Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ASPEN INSURANCE HOLDINGS LTD | u10525e8vk.htm |
| EX-99.1 - EXHIBIT 99.1 - ASPEN INSURANCE HOLDINGS LTD | u10525exv99w1.htm |
| EX-99.3 - EX-99.3 - ASPEN INSURANCE HOLDINGS LTD | u10525exv99w3.htm |
Table of Contents
Exhibit 99.2
Aspen
Insurance Holdings Limited
Financial
Supplement
As
of December 31, 2010
This financial supplement is for information purposes only. It
should be read in
conjunction with other documents filed or to be filed by Aspen Insurance
Holdings Limited with the United States Securities and Exchange Commission.
conjunction with other documents filed or to be filed by Aspen Insurance
Holdings Limited with the United States Securities and Exchange Commission.
AHL: NYSE
www.aspen.bm
Investor Contact:
Aspen Insurance Holdings Limited
Noah Fields, Head of Investor Relations
T: +1
441-297-9382
email: noah.fields@aspen-re.com
Aspen
Insurance Holdings Limited
Table Of Contents
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Table of Contents
Definitions and presentation: All financial information
contained herein is unaudited except for information for the
fiscal year ended December 31, 2009 excluding the
represented segmental analysis. Unless otherwise noted, all data
is in U.S. dollars millions, except for per share,
percentage and ratio information.
In presenting Aspen’s results, management has included and
discussed certain “non-GAAP financial measures”, as
such term is defined in Regulation G. Management believes
that these non-GAAP measures, which may be defined differently
by other companies, better explain Aspen’s results of
operations in a manner that allows for a more complete
understanding of the underlying trends in Aspen’s business.
However, these measures should not be viewed as a substitute for
those determined in accordance with GAAP. The reconciliation of
such non-GAAP financial measures to their respective most
directly comparable GAAP financial measures in accordance with
Regulation G is included in this financial supplement.
Operating income (a non-GAAP financial measure):
Operating income is an internal performance measure used by
Aspen in the management of its operations and represents
after-tax operational results excluding, as applicable,
after-tax net realized capital gains or losses and after-tax net
foreign exchange gains or losses.
Aspen excludes after-tax net realized capital gains or losses
and after-tax net foreign exchange gains or losses from its
calculation of operating income because the amount of these
gains or losses is heavily influenced by, and fluctuates in
part, according to the availability of market opportunities.
Aspen believes these amounts are largely independent of its
business and underwriting process and including them distorts
the analysis of trends in its operations. In addition to
presenting net income determined in accordance with GAAP, Aspen
believes that showing operating income enables investors,
analysts, rating agencies and other users of its financial
information to more easily analyze Aspen’s results of
operations in a manner similar to how management analyzes
Aspen’s underlying business performance. Operating income
should not be viewed as a substitute for GAAP net income. Please
see page 28 for a reconciliation of operating income to net
income.
Annualized Operating Return on Average Equity
(“Operating ROE”) (a non-GAAP financial measure):
Annualized Operating Return on Average Equity 1) is
calculated using operating income, as defined above and
2) excludes from average equity, the average after-tax
unrealized appreciation or depreciation on investments and the
average after-tax unrealized foreign exchange gains or losses
and the aggregate value of the liquidation preferences of our
preference shares. Unrealized appreciation (depreciation) on
investments is primarily the result of interest rate movements
and changes in credit spreads, and the resultant impact on fixed
income securities, and unrealized appreciation (depreciation) on
foreign exchange is the result of exchange rate movements
between the U.S. dollar and the Group’s non-functional
currencies. Such appreciation (depreciation) is not related to
management actions or operational performance (nor is it likely
to be realized). Therefore, Aspen believes that excluding these
unrealized appreciations (depreciations) provides a more
consistent and useful measurement of operating performance,
which supplements GAAP information. Average equity is calculated
as the arithmetic average on a monthly basis for the stated
periods.
Aspen presents Operating ROE as a measure that is commonly
recognized as a standard of performance by investors, analysts,
rating agencies and other users of its financial information.
See page 28 for a reconciliation of operating income to net
income and page 7 for a reconciliation of average equity to
closing shareholders’ equity.
Diluted Operating Earnings Per Share and Basic Operating
Earnings Per Share (a non-GAAP financial measure): Aspen
believes that the presentation of diluted operating earnings per
share and basic operating earnings per share supports meaningful
comparison from period to period and the analysis of normal
business operations. Diluted operating earnings per share and
basic operating earnings per share is calculated by dividing
operating income by the diluted or basic weighted average number
of shares outstanding for the period. See page 28 for a
reconciliation of diluted and basic operating earnings per share
to basic earnings per share.
Diluted book value per ordinary share (a non-GAAP
financial measure): Aspen has included diluted book value per
ordinary share as it takes into account the effect of dilutive
securities; therefore, Aspen believes it is a better measure of
calculating shareholder returns than book value per share.
Please see page 26 for a reconciliation of diluted book
value per share to basic book value per share.
Underwriting ratios (GAAP financial
measures): Aspen, along with others in the industry,
uses underwriting ratios as measures of performance. The loss
ratio is the ratio of net claims and claims adjustment expenses
to net premiums earned. The acquisition expense ratio is the
ratio of underwriting expenses (commissions, premium taxes,
licenses and fees, as well as other underwriting expenses) to
net premiums earned. The general and administrative expense
ratio is the ratio of general and administrative expenses to net
premiums earned. The combined ratio is the sum of the loss
ratio, the acquisition expense ratio and the general and
administrative expense ratio. These ratios are relative
measurements that describe for every $100 of net premiums earned
or written, the cost of losses and expenses, respectively. The
combined ratio presents the total cost per $100 of earned
premium. A combined ratio below 100% demonstrates underwriting
profit; a combined ratio above 100% demonstrates underwriting
loss.
GAAP combined ratios differ from U.S. statutory combined
ratios primarily due to the deferral of certain third-party
acquisition expenses for GAAP reporting purposes and the use of
net premiums earned rather than net premiums written in the
denominator when calculating the acquisition expense and the
general and administrative expense ratios.
Accident Year Loss Ratios (a non-GAAP financial measure):
In addition to the underwriting ratios described above,
management also uses accident year loss ratios to evaluate
current underwriting performance. The accident year loss ratio
excludes the effect of prior years’ premium adjustments and
reserve developments. This ratio focuses on the relationship
between current premiums earned and losses incurred related to
the current year. Please see pages 14 and 15 for a
reconciliation of accident year loss ratios to underwriting
ratios calculated in accordance with U.S. GAAP.
1
Table of Contents
Aspen
Insurance Holdings Limited
Financial
Highlights
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||
| (in US$ millions except for percentages, share and per share amounts) | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||||||||
|
Gross written premium
|
$ | 412.8 | $ | 405.7 | 1.8 | % | $ | 2,076.8 | $ | 2,067.1 | 0.5 | % | ||||||||||||||||||
|
Net written premium
|
$ | 395.2 | $ | 383.4 | 3.1 | % | $ | 1,891.1 | $ | 1,836.8 | 3.0 | % | ||||||||||||||||||
|
Net earned premium
|
$ | 499.7 | $ | 476.2 | 4.9 | % | $ | 1,898.9 | $ | 1,823.0 | 4.2 | % | ||||||||||||||||||
|
Net income after tax
|
$ | 92.7 | $ | 126.3 | (26.6 | % | ) | $ | 312.7 | $ | 473.9 | (34.0 | % | ) | ||||||||||||||||
|
Operating income after tax
|
$ | 85.0 | $ | 129.2 | (34.2 | % | ) | $ | 265.7 | $ | 464.3 | (42.8 | % | ) | ||||||||||||||||
|
Net investment income
|
$ | 57.0 | $ | 58.2 | (2.1 | % | ) | $ | 232.0 | $ | 248.5 | (6.6 | % | ) | ||||||||||||||||
|
Underwriting income
|
$ | 23.2 | $ | 73.3 | (68.3 | % | ) | $ | 63.1 | $ | 288.4 | (78.1 | % | ) | ||||||||||||||||
|
Earnings Per Share and Book Value Per Share
|
||||||||||||||||||||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||||||||||||||||
|
Net income adjusted for preference share dividend and
cancellation of preference shares
|
$ | 1.18 | $ | 1.45 | (18.6 | % | ) | $ | 3.80 | $ | 5.82 | (34.7 | % | ) | ||||||||||||||||
|
Operating income adjusted for preference share dividend
|
$ | 1.08 | $ | 1.48 | (27.0 | % | ) | $ | 3.18 | $ | 5.33 | (40.3 | % | ) | ||||||||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||||||||||||||||
|
Net income adjusted for preference share dividend and
cancellation of preference shares
|
$ | 1.12 | $ | 1.40 | (20.0 | % | ) | $ | 3.62 | $ | 5.64 | (35.8 | % | ) | ||||||||||||||||
|
Operating income adjusted for preference share dividend
|
$ | 1.02 | $ | 1.44 | (29.2 | % | ) | $ | 3.03 | $ | 5.16 | (41.3 | % | ) | ||||||||||||||||
|
Book value per ordinary share
|
$ | 40.96 | $ | 35.42 | 15.6 | % | $ | 40.96 | $ | 35.42 | 15.6 | % | ||||||||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$ | 38.90 | $ | 34.14 | 13.9 | % | $ | 38.90 | $ | 34.14 | 13.9 | % | ||||||||||||||||||
|
Weighted average number of ordinary shares outstanding (in
millions of shares)
|
73.996 | 83.239 | (11.1 | % | ) | 76.343 | 82.698 | (7.7 | % | ) | ||||||||||||||||||||
|
Diluted weighted average number of ordinary shares outstanding
(in millions of shares)
|
77.733 | 86.412 | (10.0 | % | ) | 80.016 | 85.327 | (6.2 | % | ) | ||||||||||||||||||||
|
Underwriting Ratios
|
||||||||||||||||||||||||||||||
|
Loss ratio
|
61.5 | % | 47.8 | % | 65.8 | % | 52.0 | % | ||||||||||||||||||||||
|
Policy acquisition cost ratio
|
18.1 | % | 20.0 | % | 17.3 | % | 18.3 | % | ||||||||||||||||||||||
|
Operating and administrative expense ratio
|
15.7 | % | 16.9 | % | 13.6 | % | 13.8 | % | ||||||||||||||||||||||
|
Expense ratio
|
33.8 | % | 36.9 | % | 30.9 | % | 32.1 | % | ||||||||||||||||||||||
|
Combined ratio
|
95.3 | % | 84.7 | % | 96.7 | % | 84.1 | % | ||||||||||||||||||||||
|
Return On Equity
|
||||||||||||||||||||||||||||||
|
Average equity
(1)
|
$ | 2,612.7 | $ | 2,639.2 | $ | 2,597.2 | $ | 2,452.4 | ||||||||||||||||||||||
|
Return on average equity
|
||||||||||||||||||||||||||||||
|
Net income adjusted for preference share dividend
|
3.3 | % | 4.6 | % | 11.2 | % | 18.4 | % | ||||||||||||||||||||||
|
Operating income adjusted for preference share dividend
|
3.0 | % | 4.7 | % | 9.4 | % | 18.0 | % | ||||||||||||||||||||||
|
Annualized return on average equity
|
||||||||||||||||||||||||||||||
|
Net income
|
13.2 | % | 18.4 | % | 11.2 | % | 18.4 | % | ||||||||||||||||||||||
|
Operating income
|
12.0 | % | 18.8 | % | 9.4 | % | 18.0 | % | ||||||||||||||||||||||
See pages 7, 26 and 28 for a
reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures.
