Improved underwriting performance drove a return to profitability for Aspen Insurance Holdings Limited, the Bermudian-based re/insurer.

Aspen has reported $29.8 million in net income for 2021, compared with a net loss after tax of $56.4 million in 2020.

For the year ended December 31, Aspen reported $13.8 billion in total assets, $7.6 billion in gross reserves, $2.8 billion in total shareholders’ equity and $3.9 billion in gross written premiums.

GWP increased 6.5 per cent over 2020, primarily due to rate improvements in financial and professional insurance lines, casualty and liability insurance lines and organic growth in casualty reinsurance lines.

Adjusted underwriting income was $28.3 million, up from an $87 million underwriting loss in 2020.

Mark Cloutier, group executive chairman and chief executive officer, said: “I am pleased to report that 2021 was a further year of good progress at Aspen, with the business reporting a net income of $29.8 million and an operating income of $95.1 million, a significant improvement over 2020.

“Moreover, this performance occurred in a year that saw the world continuing to adapt to the effects of the ongoing global pandemic. Now, as we enter May 2022, our world continues to be rocked by the horrific events unfolding as a result of the invasion in Ukraine. Our thoughts and prayers are with all those whose lives continue to be forever impacted.

“Underpinning Aspen’s improved result was a continued focus on underwriting discipline with our adjusted combined ratio improving from 103.4 per cent in 2020, which included 14.3 percentage points of catastrophe losses, to 98.8 per cent in 2021; this included 13.6 percentage points of catastrophe losses as well as the full economic benefit of the adverse development cover we entered into during 2020.

“This trend underscores the improvement initiatives we have put in place, while also showing we have been an active participant in capturing the opportunities presented by improved market and trading conditions.”

He added: “In the first half of 2021, we refreshed our brand, aligning our external identity with our collaborative internal culture and clear vision to transform risk into opportunity for our clients.

“Looking ahead, while we are mindful of broader macroeconomic uncertainty and continued inflationary claims trends, we are confident in the outlook and positioning of our business.

“We are successfully shifting from ‘transforming’ Aspen to ‘activating’ its true potential, and I am excited by the energy, enthusiasm and commitment I see from our people, the differentiated solutions our platforms are creating for clients and what I believe we can accomplish in 2022 and beyond.”