3 May 2018Insurance

Rate hikes propel Aspen through $1bn premium mark in Q1

Profits fell at Bermuda-based Aspen Insurance Holdings in the first quarter because of net realized investment losses but the company also enjoyed solid growth in its gross written premiums, writing more than $1 billion worth of premium in the quarter for the first time.

The company's net profit dropped to $30.8 million in the quarter from $96.5 million in the first quarter of 2017. This figure included a $37.7 million loss due to net realized and unrealized investment losses compared with net investment gains of $46.2 million in the first quarter of 2017.

Its operating income after tax was $63 million in the first quarter of 2018 compared with operating income of $59.8 million in the first quarter of 2017.

Gross written premiums reached $1.1 billion the first quarter of 2018, an increase of 11.9 percent compared with $998 million in the first quarter of 2017.

Chris O’Kane, chief executive, said: “The first quarter of 2018 was the first in Aspen's history in which we wrote more than a billion dollars of premium. Our strong results include gross written premium growth across both Aspen Re and Aspen Insurance as a result of our targeted growth strategy. Both segments generated underwriting profits, we improved our total expense ratio and we continue to implement our operational effectiveness and efficiency programme.”

Insurance gross written premiums increased by 14 percent to $493.3 million due primarily to growth in the financial and professional lines and property and casualty sub-segments.

Reinsurance gross written premiums increased by 10.3 percent to $623.5 million; specialty sub-segment premiums increased largely due to growth in agriculture business which included a fronting arrangement written as part of the transitional arrangements following the sale of AgriLogic in 2017 while the property-catastrophe sub-segment premium increase was largely driven by rate improvement.

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More on this story

Insurance
29 March 2018   Brian Boornazian, the chairman of Aspen's reinsurance segment and CEO of Aspen Re Americas, is to retire at the end of April.
Insurance
29 January 2018   Aspen Insurance's chief executive officer Stephen Postlewhite is leaving the business with immediate effect, according to a Jan. 26 press release.
Insurance
15 May 2018   Bermuda-based Aspen Insurance Holdings has submitted an application to the Central Bank of Ireland for authorization of a new insurance subsidiary in Dublin, Republic of Ireland, to ensure that the insurance group can continue to operate in the European Economic Area after the UK leaves the EU.