Bermuda-based Aspen Insurance’s profits and gross written premiums (GWP) fell in the second quarter of 2015.
Aspen said this was driven by several mid-sized losses and its exit from energy-related Lloyd’s lines and several mid-sized losses.
The Bermuda-based firm reported profits of $49 million in the second quarter of 2015, compared with $130.8 million in the second quarter of 2014.
Its combined ratio also deteriorated to 93.6 percent, compared with 90.1 percent in the same period last year.
Aspen’s GWP fell 7.3 percent to £722.8 million, compared with $779.3 million in the second quarter of 2014. This was driven by both its insurance and reinsurance segments.
Its reinsurance segment posted GWP of $260.7 million, a decrease of 12.6 percent compared with $298.4 million in the second quarter of 2014, while its insurance segment posted GWP of $462.1 million in the second quarter of 2015, a decrease of 3.9 percent compared with $480.9 million in the second quarter of 2014.
Within Aspen’s insurance segment, the combined ratio hit 103.6 percent in the second quarter of 2015, compared with 95.5 percent for the second quarter of 2014.
Aspen said the growth in property and casualty was more than offset by a decline in marine, energy and aviation as a result of decisions to decline business where the pricing levels were not deemed adequate for the underlying risk.
However, the firm did continue to progress in its US insurance platform, with a 23.9 percent increase in gross written premiums in the quarter.
Aspen’s reinsurance segment’s combined ratio improved slightly to 75.3 percent in the second quarter of 2015, compared with 75.5 percent in the same period of the prior year.
Chris O’Kane, chief executive officer, said: “Through the first half of the year we continued to execute on our diversified insurance and reinsurance strategy, achieving a 10.6 percent annualised operating return on equity.
“Our reinsurance segment once again had an excellent performance with an impressive accident year ex-cat loss ratio of 51.4 percent in the second quarter. In our insurance segment our US platform continued to grow into scale with 23.9 percent premium growth in the quarter.
“We redeployed capital to those opportunities which were better rated and will continue to do so. We expect to achieve 11 percent operating return on equity for 2015.”
Aspen Insurance, Chris O’Kane, Second Quarter 2015 Results