Aspen Capital Markets claims 18% rise in ILS third party capital in ‘23
Aspen Insurance Group grew its pool of third-party capital in ILS vehicles by 18% in the first nine months of 2023, following upon 36.5% growth in 2022, the group noted in its pro-IPO documentation.
Units of Aspen Capital Management (ACM), including the Peregrine special purpose insurer and segregated accounts vehicle, earn on placement and management of side cars, insurance linked securities (ILS) funds and other offerings for third party investors. The ACM portfolio generally mirrors Aspen's own through collateralised quota share on Aspen primary and reinsurance underwriting.
Third party capital under management grew 10% or $137 million in the third quarter of 2023 alone, bringing the YTD increase to $223 million. The 36.5% gain in 2022 meant a $335 million increase.
In contrast to the broad market, the offer is not exclusively property cat. Aspen works with longer-tail lines to stabilise fee income in multi-year structures.
As of June 30, 2023, approximately 50% of third-party capital within ACM supported longer-tail products, Aspen claimed.
Fee income, a key ingredient in Aspen’s bid to reduce earnings volatility, has been up in turn. 6M fee income of $60.6 million was up 29% year on year following a nearly 70% increase in FY2022 to $103.9 million and a doubling in 2021.
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