Net Income Return on Equity of 16.4%
Operating Return on Equity of 12.4%
Diluted Book Value Per Share of $46.02, up
2.0% from December 31, 2014
Aspen Insurance Holdings Limited (“Aspen”) (NYSE:AHL) today
reported net income after tax of $128.0 million, or $1.87 diluted
net income per share, for the first quarter of 2015.
Chris O’Kane, Chief Executive Officer, commented, “In the first
quarter of 2015, Aspen continued to execute on its strategic growth
plan achieving a book value of $46.02 and an annualized operating
return on equity of 12.4%. We continue to see the results of our
diversified strategy across insurance and reinsurance, and across
property, casualty, and financial risks, executed on a broad
geographical basis. I am particularly pleased with our Insurance
performance which shows an enviable growth rate with continued
improvement in profitability. Our Reinsurance business has access
to many of the most sought after risks as a result of our deep
client relationships, thoughtful approach, ability to provide
creative solutions to our clients, and excellent execution.
Overall, I would characterize Aspen in the first quarter as running
on all cylinders. As we move forward in 2015, we will remain
sharply focused on driving operating return on equity and book
value growth.”
Operating highlights for the quarter ended March 31,
2015
- Gross written premiums increased by
7.4% to $919.2 million in the first quarter of 2015 from the first
quarter of 2014
- Combined ratio of 88.9% for the first
quarter of 2015 compared with 87.6% for the first quarter of 2014.
Net favorable development on prior year loss reserves of $27.5
million, or 4.6 combined ratio points, for the first quarter of
2015 compared with $28.2 million, or 5.0 combined ratio points, in
the comparable period a year ago
- Pre-tax catastrophe losses net of
reinsurance recoveries totaled $13.5 million or 2.3 combined ratio
points in the first quarter of 2015 compared with $10.6 million, or
1.9 combined ratio points, of pre-tax catastrophe losses in the
first quarter of 2014
Financial highlights for the quarter ended March 31,
2015
- Annualized net income return on average
equity of 16.4% and annualized operating return on average equity
of 12.4% for the quarter ended March 31, 2015 compared with
16.0% and 14.8%, respectively, for the first quarter of
2014(1)
- Diluted net income per share of $1.87
for the quarter ended March 31, 2015 compared with diluted net
income per share of $1.66 for the quarter ended March 31,
2014
- Diluted operating income per share of
$1.39 for the quarter ended March 31, 2015 compared with
diluted operating income per share of $1.55 for the quarter ended
March 31, 2014(1)
- Diluted book value per share of $46.02
at March 31, 2015 up 2.0% from December 31, 2014
(1) See definition of non-GAAP financial measures at the end of
this release.
Segment Highlights
Insurance
Operating highlights for Insurance for the quarter ended
March 31, 2015 include:
- Gross written premiums of $434.4
million, an increase of 13.3% compared with $383.3 million in the
first quarter of 2014
- Combined ratio of 93.5% compared with
95.1% for the first quarter of 2014
- Prior year favorable reserve
development of $14.3 million, or 4.2 combined ratio points,
compared with prior year favorable reserve development of $7.0
million, or 2.3 combined ratio points, for the first quarter of
2014.
Notable areas of gross written premiums growth include U.K.
regional property and liability packages, political risks and
environmental liability.
The combined ratio of 93.5% for the first quarter of 2015
included $5.8 million, or 1.7 percentage points, of pre-tax
catastrophe losses net of reinsurance recoveries. The combined
ratio for the first quarter of 2014 included $5.1 million, or 1.7
percentage points, of pre-tax catastrophe losses. For the quarter
ended March 31, 2015 the Insurance accident year ex-cat loss ratio
was 60.8% compared with 59.9% a year ago.(1)
Mario Vitale, CEO of Insurance, commented, “Our insurance
business continues to reap the benefits of prior investments. Gross
written premiums rose 13.3% in the quarter with a very satisfactory
accident year ex cat loss ratio. Our U.S. teams continue to gain
scale and maintain underwriting discipline with gross written
premium growth of 17.5% for the quarter and an accident year ex-cat
loss ratio of 60.4%. For the trailing 12 months the U.S. platform
delivered net earned premium of $566.4 million. We remain on
track to achieve $600 million of net earned premium in the U.S. by
the end of 2015 and, at that time, we expect a competitive G&A
ratio of approximately 16%.(2) Our International business has close
to $500 million of annualized net earned premium emanating from our
established Lloyd's platform and has had strong success in U.K.
