Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ASPEN INSURANCE HOLDINGS LTD | u11694e8vk.htm |
| EX-99.3 - EXHIBIT 99.3 - ASPEN INSURANCE HOLDINGS LTD | u11694exv99w3.htm |
| EX-99.1 - EXHIBIT 99.1 - ASPEN INSURANCE HOLDINGS LTD | u11694exv99w1.htm |
Exhibit 99.2
|
FINANCIAL SUPPLEMENT
As of December 31, 2011 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 Kerry Calaiaro, Senior Vice President, Investor Relations T: +1 646-502-1076 email: kerry.calaiaro@aspen.co AHL: NYSE |
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ASPEN INSURANCE HOLDINGS LIMITED
Table Of Contents |
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Definitions and presentation: All financial information
contained herein is unaudited except for information for the
fiscal year ended December 31, 2010. Unless otherwise
noted, all data is in U.S. dollars millions, except for per
share, percentage and ratio information.
In presenting Aspen’s results, management has included and
discussed certain “non-GAAP financial measures”, as
such term is defined in Regulation G. 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 in accordance with
Regulation G 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 capital gains or losses, including net
realized and unrealized gains on interest rate swaps, and
after-tax net foreign exchange gains or losses, including net
realized and unrealized gains and losses on foreign exchange
contracts.
Aspen excludes after-tax net realized capital gains or losses,
including net realized and unrealized gains on interest rate
swaps, and after-tax net foreign exchange gains or losses,
including net realized and unrealized gains and losses on
foreign exchange contracts, from its calculation of operating
income because 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 distorts 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 27 for a
reconciliation of operating income to net income.
Annualized Operating Return on Average Equity
(“Operating ROE”) (a non-GAAP financial measure):
Annualized Operating Return on Average Equity 1) is
calculated using operating income, as defined above and
2) excludes from average equity, the average after-tax
unrealized appreciation or depreciation on investments and the
average after-tax unrealized foreign exchange gains or losses
and the aggregate value of the liquidation preferences of our
preference shares. Unrealized appreciation (depreciation) on
investments is primarily the result of interest rate movements
and changes in credit spreads, and the resultant impact on fixed
income securities, and unrealized appreciation (depreciation) on
foreign exchange is the result of exchange rate movements
between the U.S. dollar and the Group’s non-functional
currencies. Such appreciation (depreciation) is not related to
management actions or operational performance (nor is it likely
to be realized). Therefore, Aspen believes that excluding these
unrealized appreciations (depreciations) provides a more
consistent and useful measurement of operating performance,
which supplements GAAP information. Average equity is calculated
as the arithmetic average on a monthly basis for the stated
periods.
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 27 for a reconciliation of operating income to net
income and page 7 for a reconciliation of average equity to
closing shareholders’ equity.
Diluted Operating Earnings Per Share and Basic Operating
Earnings Per Share (a non-GAAP financial measure): 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 is calculated by dividing
operating income by the diluted or basic weighted average number
of shares outstanding for the period. See page 27 for a
reconciliation of diluted and basic operating earnings per share
to basic earnings per share.
Diluted book value per ordinary share (a non-GAAP
financial measure): Aspen has included diluted book value per
ordinary share as it takes into account the effect of dilutive
securities; therefore, Aspen believes it is a better measure of
calculating shareholder returns than book value per share.
Please see page 25 for a reconciliation of diluted book
value per share to basic book value per share.
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
or written, the cost of losses and expenses, respectively. The
combined ratio presents the total cost per $100 of earned
premium. A combined ratio below 100% demonstrates underwriting
profit; a combined ratio above 100% demonstrates underwriting
loss.
GAAP combined ratios differ from U.S. statutory combined
ratios primarily due to the deferral of certain third-party
acquisition expenses for GAAP reporting purposes and the use of
net premiums earned rather than net premiums written in the
denominator when calculating the acquisition expense and the
general and administrative expense ratios.
Accident Year Loss Ratios (a non-GAAP financial measure):
In addition to the underwriting ratios described above,
management also uses accident year loss ratios to evaluate
current underwriting performance. The accident year loss ratio
excludes the effect of prior years’ premium adjustments and
reserve developments. This ratio focuses on the relationship
between current premiums earned and losses incurred related to
the current year. Please see pages 13 and 14
for a reconciliation of accident year loss ratios to
underwriting ratios calculated in accordance with U.S. GAAP.
1
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ASPEN INSURANCE HOLDINGS
LIMITED Financial Highlights |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
| (in US$ millions except for percentages, share and per share amounts) | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||
|
Gross written premium
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$ | 458.7 | $ | 412.8 | 11.1% | $ | 2,207.8 | $ | 2,076.8 | 6.3% | ||||||||||||
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Net written premium
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$ | 431.2 | $ | 395.2 | 9.1% | $ | 1,929.1 | $ | 1,891.1 | 2.0% | ||||||||||||
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Net earned premium
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$ | 489.4 | $ | 499.7 | (2.1%) | $ | 1,888.5 | $ | 1,898.9 | (0.5%) | ||||||||||||
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Net (loss)/income after tax
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$ | 13.5 | $ | 92.7 | (85.4%) | $ | (105.8) | $ | 312.7 | (133.8%) | ||||||||||||
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Operating (loss)/income after tax
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$ | 6.1 | $ | 75.8 | (92.0%) | $ | (66.1) | $ | 258.9 | (125.5%) | ||||||||||||
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Net investment income
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$ | 54.2 | $ | 57.0 | (4.9%) | $ | 225.6 | $ | 232.0 | (2.8%) | ||||||||||||
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Underwriting (loss)/income
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$ | (68.8) | $ | 23.2 | (396.6%) | $ | (294.7) | $ | 63.1 | (567.0%) | ||||||||||||
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Earnings Per Share and Book Value Per Share
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Basic earnings per ordinary share
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Net (loss)/income adjusted for preference share dividend and
cancellation of preference shares
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$ | 0.11 | $ | 1.18 | (90.7%) | $ | (1.82) | $ | 3.80 | (147.9%) | ||||||||||||
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Operating (loss)/income adjusted for preference share dividend
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$ | 0.01 | $ | 1.08 | (99.1%) | $ | (1.26) | $ | 3.09 | (140.8%) | ||||||||||||
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Diluted earnings per ordinary share
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Net (loss)/income adjusted for preference share dividend and
cancellation of preference shares
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$ | 0.11 | $ | 1.12 | (90.2%) | $ | (1.82) | $ | 3.62 | (150.3%) | ||||||||||||
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Operating (loss)/income adjusted for preference share dividend
|
$ | 0.01 | $ | 1.02 | (99.0%) | $ | (1.26) | $ | 2.94 | (142.9%) | ||||||||||||
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Weighted average number of ordinary shares outstanding (in
millions of shares)
|
70.615 | 73.996 | (4.6%) | 70.665 | 76.343 | (7.4%) | ||||||||||||||||
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Diluted weighted average number of ordinary shares outstanding
(in millions of shares)
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73.258 | 77.733 | (5.8%) | 70.665 | 80.016 | (11.7%) | ||||||||||||||||
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Book value per ordinary share
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$ | 39.89 | $ | 40.96 | (2.6%) | $ | 39.89 | $ | 40.96 | (2.6%) | ||||||||||||
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Diluted book value per ordinary share (treasury stock method)
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$ | 38.43 | $ | 38.90 | (1.2%) | $ | 38.43 | $ | 38.90 | (1.2%) | ||||||||||||
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Ordinary shares outstanding at December 31, 2011 and
December 31, 2010 (in millions of shares)
|
70.656 | 70.508 | 0.2% | |||||||||||||||||||
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Diluted ordinary shares outstanding at December 31, 2011
and December 31, 2010 (in millions of shares)
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73.339 | 74.253 | (1.2%) | |||||||||||||||||||
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Underwriting Ratios
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Loss ratio
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80.6% | 61.5% | 82.4% | 65.8% | ||||||||||||||||||
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Policy acquisition expense ratio
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17.5% | 18.1% | 18.4% | 17.3% | ||||||||||||||||||
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General, administrative and corporate expense ratio
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16.0% | 15.7% | 14.8% | 13.6% | ||||||||||||||||||
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Expense ratio
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33.5% | 33.8% | 33.2% | 30.9% | ||||||||||||||||||
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Combined ratio
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114.1% | 95.3% | 115.6% | 96.7% | ||||||||||||||||||
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Return On Equity
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Average equity
(1)
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$ | 2,389.3 | $ | 2,612.7 | $ | 2,406.9 | $ | 2,597.2 | ||||||||||||||
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Return on average equity
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Net (loss)/income adjusted for preference share dividend
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0.3% | 3.3% | (5.3%) | 11.2% | ||||||||||||||||||
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Operating (loss)/income adjusted for preference share dividend
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– | 2.7% | (3.7%) | 9.1% | ||||||||||||||||||
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Annualized return on average equity
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Net (loss)/income
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1.2% | 13.2% | (5.3%) | 11.2% | ||||||||||||||||||
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Operating (loss)/income
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– | 10.8% | (3.7%) | 9.1% | ||||||||||||||||||
See pages 7, 25 and 27 for a
reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures.
