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Betting on Catastrophe – Billionaires Divide on Aspen Insurance Holdings

December 05, 2013 | About:
Sally Jones

Sally Jones

49 followers
In the third quarter of 2013, billionaire investors were sharply divided on Aspen Insurance Holdings Limited (AHL), with assets of $10.3 billion as of December. 31, 2012. Seven gurus reduced their positions; four of them dramatically reduced. Five gurus increased their AHL positions.

A Bermuda holding company incorporated in 2002, Aspen Insurance Holdings Limited conducts insurance and reinsurance business through its wholly-owned subsidiaries and operates in the global markets for property and casualty insurance and reinsurance. Aspen employs more than 830 people in eight countries.

Aspen Insurance Holdings Limited reported financial results for the third quarter of 2013 with a net income of $107.4 million, and net income earnings of $1.43 per diluted per share. In the third quarter, the company’s catastrophe losses included $14.9 million for hailstorms in Germany, $5.7 million related to floods in Toronto and Mexico. Aspen’s gross written insurance premiums of $362.1 million were up by 21.1% compared to the third quarter one year ago at $298.9 million. The company’s reinsurance gross written premiums declined by 15.4%.

Aspen’s CEO Chris O’Kane commented in a company press release: “In the third quarter, Aspen continued to make good progress in terms of strategic execution, operating results and profitability. We are pleased with the headway we are making on the three levers we outlined earlier this year. We repurchased $296 million of ordinary shares to date and continued to reallocate a portion of our investment portfolio to achieve higher risk-adjusted returns.”

Here’s a look at third quarter guru trading:

Aspen Insurance Holdings Ltd. (AHL)

Up 28% over 12 months, Aspen Insurance Holdings Ltd. has a market cap of $2.63 billion; its shares were traded at around $40.06 with a P/E ratio of 13.50. The dividend yield is 1.80%.

The GuruFocus analysis for AHL shows six warning signs.

Track historical share pricing, revenue and net income:

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Guru Action: As of Sept. 30, 2013, Arnold Schneider reduced his position by 89.42%, selling 109,081 shares at an average price of $36.77, for a gain of 8.9%.

Over five quarters, Schneider has averaged a 28% gain on 166,209 shares bought at an average price of $31.34 per share. He gained 8% selling 153,305 shares at an average price of $37.03 per share.

Guru Action: As of Sept. 30, 2013, Jim Simons increased his position by 387.47%, buying 501,000 shares at an average price of $36.77, for a gain of 8.9%. His current shares are 630,300.

Over five years, Simons has sold out three times. He has averaged a 15% gain on 876,900 shares bought at an average price of $34.82 per share. He gained 13% on 246,600 shares sold at an average price of $35.35 per share.

Guru Action: As of Sept. 30, 2013, Steven Cohen increased his position by 190.15%, buying 15,037 shares at an average price of $36.77, for a gain of 8.9%. His current shares are 22,945.

Cohen has averaged an 18% gain on 36,658 shares bought at an average price of $33.98 per share. He gained 22% on 13,713 shares sold at an average price of $32.85 per share.

Guru Action: As of Sept. 30, 2013, top guru stakeholder David Einhorn reduced his position by 36.93%, selling 1,451,581 shares at an average price of $36.77, for a gain of 8.6%. This trade impacts his portfolio by -1%. His current shares are 2,478,935 or 3.67% of shares outstanding.

Over five years, Einhorn has averaged a 67% gain on 5,700,182 shares bought at an average price of $23.88 per share. He gained 15% on 3,221,247 shares sold at an average price of $34.57 per share.

Here’s Einhorn’s trading history of gains:

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Guru Action: As of Sept. 30, 2013, Chuck Royce decreased his position by 12.46%, selling 190,552 shares at an average price of $36.77, for a gain of 8.9%. His current shares are 1,338,446 or 1.98% of shares outstanding.

Royce has averaged a 59% gain on 1,968,359 shares bought at an average price of $25.16 per share. He gained 27% on 3,799,859 shares sold at an average price of $31.44 per share.

Royce’s trading history shows remarkable gains over five years:

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Check out more active guru trading.

No insider activity was found.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (1 vote)

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