regional Property and Casualty.”(2)
Reinsurance
Operating highlights for Reinsurance for the quarter ended
March 31, 2015 include:
- Gross written premiums of $484.8
million, an increase of 2.7% from $472.2 million in the first
quarter of 2014
- Combined ratio of 76.7% compared with
for 72.6% for the first quarter of 2014
- Prior year favorable reserve
development of $13.2 million, or 5.3 combined ratio points,
compared with $21.2 million prior year favorable loss reserve
development, or 7.9 combined ratio points, for the first quarter of
2014
The combined ratio of 76.7% for the first quarter of 2015
included $7.7 million, or 3.1 percentage points, of pre-tax
catastrophe losses, net of reinsurance recoveries. The combined
ratio of 72.6% for the first quarter of 2014 included $5.5 million,
or 2.1 percentage points, of pre-tax catastrophe losses, net of
reinsurance recoveries. For the quarter ended March 31, 2015 the
Reinsurance accident year ex-cat loss ratio was 44.5% compared with
47.2% a year ago.(1)
Stephen Postlewhite, CEO of Reinsurance, commented on the
quarter, “Reinsurance had another very strong quarter. We grew
premiums slightly while achieving an impressive accident year
ex-cat loss ratio of 44.5%. The January and April renewals have
been highly successful, achieved through superior client
relationships, nimble underwriting, creative client solutions, and
a comprehensive approach to distribution all of which make us a
preferred market for our clients. We manage capital in an effective
way; withdrawing capital from areas where rates and terms and
conditions do not meet our requirements and deploying it in areas
where the business is better rated. As we navigate the marketplace,
we continue to capitalize on our established regional strategy,
with Asia Pacific, Latin America and MENA gross written premiums
rising 25% in the first quarter. Aspen Capital Markets is
maintaining its trajectory of growth as we leverage our access to
third party capital."
Investment performance
Aspen’s investment portfolio continues to be comprised primarily
of high quality fixed income securities with an average credit
quality of “AA-”. The average duration of the fixed income
portfolio was 3.45 years at March 31, 2015 excluding the
impact of interest rate swaps, or 3.27 years including the impact
of interest rate swaps. The total return on Aspen’s investment
portfolio was 1.1% for the three months ended March 31,
2015.
Book yield as at March 31, 2015 on the fixed income
portfolio was 2.56% compared to 2.65% at December 31, 2014.
As a result of rebalancing equity investments across subsidiary
company balance sheets, a portion of equities were sold that were
classified as available for sale, with a commensurate purchase of
equities designated as trading securities. As a result, there was a
realized investment gain of $28.9 million on this sale.
Capital
Total shareholders’ equity was $3.5 billion at March 31,
2015.
During the first quarter of 2015, there were 787,138 ordinary
shares repurchased at an average price of $46.32 per share for a
total cost of $36.5 million and from April 1 to April 21, 2015,
there were 110,112 ordinary shares repurchased at an average price
of $47.20 per share for a total cost of $5.2 million. In both
instances, the shares were repurchased under a Rule 10b5-1 plan.
Aspen had $458.3 million remaining under its current share
repurchase authorization as at April 21, 2015.
Outlook
Aspen continues to expect to achieve an operating return on
equity of 11% in 2015.(2)
See “Forward-looking Statements Safe Harbor” below.
Earnings conference call and
webcast
Aspen will host a conference call to discuss the results at
8:00 am (EDT) on Thursday, April 23, 2015.
To participate in the April 23
conference call by phone
Please call to register at least 10 minutes before the conference
call begins by dialing: +1 (855) 868 3191 (US toll free) or
+1 (973) 321 1024 (international) Conference ID 14039698
To listen live online
Aspen will provide a live webcast on
Aspen’s website at www.aspen.co.
To download the materials
The earnings press release and a detailed
financial supplement will also be published on Aspen’s website at
www.aspen.co.
