Annualized Net Income Return on Equity of
14.4%
Annualized Operating Return on Equity of
11.2%
Diluted Book Value Per Share of $48.22, up
4.8% from December 31, 2015
Aspen Insurance Holdings Limited (“Aspen”) (NYSE:AHL) reported
today net income after tax of $114.4 million, or $1.68 per diluted
share, and operating income after tax of $89.9 million, or $1.29
per diluted share, for the first quarter of 2016.
Chris O’Kane, Chief Executive Officer, commented, “Aspen has
started the year well, with solid first quarter underwriting
results from our Insurance and Reinsurance businesses contributing
to an annualized operating return on equity of 11.2% and 4.8%
growth in diluted book value per share. Our Insurance teams are
successfully executing our global products line strategy and
delivered growth in targeted lines of business. At the same time,
we continued to pull back from areas where we do not feel returns
are adequate or are historically more volatile. Within Aspen Re,
our teams had successful January and April renewals, again
demonstrating our ability to maintain relevance with clients while
navigating a challenging and changing market. We also welcomed our
colleagues from AgriLogic. In addition, we continue to move closer
to our clients, recently announcing the opening of our Dubai office
to serve as our hub for the Middle East and Africa. As we move
forward, we remain focused on consistently delivering value for our
shareholders.”(1)
_____________________
Non-GAAP financial measures are used
throughout this release as defined at the end of this press
release.
(1) Refer to "Forward-looking Statements
Safe Harbor" at the end of this press release.
Operating highlights for the quarter ended March 31,
2016
- Gross written premiums increased by
6.1% to $975.7 million in the first quarter of 2016 compared with
$919.2 million in the first quarter of 2015
- Combined ratio of 91.6% for the first
quarter of 2016 compared with 88.9% for the first quarter of 2015.
Net favorable development on prior year loss reserves of $21.6
million, or 3.3 combined ratio points, for the first quarter of
2016 compared with $27.5 million, or 4.6 combined ratio points, in
the comparable period
- Pre-tax catastrophe losses, net of
reinsurance recoveries, totaled $18.7 million, or 2.8 combined
ratio points, in the first quarter of 2016 compared with $13.5
million, or 2.3 combined ratio points, of pre-tax catastrophe
losses, net of reinsurance recoveries, in the first quarter of
2015
Financial highlights for the quarter ended March 31,
2016
- Annualized net income return on average
equity of 14.4% and annualized operating return on average equity
of 11.2% for the quarter ended March 31, 2016 compared with
16.4% and 12.4%, respectively, for the first quarter of 2015
- Net income per diluted share of $1.68
for the quarter ended March 31, 2016 compared with net income
per diluted share of $1.87 for the quarter ended March 31,
2015
- Operating income per diluted share of
$1.29 for the quarter ended March 31, 2016 compared with
operating income per diluted share of $1.39 for the quarter ended
March 31, 2015
- Diluted book value per share of $48.22
as at March 31, 2016 up 4.8% from December 31, 2015
Segment Highlights
Insurance
Operating highlights for Insurance for the quarter ended
March 31, 2016 include:
- Gross written premiums of $458.1
million, an increase of 5.5% compared with $434.4 million in the
first quarter of 2015
- Combined ratio of 92.0% compared with
93.5% for the first quarter of 2015
- Prior year favorable reserve
development of $3.4 million, or 0.9 combined ratio points, compared
with prior year favorable reserve development of $14.3 million, or
4.2 combined ratio points, for the first quarter of 2015
Growth in the Financial and Professional Lines, and Property and
Casualty sub-segments was offset by a decline in the Marine,
Aviation and Energy sub-segment, which includes a number of lines
that continue to be impacted by rate pressures.
