Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ASPEN INSURANCE HOLDINGS LTD | u11506e8vk.htm |
| EX-99.1 - EX-99.1 - ASPEN INSURANCE HOLDINGS LTD | u11506exv99w1.htm |
| EX-99.3 - EX-99.3 - ASPEN INSURANCE HOLDINGS LTD | u11506exv99w3.htm |
Table of Contents
Exhibit 99.2
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FINANCIAL SUPPLEMENT As of September 30, 2011 |
![[GRAPHIC]](u11506u1150604.gif)
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Aspen Insurance Holdings Limited
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. www.aspen.co Investor Contact: Aspen Insurance Holdings Limited Kerry Calaiaro, Senior Vice President, Investor Relations T: +1 646-502-1076 email: kerry.calaiaro@aspen.co |
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AHL: NYSE |
Aspen Insurance
Holdings Limited
Table Of Contents
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Table of Contents
Aspen Insurance
Holdings Limited
Definitions and presentation: All financial information
contained herein is unaudited except for information for the
fiscal year ended December 31, 2010. 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, including net
realized and unrealized gains on interest rate swaps, and
after-tax net foreign exchange gains or losses, including net
realized and unrealized gains and losses on foreign exchange
contracts.
Aspen excludes after-tax net realized capital gains or losses,
including net realized and unrealized gains on interest rate
swaps, and after-tax net foreign exchange gains or losses,
including net realized and unrealized gains and losses on
foreign exchange contracts, 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 27 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 27 for a reconciliation of operating income to net
income and page 7 for a reconciliation of average 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 27 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 25 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
$100 of earned premium. A combined ratio below 100% demonstrates
underwriting profit; a combined ratio above 100% demonstrates
underwriting loss.
GAAP combined ratios differ from U.S. statutory combined
ratios primarily due to the deferral of certain third-party
acquisition expenses for GAAP reporting purposes and the use of
net premiums earned rather than net premiums written in the
denominator when calculating the acquisition expense and the
general and administrative expense ratios.
Accident Year Loss Ratios (a non-GAAP financial measure):
In addition to the underwriting ratios described above,
management also uses accident year loss ratios to evaluate
current underwriting performance. The accident year loss ratio
excludes the effect of prior years’ premium adjustments and
reserve developments. This ratio focuses on the relationship
between current premiums earned and losses incurred related to
the current year. Please see pages 13 and 14 for a
reconciliation of accident year loss ratios to underwriting
ratios calculated in accordance with U.S. GAAP.
1
Table of Contents
Aspen Insurance
Holdings Limited
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| (in US$ millions except for percentages, share and per share amounts) | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
|
Gross written premium
|
$ | 495.6 | $ | 415.8 | 19.2 | % | $ | 1,749.1 | $ | 1,664.0 | 5.1% | |||||||||||||
|
Net written premium
|
$ | 462.6 | $ | 377.0 | 22.7 | % | $ | 1,497.9 | $ | 1,495.9 | 0.1% | |||||||||||||
|
Net earned premium
|
$ | 486.9 | $ | 451.7 | 7.8 | % | $ | 1,399.1 | $ | 1,399.2 | — | |||||||||||||
|
Net income/(loss) after tax
|
$ | 22.2 | $ | 92.8 | (76.1 | %) | $ | (119.3 | ) | $ | 220.0 | (154.2% | ) | |||||||||||
|
Operating income/(loss) after tax
|
$ | 56.5 | $ | 72.0 | (21.5 | %) | $ | (72.2 | ) | $ | 180.7 | (140.0% | ) | |||||||||||
|
Net investment income
|
$ | 57.3 | $ | 58.1 | (1.4 | %) | $ | 171.4 | $ | 175.0 | (2.1% | ) | ||||||||||||
|
Underwriting income/(loss)
|
$ | 16.3 | $ | 25.3 | (35.6 | %) | $ | (225.9 | ) | $ | 39.9 | (666.2% | ) | |||||||||||
|
Earnings Per Share and Book Value Per Share
|
||||||||||||||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend and
cancellation of preference shares
|
$ | 0.23 | $ | 1.14 | (79.8 | %) | $ | (1.93 | ) | $ | 2.63 | (173.4% | ) | |||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
$ | 0.71 | $ | 0.84 | (15.5 | %) | $ | (1.27 | ) | $ | 2.12 | (159.9% | ) | |||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend and
cancellation of preference shares
|
$ | 0.23 | $ | 1.08 | (78.7 | %) | $ | (1.93 | ) | $ | 2.51 | (176.9% | ) | |||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
$ | 0.70 | $ | 0.79 | (11.4 | %) | $ | (1.27 | ) | $ | 2.03 | (162.6% | ) | |||||||||||
|
Weighted average number of ordinary shares outstanding (in
millions of shares)
|
70.699 | 76.723 | (7.9 | %) | 70.682 | 77.133 | (8.4% | ) | ||||||||||||||||
|
Diluted weighted average number of ordinary shares outstanding
(in millions of shares)
|
73.300 | 80.363 | (8.8 | %) | 70.682 | 80.782 | (12.5% | ) | ||||||||||||||||
|
Book value per ordinary share
|
$ | 39.62 | $ | 40.28 | (1.6 | %) | $ | 39.62 | $ | 40.28 | (1.6% | ) | ||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$ | 38.27 | $ | 38.22 | 0.1 | % | $ | 38.27 | $ | 38.22 | 0.1% | |||||||||||||
|
Ordinary shares outstanding at September 30, 2011 and
September 30, 2010 (in millions of shares)
|
70.595 | 76.642 | (7.9 | %) | ||||||||||||||||||||
|
Ordinary shares outstanding and dilutive potential ordinary
shares at September 30, 2011 and September 30, 2010
(in millions of shares)
|
73.079 | 80.809 | (9.6 | %) | ||||||||||||||||||||
|
Underwriting Ratios
|
||||||||||||||||||||||||
|
Loss ratio
|
62.9 | % | 63.3 | % | 83.0 | % | 67.3 | % | ||||||||||||||||
|
Policy acquisition expense ratio
|
19.2 | % | 16.7 | % | 18.7 | % | 17.0 | % | ||||||||||||||||
|
General, administrative and corporate expense ratio
|
14.6 | % | 14.4 | % | 14.4 | % | 12.9 | % | ||||||||||||||||
|
Expense ratio
|
33.8 | % | 31.1 | % | 33.1 | % | 29.9 | % | ||||||||||||||||
|
Combined ratio
|
96.7 | % | 94.4 | % | 116.1 | % | 97.2 | % | ||||||||||||||||
|
Return On Equity
|
||||||||||||||||||||||||
|
Average
equity (1)
|
$ | 2,389.5 | $ | 2,625.7 | $ | 2,426.1 | $ | 2,597.4 | ||||||||||||||||
|
Return on average equity
|
||||||||||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend
|
0.7 | % | 3.3 | % | (5.6 | %) | 7.8 | % | ||||||||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
2.1 | % | 2.5 | % | (3.7 | %) | 6.3 | % | ||||||||||||||||
|
Annualized return on average equity
|
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|
Net income/(loss)
|
2.8 | % | 13.2 | % | (7.5 | %) | 10.4 | % | ||||||||||||||||
|
Operating income/(loss)
|
8.4 | % | 10.0 | % | (4.9 | %) | 8.4 | % | ||||||||||||||||
See pages 7, 25 and 27 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
| (in US$ millions except for percentages and per share amounts) | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | |||||||||||||||||||||
|
UNDERWRITING REVENUES
|
||||||||||||||||||||||||||||
|
Gross written premiums
|
$495.6 | $582.2 | $671.3 | $412.8 | $415.8 | $545.4 | $702.8 | |||||||||||||||||||||
|
Premiums ceded
|
(33.0 | ) | (56.5 | ) | (161.7 | ) | (17.6 | ) | (38.8 | ) | (6.6 | ) | (122.7 | ) | ||||||||||||||
|
Net written premiums
|
462.6 | 525.7 | 509.6 | 395.2 | 377.0 | 538.8 | 580.1 | |||||||||||||||||||||
