30 March 2017News

Aspen announces how Ogden rate change will impact it

Aspen Insurance Holdings has released its view on the estimated financial impact of the recent UK Ministry of Justice decision to decrease the discount rate used to calculate lump sum awards in UK bodily injury cases, better known as the Ogden rate.

Aspen said that it 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.

The company said that approximately half of the impact relates to business that it 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 UK employer’s liability and UK public liability business. In Aspen Reinsurance, exposure to the Ogden rate change comes from reinsurance of UK employer’s liability and UK public liability business and to a lesser degree UK motor liability reinsurance. Aspen has not been a significant reinsurer of UK motor liability for a number of years and has limited exposure to this business.

Aspen’s estimate of the financial impact of the Ogden rate change for the first quarter of 2017 is based, among other factors, on a review of its open claims in relevant classes of business. Due to the complexity of factors contributing to the preliminary nature of the information used to prepare this estimate, there can be no assurance that the ultimate impact of the change in the Ogden rate on Aspen’s reserves will remain within the stated amount.




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26 April 2017   Re/insurers on Bermuda and the US that cover bodily injury claims in the UK will adapt quickly to the higher costs stemming from a change in how settlements are calculated, with just a short-term knock to their earnings, according to Fitch Ratings.
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More on this story

News
26 April 2017   Re/insurers on Bermuda and the US that cover bodily injury claims in the UK will adapt quickly to the higher costs stemming from a change in how settlements are calculated, with just a short-term knock to their earnings, according to Fitch Ratings.
News
27 April 2017   Aspen Insurance has reported that its net income after tax for the first quarter of 2017 came to $96.5 million, an 18.5 percent fall on the $114.4 million it made in the same period of 2016.
News
26 May 2017   Aspen Group has announced that Tim Aman has been appointed its new group chief risk officer.