The combined ratio of 92.0% for the first quarter of 2016
included $8.0 million, or 2.1 percentage points, of pre-tax
catastrophe losses, net of reinsurance recoveries, from
weather-related events in the U.S. The combined ratio for the first
quarter of 2015 included $5.8 million, or 1.7 percentage points, of
pre-tax catastrophe losses net of reinsurance recoveries. For the
quarter ended March 31, 2016, the Insurance accident year loss
ratio excluding catastrophes was 57.0% compared with 60.8% a year
ago.
Mario Vitale, CEO of Insurance, commented, “Aspen Insurance
started the year with a solid quarter of profitable growth. The
growth in the quarter was largely driven from businesses in which
we have selectively chosen to expand, including contributions from
Global Accident and Health, Management Liability, and our new
European Property business. We continue to focus on growing our
business in those areas that are strongest and offer us the most
consistent returns which, we believe, will further improve our loss
ratios over time. Our global insurance product line strategy is
progressing well, most recently with the appointment of Lorraine
Seib as Global head of Excess Casualty.”(1)
Reinsurance
Operating highlights for Reinsurance for the quarter ended
March 31, 2016 include:
- Gross written premiums of $517.6
million, an increase of 6.8% from $484.8 million in the first
quarter of 2015. Adjusting for $45.2 million of premiums from AG
Logic Holdings, LLC (“AgriLogic”) in the first quarter of 2016 and
the negative impact of year-over-year foreign currency movements,
gross written premiums in the first quarter of 2016 increased by
4.2% compared to the first quarter of 2015
- Combined ratio of 84.9% compared with
76.7% for the first quarter of 2015
- Prior year favorable reserve
development of $18.2 million, or 6.5 combined ratio points,
compared with $13.2 million prior year favorable reserve
development, or 5.3 combined ratio points, for the first quarter of
2015
- General and administrative expense
ratio in first quarter of 2016 increased by 2.7 percentage points
compared to the first quarter of 2015 primarily due to expenses
associated with AgriLogic
Growth in the Specialty and Casualty sub-segments was offset by
a decline in the Property Catastrophe and Other Property
sub-segments. Growth in the Specialty sub-segment primarily
reflects the first-time inclusion of AgriLogic in Aspen's financial
results.
The combined ratio of 84.9% for the first quarter of 2016
included $10.7 million, or 3.8 percentage points, of pre-tax
catastrophe losses, net of reinsurance recoveries, primarily as a
result of weather-related events in the U.S. and an earthquake in
Taiwan. The combined ratio of 76.7% for the first quarter of 2015
included $7.7 million, or 3.1 percentage points, of pre-tax
catastrophe losses, net of reinsurance recoveries.
For the quarter ended March 31, 2016, the Reinsurance
accident year loss ratio excluding catastrophes was 50.7% compared
with 44.5% a year ago. Of the total increase in the accident year
loss ratio excluding catastrophes, approximately half was due to
the inclusion of AgriLogic, with the balance due to unfavorable
foreign currency movements and change in business mix. Allowing for
the impact of the above factors, the underlying performance of the
Reinsurance segment is broadly in line with the first quarter of
last year.
Stephen Postlewhite, CEO of Reinsurance, commented, “Aspen Re
started the year well. We had successful January and April renewals
as we continue to identify opportunities in a challenging market.
We achieved premium growth in our Specialty and Casualty
sub-segments and continued to carefully manage down our Property
Cat book given ongoing pressures in that market. We also welcomed
the AgriLogic team and are very pleased with the integration
progress and prospects for this business. Additionally, we continue
to seek further opportunities for future profitable growth and
develop our regional expansion strategy, most recently announcing
the opening of an office in Dubai to serve as a hub for the
business in the Middle East and Africa.”(1)
Investment performance
Investment income of $49.5 million in the first quarter of 2016
increased by 4.4% compared to $47.4 million in the first quarter of
2015, as a significant portion of dividend income on the equity
portfolio is concentrated in the first quarter.