|
Change in unearned premiums
|
24.3 | (65.9 | ) | (57.2 | ) | 104.5 | 74.7 | (58.9 | ) | (112.5 | ) | |||||||||||||||||
|
Net earned premiums
|
486.9 | 459.8 | 452.4 | 499.7 | 451.7 | 479.9 | 467.6 | |||||||||||||||||||||
|
UNDERWRITING EXPENSES
|
||||||||||||||||||||||||||||
|
Losses and loss adjustment expenses
|
306.2 | 326.4 | 528.9 | 307.4 | 285.8 | 276.7 | 378.8 | |||||||||||||||||||||
|
Policy acquisition expenses
|
93.4 | 86.7 | 81.4 | 90.6 | 75.6 | 77.8 | 84.5 | |||||||||||||||||||||
|
General, administrative and corporate expenses
|
71.0 | 69.6 | 61.4 | 78.5 | 65.0 | 62.6 | 52.5 | |||||||||||||||||||||
|
Total underwriting expenses
|
470.6 | 482.7 | 671.7 | 476.5 | 426.4 | 417.1 | 515.8 | |||||||||||||||||||||
|
Underwriting income/(loss) including corporate expenses
|
16.3 | (22.9 | ) | (219.3 | ) | 23.2 | 25.3 | 62.8 | (48.2 | ) | ||||||||||||||||||
|
OTHER OPERATING REVENUE
|
||||||||||||||||||||||||||||
|
Net investment income
|
57.3 | 58.6 | 55.5 | 57.0 | 58.1 | 57.5 | 59.4 | |||||||||||||||||||||
|
Interest expense
|
(7.7 | ) | (7.7 | ) | (7.7 | ) | (4.8 | ) | (3.9 | ) | (4.0 | ) | (3.8 | ) | ||||||||||||||
|
Total other operating revenue
|
49.6 | 50.9 | 47.8 | 52.2 | 54.2 | 53.5 | 55.6 | |||||||||||||||||||||
|
Other (expense)/income
|
(9.1 | ) | 6.8 | (8.1 | ) | 0.9 | 0.4 | 1.7 | (0.9 | ) | ||||||||||||||||||
|
OPERATING INCOME/(LOSS) BEFORE TAX
|
56.8 | 34.8 | (179.6 | ) | 76.3 | 79.9 | 118.0 | 6.5 | ||||||||||||||||||||
|
OTHER
|
||||||||||||||||||||||||||||
|
Net realized and unrealized exchange gains/(losses)
(1)
|
0.3 | (7.7 | ) | 2.9 | (0.1 | ) | 3.4 | (2.6 | ) | 1.5 | ||||||||||||||||||
|
Net realized and unrealized investment (losses)/gains
(2)
|
(32.9 | ) | (15.7 | ) | 8.5 | 19.7 | 19.8 | 5.6 | 12.3 | |||||||||||||||||||
|
INCOME/(LOSS) BEFORE TAX
|
24.2 | 11.4 | (168.2 | ) | 95.9 | 103.1 | 121.0 | 20.3 | ||||||||||||||||||||
|
Income tax (expense)/recovery
|
(2.0 | ) | (1.2 | ) | 16.5 | (3.2 | ) | (10.3 | ) | (12.1 | ) | (2.0 | ) | |||||||||||||||
|
NET INCOME/(LOSS) AFTER TAX
|
22.2 | 10.2 | (151.7 | ) | 92.7 | 92.8 | 108.9 | 18.3 | ||||||||||||||||||||
|
Dividends paid on ordinary shares
|
(10.6 | ) | (10.6 | ) | (10.6 | ) | (11.5 | ) | (11.5 | ) | (11.7 | ) | (11.8 | ) | ||||||||||||||
|
Dividend paid on preference shares
|
(5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | ||||||||||||||
|
Proportion of net loss due to non-controlling interest
|
(0.3 | ) | 0.2 | 0.2 | 0.2 | 0.1 | — | — | ||||||||||||||||||||
|
Retained income/(loss)
|
$5.6 | $(5.9 | ) | $(167.8 | ) | $75.7 | $75.7 | $91.5 | $0.8 | |||||||||||||||||||
|
Components of net income/(loss) after tax
|
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|
Operating income/(loss)
|
$56.5 | $31.9 | $(160.6 | ) | $75.8 | $72.0 | $105.0 | $6.1 | ||||||||||||||||||||
|
Net realized and unrealized exchange (losses)/gains after tax
|
(0.8 | ) | (4.8 | ) | 1.8 | 0.2 | 3.0 | (1.3 | ) | 1.0 | ||||||||||||||||||
|
Net realized and unrealized investment (losses)/gains after tax
|
(33.5 | ) | (16.9 | ) | 7.1 | 16.7 | 17.8 | 5.2 | 11.2 | |||||||||||||||||||
|
NET INCOME/(LOSS) AFTER TAX
|
$22.2 | $10.2 | $(151.7 | ) | $92.7 | $92.8 | $108.9 | $18.3 | ||||||||||||||||||||
|
Loss ratio
|
62.9% | 71.0% | 116.9% | 61.5% | 63.3% | 57.7% | 81.0% | |||||||||||||||||||||
|
Policy acquisition expense ratio
|
19.2% | 18.9% | 18.0% | 18.1% | 16.7% | 16.2% | 18.1% | |||||||||||||||||||||
|
General, administrative and corporate expense ratio
|
14.6% | 15.1% | 13.6% | 15.7% | 14.4% | 13.0% | 11.2% | |||||||||||||||||||||
|
Expense ratio
|
33.8% | 34.0% | 31.6% | 33.8% | 31.1% | 29.2% | 29.3% | |||||||||||||||||||||
|
Combined ratio
|
96.7% | 105.0% | 148.5% | 95.3% | 94.4% | 86.9% | 110.3% | |||||||||||||||||||||
|
Basic earnings/(losses) per share
(3)
|
$0.23 | $0.06 | $(2.23 | ) | $1.18 | $1.14 | $1.34 | $0.16 | ||||||||||||||||||||
|
Diluted earnings(losses) per share
|
$0.23 | $0.06 | $(2.23 | ) | $1.12 | $1.08 | $1.28 | $0.16 | ||||||||||||||||||||
|
Annualized return on average equity
|
||||||||||||||||||||||||||||
|
Net income/(loss)
|
2.8% | 0.8% | (25.2% | ) | 13.2% | 13.2% | 16.4% | 2.0% | ||||||||||||||||||||
|
Operating income/(loss)
|
8.4% | 4.4% | (26.8% | ) | 10.8% | 10.0% | 15.6% | — | ||||||||||||||||||||
See pages 7, 25 and 27 for a
reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures.
| (1) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (2) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (3) | Adjusted for preference share dividend and cancellation of preference shares. |
3
Table of Contents
Aspen Insurance
Holdings Limited
| Nine Months Ended September 30, | ||||||||||||
| (in US$ millions except for percentages) | 2011 | 2010 | 2009 | |||||||||
|
UNDERWRITING REVENUES
|
||||||||||||
|
Gross written premiums
|
$1,749.1 | $1,664.0 | $1,661.4 | |||||||||
|
Premiums ceded
|
(251.2 | ) | (168.1 | ) | (208.0 | ) | ||||||
|
Net written premiums
|
1,497.9 | 1,495.9 | 1,453.4 | |||||||||
|
Change in unearned premiums
|
(98.8 | ) | (96.7 | ) | (106.6 | ) | ||||||
|
Net earned premiums
|
1,399.1 | 1,399.2 | 1,346.8 | |||||||||
|
UNDERWRITING EXPENSES
|
||||||||||||
|
Losses and loss adjustment expenses
|
1,161.5 | 941.3 | 720.6 | |||||||||
|
Policy acquisition expenses
|
261.5 | 237.9 | 239.0 | |||||||||
|
General, administrative and corporate expenses
|
202.0 | 180.1 | 172.1 | |||||||||
|
Total underwriting expenses
|
1,625.0 | 1,359.3 | 1,131.7 | |||||||||
|
Underwriting (loss)/income including corporate expenses
|
(225.9 | ) | 39.9 | 215.1 | ||||||||
|
OTHER OPERATING REVENUE
|
||||||||||||
|
Net investment income
|
171.4 | 175.0 | 190.3 | |||||||||
|
Interest expense
|
(23.1 | ) | (11.7 | ) | (11.8 | ) | ||||||
|
Total other operating revenue
|
148.3 | 163.3 | 178.5 | |||||||||
|
Other (expense)/income
|
(10.4 | ) | (1.2 | ) | (0.9 | ) | ||||||
|
OPERATING (LOSS)/INCOME BEFORE TAX
|
(88.0 | ) | 202.0 | 392.7 | ||||||||
|
OTHER
|
||||||||||||
|
Net realized and unrealized exchange (losses)/gains
(1)
|
(4.5 | ) | 2.3 | 8.7 | ||||||||
|
Net realized and unrealized investment (losses)/gains
(2)
|
(40.1 | ) | 40.1 | 7.2 | ||||||||
|
(LOSS)/INCOME BEFORE TAX
|
(132.6 | ) | 244.4 | 408.6 | ||||||||
|
Income tax recovery/(expense)
|
13.3 | (24.4 | ) | (61.0 | ) | |||||||
|
NET (LOSS)/INCOME AFTER TAX
|
(119.3 | ) | 220.0 | 347.6 | ||||||||
|
Dividends paid on ordinary shares
|
(31.8 | ) | (35.0 | ) | (37.2 | ) | ||||||
|
Dividends paid on preference shares
|
(17.1 | ) | (17.1 | ) | (18.3 | ) | ||||||
|
Proportion of net loss due to non-controlling interest
|
0.1 | — | — | |||||||||
|
Retained (loss)/income
|
$(168.1 | ) | $167.9 | $292.1 | ||||||||
|
Components of net income after tax
|
||||||||||||
|
Operating (loss)/income
|
$(72.2 | ) | $180.7 | $335.1 | ||||||||
|
Net realized and unrealized exchange (losses)/gains after tax
|
(3.8 | ) | 2.7 | 8.7 | ||||||||
|
Net realized and unrealized investment (losses)/gains after tax
|
(43.3 | ) | 36.6 | 3.8 | ||||||||
|
NET (LOSS)/INCOME AFTER TAX
|
$(119.3 | ) | $220.0 | $347.6 | ||||||||
|
Loss ratio
|
83.0% | 67.3% | 53.5% | |||||||||
|
Policy acquisition expense ratio
|
18.7% | 17.0% | 17.7% | |||||||||
|
General, administrative and corporate expense ratio
|
14.4% | 12.9% | 12.8% | |||||||||
|
Expense ratio
|
33.1% | 29.9% | 30.5% | |||||||||
|
Combined ratio
|
116.1% | 97.2% | 84.0% | |||||||||
See pages 7, 25 and 27 for a
reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures.
