28 April 2014News

Aspen spends $3m fighting off Endurance

Aspen has reported a first quarter income of $120.4 million, up 31 percent year-on-year, but has spent $3 million defending itself against Endurance's hostile takeover bid.

Aspen's book value per share increased to $43.28 from $41.87; potentially further piquing the interest of Endurance chairman John Charman, who continues to press a hostile takeover for the company.

In an attempt to scupper the takeover plans, Aspen reported a $3m non-recurring cost "associated with defending the unsolicited approach from Endurance Specialty Holdings".

Aspen's gross written premiums remained relatively flat at $855.5 million in the first quarter of 2014, compared to $773.4 million from the first quarter of 2013. GWP in reinsurance and insurance increased by 7.4 percent and 14.8 percent ($472 million and $383.3 million) respectively from the same period last year.

Combined operating ratios improved slightly to 87.6 percent from 90.1 percent for the quarter year-on-year.

Loss ratios dropped to 50.9 percent for the first quarter of 2014, compared with 52.6 percent for the first quarter of 2013. The accident year ex-catastrophe loss ratio also fell to 54.0 percent compared with 57.7 percent for the first quarter of 2013.

Administrative costs and corporate expenses however increased to $92.6 million, up from $86.6 million for the same period in 2013.