The latest results season has dealt a blow to Aspen Insurance Holdings Limited.
From a net income of US$16.1 million (around CA$21.4 million) in the first half of 2018, the insurance group took a nosedive to a net loss after tax of US$37.3 million (around CA$49.6 million) in the same period this year.
Aspen’s gross written premium (GWP) in the six months ended June 30 fell 5.9% to less than US$1.9 billion (around CA$2.52 billion). GWP in the insurance and reinsurance segments posted decreases of 4.7% and 7.1%, respectively.
Group operating income after tax, meanwhile, went down to US$101.8 million (around CA$135.5 million) from US$119.3 million (around CA$158.8 million) previously.
A portion of Aspen’s interim results report highlighted various expenses in the six-month period.
“Non-operating expenses in the first half of 2019 were US$61.9 million (around CA$82.4 million) compared with US$21.2 million (around CA$28.2 million) in the first half of 2018,” it noted.
“Non-operating expenses in the first half of 2019 included US$43.9 million (around CA$58.4 million) of expenses related to or triggered by the transaction with affiliates of certain investment funds affiliated with Apollo Global Management, LLC; US$6 million (around CA$7.98 million) of expenses related to the operational effectiveness and efficiency programme; and US$12 million (around CA$15.97 million) of expenses in relation to severance, amortization, and other non-recurring costs.”
Earlier this year, Aspen completed its sale to the Apollo funds.