| (1) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (2) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. |
4
Table of Contents
Aspen Insurance
Holdings Limited
Consolidated Balance Sheets
Consolidated Balance Sheets
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||||||||||||
| (in US$ millions except for per share amounts) | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | |||||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||||||
|
Investments
|
||||||||||||||||||||||||||||
|
Fixed income maturities
|
$5,992.8 | $5,972.8 | $5,896.1 | $5,766.6 | $5,963.1 | $5,753.6 | $5,661.8 | |||||||||||||||||||||
|
Equity securities
|
163.8 | 178.1 | 173.5 | — | — | — | — | |||||||||||||||||||||
|
Other investments
|
32.3 | 30.0 | 30.1 | 30.0 | 28.7 | 27.8 | 27.5 | |||||||||||||||||||||
|
Short-term investments
|
295.9 | 202.8 | 187.6 | 289.7 | 299.5 | 304.3 | 251.9 | |||||||||||||||||||||
|
Total investments
|
6,484.8 | 6,383.7 | 6,287.3 | 6,086.3 | 6,291.3 | 6,085.7 | 5,941.2 | |||||||||||||||||||||
|
Cash and cash equivalents
|
1,038.8 | 1,074.1 | 1,116.9 | 1,179.1 | 914.3 | 726.1 | 701.4 | |||||||||||||||||||||
|
Reinsurance recoverables
|
||||||||||||||||||||||||||||
|
Unpaid losses
|
357.7 | 359.3 | 334.0 | 279.9 | 263.8 | 247.6 | 262.9 | |||||||||||||||||||||
|
Ceded unearned premiums
|
129.9 | 146.2 | 167.4 | 62.4 | 43.4 | 106.2 | 210.2 | |||||||||||||||||||||
|
Receivables
|
||||||||||||||||||||||||||||
|
Underwriting premiums
|
957.2 | 1,054.3 | 940.0 | 821.7 | 880.7 | 981.0 | 914.0 | |||||||||||||||||||||
|
Other
|
69.3 | 70.0 | 62.8 | 67.9 | 81.9 | 73.4 | 62.2 | |||||||||||||||||||||
|
Funds withheld
|
65.1 | 81.9 | 86.3 | 83.3 | 79.0 | 83.5 | 73.6 | |||||||||||||||||||||
|
Deferred policy acquisition costs
|
207.1 | 204.9 | 191.0 | 166.8 | 187.2 | 201.2 | 202.7 | |||||||||||||||||||||
|
Derivatives at fair value
|
5.8 | 5.7 | 7.4 | 6.8 | 1.5 | 4.3 | 4.9 | |||||||||||||||||||||
|
Receivable for securities sold
|
0.5 | 21.2 | 10.6 | 0.2 | 2.1 | 16.9 | 13.5 | |||||||||||||||||||||
|
Office properties and equipment
|
49.5 | 45.0 | 38.6 | 34.8 | 32.3 | 28.4 | 27.6 | |||||||||||||||||||||
|
Income tax receivable
|
2.5 | 19.9 | 5.2 | — | — | — | 6.3 | |||||||||||||||||||||
|
Other assets
|
31.2 | 30.2 | 29.4 | 21.9 | 20.7 | 16.0 | 14.9 | |||||||||||||||||||||
|
Intangible assets
|
20.3 | 20.5 | 20.7 | 21.0 | 21.4 | 11.5 | 12.0 | |||||||||||||||||||||
|
Total assets
|
$9,419.7 | $9,516.9 | $9,297.6 | $8,832.1 | $8,819.6 | $8,581.8 | $8,447.4 | |||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||||
|
Insurance reserves
|
||||||||||||||||||||||||||||
|
Losses and loss adjustment expenses
|
$4,399.4 | $4,391.7 | $4,229.3 | $3,820.5 | $3,672.2 | $3,485.7 | $3,452.0 | |||||||||||||||||||||
|
Unearned premiums
|
1,014.5 | 1,086.2 | 1,028.3 | 859.0 | 951.6 | 1,061.2 | 1,107.8 | |||||||||||||||||||||
|
Total insurance reserves
|
5,413.9 | 5,477.9 | 5,257.6 | 4,679.5 | 4,623.8 | 4,546.9 | 4,559.8 | |||||||||||||||||||||
|
Payables
|
||||||||||||||||||||||||||||
|
Reinsurance premiums
|
135.2 | 181.6 | 226.9 | 113.7 | 141.9 | 159.3 | 193.2 | |||||||||||||||||||||
|
Taxation
|
35.2 | 49.1 | 45.3 | 60.2 | 91.7 | 74.2 | 83.7 | |||||||||||||||||||||
|
Accrued expenses and other payables
|
186.0 | 204.8 | 214.5 | 238.0 | 268.0 | 242.3 | 213.5 | |||||||||||||||||||||
|
Liabilities under derivative contracts
|
— | — | 3.5 | — | 3.8 | 5.6 | 7.4 | |||||||||||||||||||||
|
Total payables
|
356.4 | 435.5 | 490.2 | 411.9 | 505.4 | 481.4 | 497.8 | |||||||||||||||||||||
|
Long-term debt
|
498.9 | 498.9 | 498.8 | 498.8 | 249.7 | 249.6 | 249.6 | |||||||||||||||||||||
|
Total liabilities
|
6,269.2 | 6,412.3 | 6,246.6 | 5,590.2 | 5,378.9 | 5,277.9 | 5,307.2 | |||||||||||||||||||||
|
SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
|
Ordinary shares
|
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
|
Non-controlling interest
|
0.3 | 0.1 | 0.3 | 0.5 | 0.6 | — | — | |||||||||||||||||||||
|
Preference shares
|
— | — | — | — | — | — | — | |||||||||||||||||||||
|
Additional paid-in capital
|
1,381.8 | 1,388.2 | 1,388.2 | 1,388.3 | 1,561.5 | 1,566.2 | 1,565.0 | |||||||||||||||||||||
|
Retained earnings
|
1,360.6 | 1,355.0 | 1,360.9 | 1,528.7 | 1,452.9 | 1,377.3 | 1,285.8 | |||||||||||||||||||||
|
Accumulated other comprehensive income, net of taxes
|
407.7 | 361.2 | 301.5 | 324.3 | 425.6 | 360.3 | 289.3 | |||||||||||||||||||||
|
Total shareholders’ equity
|
3,150.5 | 3,104.6 | 3,051.0 | 3,241.9 | 3,440.7 | 3,303.9 | 3,140.2 | |||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$9,419.7 | $9,516.9 | $9,297.6 | $8,832.1 | $8,819.6 | $8,581.8 | $8,447.4 | |||||||||||||||||||||
|
Book value per ordinary share
|
$39.62 | $38.84 | $38.14 | $40.96 | $40.28 | $38.46 | $36.07 | |||||||||||||||||||||
See pages 7, 25 and 27 for a
reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures.
5
Table of Contents
Aspen Insurance
Holdings Limited
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (in US$ except for number of shares) | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend and
cancellation of preference shares
|
$0.23 | $1.14 | $(1.93 | ) | $2.63 | |||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
$0.71 | $0.84 | $(1.27 | ) | $2.12 | |||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend and
cancellation of preference shares
|
$0.23 | $1.08 | $(1.93 | ) | $2.51 | |||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
$0.70 | $0.79 | $(1.27 | ) | $2.03 | |||||||||||
|
Weighted average number of ordinary shares outstanding (in
millions)
|
70.699 | 76.723 | 70.682 | 77.133 | ||||||||||||
|
Weighted average number of ordinary shares outstanding and
dilutive potential ordinary shares (in millions)
|
73.300 | 80.363 | 70.682 | 80.782 | ||||||||||||
|
Book value per ordinary share
|
$39.62 | $40.28 | $39.62 | $40.28 | ||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$38.27 | $38.22 | $38.27 | $38.22 | ||||||||||||
|
Ordinary shares outstanding at end of the period (in millions)
|
70.595 | 76.642 | 70.595 | 76.642 | ||||||||||||
|
Ordinary shares outstanding and dilutive potential ordinary
shares at end of the period (treasury stock method) (in millions)
|
73.079 | 80.809 | 73.079 | 80.809 | ||||||||||||
The basic and diluted number of ordinary shares for the nine
months ended September 30, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
See pages 7, 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
6
Table of Contents
Aspen Insurance
Holdings Limited
Return
On Average Equity
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (in US$ millions except for percentages) | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
|
Average shareholders’ equity
|
$3,127.6 | $3,372.3 | $3,125.2 | $3,282.5 | ||||||||||||
|
Average preference shares
|
(353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | ||||||||
|
Average cumulative foreign currency translation adjustments, net
of taxes
|
(122.4 | ) | (108.3 | ) | (120.5 | ) | (108.7 | ) | ||||||||
|
Average unrealized (appreciation)/depreciation on investments,
net of taxes
|
(262.1 | ) | (284.7 | ) | (225.0 | ) | (222.8 | ) | ||||||||
|
Average equity
|
$2,389.5 | $2,625.7 | $2,426.1 | $2,597.4 | ||||||||||||
|
Return on average equity:
|
||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend
|
0.7% | 3.3% | (5.6% | ) | 7.8% | |||||||||||
|
Operating income/(loss) adjusted for preference share dividend
|
2.1% | 2.5% | (3.7% | ) | 6.3% | |||||||||||
|
Annualized return on average equity:
|
||||||||||||||||
|
Net income/(loss)
|
2.8% | 13.2% | (7.5% | ) | 10.4% | |||||||||||
|
Operating income/(loss)
|
8.4% | 10.0% | (4.9% | ) | 8.4% | |||||||||||
|
Components of return on average equity:
|
||||||||||||||||
|
Return on average equity from underwriting
activity(1)
|
0.7% | 1.0% | (9.3% | ) | 1.5% | |||||||||||
|
Return on average equity from investment and other
activity(2)
|
1.5% | 1.8% | 5.0% | 5.6% | ||||||||||||
|
Pre-tax operating income/(loss) return on average equity
|
2.1% | 2.7% | (4.3% | ) | 7.1% | |||||||||||
|
Post-tax operating income/(loss) return on average
equity(3)
|
2.1% | 2.4% | (3.7% | ) | 6.3% | |||||||||||
See pages 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
(1) Calculated by using underwriting income.
