Reinsurance and insurance CORs affected

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Aspen Insurance has reported a reinsurance combined operating ratio of 88.9% for the second quarter of this year, up 9.9% from 79% in Q2 2012.

The firm said that the rise was due to $51.8m of pre-tax catastrophe losses net of reinsurance recoveries and $5.2m of reinstatement premiums from flooding in central Europe, Canada and India, as well as tornadoes and hailstorms in the US. In Q2 2012, Aspen had no natural catastrophe losses.

The firm wrote $298.6m in reinsurance premiums for the quarter, compared with $299.8m for the same period the year before.

Aspen also reported a net income after tax of $40.1m, or $0.36 diluted net income per share, for the second quarter of 2013.

Aspen’s insurance gross written premium was $388.7m for the period, up 6% compared with $366.8m for Q2 2012.

The insurance combined ratio was 99.8%, compared with 92.2% for the same period the year before.

The firm said the rise was due to a $6.9m hit of pre-tax losses from US hailstorms and tornadoes, net of reinsurance recoveries and reinstatement premiums.

Aspen chief executive Chris O’Kane said: “In the second quarter, Aspen delivered solid operating results in an above-average catastrophe quarter, with our combined ratio excluding catastrophes improving modestly from last year. We continue to make progress on the three initiatives we outlined earlier this year to drive increased profitability.”