| 1. | Average equity excludes the average after-tax unrealized appreciation or depreciation on investments, preference shares and average after-tax unrealized foreign exchange gains or losses. |
2
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Statements of Operations — Quarterly
| (in US$ millions except for percentages and per share amounts) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | Q4 2008 | |||||||||||||||||||||||||||
|
UNDERWRITING REVENUES
|
||||||||||||||||||||||||||||||||||||
|
Gross written premiums
|
$412.8 | $415.8 | $545.4 | $702.8 | $405.7 | $490.3 | $534.3 | $636.8 | $435.4 | |||||||||||||||||||||||||||
|
Premiums ceded
|
(17.6 | ) | (38.8 | ) | (6.6 | ) | (122.7 | ) | (22.3 | ) | (28.2 | ) | (49.6 | ) | (130.2 | ) | (29.3 | ) | ||||||||||||||||||
|
Net written premiums
|
395.2 | 377.0 | 538.8 | 580.1 | 383.4 | 462.1 | 484.7 | 506.6 | 406.1 | |||||||||||||||||||||||||||
|
Change in unearned premiums
|
104.5 | 74.7 | (58.9 | ) | (112.5 | ) | 92.8 | 8.8 | (56.1 | ) | (59.3 | ) | 72.5 | |||||||||||||||||||||||
|
Net earned premiums
|
499.7 | 451.7 | 479.9 | 467.6 | 476.2 | 470.9 | 428.6 | 447.3 | 478.6 | |||||||||||||||||||||||||||
|
UNDERWRITING EXPENSES
|
||||||||||||||||||||||||||||||||||||
|
Losses and loss expenses
|
307.4 | 285.8 | 276.7 | 378.8 | 227.5 | 235.1 | 234.7 | 250.8 | 310.6 | |||||||||||||||||||||||||||
|
Acquisition expenses
|
90.6 | 75.6 | 77.8 | 84.5 | 95.1 | 79.6 | 80.8 | 78.6 | 87.5 | |||||||||||||||||||||||||||
|
General, administrative and corporate expenses
|
78.5 | 65.0 | 62.6 | 52.5 | 80.3 | 63.7 | 59.9 | 48.5 | 48.6 | |||||||||||||||||||||||||||
|
Total underwriting expenses
|
476.5 | 426.4 | 417.1 | 515.8 | 402.9 | 378.4 | 375.4 | 377.9 | 446.7 | |||||||||||||||||||||||||||
|
Underwriting income/(loss) including corporate expenses
|
23.2 | 25.3 | 62.8 | (48.2 | ) | 73.3 | 92.5 | 53.2 | 69.4 | 31.9 | ||||||||||||||||||||||||||
|
OTHER OPERATING REVENUE
|
||||||||||||||||||||||||||||||||||||
|
Net investment income
|
57.0 | 58.1 | 57.5 | 59.4 | 58.2 | 58.9 | 72.2 | 59.2 | 10.3 | |||||||||||||||||||||||||||
|
Interest expense
|
(4.8 | ) | (3.9 | ) | (4.0 | ) | (3.8 | ) | (3.8 | ) | (3.9 | ) | (4.0 | ) | (3.9 | ) | (3.9 | ) | ||||||||||||||||||
|
Total other operating revenue
|
52.2 | 54.2 | 53.5 | 55.6 | 54.4 | 55.0 | 68.2 | 55.3 | 6.4 | |||||||||||||||||||||||||||
|
Other income/(expense)
|
10.1 | (1.9 | ) | 1.6 | (0.9 | ) | 0.9 | 1.1 | 0.7 | (2.7 | ) | (0.5 | ) | |||||||||||||||||||||||
|
OPERATING INCOME BEFORE TAX
|
85.5 | 77.6 | 117.9 | 6.5 | 128.6 | 148.6 | 122.1 | 122.0 | 37.8 | |||||||||||||||||||||||||||
|
OTHER
|
||||||||||||||||||||||||||||||||||||
|
Net realized and unrealized exchange gains/(losses)
|
(0.1 | ) | 3.4 | (2.6 | ) | 1.5 | (6.7 | ) | 7.9 | 3.1 | (2.3 | ) | (4.8 | ) | ||||||||||||||||||||||
|
Net realized and unrealized investment gains/(losses)
|
10.5 | 22.1 | 5.7 | 12.3 | 4.2 | 14.6 | 4.8 | (12.2 | ) | 8.4 | ||||||||||||||||||||||||||
|
INCOME BEFORE TAX
|
95.9 | 103.1 | 121.0 | 20.3 | 126.1 | 171.1 | 130.0 | 107.5 | 41.4 | |||||||||||||||||||||||||||
|
Income tax (expense)/recovery
|
(3.2 | ) | (10.3 | ) | (12.1 | ) | (2.0 | ) | 0.2 | (25.3 | ) | (19.6 | ) | (16.1 | ) | (19.6 | ) | |||||||||||||||||||
|
NET INCOME AFTER TAX
|
92.7 | 92.8 | 108.9 | 18.3 | 126.3 | 145.8 | 110.4 | 91.4 | 21.8 | |||||||||||||||||||||||||||
|
Dividends paid on ordinary shares
|
(11.5 | ) | (11.5 | ) | (11.7 | ) | (11.8 | ) | (12.6 | ) | (12.6 | ) | (12.3 | ) | (12.3 | ) | (12.3 | ) | ||||||||||||||||||
|
Dividend paid on preference shares
|
(5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.5 | ) | (5.6 | ) | (5.8 | ) | (6.9 | ) | (6.9 | ) | ||||||||||||||||||
|
Retained income
|
$75.5 | $75.6 | $91.5 | $0.8 | $108.2 | $127.6 | $92.3 | $72.2 | $2.6 | |||||||||||||||||||||||||||
|
Components of net income after tax
|
||||||||||||||||||||||||||||||||||||
| Operating income | $85.0 | $69.7 | $104.9 | $6.1 | $129.2 | $125.6 | $103.8 | $105.7 | $20.5 | |||||||||||||||||||||||||||
| Net realized and unrealized exchange gains/(losses) after tax | 0.2 | 3.0 | (1.3 | ) | 1.0 | (6.7 | ) | 7.9 | 3.1 | (2.3 | ) | (4.8 | ) | |||||||||||||||||||||||
| Net realized and unrealized investment gains/(losses) after tax | 7.5 | 20.1 | 5.3 | 11.2 | 3.8 | 12.3 | 3.5 | (12.0 | ) | 6.1 | ||||||||||||||||||||||||||
|
NET INCOME AFTER TAX
|
$92.7 | $92.8 | $108.9 | $18.3 | $126.3 | $145.8 | $110.4 | $91.4 | $21.8 | |||||||||||||||||||||||||||
|
Loss ratio
|
61.5% | 63.3% | 57.7% | 81.0% | 47.8% | 49.9% | 54.8% | 56.1% | 64.9% | |||||||||||||||||||||||||||
| Policy acquisition expense ratio | 18.1% | 16.7% | 16.2% | 18.1% | 20.0% | 16.9% | 18.9% | 17.6% | 18.3% | |||||||||||||||||||||||||||
| Operating and administrative expense ratio | 15.7% | 14.4% | 13.0% | 11.2% | 16.9% | 13.5% | 14.0% | 10.8% | 10.2% | |||||||||||||||||||||||||||
|
Expense ratio
|
33.8% | 31.1% | 29.2% | 29.3% | 36.9% | 30.4% | 32.9% | 28.4% | 28.5% | |||||||||||||||||||||||||||
|
Combined ratio
|
95.3% | 94.4% | 86.9% | 110.3% | 84.7% | 80.3% | 87.7% | 84.5% | 93.4% | |||||||||||||||||||||||||||
|
Basic earnings per
share(1)
|
$1.18 | $1.14 | $1.34 | $0.16 | $1.45 | $1.69 | $1.26 | $1.42 | $0.18 | |||||||||||||||||||||||||||
|
Diluted earnings per share
|
$1.12 | $1.08 | $1.28 | $0.16 | $1.40 | $1.63 | $1.22 | $1.39 | $0.18 | |||||||||||||||||||||||||||
|
Annualized return on average equity
|
||||||||||||||||||||||||||||||||||||
|
Net income
|
13.2% | 13.2% | 16.4% | 2.0% | 18.4% | 22.4% | 17.6% | 14.8% | 2.8% | |||||||||||||||||||||||||||
|
Operating income
|
12.0% | 9.6% | 15.6% | — | 18.8% | 19.2% | 16.4% | 17.6% | 2.4% | |||||||||||||||||||||||||||
See pages 7, 26 and 28 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
| 1. | Adjusted for preference share dividend and cancellation of preference shares. |
3
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Statements of Operations — Year To Date
| Twelve Months Ended December 31, | ||||||||||||
| (in US$ millions except for percentages) | 2010 | 2009 | 2008 | |||||||||
|
UNDERWRITING REVENUES
|
||||||||||||
|
Gross written premiums
|
$2,076.8 | $2,067.1 | $2,001.7 | |||||||||
|
Premiums ceded
|
(185.7 | ) | (230.3 | ) | (166.2 | ) | ||||||
|
Net written premiums
|
1,891.1 | 1,836.8 | 1,835.5 | |||||||||
|
Change in unearned premiums
|
7.8 | (13.8 | ) | (133.8 | ) | |||||||
|
Net earned premiums
|
1,898.9 | 1,823.0 | 1,701.7 | |||||||||
|
UNDERWRITING EXPENSES
|
||||||||||||
|
Losses and loss expenses
|
1,248.7 | 948.1 | 1,119.5 | |||||||||
|
Acquisition expenses
|
328.5 | 334.1 | 299.3 | |||||||||
|
General, administrative and corporate expenses
|
258.6 | 252.4 | 208.1 | |||||||||
|
Total underwriting expenses
|
1,835.8 | 1,534.6 | 1,626.9 | |||||||||
|
Underwriting income including corporate expenses
|
63.1 | 288.4 | 74.8 | |||||||||
|
OTHER OPERATING REVENUE
|
||||||||||||
|
Net investment income
|
232.0 | 248.5 | 139.2 | |||||||||
|
Interest expense
|
(16.5 | ) | (15.6 | ) | (15.6 | ) | ||||||
|
Total other operating revenue
|
215.5 | 232.9 | 123.6 | |||||||||
|
Other income/(expense)
|
8.9 | — | (2.1 | ) | ||||||||
|
OPERATING INCOME BEFORE TAX
|
287.5 | 521.3 | 196.3 | |||||||||
|
OTHER
|
||||||||||||
|
Net realized and unrealized exchange gains/(losses)
|
2.2 | 2.0 | (8.2 | ) | ||||||||
|
Net realized and unrealized investment gains/(losses)
|
50.6 | 11.4 | (47.9 | ) | ||||||||
|
INCOME BEFORE TAX
|
340.3 | 534.7 | 140.2 | |||||||||
|
Income tax expense
|
(27.6 | ) | (60.8 | ) | (36.4 | ) | ||||||
|
NET INCOME AFTER TAX
|
312.7 | 473.9 | 103.8 | |||||||||
|
Dividends paid on ordinary shares
|
(46.5 | ) | (49.8 | ) | (50.2 | ) | ||||||
|
Dividends paid on preference shares
|
(22.8 | ) | (23.8 | ) | (27.7 | ) | ||||||
|
Retained income
|
$243.4 | $400.3 | $25.9 | |||||||||
|
Components of net income after tax
|
||||||||||||
| Operating income | $265.7 | $464.3 | $151.5 | |||||||||
| Net realized and unrealized exchange gains/(losses) after tax | 2.9 | 2.0 | (8.2 | ) | ||||||||
| Net realized and unrealized investment gains/(losses) after tax | 44.1 | 7.6 | (39.5 | ) | ||||||||
|
NET INCOME AFTER TAX
|
$312.7 | $473.9 | $103.8 | |||||||||
|
Loss ratio
|
65.8% | 52.0% | 65.8% | |||||||||
| Policy acquisition expense ratio | 17.3% | 18.3% | 17.6% | |||||||||
| Operating and administrative expense ratio | 13.6% | 13.8% | 12.2% | |||||||||
|
Expense ratio
|
30.9% | 32.1% | 29.8% | |||||||||
|
Combined ratio
|
96.7% | 84.1% | 95.6% | |||||||||
See pages 7, 26 and 28 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
4
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated Balance Sheets
Consolidated Balance Sheets
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||||||
| (in US$ millions, except for per share amounts) | 2010 | 2010 | 2010 | 2010 | 2009 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
|
Investments
|
||||||||||||||||||||
| Fixed income maturities | $5,766.6 | $5,963.1 | $5,753.6 | $5,661.8 | $5,598.0 | |||||||||||||||
| Other investments | 30.0 | 28.7 | 27.8 | 27.5 | 27.3 | |||||||||||||||
| Short-term investments | 289.7 | 299.5 | 304.3 | 251.9 | 371.7 | |||||||||||||||
| Total investments | 6,086.3 | 6,291.3 | 6,085.7 | 5,941.2 | 5,997.0 | |||||||||||||||
|
Cash and cash equivalents
|
1,179.1 | 914.3 | 726.1 | 701.4 | 748.4 | |||||||||||||||
|
Reinsurance recoverables
|
||||||||||||||||||||
| Unpaid losses | 279.9 | 263.8 | 247.6 | 262.9 | 321.5 | |||||||||||||||
| Ceded unearned premiums | 62.4 | 43.4 | 106.2 | 210.2 | 103.8 | |||||||||||||||
|
Receivables
|
||||||||||||||||||||
| Underwriting premiums | 821.7 | 880.7 | 981.0 | 914.0 | 708.3 | |||||||||||||||
| Other | 67.9 | 81.9 | 73.4 | 62.2 | 64.1 | |||||||||||||||
|
Funds withheld
|
83.3 | 79.0 | 83.5 | 73.6 | 85.1 | |||||||||||||||
|
Deferred policy acquisition costs
|
166.8 | 187.2 | 201.2 | 202.7 | 165.5 | |||||||||||||||
|
Derivatives at fair value
|
6.8 | 1.5 | 4.3 | 4.9 | 6.7 | |||||||||||||||
|
