Aspen’s profits tumble again despite higher underwriting income
Bermuda-based specialty re/insurer Aspen Insurance Holdings posted a 25% rise in underwriting income for the second quarter, but profits slumped as lingering losses from the California wildfires continued to bite in the first half.
Gross premiums written dipped 0.9% to $1.24 billion in the second quarter of 2025, down from $1.25 billion in the same period a year prior. Aspen attributed this decline to decreasing property rates within its reinsurance segment and non-renewals of certain business.
Net income also saw a nose dive down to $35.5 million, from $55.3 million in the second quarter of 2024, a 36% decrease quarter-on-quarter.
In contrast, underwriting income increased 25% in Q2 2025, reaching $100 million compared to $80 million in the same period a year prior.
Aspen’s combined ratio took a favourable turn, finishing on 85.1%, compared to 88.7% in the same quarter last year, attributed to benign catastrophe experience in the quarter compared to the Dubai and German floods in the comparative period.
Mark Cloutier (pictured), executive chairman and group chief executive officer, said: “Aspen delivered a strong performance for the second quarter, with both of our earnings engines contributing to growth in our operating income and an improvement in our adjusted combined ratio in the context of evolving market dynamics.
“These results – our first quarter since our IPO – continue to demonstrate the strength and consistency of Aspen’s performance which, alongside lower earnings volatility and an improved capital position, were recognised by S&P in May this year with an upgrade of our ratings outlook to Positive from Stable.
“forward, we remain confident that we have the business mix, risk appetite, market standing and culture to achieve sustainable growth and deliver shareholder value as a top quartile specialty re/insurer across market cycles.”
Christian Dunleavy, group president, said: “Aspen’s strong underwriting performance across both insurance and reinsurance in the second quarter is a testament to our continued focus on building a well-balanced portfolio, our disciplined risk selection, and our ability to allocate risk across platforms in competitive market conditions. Fee income from Aspen Capital Markets delivered strong growth through the last quarter, providing underwriting expertise to third-party capital investors while also enabling Aspen to further manage net exposures and volatility within our portfolio.
“We remain on track to deliver mid-teens operating return on equity and will continue to focus on deploying our specialty expertise, further deepening our customer and trade relationships, growing Aspen Capital Markets, and investing in the technology and tools that will make us even better risk allocators. By concentrating our efforts on total value creation and sustainable profitability, we are confident that Aspen has the resilience, strategy and positioning to succeed across market cycles.”
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