Aspen Reports Strong Financial Results for the First Six Months of 2023

• Net income increased by 352% to $219 million (June 30, 2022: $48 million)

• Operating income* increased by 47% to $191 million (June 30, 2022: $130 million)
• Annualized operating return on average equity* of 22% (June 30, 2022: 14%)
• Underwriting income increased by 33% to $208 million (June 30, 2022: $157 million), resulting in a combined ratio of 83.8% (June 30, 2022: 88.2%)

• Aspen Capital Markets’ total fee income increased by 28% to $61 million (June 30, 2022: $47 million)

• Net investment income increased by 46% to $129 million (June 30, 2022: $89 million)

HAMILTON, Bermuda--(BUSINESS WIRE)--
Aspen Insurance Holdings Limited (“Aspen”) today reported results for the six months ended June 30, 2023.

CEO statement

We are pleased to report a strong set of results for the first half of 2023, which saw our operating income* and net income continue to increase, by 47% to $191 million and by 352% to $219 million, respectively.

We are particularly encouraged to report another period of improved underwriting performance, with our reported combined ratio improving to 83.8% and underwriting income of $208 million. This result reflects the sustained impact of our highly disciplined approach and the benefits of the well-diversified portfolio we have deliberately constructed.

Our gross written premium was $2,125 million, which was slightly lower compared to the same period last year. This is the result of our continuing effort to use current favorable trading conditions to further reduce exposure and manage volatility, while holding our discipline in certain classes where pricing and terms do not meet our return objectives, as demonstrated by our improved underwriting income. While broadly trading conditions are strong, resulting in a 12% rate increase across our whole portfolio, our focus remains on rate adequacy, terms and conditions rather than just rate change. Growing and maintaining our profitability as conditions shift will always be our first priority.

Positive performance across Insurance, Reinsurance and Investments

Our diverse portfolio across our two underwriting segments, Insurance and Reinsurance, allows us to flexibly manage our business. Our underwriting income was well balanced across these two segments and their positive performance was further strengthened by continued expense discipline across the Group, with general and administrative expenses decreasing by 9% to $169 million, notwithstanding inflationary pressures on our cost base.

Our net investment income of $129 million saw an increase of 46%, as a result of active repositioning of our investments to take advantage of higher interest rates, with limited increase in investment risk.

Continued growth in our capital markets franchise

Aspen Capital Markets continues to be an important differentiator, enabling us to offer a broader range of solutions while also generating attractive fee income. In the first half of the year, it generated total fee income of $61 million (June 30, 2022: $47 million), which is recorded within the underwriting result as a decrease to acquisition expenses, driven by further growth in assets under management to $1.3 billion (June 30, 2022: $1.0 billion).

Strengthening the team

We have made a number of hires across the different areas of the business. This is a reflection of our continuously improving business, as we strengthen our leadership teams shaping Aspen for the future. Notable hires in the period were: John Welch, appointed as Chief Underwriting Officer, Reinsurance, and a member of the Group Executive Committee; Yelena La Forgia who joined Aspen as Chief Financial Officer, Insurance and US; Robert Tartaglia who was appointed as Chief Operations Officer, Insurance; and Peter Grant who was appointed Chief Finance Transformation Officer.

Encouraging results for a strong 2023

In the first half of the year, we again saw significant rate increases across our portfolio, and the outlook remains favorable. Our relentless focus on underwriting discipline and managing volatility means we are well placed to continue to take advantage of current market conditions. We have an enviable international franchise: our leading Insurance, Reinsurance and Capital Market’s businesses and established platforms across the US, UK, Lloyd’s and Bermuda give us the tools to unlock further value and access new opportunities. We look to the future, confident we can deliver on our objective of being a top quartile specialty (re)insurer.

Mark Cloutier, Group Executive Chairman and Chief Executive Officer

Earnings materials

The full earnings press release for the six months ended June 30, 2023 will be published on Aspen’s website at https://www.aspen.co/aspen-reports-strong-financial-results-for-the-first-six-months-of-2023/.

About Aspen Insurance Holdings Limited

Aspen provides insurance and reinsurance coverage to clients in various domestic and global markets through wholly-owned operating subsidiaries in Bermuda, the United States and the United Kingdom, as well as its branch operations in Canada, Singapore and Switzerland. For the year ended December 31, 2022, Aspen reported $15.2 billion in total assets, $7.7 billion in gross reserves, $2.4 billion in total shareholders’ equity and $4.3 billion in gross written premiums. Aspen's operating subsidiaries have been assigned a rating of “A-” by Standard & Poor’s Financial Services LLC and an “A” (“Excellent”) by A.M. Best Company Inc. For more information about Aspen, please visit www.aspen.co.

Please refer to the “Financials – Annual Reports” section of Aspen’s investor website for a copy of our Annual Report on Form 20-F.

(1) Cautionary Statement Regarding Forward-Looking Statements

This press release or any other written or oral statements made by or on behalf of the Company may contain written “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are made pursuant to the “safe harbor” provisions of The Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts. In particular, statements using the words such as “expect,” “intend,” “plan,” “believe,” “aim,” “project,” “anticipate,” “seek,” “will,” “likely,” “assume,” “estimate,” “may,” “continue,” “guidance,” “objective,” “outlook,” “trends,” “future,” “could,” “would,” “should,” “target,” “predict,” “potential,” “on track” or their negatives or variations and similar terminology and words of similar import generally involve forward-looking statements.

All forward-looking statements rely on a number of assumptions, estimates and data concerning future results and events and that are subject to a number of uncertainties, assumptions and other factors, many of which are outside Aspen’s control that could cause actual results to differ materially from such forward-looking statements. Accordingly, there are important factors that could cause our actual results to differ materially from those anticipated in the forward-looking statements, including, but not limited to, our exposure to weather-related natural disasters and other catastrophes, the direct and indirect impact of global climate change, our relationship with, and reliance upon, a limited number of brokers for both our insurance and reinsurance business, the impact of inflation, our exposure to credit, currency, interest and others risks within our investment portfolio, the cyclical nature of the insurance and reinsurance industry and many other factors. For a detailed description of these uncertainties and other factors that could impact the forward-looking statements in this press release and other communications issued by or on behalf of Aspen, please see the “Risk Factors” section in Aspen’s Annual Report on Form 20-F for the twelve months ended December 31, 2022, as filed with the SEC, which should be deemed incorporated herein.

The inclusion of forward-looking statements in this press release or any other communication should not be considered as a representation by Aspen that current plans or expectations will be achieved. Aspen undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

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Marc MacGillivray, Chief Accounting Officer

[email protected]

+44 20 7184 8455

Source: Aspen Insurance Holdings Limited