Aspen's H1 2020 results battered by COVID-19; CEO bullish on improving rate environment
Bermuda-based re/insurer Aspen Insurance Holdings saw its losses widen as the carrier suffered a $187.3 million COVID-19 hit in the first half of 2020.
Chief executive Mark Cloutier is, however, "pleased" with the company's progress as it continues to execute its business turnaround plan. The re/insurer reported a net loss of $168.7 million for the first half of 2020, significantly up from the net loss of $37.3 million it made in the first six months of 2019.
It generated gross written premiums of $2.12 billion in H1, up from $1.85 billion in the same period the previous year.
Meanwhile, its combined ratio ballooned to 110.1 percent, from 104.4 percent in the first half of 2019.
Mark Cloutier, Aspen’s chief executive officer, stressed the challenges the re/insurer faced in the first half of the year, particularly due to the COVID-19 pandemic, but said he was “pleased with the progress we have made as we continue to reshape the business with a clear focus on total value creation.”
He added: “I believe that we have the right combination of entrepreneurialism, talent and discipline to build our business and position Aspen as a leading international specialty re/insurer.”
Cloutier said the "market conditions are definitely improving and while some lines of business still have some distance to achieve adequacy, we have seen strong risk adjusted rate change across both our insurance and reinsurance segments.
"Seizing upon the opportunities in this improving rate environment while having the benefit of the Adverse Development Cover, completed in the first half of the year, protecting the group against potential adverse impacts from 2019 and prior underwriting years will position us well as we continue our work to simplify the business and build for the future."