Receivable for securities sold
|
0.2 | 2.1 | 16.9 | 13.5 | 11.9 | |||||||||||||||
|
Office properties and equipment
|
34.8 | 32.3 | 28.4 | 27.6 | 27.5 | |||||||||||||||
|
Other assets
|
21.9 | 20.7 | 16.0 | 14.9 | 9.2 | |||||||||||||||
|
Intangible assets
|
21.0 | 21.4 | 11.5 | 12.0 | 8.2 | |||||||||||||||
| Total assets | $8,832.1 | $8,819.6 | $8,581.8 | $8,441.1 | $8,257.2 | |||||||||||||||
| LIABILITIES | ||||||||||||||||||||
|
Insurance reserves
|
||||||||||||||||||||
| Losses and loss adjustment expenses | $3,820.5 | $3,672.2 | $3,485.7 | $3,452.0 | $3,331.1 | |||||||||||||||
| Unearned premiums | 859.0 | 951.6 | 1,061.2 | 1,107.8 | 907.6 | |||||||||||||||
| Total insurance reserves | 4,679.5 | 4,623.8 | 4,546.9 | 4,559.8 | 4,238.7 | |||||||||||||||
|
Payables
|
||||||||||||||||||||
| Reinsurance premiums | 113.7 | 141.9 | 159.3 | 193.2 | 110.8 | |||||||||||||||
| Taxation | 60.2 | 91.7 | 74.2 | 77.4 | 94.2 | |||||||||||||||
| Accrued expenses and other payables | 238.0 | 268.0 | 242.3 | 213.5 | 249.3 | |||||||||||||||
| Liabilities under derivative contracts | — | 3.8 | 5.6 | 7.4 | 9.2 | |||||||||||||||
| Total payables | 411.9 | 505.4 | 481.4 | 491.5 | 463.5 | |||||||||||||||
|
Long-term debt
|
498.8 | 249.7 | 249.6 | 249.6 | 249.6 | |||||||||||||||
| Total liabilities | 5,590.2 | 5,378.9 | 5,277.9 | 5,300.9 | 4,951.8 | |||||||||||||||
|
SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Ordinary shares
|
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||
|
Minority interest
|
0.5 | 0.6 | — | — | — | |||||||||||||||
|
Preference shares
|
— | — | — | — | — | |||||||||||||||
|
Additional paid-in capital
|
1,388.3 | 1,561.5 | 1,566.2 | 1,565.0 | 1,763.0 | |||||||||||||||
|
Retained earnings
|
1,528.7 | 1,452.9 | 1,377.3 | 1,285.8 | 1,285.0 | |||||||||||||||
|
Accumulated other comprehensive income, net of taxes
|
324.3 | 425.6 | 360.3 | 289.3 | 257.3 | |||||||||||||||
| Total shareholders’ equity | 3,241.9 | 3,440.7 | 3,303.9 | 3,140.2 | 3,305.4 | |||||||||||||||
| Total liabilities and shareholders’ equity | $8,832.1 | $8,819.6 | $8,581.8 | $8,441.1 | $8,257.2 | |||||||||||||||
|
Book value per ordinary share
|
$40.96 | $40.28 | $38.46 | $36.25 | $35.42 | |||||||||||||||
See pages 7, 26 and 28 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
5
Table of Contents
Aspen
Insurance Holdings Limited
Earnings
Per Share and Book Value Per Share
| Three Months Ended | Twelve Months Ended | |||||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||
| (in US$ except for number of shares) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||
|
Net income adjusted for preference share dividend and
cancellation of preference shares
|
$1.18 | $1.45 | $3.80 | $5.82 | ||||||||||||
|
Operating income adjusted for preference share dividend
|
$1.08 | $1.48 | $3.18 | $5.33 | ||||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||
|
Net income adjusted for preference share dividend and
cancellation of preference shares
|
$1.12 | $1.40 | $3.62 | $5.64 | ||||||||||||
|
Operating income adjusted for preference share dividend
|
$1.02 | $1.44 | $3.03 | $5.16 | ||||||||||||
|
Weighted average number of ordinary shares outstanding (in
millions)
|
73.996 | 83.239 | 76.343 | 82.698 | ||||||||||||
|
Weighted average number of ordinary shares outstanding and
dilutive potential ordinary shares (in millions)
|
77.733 | 86.412 | 80.016 | 85.327 | ||||||||||||
|
Book value per ordinary share
|
$40.96 | $35.42 | $40.96 | $35.42 | ||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$38.90 | $34.14 | $38.90 | $34.14 | ||||||||||||
|
Ordinary shares outstanding at end of the period (in millions)
|
70.508 | 83.328 | 70.508 | 83.328 | ||||||||||||
|
Ordinary shares outstanding and dilutive potential ordinary
shares at end of the period (treasury stock method) (in millions)
|
74.253 | 86.465 | 74.253 | 86.465 | ||||||||||||
See pages 7, 26 and 28 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
6
Table of Contents
Aspen
Insurance Holdings Limited
Return
On Average Equity
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in US$ millions except for percentages) | December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | ||||||||||||
|
Average shareholders’ equity for the quarter and the year
to date
|
$3,341.3 | $3,258.8 | $3,288.4 | $3,016.9 | ||||||||||||
|
Average preference shares for the quarter and the year to date
|
(353.6 | ) | (353.6 | ) | (353.6 | ) | (368.7 | ) | ||||||||
|
Average cumulative foreign currency translation adjustments, net
of taxes, for the quarter and the year to date
|
(111.8 | ) | (98.4 | ) | (109.5 | ) | (86.2 | ) | ||||||||
|
Average unrealized (appreciation)/depreciation on investments,
net of taxes, for the quarter and the year to date
|
(263.2 | ) | (167.6 | ) | (228.1 | ) | (109.6 | ) | ||||||||
|
Average equity
|
$2,612.7 | $2,639.2 | $2,597.2 | $2,452.4 | ||||||||||||
|
Return on average equity:
|
||||||||||||||||
|
Net income adjusted for preference share dividend
|
3.3% | 4.6% | 11.2% | 18.4% | ||||||||||||
|
Operating income adjusted for preference share dividend
|
3.0% | 4.7% | 9.4% | 18.0% | ||||||||||||
|
Annualized return on average equity:
|
||||||||||||||||
|
Net income
|
13.2% | 18.4% | 11.2% | 18.4% | ||||||||||||
|
Operating income
|
12.0% | 18.8% | 9.4% | 18.0% | ||||||||||||
|
Components of return on average equity:
|
||||||||||||||||
|
Return on average equity from underwriting activity
(1)
|
0.9% | 2.8% | 2.4% | 11.8% | ||||||||||||
|
Return on average equity from investment and other
activity (2)
|
2.2% | 1.9% | 7.8% | 8.5% | ||||||||||||
|
Pre-tax operating income return on average equity
|
3.1% | 4.7% | 10.2% | 20.3% | ||||||||||||
|
Post-tax operating income return on average equity
(3)
|
3.0% | 4.7% | 9.4% | 18.0% | ||||||||||||
See pages 7, 26 and 28 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
1. Calculated by using underwriting income.
2. Calculated by using total other operating
revenue and other income/expense adjusted for preference share
dividend.
3. Calculated by using operating income
after-tax adjusted for preference share dividend.
7
Table of Contents
Aspen
Insurance Holdings Limited
Changes
to Segmental Reporting
As a result of a shift in the Company’s operating structure
and the implementation of a number of strategic initiatives in
2010, the Company changed the composition of its business
segments to reflect the manner in which the business is managed.
The Company is currently organized into two underwriting
segments: insurance and reinsurance, with an additional segment
for corporate and other. These segments form the basis of how
the Company monitors the performance of its operations.
| * | Structured business was previously allocated to Property Reinsurance, Casualty Reinsurance and International Insurance on an individual contract basis. In the new basis, all structured business will be included in Specialty Reinsurance within the reinsurance segment. |
8
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Underwriting Results by Operating Segment
Management has changed the composition of its business segments
as a result of a shift in the Company’s operating structure
in 2010. An explanation of the changes to the segments is
included on page 8. The results under the previous segments
are shown in the appendix, pages A1 to A7. Information related
to prior periods has been re-presented to conform to the current
period presentation. There was no effect on net income as a
result of these changes.
| Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
|
Gross written premiums
|
$152.8 | $260.0 | $412.8 | $169.7 | $236.0 | $405.7 | ||||||||||||||||||
|
Net written premiums
|
148.5 | 246.7 | 395.2 | 158.3 | 225.1 | 383.4 | ||||||||||||||||||
|
Gross earned premiums
|
303.9 | 246.5 | 550.4 | 306.5 | 222.2 | 528.7 | ||||||||||||||||||
|
Net earned premiums
|
292.1 | 207.6 | 499.7 | 289.0 | 187.2 | 476.2 | ||||||||||||||||||
|
Losses and loss expenses
|
146.8 | 160.6 | 307.4 | 115.3 | 112.2 | 227.5 | ||||||||||||||||||
|
Policy acquisition expenses
|
58.8 | 31.8 | 90.6 | 62.1 | 33.0 | 95.1 | ||||||||||||||||||
|
Operating and administrative expenses
|
32.8 | 33.5 | 66.3 | 30.3 | 30.0 | 60.3 | ||||||||||||||||||
|
Underwriting income/(loss)
|
$53.7 | $(18.3 | ) | $35.4 | $81.3 | $12.0 | $93.3 | |||||||||||||||||
|
Net investment income
|
57.0 | 58.2 | ||||||||||||||||||||||
|
Net realized gains/(losses)
|
10.5 | 4.2 | ||||||||||||||||||||||
|
Corporate (expenses)
|
(12.2 | ) | (20.0 | ) | ||||||||||||||||||||
|
Other income
|
10.1 | 0.9 | ||||||||||||||||||||||
|
Interest (expenses)
|
(4.8 | ) | (3.8 | ) | ||||||||||||||||||||
|
Net foreign exchange gains/(losses)
|
(0.1 | ) | (6.7 | ) | ||||||||||||||||||||
|
Income before income taxes
|
95.9 | 126.1 | ||||||||||||||||||||||
|
Income tax (expense)/recovery
|
(3.2 | ) | 0.2 | |||||||||||||||||||||
|
Net income
|
$92.7 | $126.3 | ||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||
|
Loss ratio
|
50.3% | 77.4% | 61.5% | 39.9% | 59.9% | 47.8% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
20.1% | 15.3% | 18.1% | 21.5% | 17.6% | 20.0% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
11.2% | 16.1% | 15.7% | 10.5% | 16.0% | 16.9% | ||||||||||||||||||
|
Expense ratio
|
31.3% | 31.4% | 33.8% | 32.0% | 33.6% | 36.9% | ||||||||||||||||||
|
Combined ratio
|
81.6% | 108.8% | 95.3% | 71.9% | 93.5% | 84.7% | ||||||||||||||||||
9
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Underwriting Results by Operating Segment
Management has changed the composition of its business segments
as a result of a shift in the Company’s operating structure
in 2010. An explanation of the changes to the segments is
included on page 8. The results under the previous segments
are shown in the appendix, pages A1 to A7. Information related
to prior periods has been re-presented to conform to the current
period presentation. There was no effect on net income as a
result of these changes.
