Bermuda-based reinsurer Aspen Insurance Holdings Limited last night reported a 26.6 percent fall in fourth-quarter earnings to $92.7 million.However, the company comfortably beat analysts' expectations, posting $1.02 per share in operating earnings, compared to a consensus forecast of 71 cents. Revenue of $499.7 million also beat analysts' $446.47 million forecast.Fourth-quarter results included $32.8 million of further losses from September's New Zealand earthquake, which were announced by the company in mid-December.Full-year profits for 2010 plunged 34 percent to $324 million compared to 2009's $473.9 million.But Aspen reported that diluted book value per share rose 13.9 percent during the year to $38.90, considerably above its share trading price which closed yesterday at $30.74.Chief executive officer Chris O'Kane said: “I am very pleased to report that we grew book value per share by 13.9 percent in 2010 and 1.8 percent in the fourth quarter against a backdrop of continued low interest rates and a challenging underwriting environment.“The performance of our reinsurance business was particularly strong and, in a year which saw a significant impact from natural catastrophes, the combined ratio of 88.2 percent reflects the benefits of our diversified approach.“We made good progress in furthering our key strategic objectives in 2010 such as developing our insurance franchise in the US and parts of Europe and will continue selectively to seek out opportunities to further our aims in 2011 as market conditions allow.”Gross written premiums of $412.8 million in the quarter, were up 1.8 percent on last year, with the increase coming mainly from the insurance segment. For the year, gross premiums were down slightly at $1,162.2 million compared with $1,176 million in 2009.Aspen indicated in its outlook that it expects gross premiums written for 2011 to be $2.1 billion, plus or minus five percent.Prior-year reserve releases of $12.6 million in the quarter compared with $13.4 million in the equivalent period in 2009. For the 12 months, reserve releases were $21.4 million, compared with $84.4 million in 2009.The combined ratio - an indicator of underwriting profitability which reflects the percentage of premium dollars spent on claims and expenses - was 95.3 percent for the quarter, compared to 84.7 percent in 2009. Full-year combined ration was 96.7 percent, compared to 84.1 percent in 2009.The reinsurance segment, which produced underwriting income of $133.6 million, had a much better year than Aspen's insurance segment, which posted an underwriting loss of $23.6 million.Net investment income for the quarter was $57 million, compared with $58.2 million in the fourth quarter of 2009.During the quarter, the company repurchased 0.5 million ordinary shares in the open market at an average price of $28.87 per share, for a total cost of $15.9 million. As of December 31, 2010, the Company had approximately $192 million of remaining authorisation for ordinary share repurchases through March 2012.