Aspen’s investment portfolio continues to be comprised primarily
of high quality fixed income securities with an average credit
quality of “AA-”. The average duration of the fixed income
portfolio was 3.63 years as at March 31, 2016 excluding the
impact of interest rate swaps, or 3.56 years including the impact
of interest rate swaps. The total return on Aspen’s aggregate
investment portfolio was 2.08% for the three months ended
March 31, 2016 and reflected gains in the fixed income and
equity portfolios.
Book yield as at March 31, 2016 on the fixed income
portfolio was 2.56% compared to 2.59% as at December 31, 2015.
Capital
Total shareholders’ equity was $3.6 billion as at March 31,
2016.
During the first quarter of 2016, Aspen repurchased 568,239
ordinary shares at an average price of $44.00 per ordinary share
for a total cost of $25.0 million. Aspen had $391.3 million
remaining under its current share repurchase authorization as at
April 20, 2016.
Earnings conference call and webcast
Aspen will host a conference call to discuss the results at 8:00
a.m. (ET) on Friday, April 22, 2016.
To participate in the April 22 conference call by
phone
Please call to register at least 10 minutes before the
conference call begins by dialing:
+1 (844) 378 6481 (US toll free) or +1 (412) 542 4176
(international) Conference ID 10082504
To listen live online
Aspen will provide a live webcast on Aspen’s website at
www.aspen.co.
To download the materials
The earnings press release and a detailed financial supplement
will also be published on Aspen’s website at www.aspen.co.
To listen later
A replay of the call will be available approximately two hours
after the end of the live call for 14 days via phone and internet.
To listen to the replay by phone please dial:
+1 (877) 344 7529 (US toll free) or+1 (412) 317 0088
(international)Replay ID 10082504
The recording will be also available at www.aspen.co on the Event Calendar page within the
Investor Relations section.
Aspen Insurance Holdings
Limited
Summary consolidated balance sheet
(unaudited)
$ in millions, except per share data
As atMarch
31,2016
As atDecember
31,2015
ASSETS Total investments
$ 7,916.3 $ 7,712.2
Cash and cash equivalents
903.1 1,099.5 Reinsurance
recoverables
609.6 523.7 Premiums receivable
1,339.1
1,115.6 Other assets
737.3 597.8 Total assets
$ 11,505.4 $ 11,048.8 LIABILITIES
Losses and loss adjustment expenses
$ 5,011.5 $
4,938.2 Unearned premiums
1,804.0 1,587.2 Other payables
479.0 451.3 Silverton loan notes
104.5 103.0
Long-term debt
549.3 549.2 Total liabilities
$
7,948.3 $ 7,628.9 SHAREHOLDERS’ EQUITY Total
shareholders’ equity
3,557.1 3,419.9 Total
liabilities and shareholders’ equity
$ 11,505.4
$ 11,048.8 Book value per share
$ 49.45
$ 46.99 Diluted book value per share (treasury stock method)
$ 48.22 $ 46.00
Aspen Insurance Holdings
Limited
Summary consolidated statement of
income (unaudited)
$ in millions, except ratios
Three Months Ended March 31, 2016
March 31, 2015 UNDERWRITING REVENUES Gross
written premiums
$ 975.7 $ 919.2 Premiums ceded
(176.0 ) (156.0 ) Net written premiums
799.7
763.2 Change in unearned premiums
(136.6 ) (169.6 )
Net earned premiums
663.1 593.6 UNDERWRITING
EXPENSES Losses and loss adjustment expenses
357.4 306.1
Amortization of deferred policy acquisition costs
130.2
119.3 General, administrative and corporate expenses
119.8
102.2 Total underwriting expenses
607.4
527.6 Underwriting income including corporate expenses
