EX-99.2 3 a992-ahlq418.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2    
 
 
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 FINANCIAL SUPPLEMENT
 
 As of December 31, 2018
 
 
 
 
Aspen Insurance Holdings Limited
 
 
 
 
This financial supplement is for information purposes only. It should be read in conjunction with other documents filed or to be filed by Aspen Insurance Holdings Limited with the United States Securities and Exchange Commission.
 
 
 
www.aspen.co
 
 
 
 
 
 
Investor Contact:
 
 
Aspen Insurance Holdings Limited
 
 
Mark Jones, Senior Vice President, Investor Relations
 
 
T: +1 646 289 4945
 
 
email: Mark.P.Jones@aspen.co
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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1


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ASPEN INSURANCE HOLDINGS LIMITED
 
Table Of Contents
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
8 - 9
 
10 - 11
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Natural Catastrophe Exposures



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ASPEN INSURANCE HOLDINGS LIMITED
 
Basis of Presentation
 
 
 
 
 
 
Definitions and presentations: All financial information contained herein is unaudited except for information for the fiscal year ended December 31, 2017. Unless otherwise noted, all data is in U.S. dollar millions, except for per share amounts, percentages and ratio information.
 
 
 
 
 
In presenting Aspen's results, management has included and discussed certain "non-GAAP financial measures". Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain Aspen's results of operations in a manner that allows for a more complete understanding of the underlying trends in Aspen's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures is included in this financial supplement.
 
 
 
 
 
Operating income (a non-GAAP financial measure): Operating income is an internal performance measure used by Aspen in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized and unrealized gains or losses, after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses from foreign exchange contracts, net realized gains or losses on investments, amortization of intangible assets and certain non-recurring income and expenses, including expenses associated with the Company's operational effectiveness and efficiency program. Operating income in the fourth quarter of 2018 also excluded advisor fees relating to the proposed transaction with affiliates of certain investment funds (the "Apollo Funds") affiliated with Apollo Global Management, LLC. Operating income in the full year of 2018 also excluded advisor fees relating to the proposed transaction with the Apollo Funds and expenses related to the make-whole payment associated with the partial redemption of Aspen's 6.00% Senior Notes due 2020. Operating income in the full year of 2017 also excluded the issue costs associated with the redemption of Aspen's 7.250% Perpetual Non-Cumulative Preference Shares and 7.401% Perpetual Non-Cumulative Preference Shares.
 
 
 
 
 
Aspen excludes these items above from its calculation of operating income because they are either not expected to recur and therefore are not reflective of underlying performance or the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Aspen believes these amounts are largely independent of its business and underwriting process and including them would distort the analysis of trends in its operations. In addition to presenting net income determined in accordance with GAAP, Aspen believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Aspen's results of operations in a manner similar to how management analyzes Aspen's underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see page 22 for a reconciliation of net income to operating income.
 
 
 
 
 
Annualized operating return on average equity (“Operating ROE”) (a non-GAAP financial measure): Operating ROE is calculated using operating income, as defined above, and average equity is calculated as the arithmetic average on a monthly basis for the stated periods of shareholders' equity excluding the aggregate value of the liquidation preferences of our preference shares net of issuance costs and the total amount of non-controlling interest.
 
 
 
 
 
Aspen presents Operating ROE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. See page 22 for a reconciliation of operating income to net income and page 7 for a reconciliation of average shareholders' equity to average ordinary shareholders' equity.
 
 
 
 
 
Diluted book value per ordinary share (not a non-GAAP financial measure): Aspen has included diluted book value per ordinary share as it illustrates the effect on basic book value per share of dilutive securities thereby providing a better benchmark for comparison with other companies. Diluted book value per share is calculated using the treasury stock method as defined on page 21.
 
 
 
 
 
 
Diluted operating earnings per share and basic operating earnings per share (non-GAAP financial measures): Aspen believes that the presentation of diluted operating earnings per share and basic operating earnings per share supports meaningful comparison from period to period and the analysis of normal business operations. Diluted operating earnings per share and basic operating earnings per share are calculated by dividing operating income by the diluted or basic weighted average number of shares outstanding for the period. See page 22 for a reconciliation of basic earnings per share to diluted and basic operating earnings per share.
 
 
Accident year loss ratio excluding catastrophes (a non-GAAP financial measure): Aspen believes that the presentation of loss ratios excluding catastrophes and prior year reserve movements supports meaningful comparison from period to period of the underlying performance of the business.  Accident year loss ratios excluding catastrophes are calculated by dividing net losses excluding catastrophe losses and prior year reserve movements by net earned premiums excluding catastrophe-related reinstatement premiums. Aspen has defined catastrophe losses in the full year of 2018 as losses associated with Hurricanes Florence and Michael in the U.S., Typhoon Jebi in Japan, Winter Storm Friederike in Europe, U.K. winter storms, wildfires in California and other U.S. and Asian weather-related events. Catastrophe losses in the full year of 2017 were defined as losses associated predominantly with Hurricanes Harvey, Irma and Maria, the earthquakes in Mexico, a tornado in Mississippi, Cyclone Debbie in Australia, wildfires in California and other U.S. weather-related events. See pages 10 and 11 for a reconciliation of loss ratios to accident year loss ratios excluding catastrophes.
 
 
 
 
 
 
Underwriting ratios (GAAP financial measures): Aspen, along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of net claims and claims adjustment expenses to net premiums earned. The acquisition expense ratio is the ratio of underwriting expenses (commissions, premium taxes, licenses and fees, as well as other underwriting expenses) to net premiums earned. The general and administrative expense ratio is the ratio of general and administrative expenses to net premiums earned. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.
 
 
 
 
 
GAAP combined ratios differ from U.S. statutory combined ratios primarily due to the deferral of certain third-party acquisition expenses for GAAP reporting purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general and administrative expense ratios.

1


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ASPEN INSURANCE HOLDINGS LIMITED
Financial Highlights
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions except for percentages, share and per share amounts)
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
Gross written premium
 
$
603.1

 
$
688.3

 
(12.4
)%
 
$
3,446.9

 
$
3,360.9

 
2.6
 %
Net written premium
 
$
381.6

 
$
340.2

 
12.2
 %
 
$
2,082.0

 
$
2,212.5

 
(5.9
)%
Net earned premium
 
$
538.5

 
$
511.0

 
5.4
 %
 
$
2,214.7

 
$
2,306.6

 
(4.0
)%
Net (loss) after tax
 
$
(146.8
)
 
$
(184.9
)
 
20.6
 %
 
$
(145.8
)
 
$
(266.4
)
 
45.3
 %
Operating (loss)/income after tax
 
$
(124.4
)
 
$
(178.1
)
 
30.2
 %
 
$
31.8

 
$
(355.7
)
 
108.9
 %
Net investment income
 
$
52.5

 
$
47.5

 
10.5
 %
 
$
198.2

 
$
189.0

 
4.9
 %
Underwriting (loss)
 
$
(171.8
)
 
$
(245.2
)
 
(29.9
)%
 
$
(144.4
)
 
$
(558.1
)
 
74.1
 %
Earnings Per Share and Book Value Per Share
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
    Net (loss) adjusted for preference share dividend and non-controlling interest
 
$
(2.60
)
 
$
(3.25
)
 
20.0
 %
 
$
(2.97
)
 
$
(5.22
)
 
43.1
 %
    Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(2.23
)
 
$
(3.14
)
 
29.0
 %
 
$
0.01

 
$
(6.59
)
 
100.2
 %
Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
    Net (loss) adjusted for preference share dividend and non-controlling interest
 
$
(2.60
)
 
$
(3.25
)
 
20.0
 %
 
$
(2.97
)
 
$
(5.22
)
 
43.1
 %
    Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(2.23
)
 
$
(3.14
)
 
29.0
 %
 
$
0.01

 
$
(6.59
)
 
100.2
 %
Weighted average number of ordinary shares outstanding (in millions of shares) (1)
 
59.709

 
59.431

 
0.5
 %
 
59.656

 
59.754

 
(0.2
)%
Diluted weighted average number of ordinary shares outstanding (in millions of shares)
 
59.709

 
59.431

 
0.5
 %
 
59.656

 
59.754

 
(0.2
)%
Book value per ordinary share
 
$
35.83

 
$
40.59

 
(11.7
)%
 
$
35.83

 
$
40.59

 
(11.7
)%
Diluted book value per ordinary share
 
$
35.48

 
$
40.10

 
(11.5
)%
 
$
35.48

 
$
40.10

 
(11.5
)%
Ordinary shares outstanding at December 31, 2018 and December 31, 2017 (in millions of shares)
 
59.743

 
59.474

 
0.5
 %
 
59.743

 
59.474

 
0.5
 %
Diluted ordinary shares outstanding at December 31, 2018 and December 31, 2017 (in millions of shares)
 
60.321

 
60.202

 
0.2
 %
 
60.321

 
60.202

 
0.2
 %
Underwriting Ratios
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
96.8
 %
 
