ASPEN INSURANCE HOLDINGS LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 25, 2017

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Exhibit 99.2    
 
 
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 FINANCIAL SUPPLEMENT
 
 As of September 30, 2017
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 



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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, 2016. 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, including net realized and unrealized gains and losses on interest rate swaps, 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 intangibles and certain non-recurring income and expenses. Operating income in the first nine months of 2017 also included the issue costs associated with the redemption of the 7.401% Perpetual Non-Cumulative Preference Shares and the 7.250% 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 first nine months of 2017 as losses associated with Hurricanes Harvey, Irma and Maria, earthquakes in Mexico, a tornado in Mississippi, Cyclone Debbie in Australia, and various other U.S. weather-related events. Catastrophe losses in the first nine months of 2016 were defined as losses associated with wildfires in Canada, weather-related events in the U.S., a hailstorm in the Netherlands and several earthquakes. 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 September 30,
 
Nine Months Ended September 30,
(in US$ millions except for percentages, share and per share amounts)
 
2017
 
2016
 
Change
 
2017
 
2016
 
Change
Gross written premium
 
$
852.5

 
$
763.5

 
11.7
 %
 
$
2,672.6

 
$
2,540.9

 
5.2
 %
Net written premium
 
$
607.4

 
$
638.4

 
(4.9
)%
 
$
1,872.3

 
$
2,162.9

 
(13.4
)%
Net earned premium
 
$
652.5

 
$
681.0

 
(4.2
)%
 
$
1,795.6

 
$
2,024.9

 
(11.3
)%
Net (loss)/income after tax
 
$
(253.8
)
 
$
95.6

 
(365.5
)%
 
$
(81.5
)
 
$
274.9

 
(129.6
)%
Operating (loss)/income after tax
 
$
(276.6
)
 
$
69.3

 
(499.1
)%
 
$
(177.6
)
 
$
193.3

 
(191.9
)%
Net investment income
 
$
46.4

 
$
46.4

 
—
 %
 
$
141.5

 
$
143.9

 
(1.7
)%
Underwriting (loss)/income
 
$
(334.8
)
 
$
42.2

 
(893.4
)%
 
$
(312.9
)
 
$
93.4

 
(435.0
)%
Earnings Per Share and Book Value Per Share
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
    Net (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.48
)
 
$
1.43

 
(413.3
)%
 
$
(1.99
)
 
$
4.07

 
(148.9
)%
    Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.78
)
 
$
0.99

 
(582.8
)%
 
$
(3.46
)
 
$
2.72

 
(227.2
)%
Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
    Net (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.48
)
 
$
1.40

 
(420.0
)%
 
$
(1.99
)
 
$
3.97

 
(150.1
)%
    Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.78
)
 
$
0.97

 
(592.8
)%
 
$
(3.46
)
 
$
2.65

 
(230.6
)%
Weighted average number of ordinary shares outstanding (in millions of shares) (1)
 
59.760

 
60.226

 
(0.8
)%
 
59.863

 
60.588

 
(1.2
)%
Diluted weighted average number of ordinary shares outstanding (in millions of shares)
 
59.760

 
61.577

 
(3.0
)%
 
59.863

 
62.043

 
(3.5
)%
Book value per ordinary share
 
$
44.59

 
$
51.58

 
(13.6
)%
 
$
44.59

 
$
51.58

 
(13.6
)%
Diluted book value per ordinary share
 
$
44.00

 
$
50.49

 
(12.9
)%
 
$
44.00

 
$
50.49

 
(12.9
)%
Ordinary shares outstanding at September 30, 2017 and September 30, 2016 (in millions of shares)
 
59.407

 
60.211

 
(1.3
)%
 
59.407

 
60.211

 
(1.3
)%
Diluted ordinary shares outstanding at September 30, 2017 and September 30, 2016 (in millions of shares)
 
60.200

 
61.516

 
(2.1
)%
 
60.200

 
61.516

 
(2.1
)%
Underwriting Ratios
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
119.0
 %
 
57.2
%
 
 
 
80.8
 %
 
58.7
%
 
 
   Policy acquisition expense ratio
 
16.2
 %
 
19.2
%
 
 
 
17.6
 %
 
19.2
%
 
 
   General, administrative and corporate expense ratio
 
17.0
 %
 
18.4
%
 
 
 
19.6
 %
 
17.8
%
 
 
   General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
 
16.2
 %
 
17.4
%
 
 
 
19.1
 %
 
17.5
%
 
 
Expense ratio
 
33.2
 %
 
37.6
%
 
 
 
37.2
 %
 
37.0
%
 
 
Expense ratio (excluding amortization and non-recurring expenses)
 
32.4
 %
 
36.6
%
 
 
 
36.7
 %
 
36.7
%
 
 
Combined ratio
 
152.2
 %
 
94.8
%
 
 
 
118.0
 %
 
95.7
%
 
 
Combined ratio (excluding amortization and non-recurring expenses)
 