55.7 66.0 OTHER OPERATING REVENUE Net
investment income
49.5 47.4 Interest expense
(7.4
) (7.4 ) Other (expense)
(3.0 ) (1.6 ) Total
other operating revenue
39.1 38.4
OPERATING INCOME BEFORE TAX
94.8 104.4
Net realized and unrealized exchange (losses)
(20.1
) (11.0 ) Net realized and unrealized investment gains
42.2 39.7 INCOME BEFORE TAX
116.9 133.1
Income tax expense
(2.5 ) (5.1 ) NET INCOME AFTER TAX
114.4 128.0 Dividends paid on ordinary shares
(12.8
) (12.4 ) Dividends paid on preference shares
(9.5
) (9.5 ) Proportion due to non-controlling interest
0.2 — Retained income
$ 92.3
$ 106.1 Components of net income (after tax)
Operating income
$ 89.9 $ 98.0 Net realized and
unrealized exchange (losses) after tax
(16.9 ) (9.8 )
Net realized investment gains after tax
41.4 39.8
NET INCOME AFTER TAX
$ 114.4 $ 128.0
Loss ratio
53.9 % 51.6 % Policy
acquisition expense ratio
19.6 % 20.1 % General,
administrative and corporate expense ratio
18.1 %
17.2 % Expense ratio
37.7 % 37.3 % Combined ratio
91.6 % 88.9 %
Aspen Insurance Holdings
Limited
Summary consolidated financial data
(unaudited)
$ in millions, except number of shares
Three Months Ended March 31,
2016 March 31, 2015 Basic
earnings per ordinary share Net income adjusted for
preference share dividend and non-controlling interest
$1.73
$1.91 Operating income adjusted for preference share dividend and
non-controlling interest
$1.33 $1.43 Diluted earnings per
ordinary share Net income adjusted for preference share dividend
and non-controlling interest
$1.68 $1.87 Operating income
adjusted for preference share dividend and non-controlling interest
$1.29 $1.39 Weighted average number of ordinary
shares outstanding (in millions)
60.868 62.159
Weighted average number of ordinary shares outstanding and dilutive
potential ordinary shares (in millions)
62.484 63.533
Book value per ordinary share
$49.45 $47.14 Diluted book
value per ordinary share (treasury stock method)
$48.22
$46.02 Ordinary shares outstanding at end of the period (in
millions)
60.675 61.723 Ordinary shares outstanding
and dilutive potential ordinary shares at end of the period
(treasury stock method) (in millions)
62.213 63.227
Aspen Insurance Holdings
Limited
Summary consolidated segment
information (unaudited)
$ in millions, except ratios
Three Months Ended March 31, 2016 Three Months
Ended March 31, 2015 Reinsurance Insurance
Total Reinsurance Insurance
Total Gross written
premiums
$ 517.6 $ 458.1 $
975.7 $ 484.8 $ 434.4 $ 919.2 Net written premiums
449.5 350.2 799.7 442.1 321.1 763.2 Gross
earned premiums
306.8 445.6 752.4 265.8 415.1
680.9 Net earned premiums
280.3 382.8 663.1
249.4 344.2 593.6 Losses and loss adjustment expenses
134.5
222.9 357.4 105.5 200.6 306.1 Policy acquisition
expenses
59.4 70.8 130.2 53.4 65.9 119.3
General and administrative expenses
44.1
58.6 102.7 32.4
55.3 87.7 Underwriting income
$
42.3 $ 30.5 $
72.8 $ 58.1 $ 22.4 $ 80.5 Net
investment income
49.5 47.4 Net realized and unrealized
investment gains (1)
42.2 39.7 Corporate expenses
(17.1 ) (14.5 ) Other (expense) (2)
(3.0
) (1.6 ) Interest expense
(7.4 ) (7.4 ) Net
realized and unrealized foreign exchange (losses) (3)
(20.1
) (11.0 ) Income before tax
$ 116.9 $ 133.1
Income tax expense
(2.5 ) (5.1 )
Net income
$ 114.4 $ 128.0
Ratios
Loss ratio
48.0 % 58.2 % 53.9
% 42.3 % 58.3 % 51.6 % Policy acquisition expense ratio
21.2 % 18.5 % 19.6 % 21.4
% 19.1 % 20.1 % General and administrative expense ratio (4)
15.7 % 15.3 % 18.1 % 13.0
% 16.1 % 17.2 % Expense ratio
