Aspen Announces Estimated Impact of Ogden Rate Change

By a News Reporter-Staff News Editor at Insurance Weekly News -- Aspen Insurance Holdings Limited ("Aspen") (NYSE: AHL) announced the estimated financial impact of the recent U.K. Ministry of Justice decision to decrease the discount rate used to calculate lump sum awards in U.K. bodily injury cases, known as the Ogden rate.

Aspen expects to increase carried reserves for impacted lines of business by approximately $30 million, on a pre-tax basis, in the first quarter of 2017 as a result of the change in the Ogden rate. Approximately half of the impact relates to business that Aspen has either exited and is in run-off or where Aspen has scaled back significantly over a number of years.

The Ogden rate change impacts Aspen's Insurance segment via its U.K. employer's liability and U.K. public liability business. In Aspen Reinsurance, exposure to the Ogden rate change comes from reinsurance of U.K. employer's liability and U.K. public liability business and to a lesser degree U.K. motor liability reinsurance. Aspen has not been a significant reinsurer of U.K. motor liability for a number of years and has limited exposure to this business.

Keywords for this news article include: Aspen Insurance Holdings Limited.

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