106.5
 %
 
 
 
71.0
 %
 
86.5
 %
 
 
   Policy acquisition expense ratio
 
17.4
 %
 
16.7
 %
 
 
 
16.8
 %
 
17.4
 %
 
 
   General, administrative and corporate expense ratio
 
18.6
 %
 
29.4
 %
 
 
 
22.2
 %
 
21.8
 %
 
 
   General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
 
17.7
 %
 
24.8
 %
 
 
 
18.7
 %
 
20.4
 %
 
 
Expense ratio
 
36.0
 %
 
46.1
 %
 
 
 
39.0
 %
 
39.2
 %
 
 
Expense ratio (excluding amortization and non-recurring expenses)
 
35.1
 %
 
41.5
 %
 
 
 
35.5
 %
 
37.8
 %
 
 
Combined ratio
 
132.8
 %
 
152.6
 %
 
 
 
110.0
 %
 
125.7
 %
 
 
Combined ratio (excluding amortization and non-recurring expenses)
 
131.9
 %
 
148.0
 %
 
 
 
106.5
 %
 
124.3
 %
 
 
Return On Equity
 
 
 
 
 
 
 
 
 
 
 
 
Average equity (2)
 
$
2,200.7

 
$
2,531.3

 
 
 
$
2,297.2

 
$
2,799.9

 
 
Return on average equity
 
 
 
 
 
 
 
 
 
 
 
 
   Net (loss) adjusted for preference share dividend and non-controlling interest
 
(7.1
)%
 
(7.6
)%
 
 
 
(7.7
)%
 
(11.1
)%
 
 
   Operating (loss) adjusted for preference share dividend and non-controlling interest
 
(6.0
)%
 
(7.4
)%
 
 
 
—
 %
 
(14.0
)%
 
 
Annualized return on average equity
 
 
 
 
 
 
 
 
 
 
 
 
   Net (loss)
 
(28.4
)%
 
(30.4
)%
 
 
 
(7.7
)%
 
(11.1
)%
 
 
   Operating (loss)
 
(24.0
)%
 
(29.6
)%
 
 
 
—
 %
 
(14.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See pages 7 and 22 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
 
 
 
 
 
 
(1) The basic and diluted number of ordinary shares is the same as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.
 
 
 
 
(2) Average equity excludes preference shares.
 
 
 
 

2


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ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Quarterly Results
(in US$ millions except for percentages)
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Q4 2017
 
Q3 2017
 
Q2 2017
 
Q1 2017
UNDERWRITING REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
603.1

 
$
873.2

 
$
853.8

 
$
1,116.8

 
$
688.3

 
$
852.5

 
$
822.1

 
$
998.0

Premiums ceded
(221.5
)
 
(294.3
)
 
(367.8
)
 
(481.3
)
 
(348.1
)
 
(245.1
)
 
(243.4
)
 
(311.8
)
Net written premiums
381.6

 
578.9

 
486.0

 
635.5

 
340.2

 
607.4

 
578.7

 
686.2

Change in unearned premiums
156.9

 
44.3

 
33.5

 
(102.0
)
 
170.8

 
45.1

 
(16.7
)
 
(105.1
)
Net earned premiums
538.5

 
623.2

 
519.5

 
533.5

 
511.0

 
652.5

 
562.0

 
581.1

UNDERWRITING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
521.3

 
431.1

 
310.4

 
310.2

 
544.2

 
776.2

 
346.1

 
328.2

Amortization of deferred policy acquisition costs
93.9

 
101.0

 
85.9

 
90.8

 
85.1

 
105.4

 
96.3

 
113.7

General, administrative and corporate expenses
95.1

 
109.4

 
101.1

 
108.9

 
126.9

 
105.7

 
117.8

 
119.1

Total underwriting expenses
710.3

 
641.5

 
497.4

 
509.9

 
756.2

 
987.3

 
560.2

 
561.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting (loss)/income including corporate expenses
(171.8
)
 
(18.3
)
 
22.1

 
23.6

 
(245.2
)
 
(334.8
)
 
1.8

 
20.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
52.5

 
48.0

 
50.4

 
47.3

 
47.5

 
46.4

 
47.4

 
47.7

Interest expense
(5.5
)
 
(5.4
)
 
(7.6
)
 
(7.4
)
 
(7.3
)
 
(7.4
)
 
(7.4
)
 
(7.4
)
Other income/(expense) (1)
2.5

 
(0.7
)
 
(1.8
)
 
1.9

 
18.6

 
7.6

 
(1.7
)
 
0.7

Total other revenue
49.5

 
41.9

 
41.0

 
41.8

 
58.8

 
46.6

 
38.3

 
41.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization and non-recurring expenses
(5.0
)
 
(51.0
)
 
(9.1
)
 
(12.1
)
 
(23.2
)
 
(5.2
)
 
(2.1
)
 
(2.2
)
Net realized and unrealized exchange (losses)/gains (2)
(10.9
)
 
(2.3
)
 
(40.9
)
 
18.8

 
(0.3
)
 
12.9

 
(3.0
)
 
(5.8
)
Net realized and unrealized investment (losses)/gains 
(5.4
)
 
(0.9
)
 
(20.7
)
 
(37.7
)
 
14.8

 
17.5

 
42.0

 
46.2

Realized (loss) on debt extinguishment
—

 
—

 
(8.6
)
 
—

 
—

 
—

 
—

 
—

(LOSS)/INCOME BEFORE TAX
(143.6
)
 
(30.6
)
 
(16.2
)
 
34.4

 
(195.1
)
 
(263.0
)
 
77.0

 
99.3

Income tax (expense)/benefit
(3.2
)
 
15.5

 
1.5

 
(3.6
)
 
10.2

 
9.2

 
(1.2
)
 
(2.8
)
NET (LOSS)/INCOME AFTER TAX
(146.8
)
 
(15.1
)
 
(14.7
)
 
30.8

 
(184.9
)
 
(253.8
)
 
75.8

 
96.5

Dividends paid on ordinary shares
—

 
(14.3
)
 
(14.3
)
 
(14.3
)
 
(14.3
)
 
(14.4
)
 
(14.4
)
 
(13.2
)
Dividends paid on preference shares
(7.7
)
 
(7.6
)
 
(7.6
)
 
(7.6
)
 
(7.5
)
 
(7.7
)
 
(10.5
)
 
(10.5
)
Dividends paid to non-controlling interest
(0.1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Preference share redemption costs
—

 
—

 
—

 
—

 
—

 
(5.6
)
 
—

 
(2.4
)
Proportion due to non-controlling interest
(0.8
)
 
0.1

 
(0.1
)
 
(0.2
)
 
(0.5
)
 
(0.6
)
 
(0.1
)
 
(0.1
)
Retained (loss)/income
$
(155.4
)
 
$
(36.9
)
 
$
(36.7
)
 
$
8.7

 
$
(207.2
)
 
$
(282.1
)
 
$
50.8

 
$
70.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
96.8
%
 
69.2
%
 
59.7
%
 
58.1
%
 
106.5
%
 
119.0
%
 
61.6
%
 
56.5
%
Policy acquisition expense ratio
17.4
%
 
16.2
%
 
16.5
%
 
17.0
%
 
16.7
%
 
16.2
%
 
17.1
%
 
19.6
%
General, administrative and corporate expense ratio
18.6
%
 
25.7
%
 
21.2
%
 
22.7
%
 
29.4
%
 
17.0
%
 
21.3
%
 
20.9
%
General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
17.7
%
 
17.6
%
 
19.5
%
 
20.4
%
 
24.8
%
 
16.2
%
 
21.0
%
 
20.5
%
Expense ratio
36.0
%
 
41.9
%
 
37.7
%
 
39.7
%
 
46.1
%
 
33.2
%
 
38.4
%
 
40.5
%
Expense ratio (excluding amortization and non-recurring expenses)
35.1
%
 
33.8
%
 
36.0
%
 
37.4
%
 
41.5
%
 
32.4
%
 
38.1
%
 
40.1
%
Combined ratio
132.8
%
 
111.1
%
 
97.4
%
 
97.8
%
 
152.6
%
 
152.2
%
 
100.0
%
 
97.0
%
Combined ratio (excluding amortization and non-recurring expenses)
131.9
%
 
103.0
%
 
95.7
%
 
95.5
%
 
148.0
%
 
151.4
%
 
99.7
%
 
96.6
%
See pages 7 and 22 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) Other income/(expense) in the fourth quarter of 2018 and fourth quarter of 2017 included expenses of $0.3 million and income of $17.6 million, respectively, related to a change in the fair value of loan notes issued by Silverton Re.
(2) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

3


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ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Year To Date Results
(in US$ millions except for percentages)
 
Twelve Months Ended December 31,
 
 
2018
 
2017
UNDERWRITING REVENUES
 
 
 
Gross written premiums
 
$
3,446.9

 
$
3,360.9

Premiums ceded
 
(1,364.9
)
 