151.4
 %
 
93.8
%
 
 
 
117.5
 %
 
95.4
%
 
 
Return On Equity
 
 
 
 
 
 
 
 
 
 
 
 
Average equity (2)
 
$
2,839.5

 
$
3,082.6

 
 
 
$
2,892.0

 
$
3,011.6

 
 
Return on average equity
 
 
 
 
 
 
 
 
 
 
 
 
   Net (loss)/income adjusted for preference share dividend and non-controlling interest
 
(9.4
)%
 
2.8
%
 
 
 
(4.1
)%
 
8.2
%
 
 
   Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
(10.0
)%
 
2.0
%
 
 
 
(7.2
)%
 
5.5
%
 
 
Annualized return on average equity
 
 
 
 
 
 
 
 
 
 
 
 
   Net (loss)/income
 
(37.6
)%
 
11.2
%
 
 
 
(5.5
)%
 
10.9
%
 
 
   Operating (loss)/income
 
(40.0
)%
 
8.0
%
 
 
 
(9.6
)%
 
7.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 for the three and nine months ended September 30, 2017 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)
Q3 2017
 
Q2 2017
 
Q1 2017
 
Q4 2016
 
Q3 2016
 
Q2 2016
 
Q1 2016
UNDERWRITING REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
852.5

 
$
822.1

 
$
998.0

 
$
606.1

 
$
763.5

 
$
801.7

 
$
975.7

Premiums ceded
(245.1
)
 
(243.4
)
 
(311.8
)
 
(175.3
)
 
(125.1
)
 
(76.9
)
 
(176.0
)
Net written premiums
607.4

 
578.7

 
686.2

 
430.8

 
638.4

 
724.8

 
799.7

Change in unearned premiums
45.1

 
(16.7
)
 
(105.1
)
 
181.6

 
42.6

 
(44.0
)
 
(136.6
)
Net earned premiums
652.5

 
562.0

 
581.1

 
612.4

 
681.0

 
680.8

 
663.1

UNDERWRITING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
776.2

 
346.1

 
328.2

 
387.3

 
389.2

 
442.2

 
357.4

Amortization of deferred policy acquisition costs
105.4

 
96.3

 
113.7

 
141.1

 
130.9

 
126.7

 
130.2

General, administrative and corporate expenses
105.7

 
117.8

 
119.1

 
125.5

 
118.7

 
116.4

 
119.8

Total underwriting expenses
987.3

 
560.2

 
561.0

 
653.9

 
638.8

 
685.3

 
607.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting (loss)/income including corporate expenses
(334.8
)
 
1.8

 
20.1

 
(41.5
)
 
42.2

 
(4.5
)
 
55.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
46.4

 
47.4

 
47.7

 
43.2

 
46.4

 
48.0

 
49.5

Interest expense
(7.4
)
 
(7.4
)
 
(7.4
)
 
(7.4
)
 
(7.3
)
 
(7.4
)
 
(7.4
)
Other income/(expenses)
7.6

 
(1.7
)
 
0.7

 
(1.3
)
 
(7.4
)
 
(1.0
)
 
(3.0
)
Total other revenue
46.6

 
38.3

 
41.0

 
34.5

 
31.7

 
39.6

 
39.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization and non-recurring expenses
(5.2
)
 
(2.1
)
 
(2.2
)
 
(3.4
)
 
(6.3
)
 
—

 
—

Net realized and unrealized exchange gains/(losses) (1)
12.9

 
(3.0
)
 
(5.8
)
 
(5.6
)
 
11.4

 
(5.4
)
 
(20.1
)
Net realized and unrealized investment gains/(losses) (2)
17.5

 
42.0

 
46.2

 
(58.1
)
 
21.5

 
36.5

 
42.2

(LOSS)/INCOME BEFORE TAX
(263.0
)
 
77.0

 
99.3

 
(74.1
)
 
100.5

 
66.2

 
116.9

Income tax credit/(expense)
9.2

 
(1.2
)
 
(2.8
)
 
2.6

 
(4.9
)
 
(1.3
)
 
(2.5
)
NET (LOSS)/INCOME AFTER TAX
(253.8
)
 
75.8

 
96.5

 
(71.5
)
 
95.6

 
64.9

 
114.4

Dividends paid on ordinary shares
(14.4
)
 
(14.4
)
 
(13.2
)
 
(13.2
)
 
(13.3
)
 
(13.4
)
 
(12.8
)
Dividends paid on preference shares
(7.7
)
 
(10.5
)
 
(10.5
)
 
(13.4
)
 
(9.5
)
 
(9.4
)
 
(9.5
)
Preference share redemption costs
(5.6
)
 
—

 
(2.4
)
 
—

 
—

 
—

 
—

Proportion due to non-controlling interest
(0.6
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
 
0.2

 
(0.4
)
 
0.2

Retained (loss)/income
$
(282.1
)
 
$
50.8

 
$
70.3

 
$
(98.2
)
 