36.9 % 33.8
% 37.7 % 34.4 % 35.2 % 37.3 % Combined ratio
84.9 % 92.0 % 91.6 % 76.7
% 93.5 % 88.9 %
(1)
Includes realized and unrealized capital
gains and losses and realized and unrealized gains and losses on
interest rate swaps
(2)
Other (expense) in the first quarter of
2016 and first quarter of 2015 included $4.4 million and $2.9
million, respectively, related to a change in the fair value of
loan notes issued by Silverton Re
(3)
Includes realized and unrealized foreign
exchange gains and losses and realized and unrealized gains and
losses on foreign exchange contracts
(4)
The total group general and administrative
expense ratio includes the impact from corporate expenses
About Aspen Insurance Holdings Limited
Aspen provides reinsurance and insurance coverage to clients in
various domestic and global markets through wholly-owned
subsidiaries and offices in Australia, Bermuda, Canada, France,
Germany, Ireland, Singapore, Switzerland, the United Arab Emirates,
the United Kingdom and the United States. For the year ended
December 31, 2015, Aspen reported $11.0 billion in total assets,
$4.9 billion in gross reserves, $3.4 billion in total shareholders’
equity and $3.0 billion in gross written premiums. Its operating
subsidiaries have been assigned a rating of “A” by Standard &
Poor’s Financial Services LLC (“S&P”), an “A” (“Excellent”) by
A.M. Best Company Inc. (“A.M. Best”) and an “A2” by Moody’s
Investor Service, Inc. (“Moody’s”).
For more information about Aspen, please visit www.aspen.co.
(1) Forward-looking Statements Safe Harbor
This press release contains, and Aspen’s earnings conference
call will contain, written or oral “forward-looking statements”
within the meaning of the US federal securities laws. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as “expect,” “intend,” “plan,” “believe,” “do not
believe,” “aim,” “project,” “anticipate,” “seek,” “will,” “likely,”
“assume,” “estimate,” “may,” “continue,” “guidance,” “objective,”
“outlook,” “trends,” “future,” “could,” “would,” “should,”
“target,” “on track” and similar expressions of a future or
forward-looking nature.
All forward-looking statements rely on a number of assumptions,
estimates and data concerning future results and events and are
subject to a number of uncertainties and other factors, many of
which are outside Aspen’s control that could cause actual results
to differ materially from such statements.
All forward-looking statements address matters that involve
risks and uncertainties. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in these statements. Aspen believes
these factors include, but are not limited to: our ability to
successfully implement steps to further optimize the business
portfolio, ensure capital efficiency and enhance investment
returns; the possibility of greater frequency or severity of claims
and loss activity, including as a result of natural or man-made
(including economic and political risks) catastrophic or material
loss events, than our underwriting, reserving, reinsurance
purchasing or investment practices have anticipated; the
assumptions and uncertainties underlying reserve levels that may be
impacted by future payments for settlements of claims and expenses
or by other factors causing adverse or favorable development,
including our assumptions on inflation costs associated with
long-tail casualty business which could differ materially from
actual experience; a vote by the U.K. electorate in favor of a U.K.
