Aspen posts net loss for second year running
Aspen Insurance Holdings had a challenging fourth quarter in 2018, which CEO Chris O’Kane attributes to significant natural catastrophe activity, and overall posted a net loss for the year.
Aspen posted a net loss after tax of $145.8 million for 2018, however this was an improvement from the net loss of $266.4 million for 2017.
In Q4 specifically, Aspen posted a net loss of $146.8 million, compared with a net loss of $184.9 million in the fourth quarter of 2017.
“Aspen's fourth quarter 2018 results were impacted by the significant natural catastrophe activity that we witnessed across the industry during the period," said O’Kane. "However, we improved our underwriting performance for the full year and achieved our target for reducing our expense ratio. We continue to focus on providing our clients and business partners with outstanding service and enhancing further our financial and operational performance."
For the full year, Aspen's combined ratio was 110 percent, an improvement from 125.7 percent in 2017.
For the three months ending December 31, 2018, Aspen's combined ratio was 132.8 percent, an improvement from 152.6 percent for the same period in 2017.
For the twelve months ended December 31, 2018, Aspen's gross written premiums increased 2.6 percent year-on-year to $3.45 billion.
In the fourth quarter, Aspen's gross written premiums were $603.1 million, a decrease of 12.4 percent for the same period in 2017.
Reinsurance premiums saw a decrease of 30.7 percent year-on-year to $149.8 million. Aspen attributes this reduction primarily to a decrease in the specialty reinsurance sub-segment following the commutation of a mortgage reinsurance contract during the fourth quarter. The GWP in Q4 2017 also included approximately $35 million related to transitional arrangements following the sale of AgriLogic during that quarter.
In December 2018, Apollo Global Management's deal to buy Aspen Insurance received the approval of Aspen's shareholders, with the deal expected to close in the first half of 2019.
O’Kane continued: "We are making good progress with our proposed transaction with the Apollo Funds and have received most of the required regulatory approvals. We anticipate completing the transaction during the first quarter of 2019."