Aspen reveals California wildfire loss figures
Aspen expects $50 million to $75 million in losses from the California wildfires, with industry losses at $45 billion.
The Bermuda-based re/insurer, which announced its 2024 fourth quarter and year-end results today (February 28), will include its wildfire losses in its first-quarter results for 2025.
Fourth-quarter gross written premium for the Bermuda-based re/insurer rose to $1 billion compared with $859.7 million in Q4 2023 — a rise of 17.6%.
And full-year GWP rose by 16.2% from £4 billion to $4.6 billion.
Reinsurance GWP for the fourth quarter was $289 million (up 4%) but full-year reinsurance GWP was up by 24% to $1.9 billion.
Reinsurance saw GWP growth across all sub-segments by taking advantage of favourable market conditions, Aspen said, achieving significant rate growth on policy renewals, particularly in casualty and specialty lines. Meanwhile, insurance saw GWP opportunities within specialty, casualty, and financial and professional lines due to increased rate, new business wins and growth in new and existing partnerships.
Aspen's combined ratio for the year was steady at 87.9% but Q4 combined ratio improved from 89.4% to 82.5%.
Fourth-quarter net profit stood at $235 million. The underwriting net income rose from $229.5 million to $248.6 million, while net income for the full year dropped from $534.7 million in 2023 to $431.2 million last year.
Direct insurance fourth-quarter catastrophe losses hit $14.2 million, while full-year cat losses came in at $40.5 million.
Reinsurance catastrophe losses rose from $10.8 million in fourth-quarter 2023 to $37.8 million in Q4 2024. Full-year reinsurance cat losses rose from $87 million to $146.8 million, mainly due to catastrophe losses relating to Hurricane Milton, flood events in Dubai, Baltimore bridge, Hurricane Helene and various events in Canada.
Mark Cloutier (pictured), executive chairman and group chief executive officer, said: “Ongoing political uncertainty and accelerated changes in technology, as well as a significant number of natural and weather-related catastrophes that are affecting millions of people, mean that the risk environment has never been more complex or challenging.”
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