To listen later
A replay of the call will be available for 14 days via phone and
internet, available two hours after the end of the live call. To
listen to the replay by phone please dial: +1 (855) 859 2056
(US toll free) or +1 (404) 537 3406 (international) Replay ID
14039698
The recording will be also available at www.aspen.co on the Event Calendar page within the
Investor Relations section.
Aspen Insurance Holdings
Limited
Summary consolidated balance sheet
(unaudited)
$ in millions, except per share data
As at As
at March 31, December 31, 2015 2014
ASSETS Total investments
$ 7,281.4 $ 7,428.9
Cash and cash equivalents
1,225.9 1,178.5 Reinsurance
recoverables
636.5 556.8 Premiums receivable
1,264.8
1,011.7 Other assets
572.7 540.4 Total assets
$ 10,981.3 $ 10,716.3 LIABILITIES
Losses and loss adjustment expenses
$ 4,698.9 $
4,750.8 Unearned premiums
1,665.1 1,441.8 Other payables
526.4 484.6 Silverton loan notes
76.0 70.7 Long-term
debt
549.1 549.1 Total liabilities
$
7,515.5 $ 7,297.0 SHAREHOLDERS’ EQUITY Total
shareholders’ equity
3,465.8 3,419.3 Total
liabilities and shareholders’ equity
$ 10,981.3
$ 10,716.3 Book value per share
$ 47.14
$ 46.16 Diluted book value per share (treasury stock method)
$ 46.02 $ 45.13
Aspen Insurance Holdings
Limited
Summary consolidated statement of income (unaudited)
$ in millions, except ratios
Three Months Ended March 31, 2015
March 31, 2014 UNDERWRITING REVENUES Gross written premiums
$ 919.2 $ 855.5 Premiums ceded
(156.0 )
(158.0 ) Net written premiums
763.2 697.5 Change in unearned
premiums
(169.6 ) (131.0 ) Net earned premiums
593.6 566.5 UNDERWRITING EXPENSES Losses and
loss adjustment expenses
306.1 288.1 Amortization of
deferred policy acquisition costs
119.3 112.0 General,
administrative and corporate expenses (excluding non-recurring
corporate expenses)
102.2 92.6 Total
underwriting expenses
527.6 492.7 Underwriting
income including corporate expenses
66.0 73.8
OTHER OPERATING REVENUE Net investment income
47.4 49.5
Interest expense
(7.4 ) (7.4 ) Other income (expense)
(1.6 ) (0.1 ) Total other operating revenue
38.4 42.0 OPERATING INCOME
BEFORE TAX
104.4 115.8 Non-recurring
corporate expenses (bid defense costs) — (3.0 ) Net realized and
unrealized exchange (losses) gains
(11.0 ) 2.6 Net
realized and unrealized investment gains
39.7 8.8
INCOME BEFORE TAX
133.1 124.2 Income tax expense
(5.1 ) (3.8 ) NET INCOME AFTER TAX
128.0 120.4
Dividends paid on ordinary shares
(12.4 ) (11.7 )
Dividends paid on preference shares
(9.5 ) (9.5 )
Proportion due to non-controlling interest
— (0.1 )
Retained income
$ 106.1 $ 99.1
Components of net income (after tax) Operating income
$
98.0 $ 112.7 Non-recurring corporate expenses — (3.0 ) Net
realized and unrealized exchange (losses) gains after tax
(9.8 ) 2.1 Net realized investment gains after tax
39.8 8.6 NET INCOME AFTER TAX
$
128.0 $ 120.4 Loss ratio
51.6
% 50.9 % Policy acquisition expense ratio
20.1
% 19.8 % General, administrative and corporate expense ratio
17.2 % 16.9 % General, administrative and corporate
expense ratio (excluding non-recurring corporate expenses)
17.2 % 16.3 % Expense ratio
37.3 % 36.7
% Expense ratio (excluding non-recurring corporate expenses)
37.3 % 36.1 % Combined ratio
88.9 %
87.6 % Combined ratio (excluding non-recurring corporate expenses)
88.9 % 87.0 %
Aspen
Insurance Holdings Limited Summary consolidated financial
data (unaudited)
$ in millions, except number of shares
Three Months Ended March 31, 2015
March 31, 2014 Basic earnings per ordinary share Net
income adjusted for preference share dividend