exit from the European Union in a forthcoming in-or-out referendum;
the reliability of, and changes in assumptions to, natural and
man-made catastrophe pricing, accumulation and estimated loss
models; decreased demand for our insurance or reinsurance products
and cyclical changes in the insurance and reinsurance industry; the
models we use to assess our exposure to losses from future natural
catastrophes contain inherent uncertainties and our actual losses
may differ significantly from expectations; our capital models may
provide materially different indications than actual results;
increased competition from existing insurers and reinsurers and
from alternative capital providers and insurance-linked funds and
collateralized special purpose insurers on the basis of pricing,
capacity, coverage terms, new capital, binding authorities to
brokers or other factors and the related demand and supply dynamics
as contracts come up for renewal; our ability to execute our
business plan to enter new markets, introduce new products and
develop new distribution channels, including their integration into
our existing operations; our acquisition strategy; changes in
market conditions in the agriculture industry, which may vary
depending upon demand for agricultural products, weather, commodity
prices, natural disasters, and changes in legislation and policies
related to agricultural products and producers; termination of, or
changes in, the terms of the U.S. Federal Multiple Peril Crop
Insurance Program or the U.S. Farm Bill, including modifications to
the Standard Reinsurance Agreement put in place by the Risk
Management Agency of the U.S. Department of Agriculture; the recent
consolidation in the (re)insurance industry; loss of one or more of
our senior underwriters or key personnel; changes in our ability to
exercise capital management initiatives (including our share
repurchase program) or to arrange banking facilities as a result of
prevailing market conditions or changes in our financial position;
changes in the availability, cost or quality of reinsurance or
retrocessional coverage; changes in general economic conditions,
including inflation, deflation, foreign currency exchange rates,
interest rates and other factors that could affect our financial
results; the risk of a material decline in the value or liquidity
of all or parts of our investment portfolio; the risks associated
with the management of capital on behalf of investors; evolving
issues with respect to interpretation of coverage after major loss
events; our ability to adequately model and price the effects of
climate cycles and climate change; any intervening legislative or
governmental action and changing judicial interpretation and
judgments on insurers’ liability to various risks; the risks
related to litigation; the effectiveness of our risk management
loss limitation methods, including our reinsurance purchasing;
changes in the total industry losses, or our share of total
industry losses, resulting from past events and, with respect to
such events, our reliance on loss reports received from cedants and
loss adjustors, our reliance on industry loss estimates and those
generated by modeling techniques, changes in rulings on flood
damage or other exclusions as a result of prevailing lawsuits and
case law; the impact of one or more large losses from events other
than natural catastrophes or by an unexpected accumulation of
attritional losses and deterioration with loss estimates; the
impact of acts of terrorism, acts of war and related legislation;
any changes in our reinsurers’ credit quality and the amount and
timing of reinsurance recoverables; the continuing and uncertain
impact of the current depressed lower growth economic environment
in many of the countries in which we operate; our reliance on
information and technology and third-party service providers for
our operations and systems; the level of inflation in repair costs
due to limited availability of labor and materials after
catastrophes; a decline in our operating subsidiaries’ ratings with
S&P, A.M. Best or Moody’s; the failure of our reinsurers,
policyholders, brokers or other intermediaries to honor their
payment obligations; our reliance on the assessment and pricing of
individual risks by third parties; our dependence on a few brokers
for a large portion of our revenues; the persistence of heightened
financial risks, including excess sovereign debt, the banking
system and the Eurozone crisis; changes in government regulations
or tax laws in jurisdictions where we conduct business; changes in
accounting principles or policies or in the application of such
accounting principles or policies; increased counterparty risk due
to the credit impairment of financial institutions; and Aspen or
Aspen Bermuda Limited becoming subject to income taxes in the
United States or the United Kingdom. For a more detailed
description of these uncertainties and other factors, please see
the “Risk Factors” section in Aspen’s Annual Report on Form 10-K as
filed with the U.S. Securities and Exchange Commission on February
19, 2016. Aspen undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the dates on which they are made.
In addition, any estimates relating to loss events involve the
exercise of considerable judgment and reflect a combination of
ground-up evaluations, information available to date from brokers
and cedants, market intelligence, initial tentative loss reports
and other sources. The actuarial range of reserves and management’s
best estimate represents a distribution from our internal capital
model for reserving risk based on our then current state of
knowledge and explicit and implicit assumptions relating to the
incurred pattern of claims, the expected ultimate settlement
amount, inflation and dependencies between lines of business. Due
to the complexity of factors contributing to the losses and the
preliminary nature of the information used to prepare these
estimates, there can be no assurance that Aspen’s ultimate losses
will remain within the stated amount.