(2) Calculated by using total other operating
revenue and other income/(expense) adjusted for preference share
dividend.
(3) Calculated by using operating income
after-tax adjusted for preference share dividend.
7
Table of Contents
Aspen Insurance
Holdings Limited
| Three Months Ended September 30, 2011 | Three Months Ended September 30, 2010 | |||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
|
Gross written premiums
|
$276.1 | $219.5 | $495.6 | $236.0 | $179.8 | $415.8 | ||||||||||||||||||
|
Net written premiums
|
270.5 | 192.1 | 462.6 | 229.6 | 147.4 | 377.0 | ||||||||||||||||||
|
Gross earned premiums
|
303.2 | 246.7 | 549.9 | 277.9 | 225.4 | 503.3 | ||||||||||||||||||
|
Net earned premiums
|
279.6 | 207.3 | 486.9 | 267.5 | 184.2 | 451.7 | ||||||||||||||||||
|
Losses and loss adjustment expenses
|
188.8 | 117.4 | 306.2 | 143.5 | 142.3 | 285.8 | ||||||||||||||||||
|
Policy acquisition expenses
|
51.8 | 41.6 | 93.4 | 43.9 | 31.7 | 75.6 | ||||||||||||||||||
|
General and administrative expenses
|
26.3 | 34.3 | 60.6 | 27.1 | 23.6 | 50.7 | ||||||||||||||||||
|
Underwriting income/(loss)
|
$12.7 | $14.0 | $26.7 | $53.0 | $(13.4 | ) | $39.6 | |||||||||||||||||
|
Net investment income
|
57.3 | 58.1 | ||||||||||||||||||||||
|
Net realized and unrealized investment
(losses)/gains(1)
|
(32.9 | ) | 19.8 | |||||||||||||||||||||
|
Corporate (expenses)
|
(10.4 | ) | (14.3 | ) | ||||||||||||||||||||
|
Other (expense)/income
|
(9.1 | ) | 0.4 | |||||||||||||||||||||
|
Interest (expenses)
|
(7.7 | ) | (3.9 | ) | ||||||||||||||||||||
|
Net realized and unrealized foreign exchange
gains(2)
|
0.3 | 3.4 | ||||||||||||||||||||||
|
Income before income taxes
|
$24.2 | $103.1 | ||||||||||||||||||||||
|
Income tax (expense)
|
(2.0 | ) | (10.3 | ) | ||||||||||||||||||||
|
Net income
|
$22.2 | $92.8 | ||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||
|
Loss ratio
|
67.5% | 56.6% | 62.9% | 53.6% | 77.3% | 63.3% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
18.5% | 20.1% | 19.2% | 16.4% | 17.2% | 16.7% | ||||||||||||||||||
|
General and administrative expense
ratio(3)
|
9.4% | 16.5% | 14.6% | 10.1% | 12.8% | 14.4% | ||||||||||||||||||
|
Expense ratio
|
27.9% | 36.6% | 33.8% | 26.5% | 30.0% | 31.1% | ||||||||||||||||||
|
Combined ratio
|
95.4% | 93.2% | 96.7% | 80.1% | 107.3% | 94.4% | ||||||||||||||||||
| (1) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (2) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (3) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
8
Table of Contents
Aspen Insurance
Holdings Limited
Consolidated
Underwriting Results by Operating Segment
| Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | |||||||||||||||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
|
Gross written premiums
|
$1,001.2 | $747.9 | $1,749.1 | $1,009.4 | $654.6 | $1,664.0 | ||||||||||||||||||
|
Net written premiums
|
915.8 | 582.1 | 1,497.9 | 970.0 | 525.9 | 1,495.9 | ||||||||||||||||||
|
Gross earned premiums
|
878.7 | 704.8 | 1,583.5 | 882.5 | 661.4 | 1,543.9 | ||||||||||||||||||
|
Net earned premiums
|
819.6 | 579.5 | 1,399.1 | 849.7 | 549.5 | 1,399.2 | ||||||||||||||||||
|
Losses and loss adjustment expenses
|
805.2 | 356.3 | 1,161.5 | 546.7 | 394.6 | 941.3 | ||||||||||||||||||
|
Policy acquisition expenses
|
150.3 | 111.2 | 261.5 | 143.6 | 94.3 | 237.9 | ||||||||||||||||||
|
General and administrative expenses
|
77.2 | 92.7 | 169.9 | 79.5 | 65.9 | 145.4 | ||||||||||||||||||
|
Underwriting (loss)/income
|
$(213.1 | ) | $19.3 | $(193.8 | ) | $79.9 | $(5.3 | ) | $74.6 | |||||||||||||||
|
Net investment income
|
171.4 | 175.0 | ||||||||||||||||||||||
|
Net realized and unrealized investment
(losses)/gains(1)
|
(40.1 | ) | 40.1 | |||||||||||||||||||||
|
Corporate (expenses)
|
(32.1 | ) | (34.7 | ) | ||||||||||||||||||||
|
Other (expenses)
|
(10.4 | ) | (1.2 | ) | ||||||||||||||||||||
|
Interest (expenses)
|
(23.1 | ) | (11.7 | ) | ||||||||||||||||||||
|
Net realized and unrealized foreign exchange
(losses)/income(2)
|
(4.5 | ) | 2.3 | |||||||||||||||||||||
|
(Loss)/income before income tax
|
$(132.6 | ) | $244.4 | |||||||||||||||||||||
|
Income tax recovery/(expense)
|
13.3 | (24.4 | ) | |||||||||||||||||||||
|
Net (loss)/income
|
$(119.3 | ) | $220.0 | |||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||
|
Loss ratio
|
98.2% | 61.5% | 83.0% | 64.3% | 71.8% | 67.3% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
18.3% | 19.2% | 18.7% | 16.9% | 17.2% | 17.0% | ||||||||||||||||||
|
General and administrative expense
ratio(3)
|
9.4% | 16.0% | 14.4% | 9.4% | 12.0% | 12.9% | ||||||||||||||||||
|
Expense ratio
|
27.7% | 35.2% | 33.1% | 26.3% | 29.2% | 29.9% | ||||||||||||||||||
|
Combined ratio
|
125.9% | 96.7% | 116.1% | 90.6% | 101.0% | 97.2% | ||||||||||||||||||
| (1) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (2) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (3) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
9
Table of Contents
Aspen Insurance
Holdings Limited
| (in US$ millions except for percentages) | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | |||||||||||||||||||||
|
Gross written premiums
|
$276.1 | $288.0 | $437.1 | $152.8 | $236.0 | $283.3 | $490.1 | |||||||||||||||||||||
|
Net written premiums
|
270.5 | 256.9 | 388.4 | 148.5 | 229.6 | 279.1 | 461.3 | |||||||||||||||||||||
|
Gross earned premiums
|
303.2 | 290.7 | 284.8 | 303.9 | 277.9 | 302.7 | 301.9 | |||||||||||||||||||||
|
Net earned premiums
|
279.6 | 268.0 | 272.0 | 292.1 | 267.5 | 291.2 | 291.0 | |||||||||||||||||||||
|
Net losses and loss adjustment expenses
|
188.8 | 206.3 | 410.1 | 146.8 | 143.5 | 146.4 | 256.8 | |||||||||||||||||||||
|
Policy acquisition expenses
|
51.8 | 49.1 | 49.4 | 58.8 | 43.9 | 47.3 | 52.4 | |||||||||||||||||||||
|
General and administrative expenses
|
26.3 | 26.4 | 24.5 | 32.8 | 27.1 | 30.1 | 22.3 | |||||||||||||||||||||
|
Underwriting income/(income)
|
$12.7 | $(13.8 | ) | $(212.0 | ) | $53.7 | $53.0 | $67.4 | $(40.5 | ) | ||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||
|
Loss ratio
|
67.5% | 77.0% | 150.8% | 50.3% | 53.6% | 50.3% | 88.2% | |||||||||||||||||||||
|
Policy acquisition expense ratio
|
18.5% | 18.3% | 18.2% | 20.1% | 16.4% | 16.2% | 18.0% | |||||||||||||||||||||
|
General and administrative expense ratio
|
9.4% | 9.9% | 9.0% | 11.2% | 10.1% | 10.3% | 7.7% | |||||||||||||||||||||
|
Expense ratio
|
27.9% | 28.2% | 27.2% | 31.3% | 26.5% | 26.5% | 25.7% | |||||||||||||||||||||
|
Combined ratio
|
95.4% | 105.2% | 178.0% | 81.6% | 80.1% | 76.8% | 113.9% | |||||||||||||||||||||
10
Table of Contents
Aspen Insurance
Holdings Limited
Insurance
Segment — Quarterly Results
| (in US$ millions except for percentages) | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | |||||||||||||||||||||
|
Gross written premiums
|
$219.5 | $294.2 | $234.2 | $260.0 | $179.8 | $262.1 | $212.7 | |||||||||||||||||||||
|
Net written premiums
|
192.1 | 268.8 | 121.2 | 246.7 | 147.4 | 259.7 | 118.8 | |||||||||||||||||||||
|
Gross earned premiums
|