(1,148.4
)
Net written premiums
 
2,082.0

 
2,212.5

Change in unearned premiums
 
132.7

 
94.1

Net earned premiums
 
2,214.7

 
2,306.6

UNDERWRITING EXPENSES
 
 
 
 
Losses and loss adjustment expenses
 
1,573.0

 
1,994.7

Amortization of deferred policy acquisition costs
 
371.6

 
400.5

General, administrative and corporate expenses
 
414.5

 
469.5

Total underwriting expenses
 
2,359.1

 
2,864.7

 
 
 
 
 
Underwriting (loss) including corporate expenses
 
(144.4
)
 
(558.1
)
 
 
 
 
 
Net investment income
 
198.2

 
189.0

Interest expense
 
(25.9
)
 
(29.5
)
Other income
 
1.9

 
25.2

Total other revenue
 
174.2

 
184.7

 
 
 
 
 
Amortization and non-recurring expenses
 
(77.2
)
 
(32.7
)
Net realized and unrealized exchange (losses)/gains (1)
 
(35.3
)
 
3.8

Net realized and unrealized investment (losses)/gains
 
(64.7
)
 
120.5

Realized (loss) on debt extinguishment
 
(8.6
)
 
—

(LOSS) BEFORE TAX
 
(156.0
)
 
(281.8
)
Income tax benefit
 
10.2

 
15.4

NET (LOSS) AFTER TAX
 
(145.8
)
 
(266.4
)
Dividends paid on ordinary shares
 
(42.9
)
 
(56.3
)
Dividends paid on preference shares
 
(30.5
)
 
(36.2
)
Dividends paid to non controlling interest
 
(0.1
)
 
—

Preference share redemption costs
 
—

 
(8.0
)
Proportion due to non-controlling interest
 
(1.0
)
 
(1.3
)
Retained (loss)
 
$
(220.3
)
 
$
(368.2
)
 
 
 
 
 
Loss ratio
 
71.0
%
 
86.5
%
 
Policy acquisition expense ratio
 
16.8
%
 
17.4
%
 
General, administrative and corporate expense ratio
 
22.2
%
 
21.8
%
 
General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
 
18.7
%
 
20.4
%
Expense ratio
 
39.0
%
 
39.2
%
Expense ratio (excluding amortization and non-recurring expenses)
 
35.5
%
 
37.8
%
Combined ratio
 
110.0
%
 
125.7
%
Combined ratio (excluding amortization and non-recurring expenses)
 
106.5
%
 
124.3
%
See pages 7 and 22 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

4


 
q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for per share amounts)
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30,
2017
 
June 30,
 2017
 
March 31,
2017
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities
 
$
6,418.5

 
$
6,583.6

 
$
6,695.9

 
$
7,049.8

 
$
6,880.3

 
$
7,030.4

 
$
6,854.8

 
$
6,977.6

 
 
Equity securities
 
—

 
—

 
—

 
—

 
491.0

 
468.6

 
658.7

 
623.6

 
 
Other investments
 
169.6

 
167.4

 
153.3

 
66.1

 
66.4

 
4.0

 
3.9

 
5.0

 
 
Catastrophe bonds
 
36.2

 
37.4

 
35.5

 
34.8

 
32.4

 
30.3

 
28.3

 
41.8

 
 
Short-term investments
 
115.1

 
124.7

 
99.6

 
81.6

 
162.9

 
124.7

 
115.6

 
348.1

 
 
Total investments
 
6,739.4

 
6,913.1

 
6,984.3

 
7,232.3

 
7,633.0

 
7,658.0

 
7,661.3

 
7,996.1

 
 
Cash and cash equivalents
 
1,083.7

 
1,026.6

 
1,070.7

 
1,246.9

 
1,054.8

 
1,209.3

 
1,228.4

 
873.1

 
 
Reinsurance recoverables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses
 
2,077.6

 
1,767.1

 
1,656.4

 
1,611.3

 
1,515.2

 
1,369.5

 
779.4

 
635.8

 
 
Ceded unearned premiums
 
558.8

 
666.5

 
724.8

 
683.9

 
515.5

 
446.4

 
464.1

 
404.8

 
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting premiums
 
1,459.3

 
1,700.1

 
1,725.2

 
1,743.0

 
1,496.5

 
1,529.0

 
1,614.1

 
1,557.8

 
 
Other
 
121.2

 
202.2

 
175.5

 
108.6

 
151.1

 
175.8

 
106.1

 
120.7

 
 
Funds withheld
 
91.8

 
91.6

 
89.3

 
102.9

 
99.8

 
100.1

 
89.9

 
90.4

 
 
Deferred policy acquisition costs
 
248.5

 
290.1

 
298.6

 
319.9

 
294.3

 
354.1

 
364.6

 
367.5

 
 
Derivatives at fair value
 
14.6

 
6.4

 
14.1

 
15.6

 
6.4

 
8.4

 
22.1

 
5.2

 
 
Receivable for securities sold
 
3.2

 
7.7

 
2.6

 
4.1

 
5.3

 
19.0

 
13.6

 
25.7

 
 
Office properties and equipment
 
73.1

 
75.0

 
73.0

 
77.1

 
75.5

 
89.8

 
85.3

 
86.1

 
 
Taxation
 
35.4

 
50.6

 
32.7

 
34.3

 
30.6

 
13.1

 
7.2

 
—

 
 
Other assets
 
—

 
0.5

 
0.5

 
0.5

 
0.5

 
1.0

 
1.0

 
1.0

 
 
Intangible assets and goodwill
 
26.3

 
26.7

 
27.0

 
27.5

 
27.9

 
78.1

 
79.4

 
80.5

 
 
Total assets
 
$
12,532.9

 
$
12,824.2

 
$
12,874.7

 
$
13,207.9

 
$
12,906.4

 
$
13,051.6

 
$
12,516.5

 
$
12,244.7

 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
$
7,074.2

 
$
6,726.2

 
$
6,532.8

 
$
6,679.4

 
$
6,749.5

 
$
6,490.6

 
$
5,571.4

 
$
5,365.9

 
 
Unearned premiums
 
1,709.1

 
1,974.4

 
2,087.2

 
2,097.7

 
1,820.8

 
1,926.5

 
1,981.5

 
1,891.8

 
 
Total insurance reserves
 
8,783.3

 
8,700.6

 
8,620.0

 
8,777.1

 
8,570.3

 
8,417.1

 
7,552.9

 
7,257.7

 
 
Payables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance premiums
 
405.6

 
586.4

 
596.0

 
491.3

 
357.5

 
439.4

 
316.7

 
362.9

 
 
Taxation
 
0.1

 
—

 
—

 
—

 
—

 
0.5

 
4.4

 
4.0

 
 
Accrued expenses and other payables
 
248.1

 
333.6

 
336.5

 
496.5

 
455.4

 
377.9

 
352.8

 
361.8

 
 
Liabilities under derivative contracts
 
15.1

 
3.1

 
49.3

 
2.3

 
1.0

 
2.9

 
8.6

 
4.3

 
 
Total payables
 
668.9

 
923.1

 
981.8

 
990.1

 
813.9

 
820.7

 
682.5

 
733.0

 
 
Loan notes issued by variable interest entities, at fair value
 
—

 
—

 
20.3

 
32.2

 
44.2

 
101.5

 
110.8

 
110.2

 
 
Long-term debt
 
424.7

 
424.7

 
424.6

 
549.5

 
549.5

 
549.4

 
549.4

 
549.4

 
 
Total liabilities
 
9,876.9

 
10,048.4

 
10,046.7

 
10,348.9

 
9,977.9

 
9,888.7

 
8,895.6

 
8,650.3

 
 
SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares
 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
 
Non-controlling interest
 
3.7

 
2.9

 
3.0

 
2.9

 
2.7

 
2.2

 
1.6

 
1.5

 
 
Preference shares
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
Additional paid-in capital
 
967.5

 
966.0

 
965.4

 
959.5

 
954.7

 
951.8

 
1,125.2

 
1,142.1

 
 
Retained earnings
 
1,806.6

 
1,962.0

 
1,998.9

 
2,035.6

 
2,026.9

 
2,234.1

 
2,516.2

 
2,465.4

 
 
Accumulated other comprehensive income, net of taxes
 
(121.9
)
 
(155.2
)
 
(139.4
)
 
(139.1
)
 
(55.9
)
 
(25.3
)
 
(22.2
)
 
(14.7
)
 
 
Total shareholders’ equity
 
2,656.0

 
2,775.8

 
2,828.0

 
2,859.0

 
2,928.5

 
3,162.9

 
3,620.9

 
3,594.4

 
 
Total liabilities and shareholders’ equity
 
$
12,532.9

 
$
12,824.2

 
$
12,874.7

 
$
13,207.9

 
$
12,906.4

 
$
13,051.6

 
$
12,516.5

 
$
12,244.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
35.83

 
$
37.87

 
$
38.75

 
$
39.30

 
$
40.59

 
$
44.59

 
$
49.34

 
$
48.79

 
 