| (1) | Average equity excludes the average after-tax unrealized appreciation or depreciation on investments, preference shares and average after-tax unrealized foreign exchange gains or losses. |
2
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| (in US$ millions except for percentages and per share amounts) | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | ||||||||||||||||||||||||
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UNDERWRITING REVENUES
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Gross written premiums
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$458.7 | $495.6 | $582.2 | $671.3 | $412.8 | $415.8 | $545.4 | $702.8 | ||||||||||||||||||||||||
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Premiums ceded
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(27.5 | ) | (33.0 | ) | (56.5 | ) | (161.7 | ) | (17.6 | ) | (38.8 | ) | (6.6 | ) | (122.7 | ) | ||||||||||||||||
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Net written premiums
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431.2 | 462.6 | 525.7 | 509.6 | 395.2 | 377.0 | 538.8 | 580.1 | ||||||||||||||||||||||||
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Change in unearned premiums
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58.2 | 24.3 | (65.9 | ) | (57.2 | ) | 104.5 | 74.7 | (58.9 | ) | (112.5 | ) | ||||||||||||||||||||
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Net earned premiums
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489.4 | 486.9 | 459.8 | 452.4 | 499.7 | 451.7 | 479.9 | 467.6 | ||||||||||||||||||||||||
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UNDERWRITING EXPENSES
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Losses and loss adjustment expenses
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394.5 | 306.2 | 326.4 | 528.9 | 307.4 | 285.8 | 276.7 | 378.8 | ||||||||||||||||||||||||
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Policy acquisition expenses
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85.5 | 93.4 | 86.7 | 81.4 | 90.6 | 75.6 | 77.8 | 84.5 | ||||||||||||||||||||||||
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General, administrative and corporate expenses
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78.2 | 71.0 | 69.6 | 61.4 | 78.5 | 65.0 | 62.6 | 52.5 | ||||||||||||||||||||||||
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Total underwriting expenses
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558.2 | 470.6 | 482.7 | 671.7 | 476.5 | 426.4 | 417.1 | 515.8 | ||||||||||||||||||||||||
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Underwriting (loss)/income including corporate expenses
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(68.8 | ) | 16.3 | (22.9 | ) | (219.3 | ) | 23.2 | 25.3 | 62.8 | (48.2 | ) | ||||||||||||||||||||
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OTHER OPERATING REVENUE
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Net investment income
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54.2 | 57.3 | 58.6 | 55.5 | 57.0 | 58.1 | 57.5 | 59.4 | ||||||||||||||||||||||||
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Interest expense
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(7.7 | ) | (7.7 | ) | (7.7 | ) | (7.7 | ) | (4.8 | ) | (3.9 | ) | (4.0 | ) | (3.8 | ) | ||||||||||||||||
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Total other operating revenue
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46.5 | 49.6 | 50.9 | 47.8 | 52.2 | 54.2 | 53.5 | 55.6 | ||||||||||||||||||||||||
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Other income/(expense)
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3.6 | (9.1 | ) | 6.8 | (8.1 | ) | 0.9 | 0.4 | 1.7 | (0.9 | ) | |||||||||||||||||||||
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OPERATING (LOSS)/INCOME BEFORE TAX
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(18.7 | ) | 56.8 | 34.8 | (179.6 | ) | 76.3 | 79.9 | 118.0 | 6.5 | ||||||||||||||||||||||
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OTHER
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Net realized and unrealized exchange gains/(losses)
(1)
|
2.3 | 0.3 | (7.7 | ) | 2.9 | (0.1 | ) | 3.4 | (2.6 | ) | 1.5 | |||||||||||||||||||||
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Net realized and unrealized investment gains/(losses)
(2)
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6.0 | (32.9 | ) | (15.7 | ) | 8.5 | 19.7 | 19.8 | 5.6 | 12.3 | ||||||||||||||||||||||
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(LOSS)/INCOME BEFORE TAX
|
(10.4 | ) | 24.2 | 11.4 | (168.2 | ) | 95.9 | 103.1 | 121.0 | 20.3 | ||||||||||||||||||||||
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Income tax (expense)/recovery
|
23.9 | (2.0 | ) | (1.2 | ) | 16.5 | (3.2 | ) | (10.3 | ) | (12.1 | ) | (2.0 | ) | ||||||||||||||||||
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NET INCOME/(LOSS) AFTER TAX
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13.5 | 22.2 | 10.2 | (151.7 | ) | 92.7 | 92.8 | 108.9 | 18.3 | |||||||||||||||||||||||
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Dividends paid on ordinary shares
|
(10.7 | ) | (10.6 | ) | (10.6 | ) | (10.6 | ) | (11.5 | ) | (11.5 | ) | (11.7 | ) | (11.8 | ) | ||||||||||||||||
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Dividends paid on preference shares
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(5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | (5.7 | ) | ||||||||||||||||
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Proportion of net loss due to non-controlling interest
|
(0.1 | ) | (0.3 | ) | 0.2 | 0.2 | 0.2 | 0.1 | - | - | ||||||||||||||||||||||
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Retained (loss)/income
|
$(3.0 | ) | $5.6 | $(5.9 | ) | $(167.8 | ) | $75.7 | $75.7 | $91.5 | $0.8 | |||||||||||||||||||||
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Components of net income/(loss) after tax
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Operating (loss)/income
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$6.1 | $56.5 | $31.9 | $(160.6 | ) | $75.8 | $72.0 | $105.0 | $6.1 | |||||||||||||||||||||||
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Net realized and unrealized exchange gains/(losses) after tax
(1)
|
3.7 | (0.8 | ) | (4.8 | ) | 1.8 | 0.2 | 3.0 | (1.3 | ) | 1.0 | |||||||||||||||||||||
|
Net realized and unrealized investment gains/(losses) after tax
(2)
|
3.7 | (33.5 | ) | (16.9 | ) | 7.1 | 16.7 | 17.8 | 5.2 | 11.2 | ||||||||||||||||||||||
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NET INCOME/(LOSS) AFTER TAX
|
$13.5 | $22.2 | $10.2 | $(151.7 | ) | $92.7 | $92.8 | $108.9 | $18.3 | |||||||||||||||||||||||
|
Loss ratio
|
80.6% | 62.9% | 71.0% | 116.9% | 61.5% | 63.3% | 57.7% | 81.0% | ||||||||||||||||||||||||
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Policy acquisition expense ratio
|
17.5% | 19.2% | 18.9% | 18.0% | 18.1% | 16.7% | 16.2% | 18.1% | ||||||||||||||||||||||||
|
General, administrative and corporate expense ratio
|
16.0% | 14.6% | 15.1% | 13.6% | 15.7% | 14.4% | 13.0% | 11.2% | ||||||||||||||||||||||||
|
Expense ratio
|
33.5% | 33.8% | 34.0% | 31.6% | 33.8% | 31.1% | 29.2% | 29.3% | ||||||||||||||||||||||||
|
Combined ratio
|
114.1% | 96.7% | 105.0% | 148.5% | 95.3% | 94.4% | 86.9% | 110.3% | ||||||||||||||||||||||||
|
Basic earnings/(losses) per share
(3)
|
$0.11 | $0.23 | $0.06 | $(2.23 | ) | $1.18 | $1.14 | $1.34 | $0.16 | |||||||||||||||||||||||
|
Diluted earnings(losses) per share
|
$0.11 | $0.23 | $0.06 | $(2.23 | ) | $1.12 | $1.08 | $1.28 | $0.16 | |||||||||||||||||||||||
|
Annualized return on average equity
|
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Net income/(loss)
|
1.2% | 2.8% | 0.8% | (25.2% | ) | 13.2% | 13.2% | 16.4% | 2.0% | |||||||||||||||||||||||
|
Operating income/(loss)
|
– | 8.4% | 4.4% | (26.8% | ) | 10.8% | 10.0% | 15.6% | - | |||||||||||||||||||||||
See pages 7, 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
| (1) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (2) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (3) | Adjusted for preference share dividend and cancellation of preference shares. |
3
|
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ASPEN INSURANCE HOLDINGS
LIMITED Consolidated Statements of Operations - Year End |
| Twelve Months Ended December 31, | ||||||||||||
| (in US$ millions except for percentages) |
2011
|
2010
|
2009
|
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|
UNDERWRITING REVENUES
|
||||||||||||
|
Gross written premiums
|
$2,207.8 | $2,076.8 | $2,067.1 | |||||||||
|
Premiums ceded
|
(278.7 | ) | (185.7 | ) | (230.3 | ) | ||||||
|
Net written premiums
|
1,929.1 | 1,891.1 | 1,836.8 | |||||||||
|
Change in unearned premiums
|
(40.6 | ) | 7.8 | (13.8 | ) | |||||||
|
Net earned premiums
|
1,888.5 | 1,898.9 | 1,823.0 | |||||||||
|
UNDERWRITING EXPENSES
|
||||||||||||
|
Losses and loss adjustment expenses
|
1,556.0 | 1,248.7 | 948.1 | |||||||||
|
Policy acquisition expenses
|
347.0 | 328.5 | 334.1 | |||||||||
|
General, administrative and corporate expenses
|
280.2 | 258.6 | 252.4 | |||||||||
|
Total underwriting expenses
|
2,183.2 | 1,835.8 | 1,534.6 | |||||||||
|
Underwriting (loss)/income including corporate expenses
|
(294.7 | ) | 63.1 | 288.4 | ||||||||
|
OTHER OPERATING REVENUE
|
||||||||||||
|
Net investment income
|
225.6 | 232.0 | 248.5 | |||||||||
|
Interest expense
|