246.7 | 234.1 | 224.0 | 246.5 | 225.4 | 220.8 | 215.2 | |||||||||||||||||||||
|
Net earned premiums
|
207.3 | 191.8 | 180.4 | 207.6 | 184.2 | 188.7 | 176.6 | |||||||||||||||||||||
|
Net losses and loss adjustment expenses
|
117.4 | 120.1 | 118.8 | 160.6 | 142.3 | 130.3 | 122.0 | |||||||||||||||||||||
|
Policy acquisition expenses
|
41.6 | 37.6 | 32.0 | 31.8 | 31.7 | 30.5 | 32.1 | |||||||||||||||||||||
|
General and administrative expenses
|
34.3 | 29.2 | 29.2 | 33.5 | 23.6 | 21.9 | 20.4 | |||||||||||||||||||||
|
Underwriting income/(loss)
|
$14.0 | $4.9 | $0.4 | $(18.3 | ) | $(13.4 | ) | $6.0 | $2.1 | |||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||
|
Loss ratio
|
56.6% | 62.6% | 65.9% | 77.4% | 77.3% | 69.1% | 69.1% | |||||||||||||||||||||
|
Policy acquisition expense ratio
|
20.1% | 19.6% | 17.7% | 15.3% | 17.2% | 16.2% | 18.2% | |||||||||||||||||||||
|
General and administrative expense ratio
|
16.5% | 15.2% | 16.2% | 16.1% | 12.8% | 11.6% | 11.6% | |||||||||||||||||||||
|
Expense ratio
|
36.6% | 34.8% | 33.9% | 31.4% | 30.0% | 27.8% | 29.8% | |||||||||||||||||||||
|
Combined ratio
|
93.2% | 97.4% | 99.8% | 108.8% | 107.3% | 96.9% | 98.9% | |||||||||||||||||||||
11
Table of Contents
Aspen Insurance
Holdings Limited
| (in US$ millions) | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | |||||||||||||||||||||
|
Gross Written Premium
|
||||||||||||||||||||||||||||
| Reinsurance | ||||||||||||||||||||||||||||
| Property Catastrophe Reinsurance | $53.5 | $93.0 | $151.0 | $4.2 | $51.3 | $91.2 | $146.2 | |||||||||||||||||||||
| Other Property Reinsurance | 78.6 | 70.9 | 64.8 | 48.2 | 66.3 | 80.7 | 73.7 | |||||||||||||||||||||
| Casualty Reinsurance | 83.4 | 44.6 | 138.6 | 44.5 | 70.0 | 51.5 | 174.5 | |||||||||||||||||||||
| Specialty Reinsurance | 60.6 | 79.5 | 82.7 | 55.9 | 48.4 | 59.9 | 95.7 | |||||||||||||||||||||
| Total Reinsurance | $276.1 | $288.0 | $437.1 | $152.8 | $236.0 | $283.3 | $490.1 | |||||||||||||||||||||
| Insurance | ||||||||||||||||||||||||||||
| Property Insurance | $42.5 | $73.6 | $38.6 | $28.7 | $37.0 | $69.3 | $36.7 | |||||||||||||||||||||
| Casualty Insurance | 38.1 | 32.9 | 19.6 | 42.7 | 33.1 | 39.8 | 32.6 | |||||||||||||||||||||
| Marine, Energy and Transportation Insurance | 70.5 | 130.3 | 123.8 | 136.3 | 70.1 | 118.1 | 110.6 | |||||||||||||||||||||
| Financial and Professional Lines Insurance | 68.4 | 57.4 | 52.2 | 52.3 | 39.6 | 34.9 | 32.8 | |||||||||||||||||||||
| Total Insurance | $219.5 | $294.2 | $234.2 | $260.0 | $179.8 | $262.1 | $212.7 | |||||||||||||||||||||
| Total Gross Written Premiums | $495.6 | $582.2 | $671.3 | $412.8 | $415.8 | $545.4 | $702.8 | |||||||||||||||||||||
|
Net Written Premium
|
||||||||||||||||||||||||||||
| Reinsurance | ||||||||||||||||||||||||||||
| Property Catastrophe Reinsurance | $53.5 | $69.6 | $116.1 | $3.9 | $45.4 | $88.1 | $130.9 | |||||||||||||||||||||
| Other Property Reinsurance | 73.8 | 63.5 | 53.3 | 46.1 | 65.3 | 79.6 | 65.5 | |||||||||||||||||||||
| Casualty Reinsurance | 82.6 | 44.3 | 136.4 | 44.5 | 70.0 | 51.3 | 169.6 | |||||||||||||||||||||
| Specialty Reinsurance | 60.6 | 79.5 | 82.6 | 54.0 | 48.9 | 60.1 | 95.3 | |||||||||||||||||||||
| Total Reinsurance | $270.5 | $256.9 | $388.4 | $148.5 | $229.6 | $279.1 | $461.3 | |||||||||||||||||||||
| Insurance | ||||||||||||||||||||||||||||
| Property Insurance | $31.2 | $65.2 | $1.6 | $25.3 | $30.7 | $62.4 | $14.9 | |||||||||||||||||||||
| Casualty Insurance | 31.2 | 24.9 | 10.5 | 36.4 | 20.6 | 41.7 | 27.4 | |||||||||||||||||||||
| Marine, Energy and Transportation Insurance | 59.8 | 121.5 | 98.8 | 136.0 | 57.5 | 130.8 | 70.3 | |||||||||||||||||||||
| Financial and Professional Lines Insurance | 69.9 | 57.2 | 10.3 | 49.0 | 38.6 | 24.8 | 6.2 | |||||||||||||||||||||
| Total Insurance | $192.1 | $268.8 | $121.2 | $246.7 | $147.4 | $259.7 | $118.8 | |||||||||||||||||||||
| Total Net Written Premiums | $462.6 | $525.7 | $509.6 | $395.2 | $377.0 | $538.8 | $580.1 | |||||||||||||||||||||
|
Net Earned Premium
|
||||||||||||||||||||||||||||
| Reinsurance | ||||||||||||||||||||||||||||
| Property Catastrophe Reinsurance | $52.1 | $58.5 | $71.6 | $63.1 | $66.5 | $66.2 | $70.6 | |||||||||||||||||||||
| Other Property Reinsurance | 64.4 | 57.0 | 60.1 | 63.0 | 61.0 | 67.8 | 63.5 | |||||||||||||||||||||
| Casualty Reinsurance | 95.3 | 75.7 | 82.4 | 90.0 | 84.8 | 90.3 | 89.0 | |||||||||||||||||||||
| Specialty Reinsurance | 67.8 | 76.8 | 57.9 | 76.0 | 55.2 | 66.9 | 67.9 | |||||||||||||||||||||
| Total Reinsurance | $279.6 | $268.0 | $272.0 | $292.1 | $267.5 | $291.2 | $291.0 | |||||||||||||||||||||
| Insurance | ||||||||||||||||||||||||||||
| Property Insurance | $28.0 | $29.1 | $28.2 | $31.0 | $33.2 | $30.1 | $25.8 | |||||||||||||||||||||
| Casualty Insurance | 25.4 | 26.5 | 25.4 | 26.7 | 24.9 | 39.8 | 38.9 | |||||||||||||||||||||
| Marine, Energy and Transportation Insurance | 96.6 | 99.2 | 93.3 | 124.3 | 94.6 | 97.4 | 94.3 | |||||||||||||||||||||
| Financial and Professional Lines Insurance | 57.3 | 37.0 | 33.5 | 25.6 | 31.5 | 21.4 | 17.6 | |||||||||||||||||||||
| Total Insurance | $207.3 | $191.8 | $180.4 | $207.6 | $184.2 | $188.7 | $176.6 | |||||||||||||||||||||
| Total Net Earned Premiums | $486.9 | $459.8 | $452.4 | $499.7 | $451.7 | $479.9 | $467.6 | |||||||||||||||||||||
12
Table of Contents
Aspen Insurance
Holdings Limited
| Three Months Ended September 30, 2011 | Three Months Ended September 30, 2010 | |||||||||||||||||||||||
| Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | |||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
67.5% | 56.6% | 62.9% | 53.6% | 77.3% | 63.3% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
18.5% | 20.1% | 19.2% | 16.4% | 17.2% | 16.7% | ||||||||||||||||||
|
General and administrative expense
ratio(1)
|
9.4% | 16.5% | 14.6% | 10.1% | 12.8% | 14.4% | ||||||||||||||||||
|
Expense ratio
|
27.9% | 36.6% | 33.8% | 26.5% | 30.0% | 31.1% | ||||||||||||||||||
|
Combined ratio
|
95.4% | 93.2% | 96.7% | 80.1% | 107.3% | 94.4% | ||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
8.7% | 4.5% | 6.9% | 2.7% | (4.1% | ) | — | |||||||||||||||||
|
Policy acquisition expense ratio
|
0.2% | (0.4% | ) | — | (0.2% | ) | (0.4% | ) | (0.3% | ) | ||||||||||||||
|
General and administrative expense
ratio(1)
|
0.6% | 0.7% | 0.8% | 0.3% | 0.4% | 0.4% | ||||||||||||||||||
|
Expense ratio
|
0.8% | 0.3% | 0.8% | 0.1% | — | 0.1% | ||||||||||||||||||
|
Combined ratio
|
9.5% | 4.8% | 7.7% | 2.8% | (4.1% | ) | 0.1% | |||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||
|
Current accident year loss ratio
|
76.2% | 61.1% | 69.8% | 56.3% | 73.2% | 63.3% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
18.7% | 19.7% | 19.2% | 16.2% | 16.8% | 16.4% | ||||||||||||||||||
|
General and administrative expense
ratio(1)
|
10.0% | 17.2% | 15.4% | 10.4% | 13.2% | 14.8% | ||||||||||||||||||
|
Expense ratio
|
28.7% | 36.9% | 34.6% | 26.6% | 30.0% | 31.2% | ||||||||||||||||||
|
Combined ratio
|
104.9% | 98.0% | 104.4% | 82.9% | 103.2% | 94.5% | ||||||||||||||||||
