Aspen Q4 2018 results hit by natural catastrophe losses
Catastrophe losses drove a net loss of $147 million at Bermuda-based Aspen Insurance Holdings, which is to be acquired by alternative investment manager Apollo in a $2.6 billion deal signed in August 2018.
Aspen posted a net loss after tax of $145.8 million for 2018, an improvement from the net loss of $266.4 million for 2017.
In Q4 specifically, the company posted a net loss of $146.8 million, compared with a net loss of $184.9 million in the fourth quarter of 2017.
For the full year, Aspen's combined ratio was 110 percent, an improvement from 125.7 percent in 2017.
For the three months ending December 31, 2018, Aspen's combined ratio was 132.8 percent, an improvement from 152.6 percent for the same period in 2017.
For the twelve months ended December 31, 2018, Aspen's gross written premiums increased 2.6 percent year-on-year to $3.45 billion.
In the fourth quarter, Aspen's gross written premiums were $603.1 million, a decrease of 12.4 percent for the same period in 2017.
Reinsurance premiums saw a decrease of 30.7 percent year-on-year to $149.8 million. Aspen attributes this reduction primarily to a decrease in the specialty reinsurance sub-segment following the commutation of a mortgage reinsurance contract during the fourth quarter. The GWP in Q4 2017 also included approximately $35 million related to transitional arrangements following the sale of AgriLogic during that quarter.
“Aspen's fourth quarter 2018 results were impacted by the significant natural catastrophe activity that we witnessed across the industry during the period," said chief executive officer Chris O’Kane. "However, we improved our underwriting performance for the full year and achieved our target for reducing our expense ratio. We continue to focus on providing our clients and business partners with outstanding service and enhancing further our financial and operational performance."
O’Kane added: "We are making good progress with our proposed transaction with the Apollo Funds and have received most of the required regulatory approvals. We anticipate completing the transaction during the first quarter of 2019."
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