| Twelve Months Ended December 31, 2010 | Twelve Months Ended December 31, 2009 | |||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
|
Gross written premiums
|
$1,162.2 | $914.6 | $2,076.8 | $1,176.0 | $891.1 | $2,067.1 | ||||||||||||||||||
|
Net written premiums
|
1,118.5 | 772.6 | 1,891.1 | 1,116.7 | 720.1 | 1,836.8 | ||||||||||||||||||
|
Gross earned premiums
|
1,186.4 | 907.9 | 2,094.3 | 1,164.4 | 871.0 | 2,035.4 | ||||||||||||||||||
|
Net earned premiums
|
1,141.8 | 757.1 | 1,898.9 | 1,108.1 | 714.9 | 1,823.0 | ||||||||||||||||||
|
Losses and loss expenses
|
693.5 | 555.2 | 1,248.7 | 467.3 | 480.8 | 948.1 | ||||||||||||||||||
|
Policy acquisition expenses
|
202.4 | 126.1 | 328.5 | 214.6 | 119.5 | 334.1 | ||||||||||||||||||
|
Operating and administrative expenses
|
112.3 | 99.4 | 211.7 | 97.5 | 100.7 | 198.2 | ||||||||||||||||||
|
Underwriting income/(loss)
|
$133.6 | $(23.6 | ) | $110.0 | $328.7 | $13.9 | $342.6 | |||||||||||||||||
|
Net investment income
|
232.0 | 248.5 | ||||||||||||||||||||||
|
Net realized gains/(losses)
|
50.6 | 11.4 | ||||||||||||||||||||||
|
Corporate (expenses)
|
(46.9 | ) | (54.2 | ) | ||||||||||||||||||||
|
Other income
|
8.9 | — | ||||||||||||||||||||||
|
Interest (expenses)
|
(16.5 | ) | (15.6 | ) | ||||||||||||||||||||
|
Net foreign exchange gains/(losses)
|
2.2 | 2.0 | ||||||||||||||||||||||
|
Income before income taxes
|
340.3 | 534.7 | ||||||||||||||||||||||
|
Income tax (expense)
|
(27.6 | ) | (60.8 | ) | ||||||||||||||||||||
|
Net income
|
$312.7 | $473.9 | ||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||
|
Loss ratio
|
60.7% | 73.3% | 65.8% | 42.2% | 67.3% | 52.0% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
17.7% | 16.7% | 17.3% | 19.4% | 16.7% | 18.3% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
9.8% | 13.1% | 13.6% | 8.8% | 14.1% | 13.8% | ||||||||||||||||||
|
Expense ratio
|
27.5% | 29.8% | 30.9% | 28.2% | 30.8% | 32.1% | ||||||||||||||||||
|
Combined ratio
|
88.2% | 103.1% | 96.7% | 70.4% | 98.1% | 84.1% | ||||||||||||||||||
10
Table of Contents
Aspen
Insurance Holdings Limited
Reinsurance
Segment — Quarterly Results
| (in US$ millions except for percentages) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||||||||||
|
Gross written premiums
|
$152.8 | $236.0 | $283.3 | $490.1 | $169.7 | $296.1 | $257.4 | $452.8 | ||||||||||||||||||||||||
|
Net written premiums
|
148.5 | 229.6 | 279.1 | 461.3 | 158.3 | 289.3 | 255.8 | 413.3 | ||||||||||||||||||||||||
|
Gross earned premiums
|
303.9 | 277.9 | 302.7 | 301.9 | 306.5 | 301.4 | 268.8 | 287.7 | ||||||||||||||||||||||||
|
Net earned premiums
|
292.1 | 267.5 | 291.2 | 291.0 | 289.0 | 288.4 | 255.5 | 275.2 | ||||||||||||||||||||||||
|
Net losses and loss expenses
|
146.8 | 143.5 | 146.4 | 256.8 | 115.3 | 127.1 | 102.8 | 122.1 | ||||||||||||||||||||||||
|
Policy acquisition expenses
|
58.8 | 43.9 | 47.3 | 52.4 | 62.1 | 49.3 | 51.8 | 51.4 | ||||||||||||||||||||||||
|
Operating and administrative expenses
|
32.8 | 27.1 | 30.1 | 22.3 | 30.3 | 25.7 | 23.1 | 18.4 | ||||||||||||||||||||||||
|
Underwriting income/(loss)
|
$53.7 | $53.0 | $67.4 | $(40.5 | ) | $81.3 | $86.3 | $77.8 | $83.3 | |||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||||||
|
Loss ratio
|
50.3% | 53.6% | 50.3% | 88.2% | 39.9% | 44.1% | 40.2% | 44.4% | ||||||||||||||||||||||||
|
Policy acquisition expense ratio
|
20.1% | 16.4% | 16.2% | 18.0% | 21.5% | 17.1% | 20.3% | 18.7% | ||||||||||||||||||||||||
|
Operating and administrative expense ratio
|
11.2% | 10.1% | 10.3% | 7.7% | 10.5% | 8.9% | 9.0% | 6.7% | ||||||||||||||||||||||||
|
Expense ratio
|
31.3% | 26.5% | 26.5% | 25.7% | 32.0% | 26.0% | 29.3% | 25.4% | ||||||||||||||||||||||||
|
Combined ratio
|
81.6% | 80.1% | 76.8% | 113.9% | 71.9% | 70.1% | 69.5% | 69.8% | ||||||||||||||||||||||||
11
Table of Contents
Aspen
Insurance Holdings Limited
Insurance
Segment — Quarterly Results
| (in US$ millions except for percentages) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||||||||||
|
Gross written premiums
|
$260.0 | $179.8 | $262.1 | $212.7 | $236.0 | $194.2 | $276.9 | $184.0 | ||||||||||||||||||||||||
|
Net written premiums
|
246.7 | 147.4 | 259.7 | 118.8 | 225.1 | 172.8 | 228.9 | 93.3 | ||||||||||||||||||||||||
|
Gross earned premiums
|
246.5 | 225.4 | 220.8 | 215.2 | 222.2 | 220.8 | 222.5 | 205.5 | ||||||||||||||||||||||||
|
Net earned premiums
|
207.6 | 184.2 | 188.7 | 176.6 | 187.2 | 182.5 | 173.1 | 172.1 | ||||||||||||||||||||||||
|
Net losses and loss expenses
|
160.6 | 142.3 | 130.3 | 122.0 | 112.2 | 108.0 | 131.9 | 128.7 | ||||||||||||||||||||||||
|
Policy acquisition expenses
|
31.8 | 31.7 | 30.5 | 32.1 | 33.0 | 30.3 | 29.0 | 27.2 | ||||||||||||||||||||||||
|
Operating and administrative expenses
|
33.5 | 23.6 | 21.9 | 20.4 | 30.0 | 23.3 | 27.1 | 20.3 | ||||||||||||||||||||||||
|
Underwriting (loss)/income
|
$(18.3 | ) | $(13.4 | ) | $6.0 | $2.1 | $12.0 | $20.9 | $(14.9 | ) | $(4.1 | ) | ||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||||||
|
Loss ratio
|
77.4% | 77.3% | 69.1% | 69.1% | 59.9% | 59.2% | 76.2% | 74.8% | ||||||||||||||||||||||||
|
Policy acquisition expense ratio
|
15.3% | 17.2% | 16.2% | 18.2% | 17.6% | 16.6% | 16.8% | 15.8% | ||||||||||||||||||||||||
|
Operating and administrative expense ratio
|
16.1% | 12.8% | 11.6% | 11.6% | 16.0% | 12.8% | 15.7% | 11.8% | ||||||||||||||||||||||||
|
Expense ratio
|
31.4% | 30.0% | 27.8% | 29.8% | 33.6% | 29.4% | 32.5% | 27.6% | ||||||||||||||||||||||||
|
Combined ratio
|
108.8% | 107.3% | 96.9% | 98.9% | 93.5% | 88.6% | 108.7% | 102.4% | ||||||||||||||||||||||||
12
Table of Contents
Aspen
Insurance Holdings Limited
Gross
Written Premiums by Segment And Line Of Business
| (in US$ millions) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||||||||||
|
Gross Written Premium
|
||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$4.2 | $51.3 | $91.2 | $146.2 | $0.9 | $58.1 | $78.5 | $116.7 | ||||||||||||||||||||||||
|
Other Property Reinsurance
|
48.2 | 66.3 | 80.7 | 73.7 | 63.9 | 75.5 | 85.8 | 88.8 | ||||||||||||||||||||||||
|
Casualty Reinsurance
|
44.5 | 70.0 | 51.5 | 174.5 | 50.3 | 79.1 | 46.7 | 175.8 | ||||||||||||||||||||||||
|
Specialty Reinsurance
|
55.9 | 48.4 | 59.9 | 95.7 | 54.6 | 83.4 | 46.4 | 71.5 | ||||||||||||||||||||||||
|
Total Reinsurance
|
$152.8 | $236.0 | $283.3 | $490.1 | $169.7 | $296.1 | $257.4 | $452.8 | ||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||
|
Property Insurance
|
$28.7 | $37.0 | $69.3 | $36.7 | $28.5 | $30.5 | $54.9 | $25.3 | ||||||||||||||||||||||||
|
Casualty Insurance
|
42.7 | 23.6 | 44.7 | 37.2 | 47.9 | 53.1 | 52.9 | 42.2 | ||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
136.3 | 70.1 | 118.1 | 110.6 | 124.9 | 75.0 | 149.4 | 94.1 | ||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
52.3 | 49.1 | 30.0 | 28.2 | 34.7 | 35.6 | 19.7 | 22.4 | ||||||||||||||||||||||||
|
Total Insurance
|
$260.0 | $179.8 | $262.1 | $212.7 | $236.0 | $194.2 | $276.9 | $184.0 | ||||||||||||||||||||||||
|
Total Gross Written Premiums
|
$412.8 | $415.8 | $545.4 | $702.8 | $405.7 | $490.3 | $534.3 | $636.8 | ||||||||||||||||||||||||
|
Net Written Premium
|
||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$3.9 | $45.4 | $88.1 | $130.9 | $(3.7 | ) | $48.3 | $76.6 | $87.2 | |||||||||||||||||||||||
|
Other Property Reinsurance
|
46.1 | 65.3 | 79.6 | 65.5 | 57.6 | 76.1 | 86.1 | 80.0 | ||||||||||||||||||||||||
|
Casualty Reinsurance
|
44.5 | 70.0 | 51.3 | 169.6 | 51.0 | 81.5 | 46.6 | 174.8 | ||||||||||||||||||||||||
|
Specialty Reinsurance
|
54.0 | 48.9 | 60.1 | 95.3 | 53.4 | 83.4 | 46.5 | 71.3 | ||||||||||||||||||||||||
|
Total Reinsurance
|
$148.5 | $229.6 | $279.1 | $461.3 | $158.3 | $289.3 | $255.8 | $413.3 | ||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||
|
Property Insurance
|
$25.3 | $30.7 | $62.4 | $14.9 | $19.5 | $23.9 | $45.4 | $(1.9 | ) | |||||||||||||||||||||||
|
Casualty Insurance
|
36.4 | 20.6 | 41.7 | 27.4 | 36.7 | 45.2 | 45.1 | 36.4 | ||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
136.0 | 57.5 | 130.8 | 70.3 | 125.4 | 68.9 | 144.4 | 55.4 | ||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
49.0 | 38.6 | 24.8 | 6.2 | 43.5 | 34.8 | (6.0 | ) | 3.4 | |||||||||||||||||||||||
|
Total Insurance
|
$246.7 | $147.4 | $259.7 | $118.8 | $225.1 | $172.8 | $228.9 | $93.3 | ||||||||||||||||||||||||
|
Total Net Written Premiums
|
$395.2 | $377.0 | $538.8 | $580.1 | $383.4 | $462.1 | $484.7 | $506.6 | ||||||||||||||||||||||||
|
Net Earned Premium
|
||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$63.1 | $66.5 | $66.2 | $70.6 | $49.8 | $55.3 | $52.7 | $49.4 | ||||||||||||||||||||||||
|
Other Property Reinsurance
|
63.0 | 61.0 | 67.8 | 63.5 | 79.3 | 67.4 | 68.9 | 81.2 | ||||||||||||||||||||||||
|
Casualty Reinsurance
|
90.0 | 84.8 | 90.3 | 89.0 | 93.3 | 94.6 | 87.7 | 96.6 | ||||||||||||||||||||||||
|
Specialty Reinsurance
|
76.0 | 55.2 | 66.9 | 67.9 | 66.6 | 71.1 | 46.2 | 48.0 | ||||||||||||||||||||||||
|
Total Reinsurance
|
$292.1 | $267.5 | $291.2 | $291.0 | $289.0 | $288.4 | $255.5 | $275.2 | ||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||
|
Property Insurance
|
$31.0 | $33.2 | $30.1 | $25.8 | $17.3 | $21.9 | $19.1 | $18.9 | ||||||||||||||||||||||||
|
Casualty Insurance
|
26.7 | 24.9 | 39.8 | 38.9 | 42.7 | 43.6 | 43.2 | 46.2 | ||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
124.3 | 94.6 | 97.4 | 94.3 | 103.8 | 98.1 | 99.7 | 88.0 | ||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
25.6 | 31.5 | 21.4 | 17.6 | 23.4 | 18.9 | 11.1 | 19.0 | ||||||||||||||||||||||||
|
Total Insurance
|
$207.6 | $184.2 | $188.7 | $176.6 | $187.2 | $182.5 | $173.1 | $172.1 | ||||||||||||||||||||||||
|
Total Net Earned Premiums
|
$499.7 | $451.7 | $479.9 | $467.6 | $476.2 | $470.9 | $428.6 | $447.3 | ||||||||||||||||||||||||
13
Table of Contents
Aspen
Insurance Holdings Limited
Accident
Year Loss Ratios
| Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||||||||||||
| Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | |||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
50.3% | 77.4% | 61.5% | 39.9% | 59.9% | 47.8% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
20.1% | 15.3% | 18.1% | 21.5% | 17.6% | 20.0% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
11.2% | 16.1% | 15.7% | 10.5% | 16.0% | 16.9% | ||||||||||||||||||
|
Expense ratio
|
31.3% | 31.4% | 33.8% | 32.0% | 33.6% | 36.9% | ||||||||||||||||||
|
Combined ratio
|
81.6% | 108.8% | 95.3% | 71.9% | 93.5% | 84.7% | ||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
13.1% | (7.7% | ) | 4.5% | 10.2% | (3.9% | ) | 5.1% | ||||||||||||||||
|
Policy acquisition expense ratio
|
(3.6% | ) | 0.4% | (1.9% | ) | (0.1% | ) | 0.2% | — | |||||||||||||||
|
Operating and administrative expense ratio
|
0.2% | 1.1% | 0.5% | 0.8% | 0.6% | 0.9% | ||||||||||||||||||
|
Expense ratio
|
(3.4% | ) | 1.5% | (1.4% | ) | 0.7% | 0.8% | 0.9% | ||||||||||||||||
|
Combined ratio
|
9.7% | (6.2% | ) | 3.1% | 10.9% | (3.1% | ) | 6.0% | ||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||
|
Current accident year loss ratio
|
63.4% | 69.7% | 66.0% | 50.1% | 56.0% | 52.9% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
16.5% | 15.7% | 16.2% | 21.4% | 17.8% | 20.0% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
11.4% | 17.2% | 16.2% | 11.3% | 16.6% | 17.8% | ||||||||||||||||||
|
Expense ratio
|
27.9% | 32.9% | 32.4% | 32.7% | 34.4% | 37.8% | ||||||||||||||||||
|
Combined ratio
|
91.3% | 102.6% | 98.4% | 82.8% | 90.4% | 90.7% | ||||||||||||||||||
14
Table of Contents
Aspen
Insurance Holdings Limited
Accident
Year Loss Ratios
| Twelve Months Ended December 31, 2010 | Twelve Months Ended December 31, 2009 | |||||||||||||||||||||||
| Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | |||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
60.7% | 73.3% | 65.8% | 42.2% | 67.3% | 52.0% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
17.7% | 16.7% | 17.3% | 19.4% | 16.7% | 18.3% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
9.8% | 13.1% | 13.6% | 8.8% | 14.1% | 13.8% | ||||||||||||||||||
|
Expense ratio
|
27.5% | 29.8% | 30.9% | 28.2% | 30.8% | 32.1% | ||||||||||||||||||
|
Combined ratio
|
88.2% | 103.1% | 96.7% | 70.4% | 98.1% | 84.1% | ||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
7.0% | (4.3% | ) | 2.5% | 9.7% | (0.7% | ) | 5.7% | ||||||||||||||||
|
Policy acquisition expense ratio
|
(1.0% | ) | — | (0.6% | ) | (0.3% | ) | 0.1% | (0.1% | ) | ||||||||||||||
|
Operating and administrative expense ratio
|
0.2% | 0.4% | 0.3% | 0.1% | 0.5% | 0.3% | ||||||||||||||||||
|
Expense ratio
|
(0.8% | ) | 0.4% | (0.3% | ) | (0.2% | ) | 0.6% | 0.2% | |||||||||||||||
|
Combined ratio
|
6.2% | (3.9% | ) | 2.2% | 9.5% | (0.1% | ) | 5.9% | ||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||
|
Current accident year loss ratio
|
67.7% | 69.0% | 68.3% | 51.9% | 66.6% | 57.7% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
16.7% | 16.7% | 16.7% | 19.1% | 16.8% | 18.2% | ||||||||||||||||||
|
Operating and administrative expense ratio
|
10.0% | 13.5% | 13.9% | 8.9% | 14.6% | 14.1% | ||||||||||||||||||
|
Expense ratio
|
26.7% | 30.2% | 30.6% | 28.0% | 31.4% | 32.3% | ||||||||||||||||||
|
Combined ratio
|
94.4% | 99.2% | 98.9% | 79.9% | 98.0% | 90.0% | ||||||||||||||||||
15
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Statements of Changes in Shareholders’
Equity
| Twelve Months Ended December 31, | ||||||||
| (in US$ millions) | 2010 | 2009 | ||||||
|
Ordinary shares
|
||||||||
|
Beginning and end of period
|
$0.1 | $ | 0.1 | |||||
|
Preference shares
|
||||||||
|
Beginning and end of period
|
— | — | ||||||
|
Minority Interest
|
||||||||
|
Beginning of period
|
— | — | ||||||
|
Introductory capital
|
0.8 | — | ||||||
|
Change in Minority Interest for the year
|
(0.3 | ) | — | |||||
|
End of period
|
0.5 | — | ||||||
|
Additional paid-in capital
|
||||||||
|
Beginning of period
|
1,763.0 | 1,754.8 | ||||||
|
New shares issued
|
20.3 | 25.1 | ||||||
|
Ordinary shares repurchased
|
(407.8 | ) | — | |||||
|
Preference shares repurchased
|
— | (34.1 | ) | |||||
|
Share-based compensation
|
12.8 | 17.2 | ||||||
|
End of period
|
1,388.3 | 1,763.0 | ||||||
|
Retained earnings
|
||||||||
|
Beginning of period
|
1,285.0 | 884.7 | ||||||
|
Net income for the period
|
312.7 | 473.9 | ||||||
|
Dividends paid on ordinary and preference shares
|
(69.3 | ) | (73.6 | ) | ||||
|
Proportion of net (income)/loss due to Minority
Interest
|
0.3 | — | ||||||
|
End of period
|
1,528.7 | 1,285.0 | ||||||
|
Accumulated other comprehensive income:
|
||||||||
|
Cumulative foreign currency translation adjustments, net of
taxes:
|
||||||||
|
Beginning of period
|
103.4 | 87.6 | ||||||
|
Change for the period
|
10.0 | 15.8 | ||||||
|
End of period
|
113.4 | 103.4 | ||||||
|
Loss on derivatives:
|
||||||||
|
Beginning of period
|
(1.2 | ) | (1.4 | ) | ||||
|
Reclassification to interest payable
|
0.2 | 0.2 | ||||||
|
End of period
|
(1.0 | ) | (1.2 | ) | ||||
|
Unrealized appreciation (depreciation) on investments, net of
taxes:
|
||||||||
|
Beginning of period
|
155.1 | 53.3 | ||||||
|
Change for the period
|
56.8 | 101.8 | ||||||
|
End of period
|
211.9 | 155.1 | ||||||
|
Total accumulated other comprehensive income
|
324.3 | 257.3 | ||||||
|
Total shareholders’ equity
|
$3,241.9 | $ | 3,305.4 | |||||
16
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Statements of Comprehensive Income
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (in US$ millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
Net income
|
$92.7 | $ | 126.3 | $ | 312.7 | $ | 473.9 | |||||||||
|
Other comprehensive income/(loss), net of taxes:
|
||||||||||||||||
|
Available for sale investments:
|
||||||||||||||||
|
Reclassification adjustment for net realized (gains)/losses
included in net income
|
(10.3 | ) | (11.2 | ) | (21.0 | ) | 3.8 | |||||||||
|
Change in net unrealized gains and losses on available for sale
securities held
|
(94.3 | ) | (16.3 | ) | 77.8 | 98.0 | ||||||||||
|
Loss on derivatives reclassified to interest expense
|
— | 0.1 | 0.2 | 0.2 | ||||||||||||
|
Change in foreign currency translation adjustment
|
3.3 | 10.1 | 10.0 | 15.8 | ||||||||||||
|
Other comprehensive income/(loss)
|
(101.3 | ) | (17.3 | ) | 67.0 | 117.8 | ||||||||||
|
Comprehensive income
|
$(8.6 | ) | $ | 109.0 | $ | 379.7 | $ | 591.7 | ||||||||
17
Table of Contents
Aspen
Insurance Holdings Limited
Condensed
Consolidated Statements of Cash Flows
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (in US$ millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
Net cash from/(used in) operating activities
|
$122.3 | $ | 157.5 | $ | 624.6 | $ | 646.6 | |||||||||
|
Net cash from/(used in) investing activities
|
98.7 | (345.8 | ) | 17.6 | (682.4 | ) | ||||||||||
|
Net cash from/(used in) financing activities
|
52.4 | (18.1 | ) | (207.1 | ) | (82.6 | ) | |||||||||
|
Effect of exchange rate movements on cash and cash equivalents
|
(8.6 | ) | 6.0 | (4.4 | ) | 57.7 | ||||||||||
|
Increase/(decrease) in cash and cash equivalents
|
264.8 | (200.4 | ) | 430.7 | (60.7 | ) | ||||||||||
|
Cash at beginning of period
|
914.3 | 948.8 | 748.4 | 809.1 | ||||||||||||
|
Cash at end of period
|
$1,179.1 | $ | 748.4 | $ | 1,179.1 | $ | 748.4 | |||||||||
18
Table of Contents
Aspen
Insurance Holdings Limited
Reserves
for Losses and Loss Expenses
|
As At |
As At |
|||||||
|
December 31, |
December 31, |
|||||||
| (in US$ millions) | 2010 | 2009 | ||||||
|
Provision for losses and loss expenses at start of period
|
$3,331.1 | $ | 3,070.3 | |||||
|
Reinsurance recoverables
|
(321.5 | ) | (283.3 | ) | ||||
|
Net loss and loss expenses at start of period
|
3,009.6 | 2,787.0 | ||||||
|
Net loss and loss expenses disposed
|
(35.5 | ) | (10.0 | ) | ||||
|
Provision for losses and loss expenses for claims incurred
|
||||||||
|
Current period
|
1,270.1 | 1,032.5 | ||||||
|
Prior period release
|
(21.4 | ) | (84.4 | ) | ||||
|
Total incurred
|
1,248.7 | 948.1 | ||||||
|
Losses and loss expense payments for claims incurred
|
(666.8 | ) | (808.6 | ) | ||||
|
Foreign exchange (gains)/losses
|
(15.4 | ) | 93.1 | |||||
|
Net loss and loss expense reserves at end of period
|
3,540.6 | 3,009.6 | ||||||
|
Reinsurance recoverables on unpaid losses at end of period
|
279.9 | 321.5 | ||||||
|
Gross loss and loss expense reserves at end of period
|
$3,820.5 | $ | 3,331.1 | |||||
19
Table of Contents
Aspen
Insurance Holdings Limited
Reserves
By Operating Segment
| As At December 31, 2010 | As At December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Reinsurance
|
$2,304.6 | $(60.7 | ) | $2,243.9 | $2,069.4 | $(81.0 | ) | $1,988.4 | ||||||||||||||||
|
Insurance
|
1,515.9 | (219.2 | ) | 1,296.7 | 1,261.7 | (240.5 | ) | 1,021.2 | ||||||||||||||||
|
Total losses and loss expense reserves
|
$3,820.5 | $(279.9 | ) | $3,540.6 | $3,331.1 | $(321.5 | ) | $3,009.6 | ||||||||||||||||
20
Table of Contents
Aspen
Insurance Holdings Limited
Prior
Year Reserve Releases
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Reinsurance
|
$34.1 | $2.0 | $36.1 | $23.6 | $(0.9 | ) | $22.7 | |||||||||||||||||
|
Insurance
|
(48.6 | ) | 25.1 | (23.5 | ) | (28.6 | ) | 19.3 | (9.3 | ) | ||||||||||||||
|
(Strengthening)/release in reserves for prior years during the
period
|
$(14.5 | ) | $27.1 | $12.6 | $(5.0 | ) | $18.4 | $13.4 | ||||||||||||||||
|
Twelve Months Ended |
Twelve Months Ended |
|||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| Gross | Recoverables | Net | Gross | Recoverables | Net | |||||||||||||||||||
|
Reinsurance
|
$66.4 | $(0.8 | ) | $65.6 | $99.2 | $4.6 | $103.8 | |||||||||||||||||
|
Insurance
|
(73.6 | ) | 29.4 | (44.2 | ) | (70.8 | ) | 51.4 | (19.4 | ) | ||||||||||||||
|
(Strengthening)/release in reserves for prior years during the
period
|
$(7.2 | ) | $28.6 | $21.4 | $28.4 | $56.0 | $84.4 | |||||||||||||||||
21
Table of Contents
Aspen