$
73.0

 
$
41.7

 
$
92.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
119.0
%
 
61.6
%
 
56.5
%
 
63.2
%
 
57.2
%
 
65.0
%
 
53.9
%
Policy acquisition expense ratio
16.2
%
 
17.1
%
 
19.6
%
 
23.0
%
 
19.2
%
 
18.6
%
 
19.6
%
General, administrative and corporate expense ratio
17.0
%
 
21.3
%
 
20.9
%
 
21.0
%
 
18.4
%
 
17.1
%
 
18.1
%
General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
16.2
%
 
21.0
%
 
20.5
%
 
20.5
%
 
17.4
%
 
17.1
%
 
18.1
%
Expense ratio
33.2
%
 
38.4
%
 
40.5
%
 
44.0
%
 
37.6
%
 
35.7
%
 
37.7
%
Expense ratio (excluding amortization and non-recurring expenses)
32.4
%
 
38.1
%
 
40.1
%
 
43.5
%
 
36.6
%
 
35.7
%
 
37.7
%
Combined ratio
152.2
%
 
100.0
%
 
97.0
%
 
107.2
%
 
94.8
%
 
100.7
%
 
91.6
%
Combined ratio (excluding amortization and non-recurring expenses)
151.4
%
 
99.7
%
 
96.6
%
 
106.7
%
 
93.8
%
 
100.7
%
 
91.6
%
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.
(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.

3


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ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Year To Date Results
(in US$ millions except for percentages)
 
Nine Months Ended September 30,
 
 
2017
 
2016
UNDERWRITING REVENUES
 
 
 
Gross written premiums
 
$
2,672.6

 
$
2,540.9

Premiums ceded
 
(800.3
)
 
(378.0
)
Net written premiums
 
1,872.3

 
2,162.9

Change in unearned premiums
 
(76.7
)
 
(138.0
)
Net earned premiums
 
1,795.6

 
2,024.9

UNDERWRITING EXPENSES
 
 
 
 
Losses and loss adjustment expenses
 
1,450.5

 
1,188.8

Amortization of deferred policy acquisition costs
 
315.4

 
387.8

General, administrative and corporate expenses
 
342.6

 
354.9

Total underwriting expenses
 
2,108.5

 
1,931.5

 
 
 
 
 
Underwriting (loss)/income including corporate expenses
 
(312.9
)
 
93.4

 
 
 
 
 
Net investment income
 
141.5

 
143.9

Interest expense
 
(22.2
)
 
(22.1
)
Other income/(expenses)
 
6.6

 
(11.4
)
Total other revenue
 
125.9

 
110.4

 
 
 
 
 
Amortization and non-recurring expenses
 
(9.5
)
 
(6.3
)
Net realized and unrealized exchange gains/(losses)(1)
 
4.1

 
(14.1
)
Net realized and unrealized investment gains(2)
 
105.7

 
100.2

(LOSS)/INCOME BEFORE TAX
 
(86.7
)
 
283.6

Income tax credit/(expense)
 
5.2

 
(8.7
)
NET (LOSS)/INCOME AFTER TAX
 
(81.5
)
 
274.9

Dividends paid on ordinary shares
 
(42.0
)
 
(39.5
)
Dividends paid on preference shares
 
(28.7
)
 
(28.4
)
Preference share redemption costs
 
(8.0
)
 
—

Proportion due to non-controlling interest
 
(0.8
)
 
—

Retained (loss)/income
 
$
(161.0
)
 
$
207.0

 
 
 
 
 
Loss ratio
 
80.8
%
 
58.7
%
 
Policy acquisition expense ratio
 
17.6
%
 
19.2
%
 
General, administrative and corporate expense ratio
 
19.6
%
 
17.8
%
 
General, administrative and corporate expense ratio (excluding amortization and non-recurring expenses)
 
19.1
%
 
17.5
%
Expense ratio
 
37.2
%
 
37.0
%
Expense ratio (excluding amortization and non-recurring expenses)
 
36.7
%
 
36.7
%
Combined ratio
 
118.0
%
 
95.7
%
Combined ratio (excluding amortization and non-recurring expenses)
 
117.5
%
 
95.4
%
 
 
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.
(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.

4


 
q3_2017smalllogoa01.jpg
 
 
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for per share amounts)
 