Non-GAAP Financial Measures
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
financial 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 the financial
supplement, which can be obtained from the Investor Relations
section of Aspen’s website at www.aspen.co.
Annualized Operating Return on Average Equity (“Operating
ROE”) is a non-GAAP financial measure. Operating ROE is
calculated using operating income, as defined below, and average
equity is calculated as the arithmetic average on a monthly basis
for the stated periods of shareholders’ equity excluding the
aggregate value of the liquidation preferences of our preference
shares net of issuance costs and the total amount of
non-controlling interest. 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 21 of Aspen’s financial supplement for a reconciliation
of operating income to net income and page 7 for a reconciliation
of average ordinary shareholders’ equity to average shareholders’
equity. Aspen’s financial supplement can be obtained from the
Investor Relations section of Aspen’s website at www.aspen.co.
Operating Income is 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 and unrealized gains or losses, including net realized and
unrealized gains and losses on interest rate swaps, after-tax net
foreign exchange gains or losses, including net realized and
unrealized gains and losses from foreign exchange contracts and
certain non-recurring items.
Aspen excludes the items above from its calculation of operating
income because they are either not expected to recur and therefore
are not reflective of underlying performance or 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 would distort 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 21 of Aspen’s financial supplement for a reconciliation of
operating income to net income. Aspen’s financial supplement can be
obtained from the Investor Relations section of Aspen’s website at
www.aspen.co.
Diluted Book Value per Ordinary Share is not a non-GAAP
financial measure. Aspen has included diluted book value per
ordinary share as it illustrates the effect on basic book value per
share of dilutive securities thereby providing a better benchmark
for comparison with other companies. Diluted book value per share
is calculated using the treasury stock method, defined on page 20
of Aspen’s financial supplement, which can be obtained from the
Investor Relations section of Aspen’s website at www.aspen.co.
Diluted Operating Earnings per Share and Basic Operating
Earnings per Share are non-GAAP financial measures. 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 are calculated by dividing operating
income by the diluted or basic weighted average number of shares
outstanding for the period. See page 21 of Aspen’s financial
supplement for a reconciliation of diluted and basic operating
earnings per share to basic earnings per share. Aspen’s financial
supplement can be obtained from the Investor Relations section of
Aspen’s website at www.aspen.co.
Accident Year Loss Ratio Excluding Catastrophes is a
non-GAAP financial measure. Aspen believes that the presentation of
loss ratios excluding catastrophes and prior year reserve movements
supports meaningful comparison from period to period of the
underlying performance of the business. Accident year loss ratios
excluding catastrophes are calculated by dividing net losses
excluding catastrophe losses, net expenses and prior year reserve
movements by net earned premiums excluding catastrophe-related
reinstatement premiums. Aspen has defined catastrophe losses in the
first quarter of 2016 as losses associated with weather-related
events in the U.S. and an earthquake in Taiwan. Catastrophe losses
in the comparable period of 2015 were defined as losses associated
with storms in Europe, Australia and the U.S. See pages 9 and 10 of
Aspen’s financial supplement for a reconciliation of loss ratios to
accident year loss ratios excluding catastrophes.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160421006492/en/
AspenInvestorsMark Jones, Senior Vice President, Investor
Relations+1 (646) 289 4945Mark.P.Jones@aspen.coorMediaKaren Green,
Office of the CEO+44 20 7184 8110Karen.Green@aspen.coorInternational - Citigate
Dewe RogersonCaroline Merrell or Jos Bieneman+44 20 7638
9571Caroline.Merrell@citigatedr.co.ukJos.Bieneman@citigatedr.co.ukorNorth America -
Sard Verbinnen & CoPaul Scarpetta or Jamie Tully+1 (212) 687
8080
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Jul 2023 to Jul 2024