Book value per diluted ordinary share
 
$
35.48

 
$
37.46

 
$
38.21

 
$
38.70

 
$
40.10

 
$
44.00

 
$
48.64

 
$
47.89

 
 
 

5


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Earnings Per Share and Book Value Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
(in US$ except for number of shares)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
 
Net (loss) adjusted for preference share dividend and non-controlling interest
 
$
(2.60
)
 
$
(3.25
)
 
$
(2.97
)
 
$
(5.22
)
 
Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(2.23
)
 
$
(3.14
)
 
$
0.01

 
$
(6.59
)
Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
 
Net (loss) adjusted for preference share dividend and non-controlling interest
 
$
(2.60
)
 
$
(3.25
)
 
$
(2.97
)
 
$
(5.22
)
 
Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(2.23
)
 
$
(3.14
)
 
$
0.01

 
$
(6.59
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of ordinary shares outstanding (in millions)
 
59.709

 
59.431

 
59.656

 
59.754

Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions) (1)
 
59.709

 
59.431

 
59.656

 
59.754

 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
35.83

 
$
40.59

 
$
35.83

 
$
40.59

Diluted book value per ordinary share
 
$
35.48

 
$
40.10

 
$
35.48

 
$
40.10

 
 
 
 
 
 
 
 
 
Ordinary shares outstanding at end of the period (in millions)
 
59.743

 
59.474

 
59.743

 
59.474

Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions)
 
60.321

 
60.202

 
60.321

 
60.202

 
See pages 7 and 22 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) The basic and diluted number of ordinary shares as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.


6


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Return On Average Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
(in US$ millions except for percentages)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
$
2,715.9

 
$
3,045.7

 
$
2,812.1

 
$
3,406.9

Average non-controlling interest
(3.3
)
 
(2.5
)
 
(3.0
)
 
(1.9
)
Average preference shares
(511.9
)
 
(511.9
)
 
(511.9
)
 
(605.1
)
Average ordinary shareholders' equity
$
2,200.7

 
$
2,531.3

 
$
2,297.2

 
$
2,799.9

Return on average equity:
 
 
 
 
 
 
 
 
Net (loss) adjusted for preference share dividend and non-controlling interest
(7.1
)%
 
(7.6
)%
 
(7.7
)%
 
(11.1
)%
 
Operating (loss) adjusted for preference share dividend and non-controlling interest
(6.0
)%
 
(7.4
)%
 
—
 %
 
(14.0
)%
Annualized return on average equity:
 
 
 
 
 
 
 
 
Net (loss)
(28.4
)%
 
(30.4
)%
 
(7.7
)%
 
(11.1
)%
 
Operating (loss)
 
(24.0
)%
 
(29.6
)%
 
—
 %
 
(14.0
)%
Components of return on average equity:
 
 
 
 
 
 
 
 
Return on average equity from underwriting activity (1)
(7.8
)%
 
(9.7
)%
 
(6.3
)%
 
(19.9
)%
 
Return on average equity from investment and other activity (2)
1.9
 %
 
2.0
 %
 
6.2
 %
 
5.2
 %
 
Pre-tax operating income return on average equity (3)
(5.9
)%
 
(7.7
)%
 
(0.1
)%
 
(14.7
)%
 
Post-tax operating income return on average equity (4)
(6.0
)%
 
(7.4
)%
 
—
 %
 
(14.0
)%
 
 
 
 
 
 
 
 
 
 
 
See page 22 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
 
 
 
 
(1) Calculated by using underwriting income.
 
 
 
 
(2) Calculated by using total other operating revenue and other income/(expense) adjusted for preference share dividends and non-controlling interest.
 
 
 
 
(3) Calculated by using operating income before tax adjusted for preference share dividends and non-controlling interest.
 
 
 
 
(4) Calculated by using operating income after-tax adjusted for preference share dividends and non-controlling interest.
 
 
 
 


7


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Consolidated Underwriting Results by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2018
 
Three Months Ended December 31, 2017
(in US$ millions except for percentages)
Reinsurance
 
Insurance
 
Total
 
Reinsurance
 
Insurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
149.8

 
$
453.3

 
$
603.1

 
$
216.1

 
$
472.2

 
$
688.3

Net written premiums
134.6

 
247.0

 
381.6

 
152.7

 
187.5

 
340.2

Gross earned premiums
377.4

 
495.3

 
872.7

 
339.6

 
455.3

 
794.9

Net earned premiums
296.4

 
242.1

 
538.5

 
273.9

 
237.1

 
511.0

Losses and loss adjustment expenses
311.6

 
209.7

 
521.3

 
318.5

 
225.7

 
544.2

Amortization of deferred policy acquisition costs
66.5

 
27.4

 
93.9

 
61.1

 
24.0

 
85.1

General and administrative expenses
24.3

 
59.7

 
84.0

 
39.9

 
67.0

 
106.9

Underwriting (loss)
$
(106.0
)
 
$
(54.7
)
 
$
(160.7
)
 
$
(145.6
)
 
$
(79.6
)
 
$
(225.2
)
Net investment income
 
 
 
 
52.5

 
 
 
 
 
47.5

Net realized and unrealized investment (losses)/gains
 
 
 
 
(5.4
)
 
 
 
 
 
14.8

Corporate expenses
 
 
 
 
(11.1
)
 
 
 
 
 
(20.0
)
Amortization and non-recurring expenses (1)
 
 
 
 
(5.0
)
 
 
 
 
 
(23.2
)
Other income(2)
 
 
 
 
2.5

 
 
 
 
 
18.6

Interest expense
 
 
 
 
(5.5
)
 
 
 
 
 
(7.3
)
Net realized and unrealized foreign exchange (losses)(3)
 
 
 
 
(10.9
)
 
 
 
 
 
(0.3
)
(Loss) before tax
 
 
 
 
$
(143.6
)
 
 
 
 
 
$
(195.1
)
Income tax (expense)/benefit
 
 
 
 
(3.2
)
 
 
 
 
 
10.2

Net (loss)
 
 
 
 
$
(146.8
)
 
 
 
 
 
$
(184.9
)
Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
105.1
%
 
86.6
%
 
96.8
%
 
116.3
%
 
95.2
%
 
106.5
%
 Policy acquisition expense ratio
22.4
%
 
11.3
%
 
17.4
%
 
22.3
%
 
10.1
%
 
16.7
%
 General and administrative expense ratio (4)
8.2
%
 
24.7
%
 
18.6
%
 
14.6
%
 
28.3
%
 
29.4
%
 General and administrative expense ratio (excluding amortization and non-recurring expenses)(5)
8.2
%
 
24.7
%
 
17.7
%
 
14.6
%
 
28.3
%
 
24.8
%
Expense ratio
30.6
%
 
36.0
%
 
36.0
%
 
36.9
%
 
38.4
%
 
46.1
%
Expense ratio (excluding amortization and non-recurring expenses)
30.6
%
 
36.0
%
 
35.1
%
 
36.9
%
 
38.4
%
 
41.5
%
Combined ratio
135.7
%
 
122.6
%
 
132.8
%
 
153.2
%
 
133.6
%
 
152.6
%
Combined ratio (excluding amortization and non-recurring expenses)
135.7
%
 
122.6
%
 
131.9
%
 
153.2
%
 
133.6
%
 
148.0
%
(1) Amortization and non-recurring expenses includes $11.6 million of expenses related to the Operational Effectiveness and Efficiency Program, $5.7 million of retention costs and $0.4 million of advisor fees related to the proposed transaction with the Apollo Funds, partially offset by the write back of a $14.1 million buy out provision.
(2) Other income in the fourth quarter of 2018 and fourth quarter of 2017 included expense of $0.3 million and income of $17.6 million, respectively, related to a change in the fair value of loan notes issued by Silverton Re.
(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(4) The total group general and administrative expense ratio includes the impact from corporate expenses, amortization and non-recurring expenses.
(5) The total group general and administrative expense ratio includes the impact from corporate expenses.