(30.8 | ) | (16.5 | ) | (15.6 | ) | ||||||
|
Total other operating revenue
|
194.8 | 215.5 | 232.9 | |||||||||
|
Other (expense)/income
|
(6.8 | ) | 2.1 | - | ||||||||
|
OPERATING (LOSS)/INCOME BEFORE TAX
|
(106.7 | ) | 280.7 | 521.3 | ||||||||
|
OTHER
|
||||||||||||
|
Net realized and unrealized exchange
(losses)/gains (1)
|
(2.2 | ) | 2.2 | 2.0 | ||||||||
|
Net realized and unrealized investment
(losses)/gains (2)
|
(34.1 | ) | 57.4 | 11.4 | ||||||||
|
(LOSS)/INCOME BEFORE TAX
|
(143.0 | ) | 340.3 | 534.7 | ||||||||
|
Income tax recovery/(expense)
|
37.2 | (27.6 | ) | (60.8 | ) | |||||||
|
NET (LOSS)/INCOME AFTER TAX
|
(105.8 | ) | 312.7 | 473.9 | ||||||||
|
Dividends paid on ordinary shares
|
(42.5 | ) | (46.5 | ) | (49.8 | ) | ||||||
|
Dividends paid on preference shares
|
(22.8 | ) | (22.8 | ) | (23.8 | ) | ||||||
|
Proportion of net loss due to non-controlling interest
|
- | 0.3 | - | |||||||||
|
Retained (loss)/income
|
$(171.1 | ) | $243.7 | $400.3 | ||||||||
|
Components of net income after tax
|
||||||||||||
|
Operating (loss)/income
|
$(66.1 | ) | $258.9 | $464.3 | ||||||||
|
Net realized and unrealized exchange gains/(losses) after
tax (1)
|
(0.1 | ) | 2.9 | 2.0 | ||||||||
|
Net realized and unrealized investment (losses)/gains after
tax (2)
|
(39.6 | ) | 50.9 | 7.6 | ||||||||
|
NET (LOSS)/INCOME AFTER TAX
|
$(105.8 | ) | $312.7 | $473.9 | ||||||||
|
Loss ratio
|
82.4% | 65.8% | 52.0% | |||||||||
|
Policy acquisition expense ratio
|
18.4% | 17.3% | 18.3% | |||||||||
|
General, administrative and corporate expense ratio
|
14.8% | 13.6% | 13.8% | |||||||||
|
Expense ratio
|
33.2% | 30.9% | 32.1% | |||||||||
|
Combined ratio
|
115.6% | 96.7% | 84.1% | |||||||||
See pages 7, 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
| (1) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (2) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. |
4
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Consolidated Balance Sheets |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||
| (in US$ millions except for per share amounts) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||
|
ASSETS
|
|||||||||||||||||||||
|
Investments
|
|||||||||||||||||||||
|
Fixed income maturities
|
$5,820.2 | $5,992.8 | $5,972.8 | $5,896.1 | $5,766.6 | ||||||||||||||||
|
Equity securities
|
179.5 | 163.8 | 178.1 | 173.5 | - | ||||||||||||||||
|
Other investments
|
33.1 | 32.3 | 30.0 | 30.1 | 30.0 | ||||||||||||||||
|
Short-term investments
|
302.3 | 295.9 | 202.8 | 187.6 | 289.7 | ||||||||||||||||
|
Total investments
|
6,335.1 | 6,484.8 | 6,383.7 | 6,287.3 | 6,086.3 | ||||||||||||||||
|
Cash and cash equivalents
|
1,239.1 | 1,038.8 | 1,074.1 | 1,116.9 | 1,179.1 | ||||||||||||||||
|
Reinsurance recoverables
|
|||||||||||||||||||||
|
Unpaid losses
|
426.6 | 357.7 | 359.3 | 334.0 | 279.9 | ||||||||||||||||
|
Ceded unearned premiums
|
87.8 | 129.9 | 146.2 | 167.4 | 62.4 | ||||||||||||||||
|
Receivables
|
|||||||||||||||||||||
|
Underwriting premiums
|
894.4 | 957.2 | 1,054.3 | 940.0 | 821.7 | ||||||||||||||||
|
Other
|
69.7 | 69.3 | 70.0 | 62.8 | 67.9 | ||||||||||||||||
|
Funds withheld
|
90.7 | 65.1 | 81.9 | 86.3 | 83.3 | ||||||||||||||||
|
Deferred policy acquisition costs
|
200.5 | 207.1 | 204.9 | 191.0 | 166.8 | ||||||||||||||||
|
Derivatives at fair value
|
1.3 | 5.8 | 5.7 | 7.4 | 6.8 | ||||||||||||||||
|
Receivable for securities sold
|
1.1 | 0.5 | 21.2 | 10.6 | 0.2 | ||||||||||||||||
|
Office properties and equipment
|
53.9 | 49.5 | 45.0 | 38.6 | 34.8 | ||||||||||||||||
|
Income tax receivable
|
27.9 | 2.5 | 19.9 | 5.2 | - | ||||||||||||||||
|
Other assets
|
36.8 | 31.2 | 30.2 | 29.4 | 21.9 | ||||||||||||||||
|
Intangible assets
|
20.0 | 20.3 | 20.5 | 20.7 | 21.0 | ||||||||||||||||
|
Total assets
|
$9,484.9 | $9,419.7 | $9,516.9 | $9,297.6 | $8,832.1 | ||||||||||||||||
|
LIABILITIES
|
|||||||||||||||||||||
|
Insurance reserves
|
|||||||||||||||||||||
|
Losses and loss adjustment expenses
|
$4,525.2 | $4,399.4 | $4,391.7 | $4,229.3 | $3,820.5 | ||||||||||||||||
|
Unearned premiums
|
916.1 | 1,014.5 | 1,086.2 | 1,028.3 | 859.0 | ||||||||||||||||
|
Total insurance reserves
|
5,441.3 | 5,413.9 | 5,477.9 | 5,257.6 | 4,679.5 | ||||||||||||||||
|
Payables
|
|||||||||||||||||||||
|
Reinsurance premiums
|
155.8 | 135.2 | 181.6 | 226.9 | 113.7 | ||||||||||||||||
|
Taxation
|
26.9 | 35.2 | 49.1 | 45.3 | 60.2 | ||||||||||||||||
|
Accrued expenses and other payables
|
187.8 | 186.0 | 204.8 | 214.5 | 238.0 | ||||||||||||||||
|
Liabilities under derivative contracts
|
2.1 | - | - | 3.5 | - | ||||||||||||||||
|
Total payables
|
372.6 | 356.4 | 435.5 | 490.2 | 411.9 | ||||||||||||||||
|
Long-term debt
|
499.0 | 498.9 | 498.9 | 498.8 | 498.8 | ||||||||||||||||
|
Total liabilities
|
6,312.9 | 6,269.2 | 6,412.3 | 6,246.6 | 5,590.2 | ||||||||||||||||
|
SHAREHOLDERS’ EQUITY
|
|||||||||||||||||||||
|
Ordinary shares
|
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||
|
Non-controlling interest
|
0.4 | 0.3 | 0.1 | 0.3 | 0.5 | ||||||||||||||||
|
Preference shares
|
- | - | - | - | - | ||||||||||||||||
|
Additional paid-in capital
|
1,385.0 | 1,381.8 | 1,388.2 | 1,388.2 | 1,388.3 | ||||||||||||||||
|
Retained earnings
|
1,357.6 | 1,360.6 | 1,355.0 | 1,360.9 | 1,528.7 | ||||||||||||||||
|
Accumulated other comprehensive income, net of taxes
|
428.9 | 407.7 | 361.2 | 301.5 | 324.3 | ||||||||||||||||
|
Total shareholders’ equity
|
3,172.0 | 3,150.5 | 3,104.6 | 3,051.0 | 3,241.9 | ||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$9,484.9 | $9,419.7 | $9,516.9 | $9,297.6 | $8,832.1 | ||||||||||||||||
|
Book value per ordinary share
|
$39.89 | $39.62 | $38.84 | $38.14 | $40.96 | ||||||||||||||||
See pages 7, 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
5
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Earnings Per Share and Book Value Per Share |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| (in US$ except for number of shares) | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | ||||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||||
|
Net (loss)/income adjusted for preference share dividend and
cancellation of preference shares
|
$ 0.11 | $ 1.18 | $ (1.82 | ) | $ 3.80 | |||||||||||||
|
Operating (loss)/income adjusted for preference share dividend
|
$ 0.01 | $ 1.08 | $ (1.26 | ) | $ 3.09 | |||||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||||
|
Net (loss)/income adjusted for preference share dividend and
cancellation of preference shares
|
$ 0.11 | $ 1.12 | $ (1.82 | ) | $ 3.62 | |||||||||||||
|
Operating (loss)/income adjusted for preference share dividend
|
$ 0.01 | $ 1.02 | $ (1.26 | ) | $ 2.94 | |||||||||||||
|
Weighted average number of ordinary shares outstanding (in
millions)
|
70.615 | 73.996 | 70.665 | 76.343 | ||||||||||||||
|
Weighted average number of ordinary shares outstanding and
dilutive potential ordinary shares (in millions)
|
73.258 | 77.733 | 70.665 | 80.016 | ||||||||||||||
|
Book value per ordinary share
|
$ 39.89 | $ 40.96 | $ 39.89 | $ 40.96 | ||||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$ 38.43 | $ 38.90 | $ 38.43 | $ 38.90 | ||||||||||||||
|
Ordinary shares outstanding at end of the period (in millions)
|
70.656 | 70.508 | 70.656 | 70.508 | ||||||||||||||
|
Ordinary shares outstanding and dilutive potential ordinary
shares at end of the period (treasury stock method) (in millions)
|
73.339 | 74.253 | 73.339 | 74.253 | ||||||||||||||
The basic and diluted number of ordinary shares for the twelve
months ended December 31, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
See pages 7, 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
6
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Return On Average Equity |
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in US$ millions except for percentages) | December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | ||||||||||||
|
Average shareholders’ equity
|
$3,161.3 | $3,341.3 | $3,134.3 | $3,288.4 | ||||||||||||
|
Average preference shares
|
(353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | ||||||||
|
Average cumulative foreign currency translation adjustments, net
of taxes
|
(119.0 | ) | (111.8 | ) | (116.5 | ) | (109.5 | ) | ||||||||
|
Average unrealized (appreciation)/depreciation on investments,
net of taxes
|
(299.4 | ) | (263.2 | ) | (257.3 | ) | (228.1 | ) | ||||||||
|
Average equity
|
$2,389.3 | $2,612.7 | $2,406.9 | $2,597.2 | ||||||||||||
|
Return on average equity:
|
||||||||||||||||
|
Net (loss)/income adjusted for preference share dividend
|
0.3% | 3.3% | (5.3% | ) | 11.2% | |||||||||||
|
Operating (loss)/income adjusted for preference share dividend
|
– | 2.7% | (3.7% | ) | 9.1% | |||||||||||
|
Annualized return on average equity:
|
||||||||||||||||
|
Net (loss)/income
|
1.2% | 13.2% | (5.3% | ) | 11.2% | |||||||||||
|
Operating (loss)/income
|
– | 10.8% | (3.7% | ) | 9.1% | |||||||||||
|
Components of return on average equity:
|
||||||||||||||||
|
Return on average equity from underwriting
activity (1)
|
(2.9% | ) | 0.9% | (12.2% | ) | 2.4% | ||||||||||
|
Return on average equity from investment and other
activity (2)
|
1.9% | 2.2% | 6.9% | 7.8% | ||||||||||||
|
Pre-tax operating (loss)/income return on average equity
|
(1.0% | ) | 3.1% | (5.4% | ) | 10.2% | ||||||||||
|
Post-tax operating (loss)/income return on average
equity (3)
|
– | 3.0% | (3.7% | ) | 9.1% | |||||||||||
See pages 25 and 27 for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP
financial measures.