September 30,
2017
 
June 30,
 2017
 
March 31,
2017
 
December 31,
2016
 
September 30, 2016
 
June 30,
 2016
 
March 31,
2016
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities
 
$
7,030.4

 
$
6,854.8

 
$
6,977.6

 
$
6,930.3

 
$
6,961.6

 
$
6,965.9

 
$
6,960.5

 
Equity securities
 
468.6

 
658.7

 
623.6

 
584.7

 
797.7

 
785.6

 
757.8

 
Other investments
 
4.0

 
3.9

 
5.0

 
12.1

 
13.0

 
8.7

 
8.9

 
Catastrophe bonds
 
30.3

 
28.3

 
41.8

 
42.5

 
17.8

 
21.5

 
46.1

 
Short-term investments
 
124.7

 
115.6

 
348.1

 
330.7

 
338.7

 
121.8

 
143.0

 
Total investments
 
7,658.0

 
7,661.3

 
7,996.1

 
7,900.3

 
8,128.8

 
7,903.5

 
7,916.3

 
Cash and cash equivalents
 
1,209.3

 
1,228.4

 
873.1

 
1,273.8

 
1,183.3

 
1,038.8

 
903.1

 
Reinsurance recoverables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses
 
1,369.5

 
779.4

 
635.8

 
560.7

 
419.8

 
410.4

 
366.0

 
Ceded unearned premiums
 
446.4

 
464.1

 
404.8

 
255.2

 
229.5

 
226.2

 
243.6

 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting premiums
 
1,529.0

 
1,614.1

 
1,557.8

 
1,399.4

 
1,437.7

 
1,428.5

 
1,339.1

 
Other
 
175.8

 
106.1

 
120.7

 
95.5

 
131.6

 
124.6

 
117.9

 
Funds withheld
 
100.1

 
89.9

 
90.4

 
73.1

 
51.6

 
46.0

 
39.6

 
Deferred policy acquisition costs
 
354.1

 
364.6

 
367.5

 
358.4

 
388.2

 
409.1

 
407.7

 
Derivatives at fair value
 
8.4

 
22.1

 
5.2

 
7.2

 
6.3

 
12.9

 
10.9

 
Receivable for securities sold
 
19.0

 
13.6

 
25.7

 
1.6

 
10.8

 
30.0

 
1.9

 
Office properties and equipment
 
89.8

 
85.3

 
86.1

 
83.8

 
84.0

 
83.9

 
83.2

 
Taxation
 
13.1

 
7.2

 
—

 
0.5

 
—

 
—

 
—

 
Other assets
 
1.0

 
1.0

 
1.0

 
1.0

 
1.0

 
1.0

 
1.8

 
Intangible assets and goodwill
 
78.1

 
79.4

 
80.5

 
79.6

 
73.1

 
72.0

 
74.3

 
Total assets
 
$
13,051.6

 
$
12,516.5

 
$
12,244.7

 
$
12,090.1

 
$
12,145.7

 
$
11,786.9

 
$
11,505.4

 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
$
6,490.6

 
$
5,571.4

 
$
5,365.9

 
$
5,319.9

 
$
5,246.6

 
$
5,181.5

 
$
5,011.5

 
Unearned premiums
 
1,926.5

 
1,981.5

 
1,891.8

 
1,618.6

 
1,781.2

 
1,819.4

 
1,804.0

 
Total insurance reserves
 
8,417.1

 
7,552.9

 
7,257.7

 
6,938.5

 
7,027.8

 
7,000.9

 
6,815.5

 
Payables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance premiums
 
439.4

 
316.7

 
362.9

 
345.3

 
182.8

 
142.7

 
148.9

 
Taxation
 
0.5

 
4.4

 
4.0

 
6.1

 
18.3

 
28.5

 
19.2

 
Accrued expenses and other payables
 
377.9

 
352.8

 
361.8

 
469.2

 
344.2

 
333.1

 
293.3

 
Liabilities under derivative contracts
 
2.9

 
8.6

 
4.3

 
18.4

 
6.5

 
11.5

 
17.6

 
Total payables
 
820.7

 
682.5

 
733.0

 
839.0

 
551.8

 
515.8

 
479.0

 
Loan notes issued by variable interest entities, at fair value
 
101.5

 
110.8

 
110.2

 
115.0

 
112.7

 
104.1

 
104.5

 
Long-term debt
 
549.4

 
549.4

 
549.4

 
549.3

 
549.3

 
549.3

 
549.3

 
Total liabilities
 
9,888.7

 
8,895.6

 
8,650.3

 
8,441.8

 
8,241.6

 
8,170.1

 
7,948.3

 
SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares
 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
0.1

 
Non-controlling interest
 
2.2

 
1.6

 
1.5

 
1.4

 
1.3

 
1.5

 
1.1

 
Preference shares
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
Additional paid-in capital
 
951.8

 
1,125.2

 
1,142.1

 
1,259.6

 
1,280.2

 
1,040.5

 
1,055.9

 
Retained earnings
 
2,234.1

 
2,516.2

 
2,465.4

 
2,392.3

 
2,490.6

 
2,417.6

 
2,375.9

 
Accumulated other comprehensive income, net of taxes
 
(25.3
)
 
(22.2
)
 
(14.7
)
 
(5.1
)
 
131.9

 
157.1

 
124.1

 
Total shareholders’ equity
 
3,162.9

 
3,620.9

 
3,594.4

 
3,648.3

 
3,904.1

 
3,616.8

 
3,557.1

 
Total liabilities and shareholders’ equity
 
$
13,051.6

 
$
12,516.5

 
$
12,244.7

 
$
12,090.1

 
$
12,145.7

 
$
11,786.9

 
$
11,505.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
44.59

 
$
49.34

 
$
48.79

 
$
47.68

 
$
51.58

 
$
50.71

 
$
49.45

 
Book value per diluted ordinary share
 
$
44.00

 
$
48.64

 
$
47.89

 
$
46.72

 
$
50.49

 
$
49.53

 
$
48.22

 
 

