But primary insurance profitability hit by Q4 catastrophes
Bermuda-based Aspen Insurance has reported operating profit after tax of $304.3m (£186.1m) for 2013.
This is an 8.7% increase on the $279.9m made over 2012.
Aspen also managed to grow gross written premium (GWP) by 2.5%, with GWP of $2.65bn for 2013 (2012: $2.58bn). This included $1.51bn of primary insurance GWP in 2013, an increase of 11.6% on the $1.26bn of premiums written in 2012.
However, the (re)insurer’s primary insurance business reported an unprofitable combined operating ratio (COR) of 103.9% for 2013, 4.6 percentage points higher than the 99.3% reported for 2012. This was largely owing to a 4.1 percentage deterioration in the loss ratio.
Most of these losses came in Q4 2013 when the loss ratio peaked at 85% and the COR hit 121.6%, the only time in the year that the ratio rose above 100%. Aspen said an increase of mid-sized losses from its marine division added 15.6 percentage points to the Q4 loss ratio.
A total of 22.9 percentage points was added to the ratio as a result of Q4 catastrophes.
Chief executive Chris O’Kane said: “In 2013 we continued to advance our three levers for enhancing return on equity – capital management, enhancing investment returns and business portfolio optimisation.
“The reinsurance business had outstanding results in 2013 and we are pleased with our 1 January renewals, which show that clients recognised the strength of Aspen Re’s capabilities and our importance as a trading partner.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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