8


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Consolidated Underwriting Results by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended December 31, 2018
 
Twelve Months Ended December 31, 2017
(in US$ millions except for percentages)
Reinsurance
 
Insurance
 
Total
 
Reinsurance
 
Insurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
1,495.7

 
$
1,951.2

 
$
3,446.9

 
$
1,548.5

 
$
1,812.4

 
$
3,360.9

Net written premiums
1,182.9

 
899.1

 
2,082.0

 
1,250.0

 
962.5

 
2,212.5

Gross earned premiums
1,593.9

 
1,940.5

 
3,534.4

 
1,451.8

 
1,757.4

 
3,209.2

Net earned premiums
1,256.4

 
958.3

 
2,214.7

 
1,206.1

 
1,100.5

 
2,306.6

Losses and loss adjustment expenses
927.0

 
646.0

 
1,573.0

 
1,116.4

 
878.3

 
1,994.7

Amortization of deferred policy acquisition costs
260.9

 
110.7

 
371.6

 
235.5

 
165.0

 
400.5

General and administrative expenses
118.5

 
239.2

 
357.7

 
157.3

 
253.9

 
411.2

Underwriting (loss)
$
(50.0
)
 
$
(37.6
)
 
$
(87.6
)
 
$
(303.1
)
 
$
(196.7
)
 
$
(499.8
)
Net investment income
 
 
 
 
198.2

 
 
 
 
 
189.0

Net realized and unrealized investment (losses)/gains
 
 
 
 
(64.7
)
 
 
 
 
 
120.5

Realized (loss) on debt extinguishment
 
 
 
 
(8.6
)
 
 
 
 
 
—

Corporate expenses
 
 
 
 
(56.8
)
 
 
 
 
 
(58.3
)
Amortization and non-recurring expenses (1)
 
 
 
 
(77.2
)
 
 
 
 
 
(32.7
)
Other income(2)
 
 
 
 
1.9

 
 
 
 
 
25.2

Interest expense
 
 
 
 
(25.9
)
 
 
 
 
 
(29.5
)
Net realized and unrealized foreign exchange (losses)/gains (3)
 
 
 
 
(35.3
)
 
 
 
 
 
3.8

(Loss) before tax
 
 
 
 
$
(156.0
)
 
 
 
 
 
$
(281.8
)
Income tax benefit
 
 
 
 
10.2

 
 
 
 
 
15.4

Net (loss)
 
 
 
 
$
(145.8
)
 
 
 
 
 
$
(266.4
)
Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
73.8
%
 
67.4
%
 
71.0
%
 
92.6
%
 
79.8
%
 
86.5
%
 Policy acquisition expense ratio
20.8
%
 
11.6
%
 
16.8
%
 
19.5
%
 
15.0
%
 
17.4
%
 General and administrative expense ratio (4)
9.4
%
 
25.0
%
 
22.2
%
 
13.0
%
 
23.1
%
 
21.8
%
 General and administrative expense ratio (excluding amortization and non-recurring expenses)(5)
9.4
%
 
25.0
%
 
18.7
%
 
13.0
%
 
23.1
%
 
20.4
%
Expense ratio
30.2
%
 
36.6
%
 
39.0
%
 
32.5
%
 
38.1
%
 
39.2
%
Expense ratio (excluding amortization and non-recurring expenses)
30.2
%
 
36.6
%
 
35.5
%
 
32.5
%
 
38.1
%
 
37.8
%
Combined ratio
104.0
%
 
104.0
%
 
110.0
%
 
125.1
%
 
117.9
%
 
125.7
%
Combined ratio (excluding amortization and non-recurring expenses)
104.0
%
 
104.0
%
 
106.5
%
 
125.1
%
 
117.9
%
 
124.3
%
(1) Amortization and non-recurring expenses includes $37.5 million of expenses related to the Operational Effectiveness and Efficiency Program, $11.3 million of retention costs and $39.0 million of advisor fees related to the proposed transaction with the Apollo Funds, partially offset by the write back of a $14.1 million buy out provision.
(2) Other income in the full year of 2018 and the full year of 2017 included expense of $4.4 million and income of $21.2 million, respectively, related to a change in the fair value of loan notes issued by Silverton Re.
(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(4) The total group general and administrative expense ratio includes the impact from corporate expenses, amortization and non-recurring expenses.
(5) The total group general and administrative expense ratio includes the impact from corporate expenses.

9


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Reinsurance Segment - Quarterly Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Q4 2017
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
 
$
149.8

 
$
396.4

 
$
326.0

 
$
623.5

 
$
216.1

 
$
431.5

 
$
335.6

 
$
565.3

 
Net written premiums
 
134.6

 
356.4

 
266.9

 
425.0

 
152.7

 
363.6

 
285.5

 
448.2

 
Gross earned premiums
 
377.4

 
475.3

 
366.2

 
375.0

 
339.6

 
464.0

 
320.6

 
327.6

 
Net earned premiums
 
296.4

 
388.5

 
289.0

 
282.5

 
273.9

 
382.0

 
272.7

 
277.5

 
Net losses and loss adjustment expenses
 
311.6

 
281.5

 
167.0

 
166.9

 
318.5

 
502.2

 
152.6

 
143.1

 
Amortization of deferred policy acquisition costs
 
66.5

 
75.7

 
62.8

 
55.9

 
61.1

 
61.5

 
53.4

 
59.5

 
General and administrative expenses
 
24.3

 
34.7

 
27.9

 
31.6

 
39.9

 
32.8

 
40.7

 
43.9

 
Underwriting (loss)/income
 
$
(106.0
)
 
$
(3.4
)
 
$
31.3

 
$
28.1

 
$
(145.6
)
 
$
(214.5
)
 
$
26.0

 
$
31.0

 
Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
105.1
 %
 
72.5
 %
 
57.8
 %
 
59.1
 %
 
116.3
 %
 
131.5
 %
 
56.0
 %
 
51.6
 %
 
 Policy acquisition expense ratio
 
22.4
 %
 
19.5
 %
 
21.7
 %
 
19.8
 %
 
22.3
 %
 
16.1
 %
 
19.6
 %
 
21.4
 %
 
 General and administrative expense ratio
 
8.2
 %
 
8.9
 %
 
9.7
 %
 
11.2
 %
 
14.6
 %
 
8.6
 %
 
14.9
 %
 
15.8
 %
 
Expense ratio
 
30.6
 %
 
28.4
 %
 
31.4
 %
 
31.0
 %
 
36.9
 %
 
24.7
 %
 
34.5
 %
 
37.2
 %
 
Combined ratio
 
135.7
 %
 
100.9
 %
 
89.2
 %
 
90.1
 %
 
153.2
 %
 
156.2
 %
 
90.5
 %
 
88.8
 %
 
Accident Year Ex-cat Loss Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
105.1
 %
 
72.5
 %
 
57.8
 %
 
59.1
 %
 
116.3
 %
 
131.5
 %
 
56.0
 %
 
51.6
 %
 
Prior year loss development
 
7.6
 %
 
2.0
 %
 
10.9
 %
 
2.7
 %
 
4.0
 %
 
4.8
 %
 
12.0
 %
 
7.6
 %
 
Catastrophe losses
 
(47.1
)%
 
(13.0
)%
 
(3.5
)%
 
(5.2
)%
 
(49.6
)%
 
(74.6
)%
 
(3.8
)%
 
(8.9
)%
 
Accident year ex-cat loss ratio
 
65.6
 %
 
61.5
 %
 
65.2
 %
 
56.6
 %
 
70.7
 %
 
61.7
 %
 
64.2
 %
 
50.3
 %
 


10


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Insurance Segment - Quarterly Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Q4 2017
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
 
$
453.3

 
$
476.8

 
$
527.8

 
$
493.3

 
$
472.2

 
$
421.0

 
$
486.5

 
$
432.7

 
Net written premiums
 
247.0

 
222.5

 
219.1

 
210.5

 
187.5

 
243.8

 
293.2

 
238.0

 
Gross earned premiums
 
495.3

 
498.3

 
479.3

 
467.6

 
455.3

 
449.3

 
429.1

 
423.7

 
Net earned premiums
 
242.1

 
234.7

 
230.5

 
251.0

 
237.1

 
270.5

 
289.3

 
303.6

 
Net losses and loss adjustment expenses
 
209.7

 
149.6

 
143.4

 
143.3

 
225.7

 
274.0

 
193.5

 
185.1

 
Amortization of deferred policy acquisition costs
 
27.4

 
25.3

 
23.1

 
34.9

 
24.0

 
43.9

 
42.9

 
54.2

 
General and administrative expenses
 
59.7

 
58.7

 
57.2

 
63.6

 
67.0

 
59.4

 
65.7

 
61.8

 
Underwriting (loss)/income
 
$
(54.7
)
 
$
1.1

 
$
6.8

 
$
9.2

 
$
(79.6
)
 
$
(106.8
)
 
$
(12.8
)
 
$
2.5

 
Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
86.6
 %
 
63.7
 %
 
62.2
 %
 
57.1
 %
 
95.2
 %
 
101.3
 %
 
66.9
 %
 
61.0
 %
 
 Policy acquisition expense ratio
 
11.3
 %
 
10.8
 %
 
10.0
 %
 
13.9
 %
 
10.1
 %
 
16.2
 %
 
14.8
 %
 
17.9
 %
 
 General and administrative expense ratio
 
24.7
 %
 
25.0
 %
 
24.8
 %
 
25.3
 %
 
28.3
 %
 
22.0
 %
 
22.7
 %
 
20.4
 %
 
Expense ratio
 
36.0
 %
 
35.8
 %
 
34.8
 %
 
39.2
 %
 
38.4
 %
 
38.2
 %
 
37.5
 %
 
38.3
 %
 
Combined ratio
 
122.6
 %
 
99.5
 %
 
97.0
 %
 
96.3
 %
 
133.6
 %
 
139.5
 %
 
104.4
 %
 
99.3
 %
 
Accident Year Ex-cat Loss Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
86.6
 %
 