$1.91 $1.70
Operating income adjusted for preference share dividend
$1.43 $1.59 Diluted earnings per ordinary share Net income
adjusted for preference share dividend
$1.87 $1.66 Operating
income adjusted for preference share dividend
$1.39 $1.55
Weighted average number of ordinary shares outstanding (in
millions)
62.159 65.289 Weighted average number of
ordinary shares outstanding and dilutive potential ordinary shares
(in millions)
63.533 66.566 Book value per ordinary
share
$47.14 $43.28 Diluted book value per ordinary share
(treasury stock method)
$46.02 $42.72 Ordinary shares
outstanding at end of the period (in millions)
61.723 65.419
Ordinary shares outstanding and dilutive potential ordinary
shares at end of the period (treasury stock method) (in millions)
63.227
66.281
Aspen Insurance
Holdings Limited Summary consolidated segment information
(unaudited)
$ in millions, except ratios
Three Months Ended March 31, 2015 Three Months
Ended March 31, 2014 Reinsurance Insurance
Total Reinsurance Insurance
Total Gross written
premiums
$ 484.8 $ 434.4 $
919.2 $ 472.2 $ 383.3 $ 855.5 Net written premiums
442.1 321.1 763.2 442.6 254.9 697.5 Gross
earned premiums
265.8 415.1 680.9 278.5 373.6
652.1 Net earned premiums
249.4 344.2 593.6
266.7 299.8 566.5 Losses and loss adjustment expenses
105.5
200.6 306.1 110.4 177.7 288.1 Policy acquisition
expenses
53.4 65.9 119.3 50.4 61.6 112.0
General and administrative expenses
32.4
55.3 87.7 32.8
45.9 78.7 Underwriting income
$
58.1 $ 22.4 $
80.5 $ 73.1 $ 14.6 $ 87.7 Net
investment income
47.4 49.5 Net realized and unrealized
investment gains (1)
39.7 8.3 Corporate expenses
(14.5 ) (13.9 ) Non-recurring corporate expenses —
(3.0 ) Other expense
(1.6 ) (0.1 ) Interest expense
(7.4 ) (7.4 ) Net realized and unrealized foreign
exchange (losses)/gains (2)
(11.0 ) 3.1 Income
before tax
$ 133.1 $ 124.2 Income tax expense
(5.1 ) (3.8 )
Net income $ 128.0
$ 120.4
Ratios Loss ratio
42.3
% 58.3 % 51.6 % 41.4 % 59.3 %
50.9 % Policy acquisition expense ratio
21.4 %
19.1 % 20.1 % 18.9 % 20.5 % 19.8 %
General and administrative expense ratio (3)
13.0 %
16.1 % 17.2 % 12.3 % 15.3 % 16.9 %
General and administrative expense ratio (excluding non-recurring
corporate expenses) (3)
13.0 % 16.1 %
17.2 % 12.3 % 15.3 % 16.3 % Expense ratio
34.4
% 35.2 % 37.3 % 31.2 % 35.8 %
36.7 % Expense ratio (excluding non-recurring corporate expenses)
34.4 % 35.2 % 37.3 % 31.2
% 35.8 % 36.1 % Combined ratio
76.7 % 93.5
% 88.9 % 72.6 % 95.1 % 87.6 % Combined ratio
(excluding non-recurring corporate expenses)
76.7 %
93.5 % 88.9 % 72.6 %
95.1 % 87.0 %
(1)
Includes realized and unrealized capital gains and losses
and realized and unrealized gains and losses on interest rate swaps
(2) Includes realized and unrealized foreign exchange gains and
losses and realized and unrealized gains and losses on foreign
exchange contracts (3) The total group general and administrative
expense ratio includes the impact from corporate expenses
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 Bermuda, France, Germany, Ireland,
Singapore, Switzerland, the United Kingdom and the United States.
For the year ended December 31, 2014, Aspen reported $10.7 billion
in total assets, $4.8 billion in gross reserves, $3.4 billion in
total shareholders’ equity and $2.9 billion in gross written
premiums. Its operating subsidiaries have been assigned a rating of
“A” (“Strong”) by Standard & Poor’s Financial Services LLC
(“S&P”), an “A” (“Excellent”) by A.M. Best Company Inc. (“A.M.
Best”) and an “A2” (“Good”) by Moody’s Investor Service, Inc.
