Q1 results impacted by $17.6m of US severe weather losses and Costa Concordia claims

Aspen Insurance has reported net income after tax of $78.7m for the first quarter of 2012, compared to a loss of $152.8m in Q1 2011.

Trading highlights in the quarter included areas of improved pricing, especially in loss affected and peak zone property lines, targeted premium growth and net favourable reserve development.

The reinsurance segment recorded a loss ratio of 50% and a combined ratio of 79.8% (Q1 2011: 178.2%), which included pre-tax catastrophe losses of $17.6m from the severe US storms in February and March and $5.1m from the Costa Concordia event.

The segment underwriting profit for the first quarter of 2012 was $54.6m compared with an underwriting loss of $212.5m for the first quarter of 2011. GWP was up 8.5% to $474.2m.

“Our overall results this quarter are encouraging on a number of fronts,” said Aspen chief executive Chris O’Kane. “The quarter saw strong performance in reinsurance whereas insurance results were impacted by the Costa Concordia event. We continue to execute our strategy of ensuring that our capital, products and people are well aligned with our customers, especially those who are paying good or improving prices for our products.”

“There are numerous signs that the market is firming, and we are well positioned to deploy our capital to profitable underwriting or share repurchases,” he added.