| (1) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
13
Table of Contents
Aspen Insurance
Holdings Limited
Accident
Year Ratios
| Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | |||||||||||||||||||||||
| Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | |||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
98.2% | 61.5% | 83.0% | 64.3% | 71.8% | 67.3% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
18.3% | 19.2% | 18.7% | 16.9% | 17.2% | 17.0% | ||||||||||||||||||
|
General and administrative expense
ratio(1)
|
9.4% | 16.0% | 14.4% | 9.4% | 12.0% | 12.9% | ||||||||||||||||||
|
Expense ratio
|
27.7% | 35.2% | 33.1% | 26.3% | 29.2% | 29.9% | ||||||||||||||||||
|
Combined ratio
|
125.9% | 96.7% | 116.1% | 90.6% | 101.0% | 97.2% | ||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||
|
Loss ratio
|
9.9% | 2.5% | 6.6% | 5.4% | (3.0% | ) | 2.1% | |||||||||||||||||
|
Policy acquisition expense ratio
|
(0.4% | ) | (0.1% | ) | (0.3% | ) | (0.1% | ) | (0.1% | ) | (0.1% | ) | ||||||||||||
|
General and administrative expense
ratio(1)
|
0.3% | 0.1% | 0.3% | 0.3% | 0.2% | 0.3% | ||||||||||||||||||
|
Expense ratio
|
(0.1% | ) | — | — | 0.2% | 0.1% | 0.2% | |||||||||||||||||
|
Combined ratio
|
9.8% | 2.5% | 6.6% | 5.6% | (2.9% | ) | 2.3% | |||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||
|
Current accident year loss ratio
|
108.1% | 64.0% | 89.6% | 69.7% | 68.8% | 69.4% | ||||||||||||||||||
|
Policy acquisition expense ratio
|
17.9% | 19.1% | 18.4% | 16.8% | 17.1% | 16.9% | ||||||||||||||||||
|
General and administrative expense
ratio(1)
|
9.7% | 16.1% | 14.7% | 9.7% | 12.2% | 13.2% | ||||||||||||||||||
|
Expense ratio
|
27.6% | 35.2% | 33.1% | 26.5% | 29.3% | 30.1% | ||||||||||||||||||
|
Combined ratio
|
135.7% | 99.2% | 122.7% | 96.2% | 98.1% | 99.5% | ||||||||||||||||||
| (1) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
14
Table of Contents
Aspen Insurance
Holdings Limited
| Nine Months Ended September 30, | ||||||||
| (in US$ millions) | 2011 | 2010 | ||||||
|
Ordinary shares
|
||||||||
|
Beginning and end of period
|
$0.1 | $0.1 | ||||||
|
Preference shares
|
||||||||
|
Beginning and end of period
|
— | — | ||||||
|
Non-Controlling Interest
|
||||||||
|
Beginning of period
|
0.5 | — | ||||||
|
Change in non-controlling interest for the period
|
(0.2 | ) | 0.6 | |||||
|
End of period
|
0.3 | 0.6 | ||||||
|
Additional paid-in capital
|
||||||||
|
Beginning of period
|
1,388.3 | 1,763.0 | ||||||
|
New shares issued
|
0.5 | — | ||||||
|
Ordinary shares repurchased
|
(8.1 | ) | (208.0 | ) | ||||
|
Share-based compensation
|
1.1 | 6.5 | ||||||
|
End of period
|
1,381.8 | 1,561.5 | ||||||
|
Retained earnings
|
||||||||
|
Beginning of period
|
1,528.7 | 1,285.0 | ||||||
|
Net (loss)/income for the period
|
(119.3 | ) | 220.0 | |||||
|
Dividends paid on ordinary and preference shares
|
(48.9 | ) | (52.1 | ) | ||||
|
Proportion of net loss due to non-controlling interest
|
0.1 | — | ||||||
|
End of period
|
1,360.6 | 1,452.9 | ||||||
|
Accumulated other comprehensive income:
|
||||||||
|
Cumulative foreign currency translation adjustments, net of
taxes:
|
||||||||
|
Beginning of period
|
113.4 | 103.4 | ||||||
|
Change for the period
|
0.3 | 6.7 | ||||||
|
End of period
|
113.7 | 110.1 | ||||||
|
Loss on derivatives:
|
||||||||
|
Beginning of period
|
(1.0 | ) | (1.2 | ) | ||||
|
Reclassification to interest payable
|
0.2 | 0.2 | ||||||
|
End of period
|
(0.8 | ) | (1.0 | ) | ||||
|
Unrealized appreciation/(depreciation) on investments, net of
taxes:
|
||||||||
|
Beginning of period
|
211.9 | 155.1 | ||||||
|
Change for the period
|
82.9 | 161.4 | ||||||
|
End of period
|
294.8 | 316.5 | ||||||
|
Total accumulated other comprehensive income
|
407.7 | 425.6 | ||||||
|
Total shareholders’ equity
|
$3,150.5 | $3,440.7 | ||||||
15
Table of Contents
Aspen Insurance
Holdings Limited
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in US$ millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
|
Net income/(loss)
|
$22.2 | $92.8 | $(119.3 | ) | $220.0 | |||||||||||
|
Other comprehensive income/(loss), net of taxes:
|
||||||||||||||||
|
Available for sale investments:
|
||||||||||||||||
|
Reclassification adjustment for net realized (gains)/losses
included in net income
|
(5.2 | ) | (2.3 | ) | (13.6 | ) | (10.7 | ) | ||||||||
|
Change in net unrealized gains and losses on available for sale
securities held
|
69.0 | 63.8 | 96.5 | 172.1 | ||||||||||||
|
Loss on derivatives reclassified to interest expense
|
0.1 | 0.2 | 0.2 | 0.2 | ||||||||||||
|
Change in foreign currency translation adjustment
|
(17.4 | ) | 3.6 | 0.3 | 6.7 | |||||||||||
|
Other comprehensive income
|
46.5 | 65.3 | 83.4 | 168.3 | ||||||||||||
|
Comprehensive income/(loss)
|
$68.7 | $158.1 | $(35.9 | ) | $388.3 | |||||||||||
16
Table of Contents
Aspen Insurance
Holdings Limited
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in US$ millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
|
Net cash from/(used in) operating activities
|
$84.4 | $254.4 | $278.4 | $502.3 | ||||||||||||
|
Net cash from/(used in) investing activities
|
(88.6 | ) | (47.1 | ) | (368.4 | ) | (81.1 | ) | ||||||||
|
Net cash from/(used in) financing activities
|
(22.7 | ) | (24.6 | ) | (56.5 | ) | (259.5 | ) | ||||||||
|
Effect of exchange rate movements on cash and cash equivalents
|
(8.4 | ) | 5.5 | 6.2 | 4.2 | |||||||||||
|
(Decrease)/increase in cash and cash equivalents
|
(35.3 | ) | 188.2 | (140.3 | ) | 165.9 | ||||||||||
|
Cash at beginning of period
|
1,074.1 | 726.1 | 1,179.1 | 748.4 | ||||||||||||
|
Cash at end of period
|
$1,038.8 | $914.3 | $1,038.8 | $914.3 | ||||||||||||
17
Table of Contents
|
For the Nine Months Ended |
For the Twelve Months Ended |
|||||||
| (in US$ millions) | September 30, 2011 | December 31, 2010 | ||||||
|
Provision for losses and loss adjustment expenses at the start
of the period
|
$3,820.5 | $3,331.1 | ||||||
|
Reinsurance recoverables
|
(279.9 | ) | (321.5 | ) | ||||
|
Net loss and loss adjustment expenses at the start of the period
|
3,540.6 | 3,009.6 | ||||||
|
Net loss and loss adjustment expenses disposed
|
(23.4 | ) | (35.5 | ) | ||||
|
Provision for losses and loss adjustment expenses for claims
incurred
|
||||||||
|
Current period
|
1,231.8 | 1,270.1 | ||||||
|
Prior period release
|
(70.3 | ) | (21.4 | ) | ||||
|
Total incurred
|
1,161.5 | 1,248.7 | ||||||
|
Losses and loss adjustment expenses payments for claims incurred
|
(646.0 | ) | (666.8 | ) | ||||
|
Foreign exchange losses/(gains)
|
9.0 | (15.4 | ) | |||||
|
Net loss and loss adjustment expenses reserves at the end of the
period
|
4,041.7 | 3,540.6 | ||||||
|
Reinsurance recoverables on unpaid losses at the end of the
period
|
357.7 | 279.9 | ||||||
|
Gross loss and loss adjustment expenses reserves at the end of
the period
|
$4,399.4 | $3,820.5 | ||||||
18
Table of Contents
| As At September 30, 2011 | As At December 31, 2010 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Reinsurance
|
$2,831.7 | $(118.4 | ) | $2,713.3 | $2,343.8 | $(60.7 | ) | $2,283.1 | ||||||||||||||||
