Aspen Insurance rebounds YoY in Q323, net income at $86m

The insurer’s net income stood at $86m, a rebound from the previous year’s $161m loss.

Aspen Insurance Group unveiled robust financial performance for the third quarter, attributing its performance to significant enhancements in underwriting and investment activities.

The insurer’s net income stood at $86m, a rebound from the previous year’s $161m loss.

Net income attributable to common shareholders soared by $245m to reach $73m. This surge was underpinned by an improvement in underwriting results, enhanced investment income, and reduced net realised and unrealised investment and foreign exchange gains/losses.

Additionally, adjusted underwriting income saw an increase to $55m, whilst the combined ratio settled at 91.7%. 

The insurance segment witnessed underwriting income increasing by $63m to $(5) million, with adjusted underwriting income climbing by $36m to $32m. 

Gross written premiums increased by $14m or 2%, primarily due to strong new business activity within financial and professional lines.

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Notably, the adjusted loss ratio improved by 5.2 percentage points, driven by reduced catastrophe losses and a reduction in adverse development on prior years' losses. 

The adverse impact of the Loss Portfolio Transfer (LPT) amounted to $37m, representing the net impact of changes in the deferral of a portion of loss recoveries in 2019 and prior accident year loss development.

The reinsurance segment witnessed an underwriting income surge by $55m to $53m, with adjusted underwriting income increasing by $60m to $22m. 

Repositioning the portfolio into higher attachment points and securing significant rate increases helped reduce the loss ratio by 18.5 percentage points compared with the prior year.