Bermuda-based Aspen Insurance reported a solid set of results in the first quarter of 2016, despite a fall in profits.
Its profits fell to $144.4 million in the first quarter of 2016, compared with $128 million in the first quarter of 2015.
Aspen’s combined ratio also deteriorated to 91.6 percent in the first quarter of 2016, compared with 88.9 percent in the prior year quarter.
However, its gross written premiums (GWP) increased by 6.1 percent to $975.7 million in the first quarter of 2016, compared with $919.2 million in the first quarter of 2015, driven by increases in both its insurance and reinsurance segments.
Aspen’s insurance segment GWP increased 5.5 percent t $458.1 million, compared with $434.4 million in the first quarter of 2015.
The company said this was driven by growth in the financial and professional lines, and property and casualty sub-segments. It was offset by a decline in the marine, aviation and energy sub-segment, which includes a number of lines that continue to be impacted by rate pressures, according to Aspen.
Aspen’s reinsurance segment posted GWP of $517.6 million, an increase of 6.8 percent compared with $484.8 million in the first quarter of 2015.
This was driven by growth in the specialty and casualty sub-segments, with growth in the specialty sub-segment primarily reflecting the first-time inclusion of AgriLogic. This was offset by a decline in the property catastrophe and other property sub-segments.
Chris O’Kane, chief executive officer, said: “Aspen has started the year well, with solid first quarter underwriting results from our insurance and reinsurance businesses contributing to an annualised operating return on equity of 11.2 percent and 4.8 percent growth in diluted book value per share.
“Our insurance teams are successfully executing our global products line strategy and delivered growth in targeted lines of business. At the same time, we continued to pull back from areas where we do not feel returns are adequate or are historically more volatile.
“Within Aspen Re, our teams had successful January and April renewals, again demonstrating our ability to maintain relevance with clients while navigating a challenging and changing market.”
Aspen, First Quarter 2016 Results, Bermuda, Chris O'Kane