Aspen warns of $245m underwriting loss in Q4
Bermuda-based Aspen expects to record an underwriting loss of approximately $245 million in the fourth quarter of 2017, according to a Jan. 25 press release.
The results include approximately $135 million in pre-tax losses, net of reinsurance and reinstatement premiums, related to wildfires in California in the fourth quarter of 2017. The estimated losses are predominantly attributed to Aspen’s reinsurance segment.
The fourth quarter loss is driven by the impact of natural catastrophes as well as an increased frequency of mid-sized and attritional losses primarily in Aspen’s insurance segment. These include property and fire-related losses in the UK and US and, to a lesser extent, cyber losses and an increase in a previously reported surety loss. Aspen's reserves for losses and loss adjustment expenses remain strong and the expected fourth quarter 2017 underwriting loss includes a release of reserves from prior years.
“We are deeply disappointed with our financial performance in 2017,” said CEO Chris O’Kane. “We have taken a number of actions to improve our underwriting performance and expect to see the impact of these reflected in our 2018 underwriting year results and beyond. We believe our capital position is appropriate to support our ongoing business and underpins our financial strength ratings.”
Aspen will report updated loss estimates and full operating results for the fourth quarter of 2017 on Feb. 7, 2018.
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