| (1) | Calculated by using underwriting income. | |
| (2) | Calculated by using total other operating revenue and other income/(expense) adjusted for preference share dividend. | |
| (3) | Calculated by using operating income after-tax adjusted for preference share dividend. |
7
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Consolidated Underwriting Results by Operating Segment |
| Three Months Ended December 31, 2011 | Three Months Ended December 31, 2010 | |||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||
|
Gross written premiums
|
$186.3 | $272.4 | $458.7 | $152.8 | $260.0 | $412.8 | ||||||
|
Net written premiums
|
182.3 | 248.9 | 431.2 | 148.5 | 246.7 | 395.2 | ||||||
|
Gross earned premiums
|
311.9 | 245.7 | 557.6 | 303.9 | 246.5 | 550.4 | ||||||
|
Net earned premiums
|
288.7 | 200.7 | 489.4 | 292.1 | 207.6 | 499.7 | ||||||
|
Losses and loss adjustment expenses
|
278.1 | 116.4 | 394.5 | 146.8 | 160.6 | 307.4 | ||||||
|
Policy acquisition expenses
|
47.4 | 38.1 | 85.5 | 58.8 | 31.8 | 90.6 | ||||||
|
General and administrative expenses
|
32.6 | 33.0 | 65.6 | 32.8 | 33.5 | 66.3 | ||||||
|
Underwriting (loss)/income
|
$(69.4) | $13.2 | $(56.2) | $53.7 | $(18.3) | $35.4 | ||||||
|
Net investment income
|
54.2 | 57.0 | ||||||||||
|
Net realized and unrealized investment gains
(1)
|
6.0 | 19.7 | ||||||||||
|
Corporate (expenses)
|
(12.6) | (12.2) | ||||||||||
|
Other income
|
3.6 | 0.9 | ||||||||||
|
Interest (expenses)
|
(7.7) | (4.8) | ||||||||||
|
Net realized and unrealized foreign exchange gains/(losses)
(2)
|
2.3 | (0.1) | ||||||||||
|
Income before income taxes
|
$(10.4) | $95.9 | ||||||||||
|
Income tax recovery/(expense)
|
23.9 | (3.2) | ||||||||||
|
Net income
|
$13.5 | $92.7 | ||||||||||
|
Ratios
|
||||||||||||
|
Loss ratio
|
96.3% | 58.0% | 80.6% | 50.3% | 77.4% | 61.5% | ||||||
|
Policy acquisition expense ratio
|
16.4% | 19.0% | 17.5% | 20.1% | 15.3% | 18.1% | ||||||
|
General and administrative expense ratio
(3)
|
11.3% | 16.4% | 16.0% | 11.2% | 16.1% | 15.7% | ||||||
|
Expense ratio
|
27.7% | 35.4% | 33.5% | 31.3% | 31.4% | 33.8% | ||||||
|
Combined ratio
|
124.0% | 93.4% | 114.1% | 81.6% | 108.8% | 95.3% | ||||||
| (1) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (2) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (3) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
8
|
|
| Twelve Months Ended December 31, 2011 | Twelve Months Ended December 31, 2010 | |||||||||||
| (in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||
|
Gross written premiums
|
$1,187.5 | $1,020.3 | $2,207.8 | $1,162.2 | $914.6 | $2,076.8 | ||||||
|
Net written premiums
|
1,098.1 | 831.0 | 1,929.1 | 1,118.5 | 772.6 | 1,891.1 | ||||||
|
Gross earned premiums
|
1,190.6 | 950.5 | 2,141.1 | 1,186.4 | 907.9 | 2,094.3 | ||||||
|
Net earned premiums
|
1,108.3 | 780.2 | 1,888.5 | 1,141.8 | 757.1 | 1,898.9 | ||||||
|
Losses and loss adjustment expenses
|
1,083.3 | 472.7 | 1,556.0 | 693.5 | 555.2 | 1,248.7 | ||||||
|
Policy acquisition expenses
|
197.7 | 149.3 | 347.0 | 202.4 | 126.1 | 328.5 | ||||||
|
General and administrative expenses
|
109.8 | 125.7 | 235.5 | 112.3 | 99.4 | 211.7 | ||||||
|
Underwriting (loss)/income
|
$(282.5) | $32.5 | $(250.0) | $133.6 | $(23.6) | $110.0 | ||||||
|
Net investment income
|
225.6 | 232.0 | ||||||||||
|
Net realized and unrealized investment (losses)/gains
(1)
|
(34.1) | 50.6 | ||||||||||
|
Corporate (expenses)
|
(44.7) | (46.9) | ||||||||||
|
Other (expenses)/income
|
(6.8) | 8.9 | ||||||||||
|
Interest (expenses)
|
(30.8) | (16.5) | ||||||||||
|
Net realized and unrealized foreign exchange (losses)/income
(2)
|
(2.2) | 2.2 | ||||||||||
|
(Loss)/income before income tax
|
$(143.0) | $340.3 | ||||||||||
|
Income tax recovery/(expense)
|
37.2 | (27.6) | ||||||||||
|
Net (loss)/income
|
$(105.8) | $312.7 | ||||||||||
|
Ratios
|
||||||||||||
|
Loss ratio
|
97.7% | 60.6% | 82.4% | 60.7% | 73.3% | 65.8% | ||||||
|
Policy acquisition expense ratio
|
17.8% | 19.1% | 18.4% | 17.7% | 16.7% | 17.3% | ||||||
|
General and administrative expense ratio
(3)
|
9.9% | 16.1% | 14.8% | 9.8% | 13.1% | 13.6% | ||||||
|
Expense ratio
|
27.7% | 35.2% | 33.2% | 27.5% | 29.8% | 30.9% | ||||||
|
Combined ratio
|
125.4% | 95.8% | 115.6% | 88.2% | 103.1% | 96.7% | ||||||
| (1) | Includes the net realized and unrealized gains/(losses) from interest-rate swaps. | |
| (2) | Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. | |
| (3) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
9
|
|
| (in US$ millions except for percentages) | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | ||||||||||
|
Gross written premiums
|
$186.3 | $276.1 | $288.0 | $437.1 | $152.8 | $236.0 | $283.3 | $490.1 | ||||||||||
|
Net written premiums
|
182.3 | 270.5 | 256.9 | 388.4 | 148.5 | 229.6 | 279.1 | 461.3 | ||||||||||
|
Gross earned premiums
|
311.9 | 303.2 | 290.7 | 284.8 | 303.9 | 277.9 | 302.7 | 301.9 | ||||||||||
|
Net earned premiums
|
288.7 | 279.6 | 268.0 | 272.0 | 292.1 | 267.5 | 291.2 | 291.0 | ||||||||||
|
Net losses and loss adjustment expenses
|
278.1 | 188.8 | 206.3 | 410.1 | 146.8 | 143.5 | 146.4 | 256.8 | ||||||||||
|
Policy acquisition expenses
|
47.4 | 51.8 | 49.1 | 49.4 | 58.8 | 43.9 | 47.3 | 52.4 | ||||||||||
|
General and administrative expenses
|
32.6 | 26.3 | 26.4 | 24.5 | 32.8 | 27.1 | 30.1 | 22.3 | ||||||||||
|
Underwriting (loss)/income
|
$(69.4) | $12.7 | $(13.8) | $(212.0) | $53.7 | $53.0 | $67.4 | $(40.5) | ||||||||||
|
Ratios
|
||||||||||||||||||
|
Loss ratio
|
96.3% | 67.5% | 77.0% | 150.8% | 50.3% | 53.6% | 50.3% | 88.2% | ||||||||||
|
Policy acquisition expense ratio
|
16.4% | 18.5% | 18.3% | 18.2% | 20.1% | 16.4% | 16.2% | 18.0% | ||||||||||
|
General and administrative expense ratio
|
11.3% | 9.4% | 9.9% | 9.0% | 11.2% | 10.1% | 10.3% | 7.7% | ||||||||||
|
Expense ratio
|
27.7% | 27.9% | 28.2% | 27.2% | 31.3% | 26.5% | 26.5% | 25.7% | ||||||||||
|
Combined ratio
|
124.0% | 95.4% | 105.2% | 178.0% | 81.6% | 80.1% | 76.8% | 113.9% | ||||||||||
10
|
|
ASPEN INSURANCE HOLDINGS LIMITED
Insurance Segment - Quarterly Results |
| (in US$ millions except for percentages) | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | ||||||||||||||||||||||||
|
Gross written premiums
|
$272.4 | $219.5 | $294.2 | $234.2 | $260.0 | $179.8 | $262.1 | $212.7 | ||||||||||||||||||||||||
|
Net written premiums
|
248.9 | 192.1 | 268.8 | 121.2 | 246.7 | 147.4 | 259.7 | 118.8 | ||||||||||||||||||||||||
|
Gross earned premiums
|
245.7 | 246.7 | 234.1 | 224.0 | 246.5 | 225.4 | 220.8 | 215.2 | ||||||||||||||||||||||||
|
Net earned premiums
|
200.7 | 207.3 | 191.8 | 180.4 | 207.6 | 184.2 | 188.7 | 176.6 | ||||||||||||||||||||||||
|
Net losses and loss adjustment expenses
|
116.4 | 117.4 | 120.1 | 118.8 | 160.6 | 142.3 | 130.3 | 122.0 | ||||||||||||||||||||||||
|
Policy acquisition expenses
|
38.1 | 41.6 | 37.6 | 32.0 | 31.8 | 31.7 | 30.5 | 32.1 | ||||||||||||||||||||||||
|
General and administrative expenses
|
33.0 | 34.3 | 29.2 | 29.2 | 33.5 | 23.6 | 21.9 | 20.4 | ||||||||||||||||||||||||
|
Underwriting income/(loss)
|
$13.2 | $14.0 | $4.9 | $0.4 | $(18.3 | ) | $(13.4 | ) | $6.0 | $2.1 | ||||||||||||||||||||||
|
Ratios
|
||||||||||||||||||||||||||||||||
|
Loss ratio
|
58.0% | 56.6% | 62.6% | 65.9% | 77.4% | 77.3% | 69.1% | 69.1% | ||||||||||||||||||||||||
|
Policy acquisition expense ratio
