Aspen swings back to profit on underwriting turnaround

Bermudian re/insurer  Aspen Insurance Holdings has swung back to profitability despite a series of loss generating events as it took advantage of the favourable market conditions in 2022, increasing gross written premiums by approximately 10% and strategically transforming its underwriting portfolio.

Against the backdrop of challenges posed by Russia’s invasion of Ukraine, rising inflation and significant natural catastrophe activity, Aspen managed to make significant progress in the past year.

The Bermuda company made a net profit of $51 million last year, compared with a $30 million loss in 2021, as it also posted a combined ratio of 93%, an improvement on the 99% it posted a year earlier. It also posted an operating income of $202 million compared with $51 million a year earlier.

Its gross written premiums increased by 10% to reach $4.3 billion. Its GWP on the reinsurance side enjoyed a 13% increase to reach $1.8 billion primarily due to rate improvement and growth within its casualty and specialty reinsurance lines. Its insurance premiums saw growth of 8% to reach $2.5 billion primarily due to strong performance across the retention of existing business, positive rate improvement and growth in financial and professional and casualty and liability lines.

Aspen claims it is well-positioned to capitalise on current market opportunities while continuing to focus on optimising underwriting returns and prudently managing catastrophe risk.

Aspen CEO Mark Cloutier (pictured) said: “We have continued to make significant progress in 2022, generating $202 million of operating income (2021: $51 million) and $51 million of net income (2021: $(30) million). We delivered a strong set of results in a challenging year that included Russia’s invasion of Ukraine, rising inflation and significant natural catastrophe activity, all of which generated notable loss activity for our industry.

“Against this backdrop, our reported combined ratio improved to 93.0% (2021: 101.2%), an outstanding result. Adjusted for the impacts of the loss portfolio transfer and adverse development contracts, our combined ratio was 92.4%* (2021: 98.8%). We have been clear in our ambition to establish Aspen as a top quartile specialty (re)insurer and we have maintained momentum during 2022 through the strength of our underwriting performance and continued operational resilience.”

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