Aspen Insurance Holdings Limited has announced its financial results for the first six months ended June 30. The company reported a robust performance, with both operating income and net income showing significant growth.
“We are pleased to report a strong set of results for the first half of 2023, which saw our operating income and net income continue to increase, by 47% to US$191 million and by 352% to US$219 million, respectively,” said Mark Cloutier, CEO of Aspen.
“We are particularly encouraged to report another period of improved underwriting performance, with our reported combined ratio improving to 83.8% and underwriting income of US$208 million. This result reflects the sustained impact of our highly disciplined approach and the benefits of the well-diversified portfolio we have deliberately constructed.”
Although gross written premium decreased slightly to US$2.13 billion compared to the same period last year, the company remains focussed on reducing exposure and managing volatility. Aspen's underwriting discipline has led to a 12% rate increase across the entire portfolio, ensuring a focus on rate adequacy, terms, and conditions rather than solely rate changes.
The positive performance extended across Aspen’s insurance, reinsurance, and investments segments. The company’s underwriting income was well balanced between these segments, and expense discipline remained a priority, with general and administrative expenses decreasing by 9% to US$169 million.
Aspen also experienced continued growth in its capital markets franchise, Aspen Capital Markets, which offers a broader range of solutions and generates attractive fee income. In the first half of 2023, it generated total fee income of US$61 million, contributing to the decrease in acquisition expenses.
Aspen has strengthened its team by making several strategic hires across different areas of the business. Notable additions include John Welch as chief underwriting officer, reinsurance, Yelena La Forgia as chief financial officer, insurance and US, and Mike Rastigue as vice president of cyber risk management.
Looking ahead, Aspen remains optimistic about its prospects for the rest of 2023. The company expects to continue benefitting from significant rate increases and favourable market conditions. With its international franchise and established platforms, Aspen aims to deliver on its objective of being a top-quartile specialty (re)insurer.
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