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Aspen Insurance Holdings (Aspen Insurance Holdings) ROE % : 33.73% (As of Dec. 2023)


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What is Aspen Insurance Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aspen Insurance Holdings's annualized net income for the quarter that ended in Dec. 2023 was $918 Mil. Aspen Insurance Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,722 Mil. Therefore, Aspen Insurance Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 33.73%.

The historical rank and industry rank for Aspen Insurance Holdings's ROE % or its related term are showing as below:

AHL' s ROE % Range Over the Past 10 Years
Min: -8.99   Med: 1.58   Max: 11.11
Current: 8.88

During the past 13 years, Aspen Insurance Holdings's highest ROE % was 11.11%. The lowest was -8.99%. And the median was 1.58%.

AHL's ROE % is not ranked
in the Insurance industry.
Industry Median: 9.65 vs AHL: 8.88

Aspen Insurance Holdings ROE % Historical Data

The historical data trend for Aspen Insurance Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Aspen Insurance Holdings ROE % Chart

Aspen Insurance Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.89 -2.01 1.05 1.99 20.31

Aspen Insurance Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -26.12 27.80 - 13.58 33.73

Competitive Comparison of Aspen Insurance Holdings's ROE %

For the Insurance - Property & Casualty subindustry, Aspen Insurance Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aspen Insurance Holdings's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aspen Insurance Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Aspen Insurance Holdings's ROE % falls into.



Aspen Insurance Holdings ROE % Calculation

Aspen Insurance Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=534.7/( (2358+2908.5)/ 2 )
=534.7/2633.25
=20.31 %

Aspen Insurance Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=918/( (2535.1+2908.5)/ 2 )
=918/2721.8
=33.73 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Aspen Insurance Holdings  (NYSE:AHL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=918/2721.8
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(918 / 2876.8)*(2876.8 / 15207.85)*(15207.85 / 2721.8)
=Net Margin %*Asset Turnover*Equity Multiplier
=31.91 %*0.1892*5.5874
=ROA %*Equity Multiplier
=6.04 %*5.5874
=33.73 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=918/2721.8
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (918 / 224) * (224 / 280.4) * (280.4 / 2876.8) * (2876.8 / 15207.85) * (15207.85 / 2721.8)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 4.0982 * 0.7989 * 9.75 % * 0.1892 * 5.5874
=33.73 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Aspen Insurance Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Aspen Insurance Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Aspen Insurance Holdings (Aspen Insurance Holdings) Business Description

Traded in Other Exchanges
Address
141 Front Street, Hamilton, BMU, HM19
Aspen Insurance Holdings Ltd is a Bermudian insurance and reinsurance company. The company operates through subsidiaries that include Aspen Insurance UK, Aspen Underwriting, Aspen Bermuda, Aspen Specialty Insurance, and Aspen American Insurance Corporation. The company also has branches in Australia, Canada, Singapore, and Switzerland. The company's business is divided into two segments: Aspen Insurance and Aspen Reinsurance. Aspen Insurance consists of property and casualty insurance, marine, aviation and energy insurance, and financial and professional lines insurance. Aspen Reinsurance comprises property catastrophe reinsurance, other property reinsurance, casualty reinsurance, and specialty reinsurance.
Executives
Christian Dunleavy officer: CUO of Aspen Re C/O ASPEN INSURANCE HOLDINGS LTD, 141 FRONT STREET, HAMILTON D0 HM19
Silvia Martinez officer: Group General Counsel 30 FENCHURCH STREET, LONDON X0 EC3M 3BD
Jeffrey Bryan Astwood officer: Group Chief Investment Officer 141 FRONT STREET, HAMILTON D0 HM19
Marcus Foley officer: Group Chief Strategy Officer 141 FRONT STREET, HAMILTON D0 HM19
Polycarpos Christakis Frydas officer: Group Chief Actuary C/O ASPEN INSURANCE HOLDINGS LTD, 141 FRONT STREET, HAMILTON D0 HM19
Kane Christopher O director, officer: CEO ASPEN INSURANCE HOLDINGS LIMITED, 141 FRONT STREET, HAMILTON D0 HM19
Timothy Paul Aman officer: Group Chief Risk Officer 141 FRONT STREET, HAMILTON D0 HM19
Glyn Jones director ASPEN INSURANCE HOLDINGS LTD, 141 FRONT STREET, HAMILTON D0 HM19
Kate Vacher officer: CEO, ABL ASPEN INSURANCE HOLDINGS LIMITED, 141 FRONT STREET, HAMILTON D0 HM19
Emil Issavi officer: President and CUO, Aspen Re ASPEN INSURANCE HOLDINGS LIMITED, 141 FRONT STREET, HAMILTON D0 HM19
Gordon Ireland director C/O ASPEN INSURANCE HOLDINGS LIMITED, 141 FRONT STREET, HAMILTON D0 HM19
Scott Kirk officer: Group CFO C/O ARGO GROUP INTERNATIONAL HOLDINGS,, LTD. 90 PITTS BAY ROAD, PEMBROKE D0 HM 08
David Alan Cohen officer: President and CUO Insurance C/O ASPEN INSURANCE HOLDINGS LTD, 141 FRONT STREET, HAMILTON D0 HM19
Gernot Lohr director C/O APOLLO MANAGEMENT, L.P.,, 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Grahame Dawe officer: Chief Accounting Officer C/O ASPEN INSURANCE HOLDINGS LTD, 141 FRONT STREET, HAMILTON D0 HM19

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