5


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Earnings Per Share and Book Value Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
(in US$ except for number of shares)
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.48
)
 
$
1.43

 
$
(1.99
)
 
$
4.07

 
Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.78
)
 
$
0.99

 
$
(3.46
)
 
$
2.72

Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.48
)
 
$
1.40

 
$
(1.99
)
 
$
3.97

 
Operating (loss)/income adjusted for preference share dividend and non-controlling interest
 
$
(4.78
)
 
$
0.97

 
$
(3.46
)
 
$
2.65

 
 
 
 
 
 
 
 
 
 
 
Weighted average number of ordinary shares outstanding (in millions) (1)
 
59.760

 
60.226

 
59.863

 
60.588

Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions)
 
59.760

 
61.577

 
59.863

 
62.043

 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
44.59

 
$
51.58

 
$
44.59

 
$
51.58

Diluted book value per ordinary share
 
$
44.00

 
$
50.49

 
$
44.00

 
$
50.49

 
 
 
 
 
 
 
 
 
Ordinary shares outstanding at end of the period (in millions)
 
59.407

 
60.211

 
59.407

 
60.211

Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions)
 
60.200

 
61.516

 
60.200

 
61.516

 
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 for the three and nine months ended September 30, 2017 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

 
 


6


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Return On Average Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
(in US$ millions except for percentages)
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
$
3,391.9

 
$
3,760.5

 
$
3,526.8

 
$
3,617.0

Average non-controlling interest
(1.9
)
 
(1.4
)
 
(1.7
)
 
(1.3
)
Average preference shares
(550.5
)
 
(676.5
)
 
(633.1
)
 
(604.1
)
Average ordinary shareholders' equity
$
2,839.5

 
$
3,082.6

 
$
2,892.0

 
$
3,011.6

Return on average equity:
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for preference share dividend and non-controlling interest
(9.4
)%
 
2.8
%
 
(4.1
)%
 
8.2
%
 
Operating (loss)/income adjusted for preference share dividend and non-controlling interest
(10.0
)%
 
2.0
%
 
(7.2
)%
 
5.5
%
Annualized return on average equity:
 
 
 
 
 
 
 
 
Net (loss)/income
(37.6
)%
 
11.2
%
 
(5.5
)%
 
10.9
%
 
Operating (loss)/income
 
(40.0
)%
 
8.0
%
 
(9.6
)%
 
7.3
%
Components of return on average equity:
 
 
 
 
 
 
 
 
Return on average equity from underwriting activity (1)
(11.7
)%
 
1.4
%
 
(11.1
)%
 
2.9
%
 
Return on average equity from investment and other activity (2)
1.3
 %
 
0.7
%
 
3.9
 %
 
3.2
%
 
Pre-tax operating income return on average equity (3)
(10.5
)%
 
2.1
%
 
(7.1
)%
 
6.1
%
 
Post-tax operating income return on average equity (4)
(10.0
)%
 
2.0
%
 
(7.2
)%
 
5.5
%
 
 
 
 
 
 
 
 
 
 
 
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_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Consolidated Underwriting Results by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
(in US$ millions except for percentages)
Reinsurance
 
Insurance
 
Total
 
Reinsurance
 
Insurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
431.5

 
$
421.0

 
$
852.5

 
$
365.9

 
$
397.6

 
$
763.5

Net written premiums
363.6

 
243.8

 
607.4

 
314.5

 
323.9

 
638.4

Gross earned premiums
464.0

 
449.3

 
913.3

 
364.3

 
445.5

 
809.8

Net earned premiums
382.0

 
270.5

 
652.5

 
316.3

 
364.7

 
681.0

Losses and loss adjustment expenses
502.2

 
274.0

 
776.2

 
178.7

 
210.5

 
389.2

Amortization of deferred policy acquisition costs
61.5

 
43.9

 
105.4

 
53.0

 
77.9

 
130.9

General and administrative expenses
32.8

 
59.4

 
92.2

 
47.4

 
57.9

 
105.3

Underwriting (loss)/income
$
(214.5
)
 
$
(106.8
)
 
$
(321.3
)
 
$
37.2

 
$
18.4

 
$
55.6

Net investment income
 
 
 
 
46.4

 
 
 
 
 
46.4

Net realized and unrealized investment gains
 
 
 
 
17.5

 
 
 
 
 
21.5

Corporate expenses
 
 
 
 
(13.5
)
 
 
 
 
 
(13.4
)
Amortization and non-recurring expenses
 
 
 
 
(5.2
)
 
 
 
 
 
(6.3
)
Other income/(expenses)
 
 
 
 
7.6

 
 