|
19.0% | 20.1% | 19.6% | 17.7% | 15.3% | 17.2% | 16.2% | 18.2% | ||||||||||||||||||||||||
|
General and administrative expense ratio
|
16.4% | 16.5% | 15.2% | 16.2% | 16.1% | 12.8% | 11.6% | 11.6% | ||||||||||||||||||||||||
|
Expense ratio
|
35.4% | 36.6% | 34.8% | 33.9% | 31.4% | 30.0% | 27.8% | 29.8% | ||||||||||||||||||||||||
|
Combined ratio
|
93.4% | 93.2% | 97.4% | 99.8% | 108.8% | 107.3% | 96.9% | 98.9% | ||||||||||||||||||||||||
11
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Written and Earned Premiums by Segment and Line of Business |
|
(in US$ millions) |
||||||||||||||||||||||||||||||||||||||||
|
Gross Written Premium |
Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | Q1 2010 | ||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$9.4 | $53.5 | $93.0 | $151.0 | $4.2 | $51.3 | $91.2 | $146.2 | ||||||||||||||||||||||||||||||||
|
Other Property Reinsurance
|
64.8 | 78.6 | 70.9 | 64.8 | 48.2 | 66.3 | 80.7 | 73.7 | ||||||||||||||||||||||||||||||||
|
Casualty Reinsurance
|
42.5 | 83.4 | 44.6 | 138.6 | 44.5 | 70.0 | 51.5 | 174.5 | ||||||||||||||||||||||||||||||||
|
Specialty Reinsurance
|
69.6 | 60.6 | 79.5 | 82.7 | 55.9 | 48.4 | 59.9 | 95.7 | ||||||||||||||||||||||||||||||||
|
Total
Reinsurance
|
$186.3 | $276.1 | $288.0 | $437.1 | $152.8 | $236.0 | $283.3 | $490.1 | ||||||||||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Insurance
|
$65.7 | $42.5 | $73.6 | $38.6 | $28.7 | $37.0 | $69.3 | $36.7 | ||||||||||||||||||||||||||||||||
|
Casualty Insurance
|
46.6 | 38.1 | 32.9 | 19.6 | 42.7 | 33.1 | 39.8 | 32.6 | ||||||||||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
107.6 | 70.5 | 130.3 | 123.8 | 136.3 | 70.1 | 118.1 | 110.6 | ||||||||||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
52.5 | 68.4 | 57.4 | 52.2 | 52.3 | 39.6 | 34.9 | 32.8 | ||||||||||||||||||||||||||||||||
|
Total
Insurance
|
$272.4 | $219.5 | $294.2 | $234.2 | $260.0 | $179.8 | $262.1 | $212.7 | ||||||||||||||||||||||||||||||||
|
Total Gross Written
Premiums
|
$458.7 | $495.6 | $582.2 | $671.3 | $412.8 | $415.8 | $545.4 | $702.8 | ||||||||||||||||||||||||||||||||
|
Net Written
Premium
|
||||||||||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$9.2 | $53.5 | $69.6 | $116.1 | $3.9 | $45.4 | $88.1 | $130.9 | ||||||||||||||||||||||||||||||||
|
Other Property Reinsurance
|
61.0 | 73.8 | 63.5 | 53.3 | 46.1 | 65.3 | 79.6 | 65.5 | ||||||||||||||||||||||||||||||||
|
Casualty Reinsurance
|
42.5 | 82.6 | 44.3 | 136.4 | 44.5 | 70.0 | 51.3 | 169.6 | ||||||||||||||||||||||||||||||||
|
Specialty Reinsurance
|
69.6 | 60.6 | 79.5 | 82.6 | 54.0 | 48.9 | 60.1 | 95.3 | ||||||||||||||||||||||||||||||||
|
Total
Reinsurance
|
$182.3 | $270.5 | $256.9 | $388.4 | $148.5 | $229.6 | $279.1 | $461.3 | ||||||||||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Insurance
|
$58.7 | $31.2 | $65.2 | $1.6 | $25.3 | $30.7 | $62.4 | $14.9 | ||||||||||||||||||||||||||||||||
|
Casualty Insurance
|
34.7 | 31.2 | 24.9 | 10.5 | 36.4 | 20.6 | 41.7 | 27.4 | ||||||||||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
107.5 | 59.8 | 121.5 | 98.8 | 136.0 | 57.5 | 130.8 | 70.3 | ||||||||||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
48.0 | 69.9 | 57.2 | 10.3 | 49.0 | 38.6 | 24.8 | 6.2 | ||||||||||||||||||||||||||||||||
|
Total
Insurance
|
$248.9 | $192.1 | $268.8 | $121.2 | $246.7 | $147.4 | $259.7 | $118.8 | ||||||||||||||||||||||||||||||||
|
Total Net Written
Premiums
|
$431.2 | $462.6 | $525.7 | $509.6 | $395.2 | $377.0 | $538.8 | $580.1 | ||||||||||||||||||||||||||||||||
|
Net Earned
Premium
|
||||||||||||||||||||||||||||||||||||||||
|
Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Catastrophe Reinsurance
|
$60.4 | $52.1 | $58.5 | $71.6 | $63.1 | $66.5 | $66.2 | $70.6 | ||||||||||||||||||||||||||||||||
|
Other Property Reinsurance
|
70.0 | 64.4 | 57.0 | 60.1 | 63.0 | 61.0 | 67.8 | 63.5 | ||||||||||||||||||||||||||||||||
|
Casualty Reinsurance
|
75.7 | 95.3 | 75.7 | 82.4 | 90.0 | 84.8 | 90.3 | 89.0 | ||||||||||||||||||||||||||||||||
|
Specialty Reinsurance
|
82.6 | 67.8 | 76.8 | 57.9 | 76.0 | 55.2 | 66.9 | 67.9 | ||||||||||||||||||||||||||||||||
|
Total
Reinsurance
|
$288.7 | $279.6 | $268.0 | $272.0 | $292.1 | $267.5 | $291.2 | $291.0 | ||||||||||||||||||||||||||||||||
|
Insurance
|
||||||||||||||||||||||||||||||||||||||||
|
Property Insurance
|
$38.8 | $28.0 | $29.1 | $28.2 | $31.0 | $33.2 | $30.1 | $25.8 | ||||||||||||||||||||||||||||||||
|
Casualty Insurance
|
24.6 | 25.4 | 26.5 | 25.4 | 26.7 | 24.9 | 39.8 | 38.9 | ||||||||||||||||||||||||||||||||
|
Marine, Energy and Transportation Insurance
|
100.4 | 96.6 | 99.2 | 93.3 | 124.3 | 94.6 | 97.4 | 94.3 | ||||||||||||||||||||||||||||||||
|
Financial and Professional Lines Insurance
|
36.9 | 57.3 | 37.0 | 33.5 | 25.6 | 31.5 | 21.4 | 17.6 | ||||||||||||||||||||||||||||||||
|
Total Insurance
|
$200.7 | $207.3 | $191.8 | $180.4 | $207.6 | $184.2 | $188.7 | $176.6 | ||||||||||||||||||||||||||||||||
|
Total Net Earned
Premiums
|
$489.4 | $486.9 | $459.8 | $452.4 | $499.7 | $451.7 | $479.9 | $467.6 | ||||||||||||||||||||||||||||||||
12
|
|
| Three Months Ended December 31, 2011 | Three Months Ended December 31, 2010 | |||||||||||||||||||||||||||||
|
Reinsurance |
Insurance | Total |
Reinsurance |
Insurance | Total | |||||||||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||||||||
|
Loss ratio
|
96.3 | % | 58.0 | % | 80.6 | % | 50.3 | % | 77.4 | % | 61.5 | % | ||||||||||||||||||
|
Policy acquisition expense ratio
|
16.4 | 19.0 | 17.5 | 20.1 | 15.3 | 18.1 | ||||||||||||||||||||||||
|
General and administrative expense
ratio (1)
|
11.3 | 16.4 | 16.0 | 11.2 | 16.1 | 15.7 | ||||||||||||||||||||||||
|
Expense ratio
|
27.7 | 35.4 | 33.5 | 31.3 | 31.4 | 33.8 | ||||||||||||||||||||||||
|
Combined ratio
|
124.0 | % | 93.4 | % | 114.1 | % | 81.6 | % | 108.8 | % | 95.3 | % | ||||||||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||||||||
|
Loss ratio
|
4.9 | % | 4.5 | % | 4.8 | % | 13.1 | % | (7.7 | ) | % | 4.5 | % | |||||||||||||||||
|
Policy acquisition expense ratio
|
(1.0 | ) | 0.4 | (0.5 | ) | (3.6 | ) | 0.4 | (1.9 | ) | ||||||||||||||||||||
|
General and administrative expense
ratio (1)
|
- | 0.1 | - | 0.2 | 1.1 | 0.5 | ||||||||||||||||||||||||
|
Expense ratio
|
(1.0 | ) | 0.5 | (0.5 | ) | (3.4 | ) | 1.5 | (1.4 | ) | ||||||||||||||||||||
|
Combined ratio
|
3.9 | % | 5.0 | % | 4.3 | % | 9.7 | % | (6.2 | ) | % | 3.1 | % | |||||||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||||||||
|
Current accident year loss ratio
|
101.2 | % | 62.5 | % | 85.4 | % | 63.4 | % | 69.7 | % | 66.0 | % | ||||||||||||||||||
|
Policy acquisition expense ratio
|
15.4 | 19.4 | 17.0 | 16.5 | 15.7 | 16.2 | ||||||||||||||||||||||||
|
General and administrative expense
ratio (1)
|
11.3 | 16.5 | 16.0 | 11.4 | 17.2 | 16.2 | ||||||||||||||||||||||||
|
Expense ratio
|
26.7 | 35.9 | 33.0 | 27.9 | 32.9 | 32.4 | ||||||||||||||||||||||||
|
Combined ratio
|
127.9 | % | 98.4 | % | 118.4 | % | 91.3 | % | 102.6 | % | 98.4 | % | ||||||||||||||||||
| (1) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
13
|
|
| Twelve Months Ended December 31, 2011 | Twelve Months Ended December 31, 2010 | |||||||||||||||||||||||||||||
|
Reinsurance |
Insurance | Total |
Reinsurance |
Insurance | Total | |||||||||||||||||||||||||
|
Before Accident Year Adjustment
|
||||||||||||||||||||||||||||||