63.7
 %
 
62.2
 %
 
57.1
 %
 
95.2
 %
 
101.3
 %
 
66.9
 %
 
61.0
 %
 
Prior year loss development
 
(4.3
)%
 
5.1
 %
 
4.8
 %
 
12.0
 %
 
0.8
 %
 
0.3
 %
 
5.6
 %
 
1.6
 %
 
Catastrophe losses
 
(11.4
)%
 
(3.4
)%
 
(3.5
)%
 
(3.7
)%
 
(1.0
)%
 
(30.3
)%
 
(9.4
)%
 
(1.5
)%
 
Accident year ex-cat loss ratio
 
70.9
 %
 
65.4
 %
 
63.5
 %
 
65.4
 %
 
95.0
 %
 
71.3
 %
 
63.1
 %
 
61.1
 %
 
 

11


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Written and Earned Premiums by Segment and Lines of Business
 
(in US$ millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Written Premiums
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Q4 2017
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
(0.2
)
 
$
34.6

 
$
77.2

 
$
151.2

 
$
12.9

 
$
63.3

 
$
72.4

 
$
130.7

 
 
Other Property Reinsurance
 
69.7

 
84.9

 
86.6

 
104.8

 
63.6

 
88.1

 
79.7

 
118.9

 
 
Casualty Reinsurance
 
52.3

 
74.1

 
58.4

 
143.3

 
46.4

 
75.8

 
53.1

 
143.7

 
 
Specialty Reinsurance
 
28.0

 
202.8

 
103.8

 
224.2

 
93.2

 
204.3

 
130.4

 
172.0

 
 
Total Reinsurance
 
$
149.8

 
$
396.4

 
$
326.0

 
$
623.5

 
$
216.1

 
$
431.5

 
$
335.6

 
$
565.3

 
 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
196.2

 
$
213.2

 
$
263.2

 
$
231.3

 
$
201.9

 
$
194.6

 
$
249.3

 
$
211.1

 
 
Marine, Aviation and Energy Insurance
 
76.5

 
80.8

 
109.6

 
101.5

 
100.8

 
86.0

 
92.7

 
105.8

 
 
Financial and Professional Lines Insurance
 
180.6

 
182.8

 
155.0

 
160.5

 
169.5

 
140.4

 
144.5

 
115.8

 
 
Total Insurance
 
$
453.3

 
$
476.8

 
$
527.8

 
$
493.3

 
$
472.2

 
$
421.0

 
$
486.5

 
$
432.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Gross Written Premiums
 
$
603.1

 
$
873.2

 
$
853.8

 
$
1,116.8

 
$
688.3

 
$
852.5

 
$
822.1

 
$
998.0

 
Net Written Premiums
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
(1.5
)
 
$
10.3

 
$
40.9

 
$
54.1

 
$
3.0

 
$
40.3

 
$
58.2

 
$
71.1

 
 
Other Property Reinsurance
 
57.9

 
76.1

 
71.7

 
77.4

 
55.1

 
76.0

 
65.6

 
89.0

 
 
Casualty Reinsurance
 
50.4

 
73.7

 
54.3

 
136.7

 
42.9

 
72.9

 
46.5

 
142.0

 
 
Specialty Reinsurance
 
27.8

 
196.3

 
100.0

 
156.8

 
51.7

 
174.4

 
115.2

 
146.1

 
 
Total Reinsurance
 
$
134.6

 
$
356.4

 
$
266.9

 
$
425.0

 
$
152.7

 
$
363.6

 
$
285.5

 
$
448.2

 
 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
86.6

 
$
100.1

 
$
91.4

 
$
63.7

 
$
41.4

 
$
122.7

 
$
180.0

 
$
94.8

 
 
Marine, Aviation and Energy Insurance
 
40.0

 
55.1

 
44.4

 
82.0

 
53.2

 
50.7

 
40.8

 
71.1

 
 
Financial and Professional Lines Insurance
 
120.4

 
67.3

 
83.3

 
64.8

 
92.9

 
70.4

 
72.4

 
72.1

 
 
Total Insurance
 
$
247.0

 
$
222.5

 
$
219.1

 
$
210.5

 
$
187.5

 
$
243.8

 
$
293.2

 
$
238.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Written Premiums
 
$
381.6

 
$
578.9

 
$
486.0

 
$
635.5

 
$
340.2

 
$
607.4

 
$
578.7

 
$
686.2

 
Net Earned Premiums
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
26.7

 
$
34.3

 
$
36.9

 
$
29.4

 
$
45.2

 
$
51.3

 
$
48.3

 
$
34.0

 
 
Other Property Reinsurance
 
75.4

 
73.2

 
76.9

 
69.3

 
72.6

 
76.8

 
66.2

 
77.3

 
 
Casualty Reinsurance
 
78.9

 
79.6

 
80.5

 
81.2

 
67.5

 
74.1

 
68.9

 
81.8

 
 
Specialty Reinsurance
 
115.4

 
201.4

 
94.7

 
102.6

 
88.6

 
179.8

 
89.3

 
84.4

 
 
Total Reinsurance
 
$
296.4

 
$
388.5

 
$
289.0

 
$
282.5

 
$
273.9

 
$
382.0

 
$
272.7

 
$
277.5

 
 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
87.5

 
$
102.9

 
$
91.5

 
$
108.7

 
$
106.7

 
$
137.7

 
$
156.7

 
$
144.4

 
 
Marine, Aviation and Energy Insurance
 
50.3

 
70.4

 
61.6

 
64.5

 
59.9

 
53.8

 
52.7

 
77.4

 
 
Financial and Professional Lines Insurance
 
104.3

 
61.4

 
77.4

 
77.8

 
70.5

 
79.0

 
79.9

 
81.8

 
 
Total Insurance
 
$
242.1

 
$
234.7

 
$
230.5

 
$
251.0

 
$
237.1

 
$
270.5

 
$
289.3

 
$
303.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Earned Premiums
 
$
538.5

 
$
623.2

 
$
519.5

 
$
533.5

 
$
511.0

 
$
652.5

 
$
562.0

 
$
581.1

 



12


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Consolidated Statements of Changes in Shareholders' Equity
 
 
 
Twelve Months Ended December 31,
(in US$ millions)
 
2018
 
2017
Ordinary shares
 
 
 
 
 
Beginning and end of period
 
$
0.1

 
$
0.1

Preference shares
 
 
 
 
 
Beginning and end of period
 
—

 
—

Non-controlling interest
 
 
 
 
 
Beginning of period
 
2.7

 
1.4

 
Net change for the period
 
1.0

 
1.3

 
End of period
 
3.7

 
2.7

Additional paid-in capital
 
 
 
 
 
Beginning of period
 
954.7

 
1,259.6

 
New shares issued
 
2.7

 
0.5

 
Ordinary shares repurchased
 
—

 
(30.0
)
 
Preference shares redemption
 
—

 
(293.2
)
 
Preference share redemption costs
 
—

 
8.0

 
Share-based compensation
 
10.1

 
9.8

 
End of period
 
967.5

 
954.7

Retained earnings
 
 
 
 
 
Beginning of period
 
2,026.9

 
2,392.3

 
Net income for the period
 
(145.8
)
 
(266.4
)
 
Dividends paid on ordinary and preference shares
 
(73.4
)
 
(92.5
)
 
Preference shares redemption costs
 
—

 
(8.0
)
 
Dividends paid on non-controlling interest
 
(0.1
)
 
—

 
Proportion due to non-controlling interest
 
(1.0
)
 
(1.3
)
 
Share-based payment
 
—

 
2.8

 
End of period
 
1,806.6

 
2,026.9

Accumulated other comprehensive income:
 
 
 
 
Cumulative foreign currency translation adjustments, net of taxes:
 
 
 
 
 
Beginning of period
 
(67.7
)
 
(27.1
)
 
Change for the period
 
12.3

 
(40.6
)
 
End of period
 
(55.4
)
 
(67.7
)
Gain on derivatives:
 
 
 
 
 
Beginning of period
 
2.1

 
(0.5
)
 
Net change from current period hedged transactions
 
(1.8
)
 
2.6

 
End of period
 
0.3

 
2.1

Unrealized appreciation on available for sale investments, net of taxes:
 
 
 
 
Beginning of period
 
9.7

 
22.5

 
Change for the period
 
(76.5
)
 
(12.8
)
 
End of period
 
(66.8
)
 
9.7

Total accumulated other comprehensive (loss)
 
(121.9
)
 
(55.9
)
 
 
 
 
 
Total shareholders' equity
 
$
2,656.0

 
$
2,928.5

 
 
 

13


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Consolidated Statements of Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Net (loss) adjusted for non-controlling interest
 
$
(147.6
)
 
$
(185.4
)
 
$
(146.8
)
 
$
(267.7
)
Other comprehensive income, net of taxes:
 
 
 
 
 
 
 
 
 
Available for sale investments:
 
 
 
 
 
 
 
 
 
    Reclassification adjustment for net realized (gains)/losses included in net income
 
