 is based, among other factors,
on a review of its open claims in relevant classes of business. Due
to the complexity of factors contributing to the preliminary nature
of the information used to prepare this estimate, there can be no
assurance that the ultimate impact of the change in the Ogden rate
on Aspen’s reserves will remain within the stated amount.
NOTES TO EDITORS:
About Aspen Insurance Holdings Limited
Aspen provides reinsurance and insurance coverage to clients in
various domestic and global markets through wholly-owned
subsidiaries and offices in Australia, Bermuda, Canada, France,
Germany, Ireland, Singapore, Switzerland, the United Arab Emirates,
the United Kingdom and the United States. For the year ended
December 31, 2016, Aspen reported $12.1 billion in total assets,
$5.3 billion in gross reserves, $3.6 billion in total shareholders’
equity and $3.1 billion in gross written premiums. Its operating
subsidiaries have been assigned a rating of “A” by Standard &
Poor’s Financial Services LLC (“S&P”), an “A” (“Excellent”) by
A.M. Best Company Inc. (“A.M. Best”) and an “A2” by Moody’s
Investors Service, Inc. (“Moody’s”).
Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995
This press release may contain written “forward-looking
statements” within the meaning of the U.S. federal securities laws.
These statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements that do not
relate solely to historical or current facts, and can be identified
by the use of words such as “expect,” “intend,” “plan,” “believe,”
“do not believe,” “project,” “anticipate,” “seek,” “will,”
“estimate,” “may,” “likely,” “continue,” “assume,” “objective,”
“aim,” “guidance,” “outlook,” “trends,” “future,” “could,” “would,”
“should,” “target,” “on track” and similar expressions of a future
or forward-looking nature.
All forward-looking statements rely on a number of assumptions,
estimates and data concerning future results and events and are
subject to a number of uncertainties and other factors, many of
which are outside Aspen’s control that could cause actual results
to differ materially from such statements. Accordingly, there are
or will be important factors that could cause actual results to
differ materially from those indicated in these statements. For a
detailed description of uncertainties and other factors that could
impact the forward-looking statements in this press release, please
see the “Risk Factors” section in Aspen’s Annual Report on Form
10-K for the year ended December 31, 2016 filed with the U.S.
Securities and Exchange Commission on February 22, 2017. Aspen
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place
undue reliance on these forward-looking statements which speak only
as of the date on which they are made.
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version on businesswire.com: http://www.businesswire.com/news/home/20170329006152/en/
Please visit www.aspen.co or contact:Aspen Insurance Holdings
LimitedInvestorsMark Jones, +1 646-289-4945Senior Vice
President, Investor
Relationsmark.p.jones@aspen.coorMediaSteve Colton, +44 20
7184 8337Head of Group Communicationssteve.colton@aspen.co
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