AM Best Affirms Credit Ratings of Aspen Insurance Holdings Limited and Its Rated Subsidiaries

Business Wire

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Aspen Insurance UK Limited (AIUK) (United Kingdom), Aspen Bermuda Limited (ABL) (Bermuda), Aspen American Insurance Company (AAIC) (Austin, TX) and Aspen Specialty Insurance Company (ASIC) (Bismarck, ND). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of Aspen Insurance Holdings Limited (Aspen) (Bermuda), a non-operating holding company. AM Best also has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) on the preference shares of Aspen, and the indicative Long-Term IRs under the company’s universal shelf registration. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long-Term IRs.)

The ratings reflect Aspen’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of AIUK, ABL, AAIC and ASIC reflect their integration in and strategic importance to Aspen.

Aspen’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). BCAR scores were comfortably above the minimum required for the strongest assessment level at year-end 2024, supported by solid results, which offset the USD 195.0 million exceptional dividend paid on ordinary shares (2023: USD 40.3 million). The assessment considers the group’s conservative reserving approach, while a loss portfolio transfer provides protection against adverse reserve development for business written up to 2019.

Aspen has a track record of adequate operating performance, demonstrated by a five-year (2020-2024) weighted average return on equity of 7.5%. The group reported another year of improved underwriting performance in 2024, achieving a combined ratio of 92.4% (as calculated by AM Best), against a five-year (2020-2024) weighted average of 98.7%. Underwriting results are expected to continue to remain positive, benefiting from technical discipline and good market conditions.

Aspen’s business profile benefits from its well-diversified portfolio of property/casualty and specialty insurance and reinsurance businesses, as well as a good geographic footprint. The group has a good franchise, supported by its diverse and complementary underwriting platforms in the United Kingdom, the United States and Bermuda, which enable Aspen to accommodate its clients’ needs.

The following Long-Term IRs have been affirmed, with stable outlooks:

Aspen Insurance Holdings Limited—

-- “bb+” (Fair) on USD 250 million 5.625% perpetual non-cumulative preference shares

-- “bb+” (Fair) on USD 250 million 5.625% perpetual non-cumulative preference shares

The following indicative Long-Term IRs under the universal shelf registration have been affirmed, with stable outlooks:

Aspen Insurance Holdings Limited—

-- “bbb” (Good) on senior unsecured debt

-- “bbb-” (Good) on senior subordinated debt

-- “bb+” (Fair) on junior subordinated debt

-- “bb+” (Fair) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.