1.4

 
(1.2
)
 
4.5

 
(3.6
)
 
    Change in net unrealized gains on available for sale securities held
 
40.8

 
(25.4
)
 
(81.0
)
 
(9.2
)
 
    Net change from current period hedged transactions
 
—

 
(0.2
)
 
(1.8
)
 
2.6

 
Change in foreign currency translation adjustment
 
(8.9
)
 
(3.8
)
 
12.3

 
(40.6
)
 
Other comprehensive income/(loss)
 
33.3

 
(30.6
)
 
(66.0
)
 
(50.8
)
Comprehensive (loss)
 
$
(114.3
)
 
$
(216.0
)
 
$
(212.8
)
 
$
(318.5
)


14


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Condensed Consolidated Statements of Cash Flows
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) operating activities
 
$
(81.7
)
 
$
(159.3
)
 
$
(304.5
)
 
$
(111.5
)
Net cash from investing activities
 
172.9

 
25.7

 
657.3

 
419.0

Net cash (used in) financing activities
 
(27.5
)
 
(21.5
)
 
(307.2
)
 
(540.4
)
Effect of exchange rate movements on cash and cash equivalents
 
(6.6
)
 
0.6

 
(16.7
)
 
13.9

Increase/(decrease) in cash and cash equivalents
 
57.1

 
(154.5
)
 
28.9

 
(219.0
)
Cash at beginning of period
 
1,026.6

 
1,209.3

 
1,054.8

 
1,273.8

Cash at end of period
 
$
1,083.7

 
$
1,054.8

 
$
1,083.7

 
$
1,054.8



15


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Reserves for Losses and Loss Adjustment Expenses
 
 
 
 
 
 
(in US$ millions)
For the Twelve Months Ended December 31, 2018
 
For the Twelve Months Ended
December 31, 2017
 
 
 
 
 
 
Provision for losses and loss adjustment expenses at the start of the period
$
6,749.5

 
$
5,319.9

Reinsurance recoverables
(1,515.2
)
 
(560.7
)
Net loss and loss adjustment expenses at the start of the period
5,234.3

 
4,759.2

 
 
 
 
Net loss and loss adjustment expenses assumed
—

 
(125.5
)
Provision for losses and loss adjustment expenses for claims incurred
 
 
 
    Current period
1,684.1

 
2,100.1

    Prior period release
(111.1
)
 
(105.4
)
    Total incurred
1,573.0

 
1,994.7

 
 
 
 
Losses and loss adjustment expenses payments for claims incurred
(1,726.7
)
 
(1,555.1
)
 
 
 
 
Foreign exchange (gains)/losses
(84.0
)
 
161.0

 
 
 
 
Net loss and loss adjustment expenses reserves at the end of the period
4,996.6

 
5,234.3

Reinsurance recoverables on unpaid losses at the end of the period
2,077.6

 
1,515.2

Gross loss and loss adjustment expenses reserves at the end of the period
$
7,074.2

 
$
6,749.5



16


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Reserves by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at December 31, 2018
 
As at December 31, 2017
(in US$ millions)
Gross
 
Reinsurance Recoverables
 
Net
 
Gross
 
Reinsurance Recoverables
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
$
3,309.8

 
$
(466.2
)
 
$
2,843.6

 
$
3,186.4

 
$
(269.3
)
 
$
2,917.1

Insurance
3,764.4

 
(1,611.4
)
 
2,153.0

 
3,563.1

 
(1,245.9
)
 
2,317.2

Total losses and loss adjustment expense reserves
$
7,074.2

 
$
(2,077.6
)
 
$
4,996.6

 
$
6,749.5

 
$
(1,515.2
)
 
$
5,234.3



17


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Prior Year Reserve Movements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions)
Three Months Ended December 31, 2018
 
Three Months Ended December 31, 2017
 
 
 
Gross
 
 Reinsurance Recoverables
 
Net
 
Gross
 
 Reinsurance Recoverables
 
Net
Reinsurance
$
32.8

 
$
(10.9
)
 
$
21.9

 
$
13.3

 
$
(2.5
)
 
$
10.8

Insurance
(25.0
)
 
14.5

 
(10.5
)
 
(25.1
)
 
26.9

 
1.8

Movements in reserves for prior years during the period
$
7.8

 
$
3.6

 
$
11.4

 
$
(11.8
)
 
$
24.4

 
$
12.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended December 31, 2018
 
Twelve Months Ended December 31, 2017
 
 
 
Gross
 
 Reinsurance Recoverables
 
Net
 
Gross
 
 Reinsurance Recoverables
 
Net
Reinsurance
$
97.8

 
$
(29.4
)
 
$
68.4

 
$
73.6

 
$
8.2

 
$
81.8

Insurance
(39.4
)
 
82.1

 
42.7

 
(41.5
)
 
65.1

 
23.6

Movements in reserves for prior years during the period
$
58.4

 
$
52.7

 
$
111.1

 
$
32.1

 
$
73.3

 
$
105.4



18


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Consolidated Investment Portfolio
 
(in US$ millions)
 
 
 
 
 
Fair Market Value
 
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
Marketable Securities - Available For Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
$
1,404.2

 
$
1,387.8

 
$
1,229.6

 
$
1,292.2

 
$
1,159.4

 
$
1,172.7

 
$
1,220.8

 
$
1,267.1

 
U.S. agency securities
 
47.4

 
46.4

 
46.6

 
52.7

 
52.1

 
62.1

 
75.5

 
107.4

 
Municipal securities
 
47.2

 
52.1

 
105.7

 
47.6

 
54.9

 
50.1

 
32.8

 
24.4

 
Corporate securities
 
2,206.2

 
2,266.0

 
2,267.2

 
2,446.2

 
2,415.7

 
2,468.3

 
2,503.4

 
2,587.7

 
Non-U.S. government securities
 
402.6

 
405.4

 
430.2

 
483.4

 
484.9

 
531.7

 
525.9

 
494.2

 
Asset-backed securities
 
17.3

 
18.5

 
18.4

 
18.5

 
26.2

 
33.7

 
48.9

 
54.8

 
Non-U.S. government-backed corporate securities
 
93.2

 
90.8

 
91.8

 
97.8

 
91.3

 
94.0

 
92.6

 
84.5

 
Mortgage-backed securities
 
1,012.6

 
909.4

 
890.5

 
973.8

 
946.5

 
952.8

 
997.4

 
1,044.3

 
  Total fixed income securities
 
5,230.7

 
5,176.4

 
5,080.0

 
5,412.2

 
5,231.0

 
5,365.4

 
5,497.3

 
5,664.4

 
Short-term investments
 
105.6

 
120.4

 
72.2

 
54.6

 
89.9

 
34.4

 
41.9

 
163.5

 
  Total Available For Sale
 
$
5,336.3

 
$
5,296.8

 
$
5,152.2

 
$
5,466.8

 
$
5,320.9

 
$
5,399.8

 
$
5,539.2

 
$
5,827.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketable Securities - Trading
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
$
147.7

 
$
165.8

 
$
155.3

 
$
141.7

 
$
161.9

 
$
160.6

 
$
112.8

 
$
95.4

 
Municipal securities
 
2.7

 
20.7

 
77.8

 
74.3

 
32.2

 
32.3

 
5.7

 
15.6

 
Corporate securities
 
720.2

 
874.9

 
968.6

 
1,003.6

 
1,046.3

 
1,045.0

 
896.0

 
866.2

 
Non-U.S. government securities
 
265.4

 
227.5

 
219.3

 
216.6

 
202.5

 
210.9

 
186.5

 
191.7

 
Asset-backed securities
 
2.4

 
4.9

 
7.2

 
8.3

 
9.9

 
11.1

 
12.2

 
13.4

 
Mortgage-backed securities
 
49.4

 
113.4

 
187.7

 
192.1

 
195.5

 
203.1

 
142.3

 
130.9

 
Non-U.S. government-backed corporate securities
 
—

 
—

 
—

 
1.0

 
1.0

 
2.0

 
2.0

 
—

 
  Total fixed income securities
 
1,187.8

 
1,407.2

 
1,615.9

 
1,637.6

 
1,649.3

 
1,665.0

 
1,357.5

 
1,313.2

 
Short-term investments
 
9.5

 
4.3

 
27.4

 
27.0

 
73.0

 
90.4

 
73.7

 
184.6

 
Equity securities
 
—

 
—

 
—

 
—

 
491.0

 
468.5

 
658.7

 
623.6

 
Catastrophe bonds
 
36.2

 
37.4

 
35.5

 
34.8

 
32.4

 
30.3

 
28.3

 
41.8

 
 Total Trading
 
$
1,233.5

 
$
1,448.9

 
$
1,678.8

 
$
1,699.4

 
$
2,245.7

 
$
2,254.2

 
$
2,118.2

 
$
2,163.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments
 
$
169.6

 
$
167.4

 
$
153.3

 
$
66.1

 
$
66.4

 
$
4.0

 
$
3.9

 
$
5.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
1,083.7

 
1,026.6

 
1,070.7

 
1,246.9

 
1,054.8

 
1,209.3

 
1,228.4

 
873.1

 
Accrued interest
 
42.7

 
43.1

 
45.2

 
44.3

 
45.2

 
45.3

 
46.9

 
46.5

 
 
