Aspen reduces loss in Q3 ahead of Apollo takeover

Bermuda-based Aspen Insurance Holdings has reduced its loss in the third quarter of 2018 as the company experienced a lower catastrophe impact.

The net loss after tax was $15.1 million in the third quarter compared with net loss of $253.8 million in the third quarter of 2017.

Gross written premiums increased 2.4 percent year on year to $873.2 million in the third quarter of 2018.

The loss ratio was 69.2 percent in the third quarter compared with 119.0 percent in the third quarter of 2017. The loss ratio included pre-tax catastrophe losses of $56.4 million net of reinsurance recoveries and $4.8 million of reinstatement premiums. This compares to $360.3 million net of reinsurance recoveries and $12.5 million of reinstatement premiums in the same period a year ago.

The loss ratio in the insurance segment included pre-tax catastrophe losses of $8.0 million net of reinsurance recoveries primarily as a result of Hurricane Florence in the US.

The loss ratio in the reinsurance segment included pre-tax catastrophe losses of $48.4 million net of reinsurance recoveries and $4.8 million of reinstatement premiums, primarily as a result of Typhoon Jebi in Japan, Hurricane Florence in the US and various other weather-related events in the US and Asia.

Alternative investment manager Apollo is offering $2.6 billion to buy Bermuda-based Aspen Insurance Holdings and take the insurer private.

“Aspen delivered solid results in the third quarter. Our priority is to continue to enhance our financial and operational performance and maintain our sharp focus on providing our clients and business partners with outstanding service,” said outgoing CEO Chris O’Kane.

"We are excited about the next chapter in our history with a partner that understands our strengths, culture and customer-centric philosophy. The transaction remains on track to close in the first half of 2019,” O’Kane said.

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