Aspen Insurance Holdings Ltd. (AHL, Financial) filed Quarterly Report for the period ended 2009-06-30.
Aspen Insurance Holdings is a Bermudian holding company that provides property and casualty reinsurance in the global market property and liability insurance principally in the United Kingdom and surplus lines insurance in the United States. Aspen\'s operations are conducted through its wholly-owned subsidiaries located in London Bermuda and the United States: Aspen Insurance UK Limited Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen Insurance Holdings Ltd. has a market cap of $2.06 billion; its shares were traded at around $24.85 with a P/E ratio of 16.9 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.4%.
The loss ratio for the quarter of 54.8% has increased by 7.4 percentage points compared to the second quarter of 2008 mainly as a result of loss increases in both the international insurance and U.S. insurance segments, offset by an improvement in property reinsurance. The international insurance segment has been impacted by a $12.5 million loss, including reinstatement premiums, from the Air France aviation disaster, in addition to $5.0 million of prior year reserve strengthening in our lines exposed to the global financial crisis. A review of our U.S. insurance segment during the quarter has resulted in a $6.9 million reserve strengthening in our excess and surplus casualty insurance line. Although not a material strengthening, relative to the small amount of earned premium, this resulted in a 27.4 percentage point increase in the U.S. insurance segments loss ratio for the quarter. The main driver for the improvement in the property reinsurance loss ratio was $20.9 million of favorable loss development in the period, an increase of $18.3 million over the second quarter of 2008. The increase in prior year reserve releases in the quarter for the property reinsurance segment is attributable mainly to a reduction in loss expectations for Hurricane Ike. The casualty reinsurance loss ratio has increased mainly as a result of a reduction in reserve releases from $24.0 million in the second quarter of 2008 to $6.0 million in the second quarter of 2009.
Reserve releases in the quarter decreased by $23.6 million from the second quarter in 2008 mainly as a result of a reduction in releases in casualty reinsurance and reserve strengthening in the international insurance and U.S. insurance segments. These have been partially offset by reserve releases in the property reinsurance segment which increased by $18.3 million to $20.9 million, attributable mainly to a reduction in loss expectations for Hurricane Ike. Casualty reinsurance reserve releases decreased by $18.0 million to $6.0 million mainly as a result of less favorable loss experience for motor and general liability products in the international casualty reinsurance line of business and smaller reserve releases from our U.S. treaty business line. The international insurance segment has seen net reserve strengthening of $1.7 million compared to reserve releases of $11.2 million in the second quarter of 2008, with the second quarter of 2009 being impacted by $5.0 million of reserve strengthening in respect of our lines exposed to the global financial crisis and $5.0 million of reserve strengthening in our marine, energy and construction liability line. A review of our U.S. insurance segment during the quarter has resulted in a $6.9 million reserve strengthening in our excess and surplus casualty insurance line where greater than expected incurred claims development has caused us to revise our estimates of ultimate
Net investment income. In the second quarter of 2009, we generated net investment income of $72.2 million (2008 $70.5 million). The increase in net investment income was due primarily to gains of $16.2 million from our investment in funds of hedge funds compared to $10.8 million of gains in the comparative period in 2008. Investment income from fixed maturities decreased by $3.7 million to $56.0 million compared to June 30, 2008 as a result of lower bond yields.
Change in fair value of derivatives. In the three months ended June 30, 2009, we recorded a reduction of $1.9 million (2008 $1.6 million credit insurance contract; $1.4 million foreign exchange) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.3 million). Further information on these contracts can be found in Note 7 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended June 30, 2009 included $3.1 million of foreign currency exchange gains (2008 $5.0 million loss) and $4.8 million of realized and unrealized investment gains (2008 $0.8 million gain). The realized investment gains in 2009 include a charge of $2.9 million for investments we believe to be other-than-temporarily impaired (2008 ).
Read the The complete ReportAHL is in the portfolios of Richard Snow of Snow Capital Management, L.P., David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, Third Avenue Management, NWQ Managers of NWQ Investment Management Co, Richard Perry of Perry Capital.
Aspen Insurance Holdings is a Bermudian holding company that provides property and casualty reinsurance in the global market property and liability insurance principally in the United Kingdom and surplus lines insurance in the United States. Aspen\'s operations are conducted through its wholly-owned subsidiaries located in London Bermuda and the United States: Aspen Insurance UK Limited Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen Insurance Holdings Ltd. has a market cap of $2.06 billion; its shares were traded at around $24.85 with a P/E ratio of 16.9 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.4%.