 
 
 
(7.4
)
Interest expense
 
 
 
 
(7.4
)
 
 
 
 
 
(7.3
)
Net realized and unrealized foreign exchange gains/(losses) (1)
 
 
 
 
12.9

 
 
 
 
 
11.4

(Loss)/income before tax
 
 
 
 
$
(263.0
)
 
 
 
 
 
$
100.5

Income tax credit/(expense)
 
 
 
 
9.2

 
 
 
 
 
(4.9
)
Net (loss)/income
 
 
 
 
$
(253.8
)
 
 
 
 
 
$
95.6

Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
131.5
%
 
101.3
%
 
119.0
%
 
56.5
%
 
57.7
%
 
57.2
%
 Policy acquisition expense ratio
16.1
%
 
16.2
%
 
16.2
%
 
16.8
%
 
21.4
%
 
19.2
%
 General and administrative expense ratio (2)
8.6
%
 
22.0
%
 
17.0
%
 
15.0
%
 
15.9
%
 
18.4
%
 General and administrative expense ratio (excluding amortization and non-recurring expenses)(3)
8.6
%
 
22.0
%
 
16.2
%
 
15.0
%
 
15.9
%
 
17.4
%
Expense ratio
24.7
%
 
38.2
%
 
33.2
%
 
31.8
%
 
37.3
%
 
37.6
%
Expense ratio (excluding amortization and non-recurring expenses)
24.7
%
 
38.2
%
 
32.4
%
 
31.8
%
 
37.3
%
 
36.6
%
Combined ratio
156.2
%
 
139.5
%
 
152.2
%
 
88.3
%
 
95.0
%
 
94.8
%
Combined ratio (excluding amortization and non-recurring expenses)
156.2
%
 
139.5
%
 
151.4
%
 
88.3
%
 
95.0
%
 
93.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
 
 
 
 
 
 
 
 
 
 
(2) The total group general and administrative expense ratio includes the impact from corporate and non-recurring expenses.
 
 
 
 
 
 
 
 

8


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Consolidated Underwriting Results by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
(in US$ millions except for percentages)
Reinsurance
 
Insurance
 
Total
 
Reinsurance
 
Insurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
$
1,332.4

 
$
1,340.2

 
$
2,672.6

 
$
1,216.1

 
$
1,324.8

 
$
2,540.9

Net written premiums
1,097.3

 
775.0

 
1,872.3

 
1,070.8

 
1,092.1

 
2,162.9

Gross earned premiums
1,112.2

 
1,302.1

 
2,414.3

 
1,000.9

 
1,345.8

 
2,346.7

Net earned premiums
932.2

 
863.4

 
1,795.6

 
896.0

 
1,128.9

 
2,024.9

Losses and loss adjustment expenses
797.9

 
652.6

 
1,450.5

 
494.3

 
694.5

 
1,188.8

Amortization of deferred policy acquisition costs
174.4

 
141.0

 
315.4

 
163.1

 
224.7

 
387.8

General and administrative expenses
117.4

 
186.9

 
304.3

 
130.6

 
173.7

 
304.3

Underwriting (loss)/income
$
(157.5
)
 
$
(117.1
)
 
$
(274.6
)
 
$
108.0

 
$
36.0

 
$
144.0

Net investment income
 
 
 
 
141.5

 
 
 
 
 
143.9

Net realized and unrealized investment gains (1)
 
 
 
 
105.7

 
 
 
 
 
100.2

Corporate expenses
 
 
 
 
(38.3
)
 
 
 
 
 
(50.6
)
Amortization and non-recurring expenses
 
 
 
 
(9.5
)
 
 
 
 
 
(6.3
)
Other income/(expenses)
 
 
 
 
6.6

 
 
 
 
 
(11.4
)
Interest expense
 
 
 
 
(22.2
)
 
 
 
 
 
(22.1
)
Net realized and unrealized foreign exchange gains/(losses) (2)
 
 
 
 
4.1

 
 
 
 
 
(14.1
)
(Loss)/income before tax
 
 
 
 
$
(86.7
)
 
 
 
 
 
$
283.6

Income tax credit/(expense)
 
 
 
 
5.2

 
 
 
 
 
(8.7
)
Net (loss)/income
 
 
 
 
$
(81.5
)
 
 
 
 
 
$
274.9

Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
85.6
%
 
75.6
%
 
80.8
%
 
55.2
%
 
61.5
%
 
58.7
%
 Policy acquisition expense ratio
18.7
%
 
16.3
%
 
17.6
%
 
18.2
%
 
19.9
%
 
19.2
%
 General and administrative expense ratio (3)
12.6
%
 
21.6
%
 
19.6
%
 
14.6
%
 
15.4
%
 
17.8
%
 General and administrative expense ratio (excluding amortization and non-recurring expenses)(3)
12.6
%
 
21.6
%
 
19.1
%
 
14.6
%
 
15.4
%
 
17.5
%
Expense ratio
31.3
%
 
37.9
%
 
37.2
%
 
32.8
%
 
35.3
%
 
37.0
%
Expense ratio (excluding amortization and non-recurring expenses)
31.3
%
 
37.9
%
 
36.7
%
 
32.8
%
 
35.3
%
 
36.7
%
Combined ratio
116.9
%
 
113.5
%
 
118.0
%
 
88.0
%
 
96.8
%
 
95.7
%
Combined ratio (excluding amortization and non-recurring expenses)
116.9
%
 
113.5
%
 
117.5
%
 
88.0
%
 
96.8
%
 
95.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 and non-recurring expenses.
 