(“Moody’s”).
For more information about Aspen, please visit www.aspen.co.
Forward-looking Statements Safe Harbor
This press release contains, and Aspen’s earnings conference
call will contain, written or oral “forward-looking statements”
within the meaning of the US 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,” “aim,” “project,” “anticipate,” “seek,” “will,” “likely,”
“assume,” “estimate,” “may,” “continue,” “guidance,” “objective,”
“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.
All forward-looking statements address matters that involve
risks and uncertainties. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in these statements. Aspen believes
these factors include, but are not limited to: our ability to
successfully implement steps to further optimize the business
portfolio, ensure capital efficiency and enhance investment
returns; the possibility of greater frequency or severity of claims
and loss activity, including as a result of natural or man-made
(including economic and political risks) catastrophic or material
loss events, than our underwriting, reserving, reinsurance
purchasing or investment practices have anticipated; the
assumptions and uncertainties underlying reserve levels that may be
impacted by future payments for settlements of claims and expenses
or by other factors causing adverse or favorable development,
including our assumptions on inflation costs associated with
long-tail casualty business which could differ materially from
actual experience; the reliability of, and changes in assumptions
to, natural and man-made catastrophe pricing, accumulation and
estimated loss models; decreased demand for our insurance or
reinsurance products and cyclical changes in the insurance and
reinsurance industry; the models we use to assess our exposure to
losses from future natural catastrophes contain inherent
uncertainties and our actual losses may differ significantly from
expectations; our capital models may provide materially different
indications than actual results; increased competition from
existing insurers and reinsurers and from alternative capital
providers and insurance-linked funds and collateralized special
purpose insurers on the basis of pricing, capacity, coverage terms,
new capital, binding authorities to brokers or other factors and
the related demand and supply dynamics as contracts come up for
renewal; our ability to execute our business plan to enter new
markets, introduce new products and develop new distribution
channels, including their integration into our existing operations;
our acquisition strategy; the recent consolidation in the
(re)insurance industry; loss of one or more of our senior
underwriters or key personnel; changes in our ability to exercise
capital management initiatives (including our share repurchase
program) or to arrange banking facilities as a result of prevailing
market conditions or changes in our financial position; changes in
the availability, cost or quality of reinsurance or retrocessional
coverage; changes in general economic conditions, including
inflation, deflation, foreign currency exchange rates, interest
rates and other factors that could affect our financial results;
the risk of a material decline in the value or liquidity of all or
parts of our investment portfolio; the risks associated with the
management of capital on behalf of investors; evolving issues with
respect to interpretation of coverage after major loss events; our
ability to adequately model and price the effects of climate cycles
and climate change; any intervening legislative or governmental
action and changing judicial interpretation and judgments on
insurers’ liability to various risks; the risks related to
litigation; the effectiveness of our risk management loss
limitation methods, including our reinsurance purchasing; changes
in the total industry losses, or our share of total industry
losses, resulting from past events and, with respect to such
events, our reliance on loss reports received from cedants and loss
adjustors, our reliance on industry loss estimates and those
generated by modeling techniques, changes in rulings on flood
damage or other exclusions as a result of prevailing lawsuits and
case law; the impact of one or more large losses from events other
than natural catastrophes or by an unexpected accumulation of
attritional losses and deterioration with loss estimates; the
impact of acts of terrorism, acts of war and related legislation;
any changes in our reinsurers’ credit quality and the amount and
timing of reinsurance recoverables; the continuing and uncertain
impact of the current depressed lower growth economic environment
in many of the countries in which we operate; our reliance on
information and technology and third-party service providers for
our operations and systems; the level of inflation in repair costs
due to limited availability of labor and materials after
catastrophes; a decline in our operating subsidiaries’ ratings with
S&P, A.M. Best or Moody’s; the failure of our reinsurers,
policyholders, brokers or other intermediaries to honor their
payment obligations; our reliance on the assessment and pricing of
individual risks by third parties; our dependence on a few brokers
for a large portion of our revenues; the persistence of heightened
financial risks, including excess sovereign debt, the banking
system and the Eurozone crisis; changes in government regulations
or tax laws in jurisdictions where we conduct business; changes in
accounting principles or policies or in the application of such
accounting principles or policies; increased counterparty risk due
to the credit impairment of financial institutions; and Aspen or
Aspen Bermuda Limited becoming subject to income taxes in the
United States or the United Kingdom. For a more detailed
description of these uncertainties and other factors, please see
the “Risk Factors” section in Aspen’s Annual Report on Form 10-K as
filed with the U.S. Securities and Exchange Commission on February
23, 2015. 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 dates on which they are made.