|
Loss ratio
|
97 | .7 | % | 60 | .6 | % | 82 | .4 | % | 60 | .7 | % | 73 | .3 | % | 65 | .8 | % | ||||||||||||
|
Policy acquisition expense ratio
|
17 | .8 | 19 | .1 | 18 | .4 | 17 | .7 | 16 | .7 | 17 | .3 | ||||||||||||||||||
|
General and administrative expense
ratio (1)
|
9 | .9 | 16 | .1 | 14 | .8 | 9 | .8 | 13 | .1 | 13 | .6 | ||||||||||||||||||
|
Expense ratio
|
27 | .7 | 35 | .2 | 33 | .2 | 27 | .5 | 29 | .8 | 30 | .9 | ||||||||||||||||||
|
Combined ratio
|
125 | .4 | % | 95 | .8 | % | 115 | .6 | % | 88 | .2 | % | 103 | .1 | % | 96 | .7 | % | ||||||||||||
|
Accident Year Adjustment
|
||||||||||||||||||||||||||||||
|
Loss ratio
|
8 | .5 | % | 3 | .0 | % | 6 | .1 | % | 7 | .0 | % | (4 | .3) | % | 2 | .5 | % | ||||||||||||
|
Policy acquisition expense ratio
|
(0 | .6) | - | (0 | .4) | (1 | .0) | - | (0 | .6) | ||||||||||||||||||||
|
General and administrative expense
ratio (1)
|
0 | .2 | 0 | .1 | 0 | .2 | 0 | .2 | 0 | .4 | 0 | .3 | ||||||||||||||||||
|
Expense ratio
|
(0 | .4) | 0 | .1 | (0 | .2) | (0 | .8) | 0 | .4 | (0 | .3) | ||||||||||||||||||
|
Combined ratio
|
8 | .1 | % | 3 | .1 | % | 5 | .9 | % | 6 | .2 | % | (3 | .9) | % | 2 | .2 | % | ||||||||||||
|
Accident Year Ratios
|
||||||||||||||||||||||||||||||
|
Current accident year loss ratio
|
106 | .2 | % | 63 | .6 | % | 88 | .5 | % | 67 | .7 | % | 69 | .0 | % | 68 | .3 | % | ||||||||||||
|
Policy acquisition expense ratio
|
17 | .2 | 19 | .1 | 18 | .0 | 16 | .7 | 16 | .7 | 16 | .7 | ||||||||||||||||||
|
General and administrative expense
ratio (1)
|
10 | .1 | 16 | .2 | 15 | .0 | 10 | .0 | 13 | .5 | 13 | .9 | ||||||||||||||||||
|
Expense ratio
|
27 | .3 | 35 | .3 | 33 | .0 | 26 | .7 | 30 | .2 | 30 | .6 | ||||||||||||||||||
|
Combined ratio
|
133 | .5 | % | 98 | .9 | % | 121 | .5 | % | 94 | .4 | % | 99 | .2 | % | 98 | .9 | % | ||||||||||||
| (1) | The total group general and administrative expense ratio includes the impact from corporate expenses. |
14
|
|
| Twelve Months Ended December 31, | ||||||||||
| (in US$ millions) | 2011 | 2010 | ||||||||
|
Ordinary shares
|
||||||||||
|
Beginning and end of period
|
$0.1 | $0.1 | ||||||||
|
Preference shares
|
||||||||||
|
Beginning and end of period
|
- | - | ||||||||
|
Non-Controlling Interest
|
||||||||||
|
Beginning of period
|
0.5 | - | ||||||||
|
Introductory capital
|
- | 0.8 | ||||||||
|
Change in non-controlling interest for the period
|
(0.1 | ) | (0.3 | ) | ||||||
|
End of period
|
0.4 | 0.5 | ||||||||
|
Additional paid-in capital
|
||||||||||
|
Beginning of period
|
1,388.3 | 1,763.0 | ||||||||
|
New shares issued
|
0.8 | 20.3 | ||||||||
|
Ordinary shares repurchased
|
(8.1 | ) | (407.8 | ) | ||||||
|
Share-based compensation
|
4.0 | 12.8 | ||||||||
|
End of period
|
1,385.0 | 1,388.3 | ||||||||
|
Retained earnings
|
||||||||||
|
Beginning of period
|
1,528.7 | 1,285.0 | ||||||||
|
Net (loss)/income for the period
|
(105.8 | ) | 312.7 | |||||||
|
Dividends paid on ordinary and preference shares
|
(65.3 | ) | (69.3 | ) | ||||||
|
Proportion of net loss due to non-controlling interest
|
- | 0.3 | ||||||||
|
End of period
|
1,357.6 | 1,528.7 | ||||||||
|
Accumulated other comprehensive income:
|
||||||||||
|
Cumulative foreign currency translation adjustments, net of
taxes:
|
||||||||||
|
Beginning of period
|
113.4 | 103.4 | ||||||||
|
Change for the period
|
10.8 | 10.0 | ||||||||
|
End of period
|
124.2 | 113.4 | ||||||||
|
Loss on derivatives:
|
||||||||||
|
Beginning of period
|
(1.0 | ) | (1.2 | ) | ||||||
|
Reclassification to interest payable
|
0.3 | 0.2 | ||||||||
|
End of period
|
(0.7 | ) | (1.0 | ) | ||||||
|
Unrealized appreciation/(depreciation) on investments, net of
taxes:
|
||||||||||
|
Beginning of period
|
211.9 | 155.1 | ||||||||
|
Change for the period
|
93.5 | 56.8 | ||||||||
|
End of period
|
305.4 | 211.9 | ||||||||
|
Total accumulated other comprehensive income
|
428.9 | 324.3 | ||||||||
|
Total shareholders’ equity
|
$3,172.0 | $3,241.9 | ||||||||
15
|
|
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
| (in US$ millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
|
Net (loss)/income
|
$13.5 | $92.7 | $(105.8 | ) | $312.7 | |||||||||||||
|
Other comprehensive (loss)/income, net of taxes:
|
||||||||||||||||||
|
Available for sale investments:
|
||||||||||||||||||
|
Reclassification adjustment for net realized (gains)/losses
included in net income
|
(3.0 | ) | (10.3 | ) | (16.6 | ) | (21.0 | ) | ||||||||||
|
Change in net unrealized gains and losses on available for sale
securities held
|
13.6 | (94.3 | ) | 110.1 | 77.8 | |||||||||||||
|
Loss on derivatives reclassified to interest expense
|
0.1 | - | 0.3 | 0.2 | ||||||||||||||
|
Change in foreign currency translation adjustment
|
10.5 | 3.3 | 10.8 | 10.0 | ||||||||||||||
|
Other comprehensive income
|
21.2 | (101.3 | ) | 104.6 | 67.0 | |||||||||||||
| Comprehensive (loss)/income | $34.7 | $(8.6 | ) | $(1.2 | ) | $379.7 | ||||||||||||
16
|
|
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
| (in US$ millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
|
Net cash from/(used in) operating activities
|
$65.1 | $122.3 | $343.5 | $624.6 | ||||||||||||||
|
Net cash from/(used in) investing activities
|
157.9 | 98.7 | (210.5 | ) | 17.6 | |||||||||||||
|
Net cash from/(used in) financing activities
|
(16.2 | ) | 52.4 | (72.7 | ) | (207.1 | ) | |||||||||||
|
Effect of exchange rate movements on cash and cash equivalents
|
(6.5 | ) | (8.6 | ) | (0.3 | ) | (4.4 | ) | ||||||||||
|
Increase in cash and cash equivalents
|
200.3 | 264.8 | 60.0 | 430.7 | ||||||||||||||
|
Cash at beginning of period
|
1,038.8 | 914.3 | 1,179.1 | 748.4 | ||||||||||||||
|
Cash at end of period
|
$1,239.1 | $1,179.1 | $1,239.1 | $1,179.1 | ||||||||||||||
17
|
|
|
For the |
For the |
||||||||
|
Twelve Months Ended |
Twelve Months Ended |
||||||||
| December 31, 2011 | December 31, 2010 | ||||||||
|
(in US$ millions)
|
|||||||||
|
Provision for losses and loss adjustment expenses at the start
of the period
|
$3,820.5 | $3,331.1 | |||||||
|
Reinsurance recoverables
|
(279.9 | ) | (321.5 | ) | |||||
|
Net loss and loss adjustment expenses at the start of the period
|
3,540.6 | 3,009.6 | |||||||
|
Net loss and loss adjustment expenses disposed
|
(20.6 | ) | (35.5 | ) | |||||
|
Provision for losses and loss adjustment expenses for claims
incurred
|
|||||||||
|
Current period
|
1,648.3 | 1,270.1 | |||||||
|
Prior period release
|
(92.3 | ) | (21.4 | ) | |||||
|
Total incurred
|
1,556.0 | 1,248.7 | |||||||
|
Losses and loss adjustment expenses payments for claims incurred
|
(982.2 | ) | (666.8 | ) | |||||
|
Foreign exchange losses/(gains)
|
4.8 | (15.4 | ) | ||||||
|
Net loss and loss adjustment expenses reserves at the end of the
period
|
4,098.6 | 3,540.6 | |||||||
|
Reinsurance recoverables on unpaid losses at the end of the
period
|
426.6 | 279.9 | |||||||
|
Gross loss and loss adjustment expenses reserves at the end of
the period
|
$4,525.2 | $3,820.5 | |||||||
18
|
|
| As At December 31, 2011 | As At December 31, 2010 | ||||||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
||||||||||||||||||||||||||
| (in US$ millions) | Gross | Recoverables | Net | Gross | Recoverables | Net | |||||||||||||||||||||
|
Reinsurance
|
$2,953.5 | $(183.5 | ) | $2,770.0 | $2,304.6 | $(60.7 | ) | $2,243.9 | |||||||||||||||||||
|
Insurance
|