Insurance Holdings Limited
Ratings
of Reinsurers
| (in US$ millions except for percentages) | As at December 31, 2010 | As at December 31, 2009 | ||||||||||||||
|
S&P
|
||||||||||||||||
|
AAA
|
$— | — | $11.8 | 3.7% | ||||||||||||
|
AA+
|
7.5 | 2.7% | — | — | ||||||||||||
|
AA−
|
73.4 | 26.2% | 76.0 | 23.6% | ||||||||||||
|
A+
|
133.0 | 47.5% | 173.9 | 54.1% | ||||||||||||
|
A
|
12.9 | 4.6% | 10.9 | 3.3% | ||||||||||||
|
A−
|
11.3 | 4.1% | 12.5 | 3.9% | ||||||||||||
|
BBB+
|
2.5 | 0.9% | — | — | ||||||||||||
|
BBB+
|
0.6 | 0.2% | — | — | ||||||||||||
|
Fully collateralized
|
— | — | 0.5 | 0.2% | ||||||||||||
|
Not rated
|
38.7 | 13.8% | 35.9 | 11.2% | ||||||||||||
| $279.9 | 100.0% | $321.5 | 100.0% | |||||||||||||
|
A.M. Best
|
||||||||||||||||
|
A++
|
$7.5 | 2.7% | $13.2 | 4.1% | ||||||||||||
|
A+
|
74.0 | 26.4% | 57.0 | 17.7% | ||||||||||||
|
A
|
173.5 | 62.0% | 226.2 | 70.4% | ||||||||||||
|
A−
|
15.7 | 5.6% | 21.3 | 6.6% | ||||||||||||
|
F
|
0.7 | 0.3% | — | — | ||||||||||||
|
Fully collateralized
|
— | — | 0.5 | 0.2% | ||||||||||||
|
Not rated
|
8.5 | 3.0% | 3.3 | 1.0% | ||||||||||||
| $279.9 | 100.0% | $321.5 | 100.0% | |||||||||||||
22
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated Investment Portfolio
Consolidated Investment Portfolio
| As At December 31, 2010 | ||||||||||||||||||||||||||||||||||||
|
Gross |
Gross |
As At |
As At |
As At |
As At |
As At |
||||||||||||||||||||||||||||||
|
Amortized |
Unrealized |
Unrealized |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||||||||||||||
| (in US$ millions except for percentages) | Cost | Gains | Losses | Fair Value | 2010 | 2010 | 2010 | 2010 | 2009 | |||||||||||||||||||||||||||
|
Marketable Securities — Available For Sale
|
||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$701.5 | $25.5 | $(1.6 | ) | $725.4 | 9.9% | 10.9% | 10.4% | 9.7% | 7.5% | ||||||||||||||||||||||||||
|
U.S. agency securities
|
278.7 | 23.6 | — | 302.3 | 4.1% | 4.8% | 5.0% | 5.2% | 5.7% | |||||||||||||||||||||||||||
|
Municipal securities
|
31.1 | 0.4 | (0.8 | ) | 30.7 | 0.4% | 0.4% | 0.6% | 0.4% | 0.3% | ||||||||||||||||||||||||||
|
Corporate securities
|
2,208.4 | 121.0 | (3.7 | ) | 2,325.7 | 31.8% | 33.3% | 33.8% | 33.4% | 33.3% | ||||||||||||||||||||||||||
|
Foreign government securities
|
601.0 | 16.9 | (1.0 | ) | 616.9 | 8.4% | 8.2% | 7.9% | 8.4% | 7.7% | ||||||||||||||||||||||||||
|
Asset-backed securities
|
54.0 | 4.8 | — | 58.8 | 0.8% | 1.1% | 1.1% | 1.3% | 1.7% | |||||||||||||||||||||||||||
|
Mortgage-backed securities
|
1,246.1 | 57.1 | (2.6 | ) | 1,300.6 | 17.8% | 17.8% | 19.6% | 20.7% | 21.1% | ||||||||||||||||||||||||||
|
Total fixed income maturities
|
5,120.8 | 249.3 | (9.7 | ) | 5,360.4 | 73.2% | 76.5% | 78.4% | 79.1% | 77.3% | ||||||||||||||||||||||||||
|
Short-term investments
|
286.1 | — | (0.1 | ) | 286.0 | 3.9% | 4.1% | 4.4% | 3.8% | 5.4% | ||||||||||||||||||||||||||
|
Total Available For Sale
|
$5,406.9 | $249.3 | $(9.8 | ) | $5,646.4 | 77.1% | 80.6% | 82.8% | 82.9% | 82.7% | ||||||||||||||||||||||||||
|
Marketable Securities — Trading
|
||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$48.9 | $0.1 | $(0.7 | ) | $48.3 | 0.7% | 0.6% | 0.4% | 0.1% | 0.1% | ||||||||||||||||||||||||||
|
U.S. agency securities
|
0.5 | — | — | 0.5 | — | — | — | — | — | |||||||||||||||||||||||||||
|
Municipal securities
|
3.2 | 0.1 | — | 3.3 | 0.1% | — | — | — | — | |||||||||||||||||||||||||||
|
Corporate securities
|
322.4 | 18.4 | (1.0 | ) | 339.8 | 4.6% | 4.8% | 4.8% | 5.1% | 4.8% | ||||||||||||||||||||||||||
|
Foreign government securities
|
8.9 | 0.5 | — | 9.4 | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | |||||||||||||||||||||||||||
|
Asset-backed securities
|
4.9 | — | — | 4.9 | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | |||||||||||||||||||||||||||
|
Total fixed income maturities
|
388.8 | 19.1 | (1.7 | ) | 406.2 | 5.6% | 5.6% | 5.4% | 5.4% | 5.1% | ||||||||||||||||||||||||||
|
Short-term investments
|
3.7 | — | — | 3.7 | 0.1% | — | — | — | — | |||||||||||||||||||||||||||
|
Total Trading
|
$392.5 | $19.1 | $(1.7 | ) | $409.9 | 5.7% | 5.6% | 5.4% | 5.4% | 5.1% | ||||||||||||||||||||||||||
|
Other investments
|
$30.0 | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | ||||||||||||||||||||||||||||||
|
Cash
|
1,179.1 | 16.1% | 12.6% | 10.6% | 10.5% | 11.0% | ||||||||||||||||||||||||||||||
|
Accrued interest
|
54.4 | 0.7% | 0.8% | 0.8% | 0.8% | 0.8% | ||||||||||||||||||||||||||||||
|
Total Cash and Accrued Interest
|
$1,233.5 | 16.8% | 13.4% | 11.4% | 11.3% | 11.8% | ||||||||||||||||||||||||||||||
|
Total Cash and Investments
|
$7,319.8 | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||||||||||||||||||||
23
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Investment Portfolio
| As At December 31, 2010 | As At December 31, 2009 | |||||||||||||||
|
Amortized |
Fair Market |
Amortized |
Fair Market |
|||||||||||||
| (in US$ millions except for percentages) | Cost | Value | Cost | Value | ||||||||||||
|
Maturity of Available For Sale Portfolio
|
||||||||||||||||
|
Due in one year or less
|
$337.7 | $343.8 | $296.4 | $301.4 | ||||||||||||
|
Due after one year through five years
|
2,236.3 | 2,330.9 | 2,057.1 | 2,133.2 | ||||||||||||
|
Due after five years through ten years
|
1,146.6 | 1,222.2 | 1,094.2 | 1,143.5 | ||||||||||||
|
Due after ten years
|
100.1 | 104.1 | 121.0 | 124.9 | ||||||||||||
|
Subtotal
|
3,820.7 | 4,001.0 | 3,568.7 | 3,703.0 | ||||||||||||
|
Non-agency residential mortgage-backed securities
|
— | — | 34.2 | 42.2 | ||||||||||||
|
Non-agency commercial mortgage-backed securities
|
119.7 | 128.1 | 178.5 | 180.0 | ||||||||||||
|
Agency mortgage-backed securities
|
1,126.4 | 1,172.5 | 1,172.9 | 1,209.6 | ||||||||||||
|
Other asset-backed securities
|
54.0 | 58.8 | 110.0 | 115.1 | ||||||||||||
|
Total
|
$5,120.8 | $5,360.4 | $5,064.3 | $5,249.9 | ||||||||||||
24
Table of Contents
Aspen
Insurance Holdings Limited
Investment
Analysis
| (in US$ millions except for percentages) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||||||||||
|
Net investment income from fixed income investments and cash
|
$57.0 | $58.1 | $57.5 | $59.4 | $58.6 | $58.9 | $56.0 | $55.2 | ||||||||||||||||||||||||
|
Net investment income/(loss) from funds of hedge funds
|
— | — | — | — | (0.4 | ) | — | 16.2 | 4.0 | |||||||||||||||||||||||
|
Net investment income
|
57.0 | 58.1 | 57.5 | 59.4 | 58.2 | 58.9 | 72.2 | 59.2 | ||||||||||||||||||||||||
|
Net realized investment gains
|
10.5 | 22.1 | 5.7 | 12.6 | 7.5 | 16.4 | 7.7 | 3.1 | ||||||||||||||||||||||||
|
Other-than-temporary
impairment charges
|
— | — | — | (0.3 | ) | (3.3 | ) | (1.8 | ) | (2.9 | ) | (15.3 | ) | |||||||||||||||||||
|
Change in unrealized gains/(losses) on investments (gross of tax)
|
(122.1 | ) | 68.3 | 82.4 | 25.3 | (33.1 | ) | 106.3 | 41.7 | 3.3 | ||||||||||||||||||||||
|
Total return on investments
|
$(54.6 | ) | $148.5 | $145.6 | $97.0 | $29.3 | $179.8 | $118.7 | $50.3 | |||||||||||||||||||||||
|
Portfolio Characteristics
|
||||||||||||||||||||||||||||||||
|
Fixed income portfolio book yield
|
3.70% | 3.91% | 4.05% | 4.23% | 4.22% | 4.13% | 4.43% | 4.42% | ||||||||||||||||||||||||
|
Fixed income portfolio duration
|
3.3 years | 3.1 years | 3.0 years | 3.3 years | 3.3 years | 3.3 years | 3.2 years | 2.9 years | ||||||||||||||||||||||||
25
Table of Contents
Aspen
Insurance Holdings Limited
Book
Value Per Ordinary Share
| (in US$ millions except for number of shares and per share amounts) | December 31, 2010 | September 30, 2010 | June 30, 2010 | March 31, 2010 | December 31, 2009 | |||||||||||||||
|
Net assets
|
$3,241.9 | $3,440.7 | $3,303.9 | $3,140.2 | $3,305.4 | |||||||||||||||
|
Less: Preference shares
|
(353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | ||||||||||
|
Total
|
$2,888.3 | $3,087.1 | $2,950.3 | $2,786.6 | $2,951.8 | |||||||||||||||
|
Ordinary shares outstanding (in millions)
|
70.508 | 76.642 | 76.701 | 76.865 | 83.328 | |||||||||||||||
|
Ordinary shares and dilutive potential ordinary shares (in
millions)
|
74.253 | 80.765 | 79.831 | 80.495 | 86.465 | |||||||||||||||
|
Book value per ordinary share
|
$40.96 | $40.28 | $38.46 | $36.25 | $35.42 | |||||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$38.90 | $38.23 | $36.96 | $34.62 | $34.14 | |||||||||||||||
The dilutive effect of options has been calculated using the
treasury stock method. The treasury stock method assumes that
the proceeds received from the exercise of options will be used
to purchase the Company’s ordinary shares at the average
market price during the period of calculation.
26
Table of Contents
Aspen
Insurance Holdings Limited
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| Weighted average ordinary shares outstanding (millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
Basic
|
73.996 | 83.239 | 76.343 | 82.698 | ||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||
|
Employee options
|
0.870 | 0.925 | 0.874 | 0.775 | ||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)
|
0.451 | 0.362 | 0.430 | 0.275 | ||||||||||||
|
Performance shares
|
2.061 | 1.703 | 2.071 | 1.396 | ||||||||||||
|
Restricted share units
|
0.285 | 0.183 | 0.261 | 0.183 | ||||||||||||
|
PIERS*
|
0.070 | — | 0.037 | — | ||||||||||||
|
Weighted average diluted shares outstanding
|
77.733 | 86.412 | 80.016 | 85.327 | ||||||||||||
The dilutive effect of options has been calculated using the
treasury stock method. The treasury stock method assumes that
the proceeds received from the exercise of options will be used
to purchase the Company’s ordinary shares at the average
market price during the period of calculation.
| * | Preferred Income Equity Replacement Securities (PIERS) |
27
Table of Contents
Aspen
Insurance Holdings Limited
Net income is adjusted to exclude after-tax net foreign exchange
gains and losses, realized gains and losses in investments and
preference share repurchase gains in the first quarter of 2009.