In addition, any estimates relating to loss events involve the
exercise of considerable judgment and reflect a combination of
ground-up evaluations, information available to date from brokers
and cedants, market intelligence, initial tentative loss reports
and other sources. The actuarial range of reserves and management’s
best estimate represents a distribution from our internal capital
model for reserving risk based on our then current state of
knowledge and explicit and implicit assumptions relating to the
incurred pattern of claims, the expected ultimate settlement
amount, inflation and dependencies between lines of business. Due
to the complexity of factors contributing to the losses and the
preliminary nature of the information used to prepare these
estimates, there can be no assurance that Aspen’s ultimate losses
will remain within the stated amount.
(1) Non-GAAP Financial Measures
In presenting Aspen’s results, management has included and
discussed certain “non-GAAP financial measures” as such term is
defined in Regulation G. Management believes that these non-GAAP
financial measures, which may be defined differently by other
companies, better explain Aspen’s results of operations in a manner
that allows for a more complete understanding of the underlying
trends in Aspen’s business. However, these measures should not be
viewed as a substitute for those determined in accordance with
GAAP. The reconciliation of such non-GAAP financial measures to
their respective most directly comparable GAAP financial measures
in accordance with Regulation G is included in the financial
supplement, which can be obtained from the Investor Relations
section of Aspen’s website at www.aspen.co.
Annualized Operating Return on Average Equity (“Operating
ROE”) is a non-GAAP financial measure. Operating ROE is
calculated using operating income, as defined below, and average
equity is calculated as the arithmetic average on a monthly basis
for the stated periods of shareholders’ equity excluding the
aggregate value of the liquidation preferences of our preference
shares net of issuance costs and the total amount of
non-controlling interest. Aspen presents Operating ROE as a measure
that is commonly recognized as a standard of performance by
investors, analysts, rating agencies and other users of its
financial information.
See page 22 of Aspen’s financial supplement for a reconciliation
of operating income to net income and page 7 for a reconciliation
of average ordinary shareholders’ equity to average shareholders’
equity. Aspen’s financial supplement can be obtained from the
Investor Relations section of Aspen’s website at www.aspen.co.
Operating Income is a non-GAAP financial measure.
Operating income is an internal performance measure used by Aspen
in the management of its operations and represents after-tax
operational results excluding, as applicable, after-tax net
realized and unrealized capital gains or losses, including net
realized and unrealized gains or losses on interest rate swaps,
after-tax net foreign exchange gains or losses, including net
realized and unrealized gains and losses from foreign exchange
contracts and certain non-recurring items. In 2014, non-recurring
items included costs associated with defending the unsolicited
approach from Endurance Specialty Holdings Ltd. in the amount of
$3.0 million for the three months ended March 31, 2014.
Aspen excludes the items above from its calculation of operating
income because they are either not expected to recur and therefore
are not reflective of underlying performance or the amount of these
gains or losses is heavily influenced by, and fluctuates in part,
according to the availability of market opportunities. Aspen
believes these amounts are largely independent of its business and
underwriting process and including them would distort the analysis
of trends in its operations. In addition to presenting net income
determined in accordance with GAAP, Aspen believes that showing
operating income enables investors, analysts, rating agencies and
other users of its financial information to more easily analyze
Aspen’s results of operations in a manner similar to how management
analyzes Aspen’s underlying business performance. Operating income
should not be viewed as a substitute for GAAP net income. Please
see page 22 of Aspen’s financial supplement for a reconciliation of
operating income to net income. Aspen’s financial supplement can be
obtained from the Investor Relations section of Aspen’s website at
www.aspen.co.
Diluted Book Value per Ordinary Share is not a non-GAAP
financial measure. Aspen has included diluted book value per
ordinary share as it illustrates the effect on basic book value per
share of dilutive securities thereby providing a better benchmark
for comparison with other companies. Diluted book value per share
is calculated using the treasury stock method, defined on page 21
of Aspen’s financial supplement, which can be obtained from the
Investor Relations section of Aspen’s website at www.aspen.co.