 
 
 
 
 
 
 

9


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Reinsurance Segment - Quarterly Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
Q4 2016
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
 
$
431.5

 
$
335.6

 
$
565.3

 
$
197.1

 
$
365.9

 
$
332.6

 
$
517.6

Net written premiums
 
363.6

 
285.5

 
448.2

 
198.4

 
314.5

 
306.8

 
449.5

Gross earned premiums
 
464.0

 
320.6

 
327.6

 
317.0

 
364.3

 
329.8

 
306.8

Net earned premiums
 
382.0

 
272.7

 
277.5

 
285.9

 
316.3

 
299.4

 
280.3

Net losses and loss adjustment expenses
 
502.2

 
152.6

 
143.1

 
163.6

 
178.7

 
181.1

 
134.5

Amortization of deferred policy acquisition costs
 
61.5

 
53.4

 
59.5

 
63.3

 
53.0

 
50.7

 
59.4

General and administrative expenses
 
32.8

 
40.7

 
43.9

 
47.6

 
47.4

 
39.1

 
44.1

Underwriting (loss)/income
 
$
(214.5
)
 
$
26.0

 
$
31.0

 
$
11.4

 
$
37.2

 
$
28.5

 
$
42.3

Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
131.5
 %
 
56.0
 %
 
51.6
 %
 
57.2
 %
 
56.5
 %
 
60.5
 %
 
48.0
 %
 Policy acquisition expense ratio
 
16.1
 %
 
19.6
 %
 
21.4
 %
 
22.1
 %
 
16.8
 %
 
16.9
 %
 
21.2
 %
 General and administrative expense ratio
 
8.6
 %
 
14.9
 %
 
15.8
 %
 
16.6
 %
 
15.0
 %
 
13.1
 %
 
15.7
 %
Expense ratio
 
24.7
 %
 
34.5
 %
 
37.2
 %
 
38.7
 %
 
31.8
 %
 
30.0
 %
 
36.9
 %
Combined ratio
 
156.2
 %
 
90.5
 %
 
88.8
 %
 
95.9
 %
 
88.3
 %
 
90.5
 %
 
84.9
 %
Accident Year Ex-cat Loss Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
131.5
 %
 
56.0
 %
 
51.6
 %
 
57.2
 %
 
56.5
 %
 
60.5
 %
 
48.0
 %
Prior year loss development
 
4.8
 %
 
12.0
 %
 
7.6
 %
 
12.2
 %
 
6.4
 %
 
4.6
 %
 
6.5
 %
Catastrophe losses
 
(74.6
)%
 
(3.8
)%
 
(8.9
)%
 
(13.2
)%
 
(4.7
)%
 
(17.4
)%
 
(3.8
)%
Accident year ex-cat loss ratio
 
61.7
 %
 
64.2
 %
 
50.3
 %
 
56.2
 %
 
58.2
 %
 
47.7
 %
 
50.7
 %


10


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Insurance Segment - Quarterly Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
Q4 2016
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross written premiums
 
$
421.0

 
$
486.5

 
$
432.7

 
$
409.0

 
$
397.6

 
$
469.1

 
$
458.1

Net written premiums
 
243.8

 
293.2

 
238.0

 
232.4

 
323.9

 
418.0

 
350.2

Gross earned premiums
 
449.3

 
429.1

 
423.7

 
422.6

 
445.5

 
454.7

 
445.6

Net earned premiums
 
270.5

 
289.3

 
303.6

 
326.5

 
364.7

 
381.4

 
382.8

Net losses and loss adjustment expenses
 
274.0

 
193.5

 
185.1

 
223.7

 
210.5

 
261.1

 
222.9

Amortization of deferred policy acquisition costs
 
43.9

 
42.9

 
54.2

 
77.8

 
77.9

 
76.0

 
70.8

General and administrative expenses
 
59.4

 
65.7

 
61.8

 
54.7

 
57.9

 
57.2

 
58.6

Underwriting (loss)/income
 
$
(106.8
)
 
$
(12.8
)
 
$
2.5

 
$
(29.7
)
 
$
18.4

 
$
(12.9
)
 