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in US$ millions except where stated) | December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | ||||||||||||
|
Net income as reported
|
$92.7 | $126.3 | $312.7 | $473.9 | ||||||||||||
|
Preference share dividends
|
(5.7 | ) | (5.5 | ) | (22.8 | ) | (23.8 | ) | ||||||||
|
Preference share repurchase gain
|
— | — | — | 31.5 | ||||||||||||
|
Net income available to ordinary shareholders
|
87.0 | 120.8 | 289.9 | 481.6 | ||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange (gains)/losses | (0.2 | ) | 6.7 | (2.9 | ) | (2.0 | ) | |||||||||
| Net realized (gains)/losses on investments | (7.5 | ) | (3.8 | ) | (44.1 | ) | (7.6 | ) | ||||||||
| Preference share repurchase gain | — | — | — | (31.5 | ) | |||||||||||
|
Operating income after tax available to ordinary shareholders
|
79.3 | 123.7 | 242.9 | 440.5 | ||||||||||||
|
Tax on operating income
|
0.5 | (0.6 | ) | 21.8 | 57.0 | |||||||||||
|
Operating income before tax available to ordinary shareholders
|
$79.8 | $123.1 | $264.7 | $497.5 | ||||||||||||
|
Weighted average ordinary shares outstanding (millions)
|
||||||||||||||||
|
Basic
|
73.996 | 83.239 | 76.343 | 82.698 | ||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||
|
Employee options
|
0.870 | 0.925 | 0.874 | 0.775 | ||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)
|
0.451 | 0.362 | 0.430 | 0.275 | ||||||||||||
|
Performance shares
|
2.061 | 1.703 | 2.071 | 1.396 | ||||||||||||
|
Restricted share units
|
0.285 | 0.183 | 0.261 | 0.183 | ||||||||||||
|
PIERS*
|
0.070 | — | 0.037 | — | ||||||||||||
|
Weighted average diluted shares outstanding
|
77.733 | 86.412 | 80.016 | 85.327 | ||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||
|
Net income adjusted for preference share dividend and preference
share repurchase gain
|
$1.18 | $1.45 | $3.80 | $5.82 | ||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange (gains)/losses | — | 0.08 | (0.04 | ) | (0.02 | ) | ||||||||||
| Net realized (gains)/losses on investments | (0.10 | ) | (0.05 | ) | (0.58 | ) | (0.09 | ) | ||||||||
| Preference share repurchase gain | — | — | — | (0.38 | ) | |||||||||||
|
Operating income adjusted for preference shares dividend
|
$1.08 | $1.48 | $3.18 | $5.33 | ||||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||
|
Net income adjusted for preference share dividend and preference
share repurchase gain
|
$1.12 | $1.40 | $3.62 | $5.64 | ||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange (gains)/losses | — | 0.08 | (0.04 | ) | (0.02 | ) | ||||||||||
| Net realized (gains)/losses on investments | (0.10 | ) | (0.04 | ) | (0.55 | ) | (0.09 | ) | ||||||||
| Preference share repurchase gain | — | — | — | (0.37 | ) | |||||||||||
|
Operating income adjusted for preference shares dividend
|
$1.02 | $1.44 | $3.03 | $5.16 | ||||||||||||
| * | Preferred Income Equity Replacement Securities (PIERS) |
28
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Underwriting Results by Previous Operating Segment
| Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
|
Property |
Casualty |
International |
U.S. |
Property |
Casualty |
International |
U.S. |
|||||||||||||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Reinsurance | Insurance | Insurance | Total | Reinsurance | Reinsurance | Insurance | Insurance | Total | ||||||||||||||||||||||||||||||
|
Gross written premiums
|
$74.4 | $51.1 | $257.5 | $29.8 | $412.8 | $77.0 | $65.8 | $230.4 | $32.5 | $405.7 | ||||||||||||||||||||||||||||||
|
Net written premiums
|
74.4 | 51.1 | 245.8 | 23.9 | 395.2 | 67.2 | 66.5 | 227.6 | 22.1 | 383.4 | ||||||||||||||||||||||||||||||
|
Gross earned premiums
|
170.9 | 100.2 | 239.0 | 40.3 | 550.4 | 165.3 | 109.4 | 214.3 | 39.7 | 528.7 | ||||||||||||||||||||||||||||||
|
Net earned premiums
|
161.4 | 99.1 | 210.7 | 28.5 | 499.7 | 148.0 | 109.8 | 193.1 | 25.3 | 476.2 | ||||||||||||||||||||||||||||||
|
Losses and loss expenses
|
59.8 | 70.5 | 131.1 | 46.0 | 307.4 | 24.4 | 79.6 | 86.2 | 37.3 | 227.5 | ||||||||||||||||||||||||||||||
|
Policy acquisition expenses
|
34.2 | 18.6 | 32.3 | 5.5 | 90.6 | 34.7 | 21.6 | 33.7 | 5.1 | 95.1 | ||||||||||||||||||||||||||||||
|
Operating and administrative expenses
|
21.7 | 10.9 | 34.9 | 11.0 | 78.5 | 26.8 | 12.8 | 32.4 | 8.3 | 80.3 | ||||||||||||||||||||||||||||||
|
Underwriting income/(loss)
|
$45.7 | $(0.9 | ) | $12.4 | $(34.0 | ) | $23.2 | $62.1 | $(4.2 | ) | $40.8 | $(25.4 | ) | $73.3 | ||||||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
37.1% | 71.1% | 62.2% | 161.4% | 61.5% | 16.5% | 72.5% | 44.6% | 147.4% | 47.8% | ||||||||||||||||||||||||||||||
|
Policy acquisition expense ratio
|
21.2% | 18.8% | 15.3% | 19.3% | 18.1% | 23.4% | 19.7% | 17.5% | 20.2% | 20.0% | ||||||||||||||||||||||||||||||
|
Operating and administrative expense ratio
|
13.4% | 11.0% | 16.6% | 38.6% | 15.7% | 18.1% | 11.7% | 16.8% | 32.8% | 16.9% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
34.6% | 29.8% | 31.9% | 57.9% | 33.8% | 41.5% | 31.4% | 34.3% | 53.0% | 36.9% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
71.7% | 100.9% | 94.1% | 219.3% | 95.3% | 58.0% | 103.9% | 78.9% | 200.4% | 84.7% | ||||||||||||||||||||||||||||||
A-1
Table of Contents
Aspen
Insurance Holdings Limited
Consolidated
Underwriting Results by Previous Operating Segment
| Twelve Months Ended December 31, 2010 | Twelve Months Ended December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
|
Property |
Casualty |
International |
U.S. |
Property |
Casualty |
International |
U.S. |
|||||||||||||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Reinsurance | Insurance | Insurance | Total | Reinsurance | Reinsurance | Insurance | Insurance | Total | ||||||||||||||||||||||||||||||
|
Gross written premiums
|
$651.1 | $361.4 | $908.3 | $156.0 | $2,076.8 | $648.7 | $408.1 | $847.7 | $162.6 | $2,067.1 | ||||||||||||||||||||||||||||||
|
Net written premiums
|
618.8 | 356.3 | 790.8 | 125.2 | 1,891.1 | 591.1 | 410.0 | 723.4 | 112.3 | 1,836.8 | ||||||||||||||||||||||||||||||
|
Gross earned premiums
|
656.8 | 395.6 | 886.2 | 155.7 | 2,094.3 | 616.8 | 434.1 | 836.7 | 147.8 | 2,035.4 | ||||||||||||||||||||||||||||||
|
Net earned premiums
|
619.8 | 391.1 | 769.1 | 118.9 | 1,898.9 | 560.0 | 435.7 | 726.1 | 101.2 | 1,823.0 | ||||||||||||||||||||||||||||||
|
Losses and loss expenses
|
329.1 | 306.2 | 505.7 | 107.7 | 1,248.7 | 121.7 | 293.4 | 443.6 | 89.4 | 948.1 | ||||||||||||||||||||||||||||||
|
Policy acquisition expenses
|
116.3 | 63.7 | 123.9 | 24.6 | 328.5 | 111.8 | 82.7 | 122.6 | 17.0 | 334.1 | ||||||||||||||||||||||||||||||
|
Operating and administrative expenses
|
80.8 | 39.8 | 100.2 | 37.8 | 258.6 | 78.1 | 42.8 | 98.3 | 33.2 | 252.4 | ||||||||||||||||||||||||||||||
|
Underwriting income/(loss)
|
$93.6 | $(18.6 | ) | $39.3 | $(51.2 | ) | $63.1 | $248.4 | $16.8 | $61.6 | $(38.4 | ) | $288.4 | |||||||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
53.1% | 78.3% | 65.8% | 90.6% | 65.8% | 21.7% | 67.3% | 61.1% | 88.3% | 52.0% | ||||||||||||||||||||||||||||||
| Policy acquisition expense ratio | 18.8% | 16.3% | 16.1% | 20.7% | 17.3% | 20.0% | 19.0% | 16.9% | 16.8% | 18.3% | ||||||||||||||||||||||||||||||
| Operating and administrative expense ratio | 13.0% | 10.2% | 13.0% | 31.8% | 13.6% | 13.9% | 9.8% | 13.5% | 32.8% | 13.8% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
31.8% | 26.5% | 29.1% | 52.5% | 30.9% | 33.9% | 28.8% | 30.4% | 49.6% | 32.1% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
84.9% | 104.8% | 94.9% | 143.1% | 96.7% | 55.6% | 96.1% | 91.5% | 137.9% | 84.1% | ||||||||||||||||||||||||||||||
A-2
Table of Contents
Aspen
Insurance Holdings Limited
Gross
Written Premiums By Previous Segment And Line of
Business
| (in US$ millions) | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||||||||||
|
Property Reinsurance
|
||||||||||||||||||||||||||||||||
|
Treaty Catastrophe
|
$4.2 | $50.8 | $90.7 | $145.8 | $2.3 | $63.8 | $78.4 | $116.7 | ||||||||||||||||||||||||
|
Treaty Risk Excess
|
0.3 | 25.9 | 31.3 | 26.8 | 9.2 | 26.8 | 37.2 | 31.3 | ||||||||||||||||||||||||
|
Treaty Pro Rata
|
34.9 | 25.9 | 33.2 | 41.0 | 48.2 | 40.5 | 44.5 | 48.2 | ||||||||||||||||||||||||
|
Global Property Facultative
|
10.0 | 11.6 | 11.0 | 13.3 | 11.4 | 12.8 | 11.6 | 17.0 | ||||||||||||||||||||||||
|
Credit and Surety Reinsurance
|
17.5 | 20.0 | 18.2 | 18.7 | 5.9 | 27.3 | 8.3 | 7.3 | ||||||||||||||||||||||||
|
Agriculture
|
7.5 | 3.0 | 6.4 | 3.1 | — | — | — | — | ||||||||||||||||||||||||
| $74.4 | $137.2 | $190.8 | $248.7 | $77.0 | $171.2 | $180.0 | $220.5 | |||||||||||||||||||||||||
|
Casualty Reinsurance
|
||||||||||||||||||||||||||||||||
|
U.S. Casualty Treaty
|
$40.3 | $45.5 | $43.1 | $104.5 | $52.3 | $74.8 | $43.7 | $106.3 | ||||||||||||||||||||||||
|
International Casualty Treaty
|
5.6 | 22.3 | 10.1 | 71.5 | 8.3 | 16.3 | 12.5 | 77.0 | ||||||||||||||||||||||||
|
Global Casualty Facultative
|
5.2 | 4.5 | 3.9 | 4.9 | 5.2 | 5.4 | 2.8 | 3.5 | ||||||||||||||||||||||||
| $51.1 | $72.3 | $57.1 | $180.9 | $65.8 | $96.5 | $59.0 | $186.8 | |||||||||||||||||||||||||
|
International Insurance
|
||||||||||||||||||||||||||||||||
|
M.E.C. Liability
|
$56.5 | $14.7 | $53.6 | $61.3 | $36.7 | $19.7 | $70.2 | $50.8 | ||||||||||||||||||||||||
