Aspen Insurance Holdings Limited remains in the red but is reporting a lighter shade.
After losing US$266.4 million (around NZ$394.3 million) in 2017, Aspen narrowed it down to a net loss after tax of US$145.8 million (around NZ$215.8 million) for the 12 months ended December 31 last year. Releasing its latest financial results, the insurance group pointed to several culprits.
“Net loss in the full year of 2018 included US$64.7 million of net realised and unrealised investment losses and US$35.3 million of net realised and unrealised foreign exchange losses compared with net realised and unrealised investment gains of US$120.5 million and $3.8 million of net realised and unrealised foreign exchange gains in the full year of 2017,” reported Aspen.
“Net loss in the full year of 2018 also included an US$8.6 million make-whole payment associated with the partial redemption of Aspen’s 6.00% Senior Notes due 2020.”
Operating income after tax, meanwhile, stood at US$31.8 million – an improvement from the 2017 operating loss of US$355.7 million. Gross written premium climbed 2.6% to US$3.4 billion.
“We improved our underwriting performance for the full year and achieved our target for reducing our expense ratio,” commented Aspen chief executive Chris O’Kane. “We continue to focus on providing our clients and business partners with outstanding service and enhancing further our financial and operational performance.”
The CEO also provided an update on the all-cash deal, valued at approximately US$2.6 billion, with certain investment funds affiliated with Apollo Global Management, LLC.
“We are making good progress with our proposed transaction with the Apollo Funds and have received most of the required regulatory approvals,” noted O’Kane. “We anticipate completing the transaction during the first quarter of 2019.”