1,571.7 | (243.1 | ) | 1,328.6 | 1,515.9 | (219.2 | ) | 1,296.7 | |||||||||||||||||||
|
Total losses and loss adjustment expense reserves
|
$4,525.2 | $(426.6 | ) | $4,098.6 | $3,820.5 | $(279.9 | ) | $3,540.6 | |||||||||||||||||||
19
|
|
|
(in US$ millions) |
Three Months Ended December 31, 2011 | Three Months Ended December 31, 2010 | |||||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
||||||||||||||||||||||||||
| Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||||||
|
Reinsurance
|
$13.5 | $1.1 | $14.6 | $34.1 | $2.0 | $36.1 | |||||||||||||||||||||
|
Insurance
|
(1.1 | ) | 8.5 | 7.4 | (48.6 | ) | 25.1 | (23.5 | ) | ||||||||||||||||||
|
Release/(strengthening) in reserves for prior years during the
period
|
$12.4 | $9.6 | $22.0 | $(14.5 | ) | $27.1 | $12.6 | ||||||||||||||||||||
| Twelve Months Ended December 31, 2011 | Twelve Months Ended December 31, 2010 | ||||||||||||||||||||||||||
|
Reinsurance |
Reinsurance |
||||||||||||||||||||||||||
| Gross | Recoverables | Net | Gross | Recoverables | Net | ||||||||||||||||||||||
|
Reinsurance
|
$69.6 | $2.7 | $72.3 | $66.4 | $(0.8 | ) | $65.6 | ||||||||||||||||||||
|
Insurance
|
(22.7 | ) | 42.7 | 20.0 | (73.6 | ) | 29.4 | (44.2 | ) | ||||||||||||||||||
|
Release/(strengthening) in reserves for prior years during the
period
|
$46.9 | $45.4 | $92.3 | $(7.2 | ) | $28.6 | $21.4 | ||||||||||||||||||||
20
|
|
ASPEN INSURANCE HOLDINGS
LIMITED Ratings of Reinsurers |
| (in US$ millions except for percentages) | ||||||||||||||||
| As at December 31, 2011 | As at December 31, 2010 | |||||||||||||||
|
S&P
|
||||||||||||||||
|
AA+
|
$6.6 | 1.5% | $7.5 | 2.7% | ||||||||||||
|
AA
|
0.1 | - | - | - | ||||||||||||
|
AA-
|
110.4 | 25.9% | 73.4 | 26.2% | ||||||||||||
|
A+
|
159.4 | 37.4% | 133.0 | 47.5% | ||||||||||||
|
A
|
14.8 | 3.5% | 12.9 | 4.6% | ||||||||||||
|
A-
|
17.5 | 4.1% | 11.3 | 4.1% | ||||||||||||
|
BBB+
|
0.1 | - | 2.5 | 0.9% | ||||||||||||
|
BBB
|
0.3 | 0.1% | 0.6 | 0.2% | ||||||||||||
|
F(1)
|
0.6 | 0.1% | - | - | ||||||||||||
|
Fully collateralized
|
95.1 | 22.3% | - | - | ||||||||||||
|
Not rated
|
21.7 | 5.1% | 38.7 | 13.8% | ||||||||||||
| $426.6 | 100.0% | $279.9 | 100.0% | |||||||||||||
|
A.M. Best
|
||||||||||||||||
|
A++
|
$6.6 | 1.5% | $7.5 | 2.7% | ||||||||||||
|
A+
|
99.7 | 23.4% | 74.0 | 26.4% | ||||||||||||
|
A
|
209.0 | 49.0% | 173.5 | 62.0% | ||||||||||||
|
A-
|
10.5 | 2.5% | 15.7 | 5.6% | ||||||||||||
|
F (1)
|
0.6 | 0.1% | 0.7 | 0.3% | ||||||||||||
|
Fully collateralized
|
95.1 | 22.3% | - | - | ||||||||||||
|
Not rated
|
5.1 | 1.2% | 8.5 | 3.0% | ||||||||||||
| $426.6 | 100.0% | $279.9 | 100.0% | |||||||||||||
| (1) | The A.M. Best rating of “F” denotes liquidation. We have not reduced the carrying value of the recoverable from this particular reinsurer as a trust account exists to replace the potentially insufficient reserves. |
21
|
|
| (in US$ millions except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||
| As At December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
|
Gross |
Gross |
As At |
As At |
As At |
As At |
As At |
|||||||||||||||||||||||||||||||||||||||
|
Amortized |
Unrealized |
Unrealized |
Fair Market |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||||||||||||||||||||||
| Marketable Securities - Available For Sale | Cost | Gains | Losses | Value | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$873.9 | $58.5 | - | $932.4 | 12.1 | % | 11.8 | % | 10.3 | % | 10.6 | % | 9.9 | % | |||||||||||||||||||||||||||||||
|
U.S. agency securities
|
271.7 | 23.8 | - | 295.5 | 3.9 | 3.7 | 3.8 | 3.9 | 4.1 | ||||||||||||||||||||||||||||||||||||
|
Municipal securities
|
33.6 | 2.0 | - | 35.6 | 0.5 | 0.5 | 0.4 | 0.3 | 0.4 | ||||||||||||||||||||||||||||||||||||
|
Corporate securities
|
1,722.6 | 127.7 | (3.8 | ) | 1,846.5 | 24.1 | 26.0 | 26.6 | 26.4 | 27.0 | |||||||||||||||||||||||||||||||||||
|
Foreign government securities
|
632.1 | 28.4 | (0.1 | ) | 660.4 | 8.7 | 9.0 | 9.9 | 9.7 | 8.4 | |||||||||||||||||||||||||||||||||||
|
Asset-backed securities
|
56.4 | 4.6 | - | 61.0 | 0.8 | 0.8 | 0.8 | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||||||
|
FDIC Guaranteed
|
72.5 | 0.4 | - | 72.9 | 1.0 | 1.2 | 1.5 | 1.6 | 1.7 | ||||||||||||||||||||||||||||||||||||
|
Bonds backed by foreign government
|
163.9 | 3.9 | - | 167.8 | 2.2 | 2.5 | 2.6 | 3.0 | 3.1 | ||||||||||||||||||||||||||||||||||||
|
Mortgage-backed securities
|
1,273.0 | 80.8 | (0.1 | ) | 1,353.7 | 17.8 | 18.6 | 18.6 | 17.9 | 17.8 | |||||||||||||||||||||||||||||||||||
|
Total fixed income maturities
|
5,099.7 | 330.1 | (4.0 | ) | 5,425.8 | 71.1 | % | 74.1 | % | 74.5 | % | 74.2 | % | 73.2 | % | ||||||||||||||||||||||||||||||
|
Short-term investments
|
298.2 | - | - | 298.2 | 3.9 | 3.8 | 2.7 | 2.4 | 3.9 | ||||||||||||||||||||||||||||||||||||
|
Equity securities
|
169.8 | 15.1 | (5.4 | ) | 179.5 | 2.4 | 2.2 | 2.4 | 2.3 | - | |||||||||||||||||||||||||||||||||||
|
Total Available For Sale
|
$5,567.7 | $345.2 | $(9.4 | ) | $5,903.5 | 77.4 | % | 80.1 | % | 79.6 | % | 78.9 | % | 77.1 | % | ||||||||||||||||||||||||||||||
|
Marketable Securities — Trading
|
|||||||||||||||||||||||||||||||||||||||||||||
|
U.S. government securities
|
$30.3 | $2.0 | - | $32.3 | 0.4 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.7 | % | |||||||||||||||||||||||||||||||
|
U.S. agency securities
|
1.6 | 0.2 | - | 1.8 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Municipal securities
|
2.8 | 0.1 | - | 2.9 | - | - | - | - | 0.1 | ||||||||||||||||||||||||||||||||||||
|
Corporate securities
|
337.9 | 15.6 | (4.2 | ) | 349.3 | 4.6 | 4.6 | 4.8 | 4.6 | 4.6 | |||||||||||||||||||||||||||||||||||
|
Foreign government securities
|
7.1 | 0.3 | - | 7.4 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||
|
Asset-backed securities
|
0.7 | - | - | 0.7 | - | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||
|
Total fixed income maturities
|
380.4 | 18.2 | (4.2 | ) | 394.4 | 5.1 | 5.0 | 5.1 | 4.9 | 5.6 | |||||||||||||||||||||||||||||||||||
|
Short-term investments
|
4.1 | - | - | 4.1 | 0.1 | 0.1 | - | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||
|
Total Trading
|
$384.5 | $18.2 | $(4.2 | ) | $398.5 | 5.2 | % | 5.1 | % | 5.1 | % | 5.0 | % | 5.7 | % | ||||||||||||||||||||||||||||||
|
Other investments
|
$33.1 | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||
|
Cash
|
1,239.1 | 16.3 | 13.7 | 14.2 | 15.0 | 16.1 | |||||||||||||||||||||||||||||||||||||||
|
Accrued interest
|
49.6 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | |||||||||||||||||||||||||||||||||||||||
|
Total Cash and Accrued Interest
|
$1,288.7 | 17.0 | % | 14.4 | % | 14.9 | % | 15.7 | % | 16.8 | % | ||||||||||||||||||||||||||||||||||
|
Total Cash and Investments
|
$7,623.8 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||
22
|
|
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Investment Portfolio |
|
(in US$ millions) |
||||||||||||||||||||
|
Maturity of Available For Sale Portfolio |
||||||||||||||||||||
| As At December 31, 2011 | As At December 31, 2010 | |||||||||||||||||||
| Amortized Cost | Fair Market Value | Amortized Cost | Fair Market Value | |||||||||||||||||
|
Due in one year or less
|
$726.0 | $732.9 | $337.7 | $343.8 | ||||||||||||||||
|
Due after one year through five years
|
1,955.0 | 2,057.8 | 2,236.3 | 2,330.9 | ||||||||||||||||
|
Due after five years through ten years
