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AHL (Aspen Insurance Holdings) Financial Strength : 6 (As of Mar. 2025)


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What is Aspen Insurance Holdings Financial Strength?

Aspen Insurance Holdings has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Aspen Insurance Holdings's Interest Coverage for the quarter that ended in Mar. 2025 was 6.18. Aspen Insurance Holdings's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.12. Altman Z-Score does not apply to banks and insurance companies.


Aspen Insurance Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Aspen Insurance Holdings's Interest Expense for the months ended in Mar. 2025 was $-9 Mil. Its Operating Income for the months ended in Mar. 2025 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $373 Mil.

Aspen Insurance Holdings's Interest Coverage for the quarter that ended in Mar. 2025 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Aspen Insurance Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 373.1) / 3061.6
=0.12

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Aspen Insurance Holdings  (NYSE:AHL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Aspen Insurance Holdings has the Financial Strength Rank of 6.


Aspen Insurance Holdings Financial Strength Related Terms

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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. Its principal business is marketing and underwriting specialty insurance and reinsurance regularly. It comprises underwriting operations, which include risk-bearing insurance and reinsurance operations; Investing activities, which support underwriting operations; and ACM operations, which earn underwriting, management, and performance fees. It has 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.