Aspen has experienced a sharp increase in net income in its second quarter results for 2016 despite the series of cat losses throughout the year.
The company’ net income increased 32.4 percent to $64.9 million in the second quarter of this year, compared with $49 million in the same period last year.
Aspen also reported an increase of 10.9 percent in gross written premiums (GWP) to $801.7 million in the second quarter of 2016, compared with $722.8 million in the same period a year before.
Due to catastrophe losses, Aspen Re saw a large increase in its combined ratio to 90.5 percent in the second quarter of 2016, compared with 75.3 percent for the same period of 2015. This was primarily the result of wildfires in Canada, the earthquake in Japan and weather-related events in the US.
Thomas Lillelund, chief executive officer (CEO) of Aspen Re, commented: "Aspen Re has continued to perform well and our results on an accident year ex-catastrophe loss basis showed good improvement year over year.
“We had successful mid-year renewals and our diversifying AgriLogic business performed well. While we remain disciplined and will walk away from business that does not meet our underwriting standards, we continue to find opportunities for profitable growth in select areas of business around the globe.”
Aspen Insurance's combined ratio remained over 100 percent, while Aspen’s total combined ratio has increased to 100.7 percent in the second quarter of this year, compared with 93.6 percent in the second quarter of 2015.
Chris O'Kane, chief executive officer of Aspen, added: “Aspen achieved 7.7 percent growth in diluted book value per share and annualised operating ROE of 7 percent in the first half of 2016. We delivered this in the face of an eventful second quarter impacted by higher losses from natural catastrophes and other events.”
“Our new leadership teams at Aspen Re and Aspen Insurance remain focused on disciplined underwriting, identifying and capturing attractive opportunities for profitable growth in our diversified businesses around the globe which, we believe, will create long-term value for our shareholders.”
Aspen, Insurance, Reinsurance, Bermuda, Results, Catastrophe