Diluted Operating Earnings per Share and Basic Operating
Earnings per Share are non-GAAP financial measures. Aspen
believes that the presentation of diluted operating earnings per
share and basic operating earnings per share supports meaningful
comparison from period to period and the analysis of normal
business operations. Diluted operating earnings per share and basic
operating earnings per share are calculated by dividing operating
income by the diluted or basic weighted average number of shares
outstanding for the period. See page 22 of Aspen’s financial
supplement for a reconciliation of diluted and basic operating
earnings per share to basic earnings per share. Aspen’s financial
supplement can be obtained from the Investor Relations section of
Aspen’s website at www.aspen.co.
Combined Ratio Excluding Catastrophes is a non-GAAP
financial measure. Aspen has presented loss ratios both including
and excluding the impact from catastrophe losses to aid in the
analysis of the underlying performance of our segments. Aspen has
defined catastrophe losses in the first quarter 2015 as losses
associated with storms in Europe, Australia and North America. We
have defined catastrophe losses in the first quarter of 2014 winter
storms in the U.S. and Japan and flood losses in the U.K.
Accident Year Loss Ratio Excluding Catastrophes is a
non-GAAP financial measure. Aspen believes that the presentation of
loss ratio excluding catastrophes and prior year reserve movements
supports meaningful comparison from period to period of the
underlying performance of the business. Accident year loss ratio
excluding catastrophes is calculated by dividing net losses
excluding catastrophe losses, net expenses and prior year reserve
movements by net earned premiums excluding catastrophe related
reinstatement premiums. Aspen has defined catastrophe losses in the
first quarter of 2015 as losses associated with storms in Europe,
Australia and North America. We have defined catastrophe losses in
the first quarter of 2014 as winter storms in the U.S. and Japan
and flood losses in the U.K.
Insurance Q1 2015 Q1
2014 Loss Ratio 58.3 % 59.3 % Prior Year Loss Development 4.2 %
2.3 % Catastrophe Losses (1.7 )% (1.7 )% Ex-cat Accident Year Loss
Ratio 60.8 % 59.9 %
Reinsurance Q1 2015 Q1
2014 Loss Ratio 42.3 % 41.4 % Prior Year Loss Development 5.3 %
7.9 % Catastrophe Losses (3.1
)%
(2.1 )% Ex-cat Accident Year Loss Ratio 44.5 % 47.2 %
(2) The outlook for 2015
The outlook for 2015 assumes our expectations of normal loss
experience, our current view of interest rates and our prospective
view of the insurance rate environment. Our outlook in 2015 is
necessarily subject to heightened sensitivity in relation to these
assumptions which are likely to be the subject of future change,
amendment, update and review, as necessary. For example, our
assumptions for rising interest rates in 2015 are subject to and
dependent upon the anticipated and actual monetary policy decisions
taken by the central banks in the jurisdictions in which we
operate. Our assumptions are also based on the retention of our
senior underwriters and client relationships. In addition, the
models underlying our normal loss experience assumptions will
produce different illustrative loss patterns if the modeling
assumptions are changed. Greater decreases in pricing in certain
business lines, if sustained, are also expected to have an adverse
effect on operating return on equity. This outlook is subject to
change for many reasons, including unusual or unpredictable items,
such as catastrophe losses, loss reserve development, investment
results and other items.
InvestorsKerry Calaiaro, +1 (646) 502-1076Senior Vice
President, Investor Relations, AspenKerry.Calaiaro@aspen.coorKathleen de Guzman, +1
(646) 289-4912Vice President, Investor Relations, AspenKathleen.deGuzman@aspen.coorMediaSteve
Colton, +44 20 7184 8337Head of Communications, AspenSteve.Colton@aspen.coorInternational - Citigate
Dewe RogersonCaroline Merrell or Jos BienemanCaroline.Merrell@citigatedr.co.ukJos.Bieneman@citigatedr.co.uk+44 20 7638
9571orNorth America - Sard Verbinnen & CoPaul Scarpetta or
Jamie Tully+1 (212) 687-8080
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Feb 2024 to Mar 2024
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Mar 2023 to Mar 2024