  Total Cash and Accrued Interest
 
$
1,126.4

 
$
1,069.7

 
$
1,115.9

 
$
1,291.2

 
$
1,100.0

 
$
1,254.6

 
$
1,275.3

 
$
919.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Total Cash and Investments
 
$
7,865.8

 
$
7,982.8

 
$
8,100.2

 
$
8,523.5

 
$
8,733.0

 
$
8,912.6

 
$
8,936.6

 
$
8,915.7

 

19


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
Investment Analysis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Q4 2017
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income from fixed income investments and cash
$
52.3

 
$
48.0

 
$
49.7

 
$
46.1

 
$
45.6

 
$
43.6

 
$
43.7

 
$
42.5

 
Net investment income from equity securities
0.2

 
—

 
0.7

 
1.2

 
1.9

 
2.8

 
3.7

 
5.2

 
Net investment income
52.5

 
48.0

 
50.4

 
47.3

 
47.5

 
46.4

 
47.4

 
47.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized investment (losses)/gains
(5.4
)
 
(0.9
)
 
(20.7
)
 
(37.7
)
 
15.0

 
17.6

 
42.1

 
46.5

 
Other-than-temporary impairment charges
—

 
—

 
—

 
—

 
(0.2
)
 
(0.1
)
 
(0.1
)
 
(0.3
)
 
Net realized and unrealized investment (losses)/gains
(5.4
)
 
(0.9
)
 
(20.7
)
 
(37.7
)
 
14.8

 
17.5

 
42.0

 
46.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized gains/(losses) on available for sale investments (gross of tax) 
45.4

 
(21.0
)
 
(22.9
)
 
(82.8
)
 
(30.0
)
 
0.3

 
12.9

 
2.0

 
Total return/(loss) on investments
$
92.5

 
$
26.1

 
$
6.8

 
$
(73.2
)
 
$
32.3

 
$
64.2

 
$
102.3

 
$
95.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Characteristics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income portfolio book yield
2.69
%
 
2.67
%
 
2.63
%
 
2.63
%
 
2.56
%
 
2.54
%
 
2.53
%
 
2.53
%
 
Fixed income portfolio duration
3.5 years
 
3.7 years
 
3.9 years
 
4 years
 
3.9 years
 
3.9 years
 
3.9 years
 
3.9 years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


20


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Book Value Per Ordinary Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for number of shares and per share amounts)
 
December 31,
2018
September 30, 2018
 
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets
 
$
2,656.0

$
2,775.8

 
 
$
2,828.0

 
$
2,859.0

 
$
2,928.5

 
$
3,162.9

 
$
3,620.9

 
$
3,594.4

 
Less: Preference shares
 
(511.9
)
(511.9
)
 
 
(511.9
)
 
(511.9
)
 
(511.9
)
 
(511.9
)
 
(666.3
)
 
(666.3
)
 
Less: Non-controlling interest
 
 
(3.7
)
(2.9
)
 
 
(3.0
)
 
(2.9
)
 
(2.7
)
 
(2.2
)
 
(1.6
)
 
(1.5
)
 
Total
 
 
 
$
2,140.4

$
2,261.0

 
 
$
2,313.1

 
$
2,344.2

 
$
2,413.9

 
$
2,648.8

 
$
2,953.0

 
$
2,926.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares outstanding (in millions)
 
59.743

59.698

 
 
59.688

 
59.653

 
59.474

 
59.407

 
59.844

 
59.988

 
Ordinary shares and dilutive potential ordinary shares (in millions)
 
60.321

60.356

 
 
60.534

 
60.574

 
60.202

 
60.200

 
60.712

 
61.107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
35.83

$
37.87

 
 
$
38.75

 
$
39.30

 
$
40.59

 
$
44.59

 
$
49.34

 
$
48.79

 
Diluted book value per ordinary share
 
$
35.48

$
37.46

 
 
$
38.21

 
$
38.70

 
$
40.10

 
$
44.00

 
$
48.64

 
$
47.89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to purchase the Company's ordinary shares at the average market price during the period of calculation.
 

21


q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Operating Income Reconciliation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income is adjusted to exclude after-tax change in net foreign exchange gains and losses, realized gains and losses in investments and non-recurring items.
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
(in US$ millions except where stated)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
Net (loss) as reported
 
$
(146.8
)
 
$
(184.9
)
 
$
(145.8
)
 
$
(266.4
)
Preference share redemption costs
 
—

 
—

 
—

 
(8.0
)
Net change attributable to non-controlling interest
 
(0.8
)
 
(0.5
)
 
(1.0
)
 
(1.3
)
Preference share dividends
 
(7.7
)
 
(7.5
)
 
(30.5
)
 
(36.2
)
Net (loss) available to ordinary shareholders
 
(155.3
)
 
(192.9
)
 
(177.3
)
 
(311.9
)
Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange losses/(gains)
 
10.9

 
1.0

 
29.7

 
(1.5
)
 
Net realized losses/(gains) on investments
 
5.4

 
(14.0
)
 
64.1

 
(115.8
)
 
Net realized loss on debt extinguishment
 
—

 
—

 
8.6

 
—

 
Preference share redemption costs
 
—

 
—

 
—

 
8.0

 
Amortization and non-recurring expenses
 
6.1

 
19.8

 
75.2

 
28.0

Operating (loss)/income after tax available to ordinary shareholders
 
(132.9
)
 
(186.1
)
 
0.3

 
(393.2
)
Tax expense/(benefit) on operating income
 
2.1

 
(8.3
)
 
(2.0
)
 
(17.7
)
Operating (loss) before tax available to ordinary shareholders
 
$
(130.8
)
 
$
(194.4
)
 
$
(1.7
)
 
$
(410.9
)
 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
Net (loss) adjusted for preference share dividends and non-controlling interest
 
$
(2.60
)
 
(3.25
)
 
$
(2.97
)
 
$
(5.22
)
Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange losses/(gains)
 
0.18

 
0.02

 
0.50

 
(0.03
)
 
Net realized losses/(gains) on investments
 
0.09

 
(0.24
)
 
1.07

 
(1.94
)
 
Net realized loss on debt extinguishment
 
—

 
—

 
0.14

 
—

 
Preference share redemption costs
 
—

 
—

 
—

 
0.13

 
Amortization and non-recurring expenses
 
0.10

 
0.33

 
1.27

 
0.47

Operating (loss)/income adjusted for preference shares dividends and non-controlling interest
 
$
(2.23
)
 
(3.14
)
 
$
0.01

 
$
(6.59
)
 
 
 
 
 
 
 
 
 
Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
Net (loss) adjusted for preference share dividends and non-controlling interest
 
$
(2.60
)
 
(3.25
)
 
$
(2.97
)
 
$
(5.22
)
Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange losses/(gains)
 
0.18

 
0.02

 
0.50

 
(0.03
)
 
Net realized losses/(gains) on investments
 
0.09

 
(0.24
)
 
1.07

 
(1.94
)
 
Net realized loss on debt extinguishment
 
—

 
—

 
0.14

 
—

 
Preference share redemption costs
 
—

 
—

 
—

 
0.13

 
Amortization and non-recurring expenses
 
0.10

 
0.33

 
1.27

 
0.47

Operating (loss)/income adjusted for preference shares dividends and non-controlling interest
 
$
(2.23
)
 
(3.14
)
 
$
0.01

 
$
(6.59
)
 
The basic and diluted number of ordinary shares is the same as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

22



q3_2017smalllogoa08.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Worldwide Natural Catastrophe Exposures: Major Peril Zones as at January 1, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 YEAR RETURN PERIOD AS % OF
TOTAL SHAREHOLDERS’ EQUITY AND IN $ MM(1)
 
250 YEAR RETURN PERIOD AS % OF
TOTAL SHAREHOLDERS’ EQUITY AND IN $ MM(1)
 
 
 
 
 
 
 
chart-e1f139074be85057b3e.jpg-------------------------------- chart-b38230a24c8a5f1aa8d.jpg


 
 
1 in 100 year tolerance:
17.5% of total shareholders’ equity
 
1 in 250 year tolerance:
25.0% of total shareholders’ equity
 
 
The Probable Maximum Losses ("PMLs") are net of reinsurance and Aspen Capital Markets' third-party capital.
 


(1) Based on shareholders' equity of $2,652.3 million (excluding non-controlling interest) as at December 31, 2018. The estimates reflect Aspen's view of the modelled maximum losses at the return periods shown which include input from various third party vendor models and Aspen's proprietary adjustments to these models and planned reinsurance purchases. Catastrophe loss experience may materially differ from the modelled PMLs due to limitations in one or more of the models or uncertainties in the application of policy terms and limits.

23