Aspen appoints new group legal head
Mark Cloutier, CEO, Aspen Insurance Holdings
Aspen Insurance Holdings saw a “significant improvement” in its financial performance in the twelve months ended December 31, 2021, according to its group executive chairman and CEO, Mark Cloutier. A net profit of $29.8 million, compared to a net loss of $56.4 million in the prior period, was underpinned by Aspen’s continued focus on underwriting discipline, he said.
Its adjusted combined ratio improved from 103.4% in 2020, which included 14.3 percentage points of catastrophe losses, to 98.8% in 2021, which included 13.6 percentage points of catastrophe losses as well as the full economic benefit of the Adverse Development Cover it entered into during 2020.
Its gross written premium (GWP) rose by 6.5% year on year to $3.9 billion from $3.7 billion in the twelve months ended 31 December, 2020, primarily due to rate improvements in financial and professional insurance lines, casualty and liability insurance lines and organic growth in casualty reinsurance lines.
In its insurance business, GWP increased to $2.3 billion from $2 billion, which was partially offset by a decrease in first party and specialty insurance owing to the company’s decision to cease underwriting in accident and health, international marine and energy liability business which are currently part of its legacy lines.
GWP in its reinsurance business dipped by 3.6% to $1.6 billion from $1.7 billion, due primarily to the sale of its US crop reinsurance business which contributed almost $335 million of its US agricultural business in 2020 in specialty reinsurance lines. This was partially offset by an increase in property catastrophe, casualty reinsurance and other property reinsurance lines premiums.
Aspen said it had also made significant progress in the optimisation of its platforms, including the expansion of its Lloyd’s capacity to £900 million.
The company’s performance occurred in a year that saw the world continuing to adapt to the effects of the ongoing global pandemic, Cloutier noted.
“Now, as we enter May 2022, our world continues to be rocked by the horrific events unfolding as a result of the invasion in Ukraine. Our thoughts and prayers are with all those whose lives continue to be forever impacted.
“Looking ahead, while we are mindful of broader macroeconomic uncertainty and continued inflationary claims trends, we are confident in the outlook and positioning of our business. We are successfully shifting from ‘transforming’ Aspen to ‘activating’ its true potential, and I am excited by the energy, enthusiasm and commitment I see from our people, the differentiated solutions our platforms are creating for clients and what I believe we can accomplish in 2022 and beyond,” he concluded.
Aspen, financial results