|
Insurance
|
1,567.7 | (239.3 | ) | 1,328.4 | 1,476.7 | (219.2 | ) | 1,257.5 | ||||||||||||||||
|
Total losses and loss adjustment expense reserves
|
$4,399.4 | $(357.7 | ) | $4,041.7 | $3,820.5 | $(279.9 | ) | $3,540.6 | ||||||||||||||||
19
Table of Contents
| Three Months Ended September 30, 2011 | Three Months Ended September 30, 2010 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||
|
Reinsurance
|
$10.1 | $1.6 | $11.7 | $2.8 | $0.5 | $3.3 | ||||||||||||||||||
|
Insurance
|
(6.1 | ) | 10.0 | 3.9 | (9.1 | ) | (0.4 | ) | (9.5 | ) | ||||||||||||||
|
Release/(strengthening) in reserves for prior years during the
period
|
$4.0 | $11.6 | $15.6 | $(6.3 | ) | $0.1 | $(6.2 | ) | ||||||||||||||||
| Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | |||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
|||||||||||||||||||||||
| Gross | Recoverables | Net | Gross | Recoverables | Net | |||||||||||||||||||
|
Reinsurance
|
$56.1 | $1.7 | $57.8 | $32.1 | $(2.6 | ) | $29.5 | |||||||||||||||||
|
Insurance
|
(21.6 | ) | 34.1 | 12.5 | (25.0 | ) | 4.3 | (20.7 | ) | |||||||||||||||
|
Release in reserves for prior years during the period
|
$34.5 | $35.8 | $70.3 | $7.1 | $1.7 | $8.8 | ||||||||||||||||||
20
Table of Contents
Aspen Insurance
Holdings Limited
| (in US$ millions except for percentages) | As at September 30, 2011 | As at December 31, 2010 | ||||||||||||||
|
S&P
|
||||||||||||||||
|
AA+
|
$6.9 | 1.9% | $7.5 | 2.7% | ||||||||||||
|
AA−
|
81.6 | 22.8% | 73.4 | 26.2% | ||||||||||||
|
A+
|
147.4 | 41.2% | 133.0 | 47.5% | ||||||||||||
|
A
|
16.8 | 4.7% | 12.9 | 4.6% | ||||||||||||
|
A−
|
21.2 | 5.9% | 11.3 | 4.1% | ||||||||||||
|
BBB+
|
— | — | 2.5 | 0.9% | ||||||||||||
|
BBB
|
— | — | 0.6 | 0.2% | ||||||||||||
|
F (1)
|
0.6 | 0.2% | — | — | ||||||||||||
|
Fully collateralized
|
50.0 | 14.0% | — | — | ||||||||||||
|
Not rated
|
33.2 | 9.3% | 38.7 | 13.8% | ||||||||||||
| $357.7 | 100.0% | $279.9 | 100.0% | |||||||||||||
|
A.M. Best
|
||||||||||||||||
|
A++
|
$6.9 | 1.9% | $7.5 | 2.7% | ||||||||||||
|
A+
|
86.1 | 24.1% | 74.0 | 26.4% | ||||||||||||
|
A
|
186.7 | 52.1% | 173.5 | 62.0% | ||||||||||||
|
A−
|
13.5 | 3.8% | 15.7 | 5.6% | ||||||||||||
|
F (1)
|
0.6 | 0.2% | 0.7 | 0.3% | ||||||||||||
|
Fully collateralized
|
50.0 | 14.0% | — | — | ||||||||||||
|
Not rated
|
13.9 | 3.9% | 8.5 | 3.0% | ||||||||||||
| $357.7 | 100.0% | $279.9 | 100.0% | |||||||||||||
| (1) | The rating of “F” denotes liquidation. We have not reduced the carrying value of the recoverable from this particular reinsurer as a trust account exists to replace the potentially insufficient reserves. |
21
Table of Contents
| As At September 30, 2011 | ||||||||||||||||||||||||||||||||||||
|
Gross |
Gross |
Fair |
As At |
As At |
As At |
As At |
As At |
|||||||||||||||||||||||||||||
|
Amortized |
Unrealized |
Unrealized |
Market |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||||||
| (in US$ millions except for percentages) | Cost | Gains | Losses | Value | 2011 | 2011 | 2011 | 2010 | 2010 | |||||||||||||||||||||||||||
|
Marketable Securities — Available For Sale
|
||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$830.8 | $58.7 | $(0.1 | ) | $889.4 | 11.8% | 10.3% | 10.6% | 9.9% | 10.9% | ||||||||||||||||||||||||||
|
U.S. agency securities
|
256.6 | 24.9 | — | 281.5 | 3.7% | 3.8% | 3.9% | 4.1% | 4.7% | |||||||||||||||||||||||||||
|
Municipal securities
|
34.2 | 2.3 | — | 36.5 | 0.5% | 0.4% | 0.3% | 0.4% | 0.5% | |||||||||||||||||||||||||||
|
Corporate securities
|
1,842.1 | 130.1 | (3.9 | ) | 1,968.3 | 26.0% | 26.6% | 26.4% | 27.0% | 28.1% | ||||||||||||||||||||||||||
|
Foreign government securities
|
653.3 | 27.9 | — | 681.2 | 9.0% | 9.9% | 9.7% | 8.4% | 8.2% | |||||||||||||||||||||||||||
|
Asset-backed securities
|
54.0 | 5.0 | — | 59.0 | 0.8% | 0.8% | 0.8% | 0.8% | 1.0% | |||||||||||||||||||||||||||
|
FDIC guaranteed securities
|
93.0 | 0.6 | — | 93.6 | 1.2% | 1.5% | 1.6% | 1.7% | 1.9% | |||||||||||||||||||||||||||
|
Bonds backed by foreign government
|
185.6 | 5.6 | — | 191.2 | 2.5% | 2.6% | 3.0% | 3.1% | 3.3% | |||||||||||||||||||||||||||
|
Mortgage-backed securities
|
1,325.6 | 82.5 | (0.1 | ) | 1,408.0 | 18.6% | 18.6% | 17.9% | 17.8% | 17.9% | ||||||||||||||||||||||||||
|
Total fixed income maturities
|
5,275.2 | 337.6 | (4.1 | ) | 5,608.7 | 74.1% | 74.5% | 74.2% | 73.2% | 76.5% | ||||||||||||||||||||||||||
|
Short-term investments
|
290.6 | — | — | 290.6 | 3.8% | 2.7% | 2.4% | 3.9% | 4.1% | |||||||||||||||||||||||||||
|
Equity securities
|
167.6 | 6.9 | (10.7 | ) | 163.8 | 2.2% | 2.4% | 2.3% | — | — | ||||||||||||||||||||||||||
|
Total Available For Sale
|
$5,733.4 | $344.5 | $(14.8 | ) | $6,063.1 | 80.1% | 79.6% | 78.9% | 77.1% | 80.6% | ||||||||||||||||||||||||||
|
Marketable Securities — Trading
|
||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$16.5 | $1.5 | — | $18.0 | 0.2% | 0.1% | 0.1% | 0.7% | 0.6% | |||||||||||||||||||||||||||
|
U.S. agency securities
|
1.5 | 0.2 | — | 1.7 | — | — | — | — | — | |||||||||||||||||||||||||||
|
Municipal securities
|
2.8 | 0.1 | — | 2.9 | — | — | — | 0.1% | — | |||||||||||||||||||||||||||
|
Corporate securities
|
335.4 | 15.2 | (4.5 | ) | 346.1 | 4.6% | 4.8% | 4.6% | 4.6% | 4.8% | ||||||||||||||||||||||||||
|
Foreign government securities
|
9.2 | 0.5 | (0.1 | ) | 9.6 | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | ||||||||||||||||||||||||||
|
Asset-backed securities
|
5.8 | — | — | 5.8 | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | |||||||||||||||||||||||||||
|
Total fixed income maturities
|
371.2 | 17.5 | (4.6 | ) | 384.1 | 5.0% | 5.1% | 4.9% | 5.6% | 5.6% | ||||||||||||||||||||||||||
|
Short-term investments
|
5.3 | — | — | 5.3 | 0.1% | 0.0% | 0.1% | 0.1% | — | |||||||||||||||||||||||||||
|
Total Trading
|
$376.5 | $17.5 | $(4.6 | ) | $389.4 | 5.1% | 5.1% | 5.0% | 5.7% | 5.6% | ||||||||||||||||||||||||||
|
Other investments
|
$32.3 | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | ||||||||||||||||||||||||||||||
|
Cash
|
1,038.8 | 13.7% | 14.2% | 15.0% | 16.1% | 12.6% | ||||||||||||||||||||||||||||||
|
Accrued interest
|
53.6 | 0.7% | 0.7% | 0.7% | 0.7% | 0.8% | ||||||||||||||||||||||||||||||
|
Total Cash and Accrued Interest
|
$1,092.4 | 14.4% | 14.9% | 15.7% | 16.8% | 13.4% | ||||||||||||||||||||||||||||||
|
Total Cash and Investments
|
$7,577.2 | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||||||||||||||||||||
22
Table of Contents
Aspen Insurance
Holdings Limited
Consolidated
Investment Portfolio
| As At September 30, 2011 | As At December 31, 2010 | |||||||||||||||
|
Amortized |
Fair Market |
Amortized |
Fair Market |
|||||||||||||
| (in US$ millions) | Cost | Value | Cost | Value | ||||||||||||
|
Maturity of Available For Sale Portfolio
|
||||||||||||||||
|
Due in one year or less
|
$627.3 | $633.0 | $337.7 | $343.8 | ||||||||||||
|
Due after one year through five years
|
2,064.5 | 2,174.2 | 2,236.3 | 2,330.9 | ||||||||||||
|
Due after five years through ten years
|
