Reinsurance underwriting arm posts $212m loss
Bermuda-based reinsurer Aspen Insurance Holdings (AIH) has posted a net loss of $151.7m in the first quarter of 2011 as a result of natural catastrophe losses.
AIH’s Q1 losses include losses of $255.9m, net of reinsurance recoveries, reinstatement premiums and taxes, down from net profit after tax of $18.3 million in the same quarter last year.
The (re)insurer’s combined operating ratio rose 38 percentage points to 148.5% from 110.3% in 2010 first quarter, after suffering “an exceptionally high level of natural catastrophes” during the period,
Gross written premiums for the quarter dropped 4.5% to $671.3m from $702.8m in 2010.
AIH’s reinsurance arm suffered underwriting losses of $212.0m in Q1 2011, compared with a smaller loss of $40.5m for the equivalent period last year.
The underwriting results reflect a combined ratio of 178.0% compared to 113.9% in 2010 Q1, reflecting losses suffered from natural catastrophes in Australia, New Zealand and Japan.
Aspen CEO Chris O’Kane said: “These natural catastrophes had a material impact on our reinsurance segment results, while our insurance segment reported a modest profit in the quarter. Our balance sheet remains strong and we believe that we are well positioned to benefit as the pricing environment improves.”