Aspen profits climb fivefold
Aspen Insurance Holdings Ltd. achieved a more than fivefold increase in profit for the fourth quarter, as claims fell and investment income climbed.
The Bermuda-based re/insurer said net income for the quarter after tax was $126.3 million, compared to $21.8 million in the same period last year.
Full-year net income was $473.9 million — up 356.6 percent from the prior year's $103.8 million.
Aspen CEO Chris O'Kane said: "2009 was a very good year and I am delighted to report a combined ratio of 84.1 percent and an operating return on equity of 18.0 percent for the group against a challenging pricing environment and historically low interest rates.
"We have entered 2010 in a very strong position and our $200 million share buyback in early January demonstrated our continued commitment to active capital management.
"Trading conditions are demanding but I remain confident of achieving a 2010 return on equity that reaches into the teens, assuming normal loss experience as we seek to maximise the advantages of our diversified business model."
The company sold more insurance during the 12 months, as its grosss written premiums rose 3.3 percent to $2.07 billion, despite falling 6.8 percent to $405.7 million during the fourth quarter.
Combined ratio — the percentage of premium spent on claims and expenses — for the 12 months was 84.1 percent and 84.7 percent for the quarter, an improvement on the 95.6 percent and 93.4 percent recorded for the respective periods in 2008.
Diluted book value per share at the end of last year was $34.04 and increased by 21.1 percent from December 31, 2008 and by 2.9 percent since the end of September 2009, as a result of $400.3 million of retained income and a $101.8 million increase in unrealised gains, net of tax, from the fixed income investment portfolio generated during 2009.
ASPEN Q4 REPORT CARD |
|---|
| Net income: $126.3 million compared to $21.8 million in 2008 |
| Combined ratio: $405.7 million, compared to $435.4 million in 2008 |
| Gross premiums written: 84.7 percent compared to 93.4 percent in 2008 |
Net investment income for the year was $248.5 million, up 78.5 percent on 2008, and $58.2 million for the quarter, up 465 percent over the same quarter last year.
Diluted operating earnings per share were $5.16 for 2009, up 258.3 percent on 2008 and $1.44 for the quarter, up 747.1 percent on the fourth quarter of 2008.