Highlight of Business Operations:
Gross written premiums for the quarter have increased to $534.3 million from $528.8 million in the second quarter of 2008 due mainly to favorable contribution from our U.S. insurance and property reinsurance segments. Our U.S. insurance segment has experienced significant growth in the property line due to new business opportunities and increased prices for catastrophe exposed business. The property reinsurance segment has benefited from favorable market conditions, increased line sizes and an $8.3 million contribution from the newly established credit and surety business line. Gross written premiums in the international insurance segment have decreased by 7.8% to $238.7 million when compared to the second quarter of 2008 as we have adjusted our underwriting appetite in line with market conditions.The loss ratio for the quarter of 54.8% has increased by 7.4 percentage points compared to the second quarter of 2008 mainly as a result of loss increases in both the international insurance and U.S. insurance segments, offset by an improvement in property reinsurance. The international insurance segment has been impacted by a $12.5 million loss, including reinstatement premiums, from the Air France aviation disaster, in addition to $5.0 million of prior year reserve strengthening in our lines exposed to the global financial crisis. A review of our U.S. insurance segment during the quarter has resulted in a $6.9 million reserve strengthening in our excess and surplus casualty insurance line. Although not a material strengthening, relative to the small amount of earned premium, this resulted in a 27.4 percentage point increase in the U.S. insurance segments loss ratio for the quarter. The main driver for the improvement in the property reinsurance loss ratio was $20.9 million of favorable loss development in the period, an increase of $18.3 million over the second quarter of 2008. The increase in prior year reserve releases in the quarter for the property reinsurance segment is attributable mainly to a reduction in loss expectations for Hurricane Ike. The casualty reinsurance loss ratio has increased mainly as a result of a reduction in reserve releases from $24.0 million in the second quarter of 2008 to $6.0 million in the second quarter of 2009.
Reserve releases in the quarter decreased by $23.6 million from the second quarter in 2008 mainly as a result of a reduction in releases in casualty reinsurance and reserve strengthening in the international insurance and U.S. insurance segments. These have been partially offset by reserve releases in the property reinsurance segment which increased by $18.3 million to $20.9 million, attributable mainly to a reduction in loss expectations for Hurricane Ike. Casualty reinsurance reserve releases decreased by $18.0 million to $6.0 million mainly as a result of less favorable loss experience for motor and general liability products in the international casualty reinsurance line of business and smaller reserve releases from our U.S. treaty business line. The international insurance segment has seen net reserve strengthening of $1.7 million compared to reserve releases of $11.2 million in the second quarter of 2008, with the second quarter of 2009 being impacted by $5.0 million of reserve strengthening in respect of our lines exposed to the global financial crisis and $5.0 million of reserve strengthening in our marine, energy and construction liability line. A review of our U.S. insurance segment during the quarter has resulted in a $6.9 million reserve strengthening in our excess and surplus casualty insurance line where greater than expected incurred claims development has caused us to revise our estimates of ultimate
Net investment income. In the second quarter of 2009, we generated net investment income of $72.2 million (2008 $70.5 million). The increase in net investment income was due primarily to gains of $16.2 million from our investment in funds of hedge funds compared to $10.8 million of gains in the comparative period in 2008. Investment income from fixed maturities decreased by $3.7 million to $56.0 million compared to June 30, 2008 as a result of lower bond yields.
Change in fair value of derivatives. In the three months ended June 30, 2009, we recorded a reduction of $1.9 million (2008 $1.6 million credit insurance contract; $1.4 million foreign exchange) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.3 million). Further information on these contracts can be found in Note 7 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended June 30, 2009 included $3.1 million of foreign currency exchange gains (2008 $5.0 million loss) and $4.8 million of realized and unrealized investment gains (2008 $0.8 million gain). The realized investment gains in 2009 include a charge of $2.9 million for investments we believe to be other-than-temporarily impaired (2008 ).
Read the The complete ReportAHL is in the portfolios of Richard Snow of Snow Capital Management, L.P., David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, Third Avenue Management, NWQ Managers of NWQ Investment Management Co, Richard Perry of Perry Capital.