|
Energy Property
|
10.3 | 23.0 | 23.5 | 14.3 | 9.6 | 16.5 | 41.0 | 16.4 | ||||||||||||||||||||||||
|
Marine Hull
|
10.8 | 9.8 | 15.9 | 19.1 | 18.8 | 13.1 | 14.8 | 16.5 | ||||||||||||||||||||||||
|
Aviation
|
56.0 | 20.4 | 21.6 | 13.5 | 57.3 | 23.5 | 21.6 | 10.4 | ||||||||||||||||||||||||
|
U.K. Commercial Property & Construction
|
11.4 | 14.1 | 30.7 | 15.5 | 12.4 | 13.2 | 20.2 | 10.9 | ||||||||||||||||||||||||
|
U.K. Commercial Liability
|
8.3 | 12.6 | 9.3 | 9.8 | 8.6 | 15.9 | 11.8 | 9.1 | ||||||||||||||||||||||||
|
Global Casualty
|
26.9 | 8.6 | 18.1 | 15.7 | 24.5 | 20.8 | 21.9 | 14.5 | ||||||||||||||||||||||||
|
Professional Liability
|
15.2 | 14.6 | 9.6 | 8.0 | 10.7 | 17.8 | 9.7 | 7.7 | ||||||||||||||||||||||||
|
Financial Institutions
|
13.7 | 3.9 | 3.8 | 5.4 | 10.6 | 7.9 | 3.7 | 3.7 | ||||||||||||||||||||||||
|
Financial and Political Risks
|
15.4 | 15.5 | 14.2 | 12.0 | 12.3 | 7.4 | 3.6 | 9.2 | ||||||||||||||||||||||||
|
Specie
|
2.7 | 2.2 | 3.5 | 2.4 | 2.5 | 2.2 | 1.8 | — | ||||||||||||||||||||||||
|
Specialty Reinsurance
|
22.2 | 23.6 | 31.1 | 59.1 | 26.4 | 25.9 | 18.4 | 45.5 | ||||||||||||||||||||||||
| $249.4 | $163.0 | $234.9 | $236.1 | $230.4 | $183.9 | $238.7 | $194.7 | |||||||||||||||||||||||||
|
U.S. Insurance
|
||||||||||||||||||||||||||||||||
|
Property
|
$17.3 | $22.9 | $38.6 | $21.2 | $16.1 | $17.3 | $34.7 | $14.4 | ||||||||||||||||||||||||
|
Casualty
|
15.6 | 17.3 | 19.9 | 14.4 | 15.9 | 18.9 | 21.9 | 20.4 | ||||||||||||||||||||||||
|
Risk Solutions
|
5.0 | 3.1 | 4.1 | 1.5 | 0.5 | 2.5 | — | — | ||||||||||||||||||||||||
| $37.9 | $43.3 | $62.6 | $37.1 | $32.5 | $38.7 | $56.6 | $34.8 | |||||||||||||||||||||||||
|
Total Gross Written Premiums
|
$412.8 | $415.8 | $545.4 | $702.8 | $405.7 | $490.3 | $534.3 | $636.8 | ||||||||||||||||||||||||
A-3
Table of Contents
Aspen
Insurance Holdings Limited
Accident
Year Loss Ratios
| Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
|
Property |
Casualty |
International |
U.S. |
Property |
Casualty |
International |
U.S. |
|||||||||||||||||||||||||||||||||
| Reinsurance | Reinsurance | Insurance | Insurance | Total | Reinsurance | Reinsurance | Insurance | Insurance | Total | |||||||||||||||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
37.1% | 71.1% | 62.2% | 161.4% | 61.5% | 16.5% | 72.5% | 44.6% | 147.4% | 47.8% | ||||||||||||||||||||||||||||||
| Policy acquisition expense ratio | 21.2% | 18.8% | 15.3% | 19.3% | 18.1% | 23.4% | 19.7% | 17.5% | 20.2% | 20.0% | ||||||||||||||||||||||||||||||
| Operating and administrative expense ratio | 13.4% | 11.0% | 16.6% | 38.6% | 15.7% | 18.1% | 11.7% | 16.8% | 32.8% | 16.9% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
34.6% | 29.8% | 31.9% | 57.9% | 33.8% | 41.5% | 31.4% | 34.3% | 53.0% | 36.9% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
71.7% | 100.9% | 94.1% | 219.3% | 95.3% | 58.0% | 103.9% | 78.9% | 200.4% | 84.7% | ||||||||||||||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
15.6% | 3.3% | 8.2% | (76.5% | ) | 4.5% | 8.4% | 10.4% | 6.6% | (49.5% | ) | 5.1% | ||||||||||||||||||||||||||||
| Policy acquisition expense ratio | (3.8% | ) | (2.0% | ) | (0.9% | ) | — | (1.9% | ) | (0.8% | ) | — | 0.2% | 0.9% | — | |||||||||||||||||||||||||
| Operating and administrative expense ratio | (0.1% | ) | 0.7% | 0.9% | — | 0.5% | 0.4% | 0.3% | 1.5% | 2.7% | 0.9% | |||||||||||||||||||||||||||||
|
Expense ratio
|
(3.9% | ) | (1.3% | ) | — | — | (1.4% | ) | (0.4% | ) | 0.3% | 1.7% | 3.6% | 0.9% | ||||||||||||||||||||||||||
|
Combined ratio
|
11.7% | 2.0% | 8.2% | (76.5% | ) | 3.1% | 8.0% | 10.7% | 8.3% | (45.9% | ) | 6.0% | ||||||||||||||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||||||||||||||||||
|
Current accident year loss ratio
|
52.7% | 74.4% | 70.4% | 84.9% | 66.0% | 24.9% | 82.9% | 51.2% | 97.9% | 52.9% | ||||||||||||||||||||||||||||||
| Policy acquisition expense ratio | 17.4% | 16.8% | 14.4% | 19.3% | 16.2% | 22.6% | 19.7% | 17.7% | 21.1% | 20.0% | ||||||||||||||||||||||||||||||
| Operating and administrative expense ratio | 13.3% | 11.7% | 17.5% | 38.6% | 16.2% | 18.5% | 12.0% | 18.3% | 35.5% | 17.8% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
30.7% | 28.5% | 31.9% | 57.9% | 32.4% | 41.1% | 31.7% | 36.0% | 56.6% | 37.8% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
83.4% | 102.9% | 102.3% | 142.8% | 98.4% | 66.0% | 114.6% | 87.2% | 154.5% | 90.7% | ||||||||||||||||||||||||||||||
A-4
Table of Contents
Aspen
Insurance Holdings Limited
Accident
Year Loss Ratios
| Twelve Months Ended December 31, 2010 | Twelve Months Ended December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
|
Property |
Casualty |
International |
U.S. |
Property |
Casualty |
International |
U.S. |
|||||||||||||||||||||||||||||||||
| Reinsurance | Reinsurance | Insurance | Insurance | Total | Reinsurance | Reinsurance | Insurance | Insurance | Total | |||||||||||||||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
53.1% | 78.3% | 65.8% | 90.6% | 65.8% | 21.7% | 67.3% | 61.1% | 88.3% | 52.0% | ||||||||||||||||||||||||||||||
| Policy acquisition expense ratio | 18.8% | 16.3% | 16.1% | 20.7% | 17.3% | 20.0% | 19.0% | 16.9% | 16.8% | 18.3% | ||||||||||||||||||||||||||||||
| Operating and administrative expense ratio | 13.0% | 10.2% | 13.0% | 31.8% | 13.6% | 13.9% | 9.8% | 13.5% | 32.8% | 13.8% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
31.8% | 26.5% | 29.1% | 52.5% | 30.9% | 33.9% | 28.8% | 30.4% | 49.6% | 32.1% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
84.9% | 104.8% | 94.9% | 143.1% | 96.7% | 55.6% | 96.1% | 91.5% | 137.9% | 84.1% | ||||||||||||||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||||||||||||||||||
|
Loss ratio
|
6.6% | 2.7% | 3.3% | (22.6% | ) | 2.5% | 10.6% | 6.6% | 4.9% | (18.6% | ) | 5.7% | ||||||||||||||||||||||||||||
| Policy acquisition expense ratio | (1.1% | ) | 0.3% | (0.8% | ) | — | (0.6% | ) | (0.8% | ) | — | 0.1% | 0.1% | (0.1% | ) | |||||||||||||||||||||||||
| Operating and administrative expense ratio | — | 0.2% | 0.5% | — | 0.3% | 0.3% | 0.1% | 0.5% | (0.4% | ) | 0.3% | |||||||||||||||||||||||||||||
|
Expense ratio
|
(1.1% | ) | 0.5% | (0.3% | ) | — | (0.3% | ) | (0.5% | ) | 0.1% | 0.6% | (0.3% | ) | 0.2% | |||||||||||||||||||||||||
|
Combined ratio
|
5.5% | 3.2% | 3.0% | (22.6% | ) | 2.2% | 10.1% | 6.7% | 5.5% | (18.9% | ) | 5.9% | ||||||||||||||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||||||||||||||||||
|
Current accident year loss ratio
|
59.7% | 81.0% | 69.1% | 68.0% | 68.3% | 32.3% | 73.9% | 66.0% | 69.7% | 57.7% | ||||||||||||||||||||||||||||||
| Policy acquisition expense ratio | 17.7% | 16.6% | 15.3% | 20.7% | 16.7% | 19.2% | 19.0% | 17.0% | 16.9% | 18.2% | ||||||||||||||||||||||||||||||
| Operating and administrative expense ratio | 13.0% | 10.4% | 13.5% | 31.8% | 13.9% | 14.2% | 9.9% | 14.0% | 32.4% | 14.1% | ||||||||||||||||||||||||||||||
|
Expense ratio
|
30.7% | 27.0% | 28.8% | 52.5% | 30.6% | 33.4% | 28.9% | 31.0% | 49.3% | 32.3% | ||||||||||||||||||||||||||||||
|
Combined ratio
|
90.4% | 108.0% | 97.9% | 120.5% | 98.9% | 65.7% | 102.8% | 97.0% | 119.0% | 90.0% | ||||||||||||||||||||||||||||||
A-5
Table of Contents
Aspen
Insurance Holdings Limited
Reserves
by Previous Operating Segment
| As At December 31, 2010 | As At December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Property Reinsurance
|
$515.6 | $(21.2 | ) | $494.4 | $390.6 | $(35.4 | ) | $355.2 | ||||||||||||||||
|
Casualty Reinsurance
|
1,604.8 | (3.2 | ) | 1,601.6 | 1,518.9 | (6.4 | ) | 1,512.5 | ||||||||||||||||
|
International Insurance
|
1,421.9 | (200.0 | ) | 1,221.9 | 1,220.1 | (227.7 | ) | 992.4 | ||||||||||||||||
|
U.S. Insurance
|
278.2 | (55.5 | ) | 222.7 | 201.5 | (52.0 | ) | 149.5 | ||||||||||||||||
|
Total losses and loss expense reserves
|
$3,820.5 | $(279.9 | ) | $3,540.6 | $3,331.1 | $(321.5 | ) | $3,009.6 | ||||||||||||||||
A-6
Table of Contents
Aspen
Insurance Holdings Limited
Prior
Year Reserve Releases
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Property Reinsurance
|
$24.4 | $0.5 | $24.9 | $12.8 | $(0.9 | ) | $11.9 | |||||||||||||||||
|
Casualty Reinsurance
|
(1.6 | ) | 1.0 | (0.6 | ) | 8.9 | — | 8.9 | ||||||||||||||||
|
International Insurance
|
2.8 | 7.8 | 10.6 | (1.0 | ) | 5.9 | 4.9 | |||||||||||||||||
|
U.S. Insurance
|
(39.9 | ) | 17.6 | (22.3 | ) | (25.7 | ) | 13.4 | (12.3 | ) | ||||||||||||||
|
(Strengthening)/release in reserves for prior
years during the period |
$(14.3 | ) | $26.9 | $12.6 | $(5.0 | ) | $18.4 | $13.4 | ||||||||||||||||
|
Twelve Months Ended |
Twelve Months Ended |
|||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| Gross | Recoverables | Net | Gross | Recoverables | Net | |||||||||||||||||||
|
Property Reinsurance
|
$37.1 | $1.3 | $38.4 | $54.8 | $3.7 | $58.5 | ||||||||||||||||||
|
Casualty Reinsurance
|
6.4 | (2.3 | ) | 4.1 | 27.5 | — | 27.5 | |||||||||||||||||
|
International Insurance
|
(0.5 | ) | 7.6 | 7.1 | (4.5 | ) | 22.2 | 17.7 | ||||||||||||||||
|
U.S. Insurance
|
(50.2 | ) | 22.0 | (28.2 | ) | (49.4 | ) | 30.1 | (19.3 | ) | ||||||||||||||
|
(Strengthening)/release in reserves for prior
years during the period |
$(7.2 | ) | $28.6 | $21.4 | $28.4 | $56.0 | $84.4 | |||||||||||||||||
A-7