1,102.4 | 1,216.8 | 1,146.6 | 1,222.2 | ||||||||||||
|
Due after ten years
|
101.4 | 117.7 | 100.1 | 104.1 | ||||||||||||
|
Subtotal
|
3,895.6 | 4,141.7 | 3,820.7 | 4,001.0 | ||||||||||||
|
Non-agency commercial mortgage-backed securities
|
87.4 | 94.4 | 119.7 | 128.1 | ||||||||||||
|
Agency mortgage-backed securities
|
1,238.2 | 1,313.6 | 1,126.4 | 1,172.5 | ||||||||||||
|
Other asset-backed securities
|
54.0 | 59.0 | 54.0 | 58.8 | ||||||||||||
|
Total
|
$5,275.2 | $5,608.7 | $5,120.8 | $5,360.4 | ||||||||||||
23
Table of Contents
Aspen Insurance
Holdings Limited
| (in US$ millions except for percentages) | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | |||||||||||||||||||||
|
Net investment income from fixed income investments and cash
|
$55.6 | $55.6 | $55.3 | $57.0 | $58.1 | $57.5 | $59.4 | |||||||||||||||||||||
|
Net investment income from equity securities
|
1.7 | 3.0 | 0.2 | — | — | — | — | |||||||||||||||||||||
|
Net investment income
|
57.3 | 58.6 | 55.5 | 57.0 | 58.1 | 57.5 | 59.4 | |||||||||||||||||||||
|
Net realized and unrealized investment gains
(1)
|
3.2 | 9.8 | 8.4 | 10.5 | 22.1 | 5.7 | 12.6 | |||||||||||||||||||||
|
Other-than-temporary
impairment charges
|
— | — | — | — | — | — | (0.3 | ) | ||||||||||||||||||||
|
Change in unrealized gains/(losses) on available for sale
investments (gross of tax)
|
71.6 | 52.1 | (33.6 | ) | (122.1 | ) | 68.3 | 82.4 | 25.3 | |||||||||||||||||||
|
Total return on investments
|
$132.1 | $120.5 | $30.3 | $(54.6 | ) | $148.5 | $145.6 | $97.0 | ||||||||||||||||||||
|
Portfolio Characteristics
|
||||||||||||||||||||||||||||
|
Fixed income portfolio book yield
|
3.54% | 3.64% | 3.65% | 3.70% | 3.91% | 4.05% | 4.23% | |||||||||||||||||||||
|
Fixed income portfolio duration
|
3.1 years | 3.1 years | 3.2 years | 3.3 years | 3.1 years | 3.0 years | 3.3 years | |||||||||||||||||||||
| (1) | Excludes the net realized and unrealized gains/(losses) from the interest-rate swaps and includes the net realized and unrealized gains/(losses) on the trading portfolio. |
24
Table of Contents
Aspen Insurance
Holdings Limited
| (in US$ millions except for number of shares and per share amounts) | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | June 30, 2010 | March 31, 2010 | December 31, 2009 | ||||||||||||||||||||||||
|
Net assets
|
$3,150.5 | $3,104.6 | $3,051.0 | $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 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | ||||||||||||||||
|
Total
|
$2,796.9 | $2,751.0 | $2,697.4 | $2,888.3 | $3,087.1 | $2,950.3 | $2,786.6 | $2,951.8 | ||||||||||||||||||||||||
|
Ordinary shares outstanding
(in millions) |
70.595 | 70.833 | 70.731 | 70.508 | 76.642 | 76.701 | 77.258 | 83.328 | ||||||||||||||||||||||||
|
Ordinary shares and dilutive potential ordinary shares (in
millions)
|
73.079 | 73.492 | 73.599 | 74.253 | 80.765 | 79.831 | 80.889 | 86.465 | ||||||||||||||||||||||||
|
Book value per ordinary share
|
$39.62 | $38.84 | $38.14 | $40.96 | $40.28 | $38.46 | $36.07 | $35.42 | ||||||||||||||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$38.27 | $37.43 | $36.65 | $38.90 | $38.22 | $36.96 | $34.45 | $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.
25
Table of Contents
Aspen Insurance
Holdings Limited
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
|
Weighted average ordinary shares outstanding (millions)
|
||||||||||||||||
|
Basic
|
70.699 | 76.723 | 70.682 | 77.133 | ||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||
|
Employee options
|
0.539 | 0.845 | — | 0.865 | ||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)
|
0.092 | 0.411 | — | 0.396 | ||||||||||||
|
Performance shares
|
1.622 | 2.066 | — | 2.111 | ||||||||||||
|
Restricted share units
|
0.348 | 0.265 | — | 0.259 | ||||||||||||
|
PIERS(1)
|
— | 0.053 | — | 0.018 | ||||||||||||
|
Weighted average diluted shares outstanding
|
73.300 | 80.363 | 70.682 | 80.782 | ||||||||||||
The basic and diluted number of ordinary shares for the nine
months ended September 30, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
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.
| (1) | Preferred Income Equity Replacement Securities (PIERS) |
26
Table of Contents
Aspen Insurance
Holdings Limited
Net income/(loss) is adjusted to exclude after-tax change in net
foreign exchange gains and losses and realized gains and losses
in investments.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | |||||||||||||
|
(in US$ millions except where stated)
|
||||||||||||||||
|
Net income/(loss) as reported
|
$22.2 | $92.8 | ($119.3 | ) | $220.0 | |||||||||||
|
Preference share dividends
|
(5.7 | ) | (5.7 | ) | (17.1 | ) | (17.1 | ) | ||||||||
|
Net income/(loss) available to ordinary shareholders
|
16.5 | 87.1 | (136.4 | ) | 202.9 | |||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange losses/(gains) | 0.8 | (3.0 | ) | 3.8 | (2.7 | ) | ||||||||||
| Net realized losses/(gains) on investments | 33.5 | (17.8 | ) | 43.3 | (36.6 | ) | ||||||||||
|
Operating income/(loss) after tax available to ordinary
shareholders
|
50.8 | 66.3 | (89.3 | ) | 163.6 | |||||||||||
|
Tax on operating income
|
0.3 | 5.6 | (15.8 | ) | 21.3 | |||||||||||
|
Operating income/(loss) before tax available to ordinary
shareholders
|
$51.1 | $71.9 | ($105.1 | ) | $184.9 | |||||||||||
|
Weighted average ordinary shares outstanding (millions)
|
||||||||||||||||
|
Basic
|
70.699 | 76.723 | 70.682 | 77.133 | ||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||
|
Employee options
|
0.539 | 0.845 | — | 0.865 | ||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)
|
0.092 | 0.411 | — | 0.396 | ||||||||||||
|
Performance shares
|
1.622 | 2.066 | — | 2.111 | ||||||||||||
|
Restricted share units
|
0.348 | 0.265 | — | 0.259 | ||||||||||||
|
PIERS(1)
|
— | 0.053 | — | 0.018 | ||||||||||||
|
Weighted average diluted shares outstanding
|
73.300 | 80.363 | 70.682 | 80.782 | ||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend
|
$0.23 | $1.14 | ($1.93 | ) | $2.63 | |||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange losses/(gains) | 0.01 | (0.04 | ) | 0.05 | (0.04 | ) | ||||||||||
| Net realized losses/(gains) on investments | 0.47 | (0.26 | ) | 0.61 | (0.47 | ) | ||||||||||
|
Operating income/(loss) adjusted for preference shares dividend
|
$0.71 | $0.84 | ($1.27 | ) | $2.12 | |||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||
|
Net income/(loss) adjusted for preference share dividend
|
$0.23 | $1.08 | ($1.93 | ) | $2.51 | |||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||
| Net foreign exchange losses/(gains) | 0.01 | (0.04 | ) | 0.05 | (0.03 | ) | ||||||||||
| Net realized losses/(gains) on investments | 0.46 | (0.25 | ) | 0.61 | (0.45 | ) | ||||||||||
|
Operating income/(loss) adjusted for preference shares dividend
|
$0.70 | $0.79 | ($1.27 | ) | $2.03 | |||||||||||
The basic and diluted number of ordinary shares for the nine
months ended September 30, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
| (1) | Preferred Income Equity Replacement Securities (PIERS) |
27