|
997.9 | 1,112.3 | 1,146.6 | 1,222.2 | ||||||||||||||||
|
Due after ten years
|
91.4 | 108.0 | 100.1 | 104.1 | ||||||||||||||||
|
Subtotal
|
3,770.3 | 4,011.0 | 3,820.7 | 4,001.0 | ||||||||||||||||
|
Non-agency commercial mortgage-backed securities
|
77.1 | 85.4 | 119.7 | 128.1 | ||||||||||||||||
|
Agency mortgage-backed securities
|
1,195.9 | 1,268.4 | 1,126.4 | 1,172.5 | ||||||||||||||||
|
Other asset-backed securities
|
56.4 | 61.0 | 54.0 | 58.8 | ||||||||||||||||
|
Total
|
$5,099.7 | $5,425.8 | $5,120.8 | $5,360.4 | ||||||||||||||||
23
|
|
| (in US$ millions except for percentages) | |||||||||||||||||||||||||||||||||||
| Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | Q4 2010 | Q3 2010 | Q2 2010 | |||||||||||||||||||||||||||||
|
Net investment income from fixed income investments and cash
|
$52.9 | $55.6 | $55.6 | $55.3 | $57.0 | $58.1 | $57.5 | ||||||||||||||||||||||||||||
|
Net investment income from equity securities
|
1.3 | 1.7 | 3.0 | 0.2 | – | – | – | ||||||||||||||||||||||||||||
|
Net investment income
|
54.2 | 57.3 | 58.6 | 55.5 | 57.0 | 58.1 | 57.5 | ||||||||||||||||||||||||||||
|
Net realized and unrealized investment
gains(1)
|
8.9 | 3.2 | 9.8 | 8.4 | 10.5 | 22.1 | 5.7 | ||||||||||||||||||||||||||||
|
Other-than-temporary
impairment charges
|
- | - | - | - | - | - | - | ||||||||||||||||||||||||||||
|
Change in unrealized gains/(losses) on available for sale
investments (gross of tax)
|
6.1 | 71.6 | 52.1 | (33.6 | ) | (122.1 | ) | 68.3 | 82.4 | ||||||||||||||||||||||||||
|
Total return on investments
|
$69.2 | $132.1 | $120.5 | $30.3 | $(54.6 | ) | $148.5 | $145.6 | |||||||||||||||||||||||||||
|
Portfolio Characteristics
|
|||||||||||||||||||||||||||||||||||
|
Fixed income portfolio book yield
|
3.37 | % | 3.54 | % | 3.64 | % | 3.65 | % | 3.70 | % | 3.91 | % | 4.05 | % | |||||||||||||||||||||
|
Fixed income portfolio duration
|
2.9 years | 3.1 years | 3.1 years | 3.2 years | 3.3 years | 3.1 years | 3.0 years | ||||||||||||||||||||||||||||
| (1) | Excludes the net realized and unrealized gains/(losses) from the interest-rate swaps and includes the net realized and unrealized gains/(losses) on the trading portfolio. |
24
|
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||||||
| (in US$ millions except for number of shares and per share amounts) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||
|
Net assets
|
$3,172.0 | $3,150.5 | $3,104.6 | $3,051.0 | $3,241.9 | ||||||||||||||||||||
|
Less: Preference shares
|
(353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | (353.6 | ) | |||||||||||||||
|
Total
|
$2,818.4 | $2,796.9 | $2,751.0 | $2,697.4 | $2,888.3 | ||||||||||||||||||||
|
Ordinary shares outstanding (in millions)
|
70.656 | 70.595 | 70.833 | 70.731 | 70.508 | ||||||||||||||||||||
|
Ordinary shares and dilutive potential ordinary shares (in
millions)
|
73.339 | 73.079 | 73.492 | 73.599 | 74.253 | ||||||||||||||||||||
|
Book value per ordinary share
|
$39.89 | $39.62 | $38.84 | $38.14 | $40.96 | ||||||||||||||||||||
|
Diluted book value per ordinary share (treasury stock method)
|
$38.43 | $38.27 | $37.43 | $36.65 | $38.90 | ||||||||||||||||||||
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.
25
|
|
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
|
Weighted average ordinary shares outstanding
(millions)
|
||||||||||||||||||||
|
Basic
|
70.615 | 73.996 | 70.665 | 76.343 | ||||||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||||||
|
Employee options
|
0.585 | 0.870 | - | 0.874 | ||||||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names’
Trust)
|
0.097 | 0.451 | - | 0.430 | ||||||||||||||||
|
Performance shares
|
1.622 | 2.061 | - | 2.071 | ||||||||||||||||
|
Restricted share units
|
0.339 | 0.285 | - | 0.261 | ||||||||||||||||
|
PIERS*
|
- | 0.070 | - | 0.037 | ||||||||||||||||
|
Weighted average diluted shares outstanding
|
73.258 | 77.733 | 70.665 | 80.016 | ||||||||||||||||
The basic and diluted number of ordinary shares for the twelve
months ended December 31, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
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.
| * | Preferred Income Equity Replacement Securities (PIERS) |
26
|
|
Net (loss)/income is adjusted to exclude after-tax change in net
foreign exchange gains and losses and realized gains and losses
in investments.
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||||||
|
(in US$ millions except where stated)
|
||||||||||||||||||||
|
Net (loss)/income as reported
|
$13.5 | $92.7 | ($105.8 | ) | $312.7 | |||||||||||||||
|
Preference share dividends
|
(5.7 | ) | (5.7 | ) | (22.8 | ) | (22.8 | ) | ||||||||||||
|
Net (loss)/income available to ordinary shareholders
|
7.8 | 87.0 | (128.6 | ) | 289.9 | |||||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||||||
|
Net foreign exchange losses/(gains)
|
(3.7 | ) | (0.2 | ) | 0.1 | (2.9 | ) | |||||||||||||
|
Net realized losses/(gains) on investments
|
(3.7 | ) | (16.7 | ) | 39.6 | (50.9 | ) | |||||||||||||
|
Operating (loss)/income after tax available to ordinary
shareholders
|
0.4 | 70.1 | (88.9 | ) | 236.1 | |||||||||||||||
|
Tax on operating (loss)/income
|
(24.8 | ) | 9.7 | (40.6 | ) | 28.6 | ||||||||||||||
|
Operating (loss)/income before tax available to ordinary
shareholders
|
($24.4 | ) | $79.8 | ($129.5 | ) | $264.7 | ||||||||||||||
|
Weighted average ordinary shares outstanding (millions)
|
||||||||||||||||||||
|
Basic
|
70.615 | 73.996 | 70.665 | 76.343 | ||||||||||||||||
|
Dilutive share equivalents:
|
||||||||||||||||||||
|
Employee options
|
0.585 | 0.870 | - | 0.874 | ||||||||||||||||
|
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)
|
0.097 | 0.451 | - | 0.430 | ||||||||||||||||
|
Performance shares
|
1.622 | 2.061 | - | 2.071 | ||||||||||||||||
|
Restricted share units
|
0.339 | 0.285 | - | 0.261 | ||||||||||||||||
|
PIERS*
|
- | 0.070 | - | 0.037 | ||||||||||||||||
|
Weighted average diluted shares outstanding
|
73.258 | 77.733 | 70.665 | 80.016 | ||||||||||||||||
|
Basic earnings per ordinary share
|
||||||||||||||||||||
|
Net (loss)/income adjusted for preference share dividend
|
$0.11 | $1.18 | ($1.82 | ) | $3.80 | |||||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||||||
|
Net foreign exchange losses/(gains)
|
(0.05 | ) | - | - | (0.04 | ) | ||||||||||||||
|
Net realized losses/(gains) on investments
|
(0.05 | ) | (0.10 | ) | 0.56 | (0.67 | ) | |||||||||||||
|
Operating (loss)/income adjusted for preference shares dividend
|
$0.01 | $1.08 | ($1.26 | ) | $3.09 | |||||||||||||||
|
Diluted earnings per ordinary share
|
||||||||||||||||||||
|
Net (loss)/income adjusted for preference share dividend
|
$0.11 | $1.12 | ($1.82 | ) | $3.62 | |||||||||||||||
|
Add (deduct) after tax income:
|
||||||||||||||||||||
|
Net foreign exchange losses/(gains)
|
(0.05 | ) | - | - | (0.04 | ) | ||||||||||||||
|
Net realized losses/(gains) on investments
|
(0.05 | ) | (0.10 | ) | 0.56 | (0.64 | ) | |||||||||||||
|
Operating (loss)/income adjusted for preference shares dividend
|
$0.01 | $1.02 | ($1.26 | ) | $2.94 | |||||||||||||||
The basic and diluted number of ordinary shares for the twelve
months ended December 31, 2011 is the same, as the
inclusion of dilutive securities in a loss-making period would
be anti-dilutive.
| * | Preferred Income Equity Replacement Securities (PIERS) |
27