$
30.5

Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
101.3
 %
 
66.9
 %
 
61.0
 %
 
68.5
 %
 
57.7
 %
 
68.5
 %
 
58.2
 %
 Policy acquisition expense ratio
 
16.2
 %
 
14.8
 %
 
17.9
 %
 
23.8
 %
 
21.4
 %
 
19.9
 %
 
18.5
 %
 General and administrative expense ratio
 
22.0
 %
 
22.7
 %
 
20.4
 %
 
16.8
 %
 
15.9
 %
 
15.0
 %
 
15.3
 %
Expense ratio
 
38.2
 %
 
37.5
 %
 
38.3
 %
 
40.6
 %
 
37.3
 %
 
34.9
 %
 
33.8
 %
Combined ratio
 
139.5
 %
 
104.4
 %
 
99.3
 %
 
109.1
 %
 
95.0
 %
 
103.4
 %
 
92.0
 %
Accident Year Ex-cat Loss Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
 
101.3
 %
 
66.9
 %
 
61.0
 %
 
68.5
 %
 
57.7
 %
 
68.5
 %
 
58.2
 %
Prior year loss development
 
0.3
 %
 
5.6
 %
 
1.6
 %
 
5.0
 %
 
4.2
 %
 
1.9
 %
 
0.9
 %
Catastrophe losses
 
(30.3
)%
 
(9.4
)%
 
(1.5
)%
 
(5.2
)%
 
(2.8
)%
 
(4.3
)%
 
(2.1
)%
Accident year ex-cat loss ratio
 
71.3
 %
 
63.1
 %
 
61.1
 %
 
68.3
 %
 
59.1
 %
 
66.1
 %
 
57.0
 %
 

11


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Written and Earned Premiums by Segment and Lines of Business
(in US$ millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Written Premiums
 
Q3 2017
 
Q2 2017
 
Q1 2017
 
Q4 2016
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
63.3

 
$
72.4

 
$
130.7

 
$
0.4

 
$
47.3

 
$
97.7

 
$
127.6

 
Other Property Reinsurance
 
88.1

 
79.7

 
118.9

 
63.5

 
77.4

 
84.3

 
103.0

 
Casualty Reinsurance
 
75.8

 
53.1

 
143.7

 
56.9

 
79.3

 
57.3

 
127.1

 
Specialty Reinsurance
 
204.3

 
130.4

 
172.0

 
76.3

 
161.9

 
93.3

 
159.9

 
Total Reinsurance
 
$
431.5

 
$
335.6

 
$
565.3

 
$
197.1

 
$
365.9

 
$
332.6

 
$
517.6

 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
194.6

 
$
249.3

 
$
211.1

 
$
189.4

 
$
184.9

 
$
257.6

 
$
226.3

 
Marine, Aviation and Energy Insurance
 
86.0

 
92.7

 
105.8

 
88.5

 
96.3

 
93.8

 
117.7

 
Financial and Professional Lines Insurance
 
140.4

 
144.5

 
115.8

 
131.1

 
116.4

 
117.7

 
114.1

 
Total Insurance
 
$
421.0

 
$
486.5

 
$
432.7

 
$
409.0

 
$
397.6

 
$
469.1

 
$
458.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Gross Written Premiums
 
$
852.5

 
$
822.1

 
$
998.0

 
$
606.1

 
$
763.5

 
$
801.7

 
$
975.7

Net Written Premiums
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
40.3

 
$
58.2

 
$
71.1

 
$
1.0

 
$
26.7

 
$
78.3

 
$
92.1

 
Other Property Reinsurance
 
76.0

 
65.6

 
89.0

 
63.6

 
73.6

 
82.7

 
92.9

 
Casualty Reinsurance
 
72.9

 
46.5

 
142.0

 
57.7

 
78.1

 
57.3

 
125.6

 
Specialty Reinsurance
 
174.4

 
115.2

 
146.1

 
76.1

 
136.1

 
88.5

 
138.9

 
Total Reinsurance
 
$
363.6

 
$
285.5

 
$
448.2

 
$
198.4

 
$
314.5

 
$
306.8

 
$
449.5

 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
122.7

 
$
180.0

 
$
94.8

 
$
85.2

 
$
161.9

 
$
228.5

 
$
180.5

 
Marine, Aviation and Energy Insurance
 
50.7

 
40.8

 
71.1

 
54.9

 
56.9

 
80.0

 
106.6

 
Financial and Professional Lines Insurance
 
70.4

 
72.4

 
72.1

 
92.3

 
105.1

 
109.5

 
63.1

 
Total Insurance
 
$
243.8

 
$
293.2

 
$
238.0

 
$
232.4

 
$
323.9

 
$
418.0

 
$
350.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Written Premiums
 
$
607.4

 
$
578.7

 
$
686.2

 
$
430.8

 
$
638.4

 
$
724.8

 
$
799.7

Net Earned Premiums
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Catastrophe Reinsurance
 
$
51.3

 
$
48.3

 
$
34.0

 
$
44.0

 
$
50.5

 
$
53.1

 
$
47.3

 
Other Property Reinsurance
 
76.8

 
66.2

 
77.3

 
77.4

 
70.5

 
80.8

 
87.3

 
Casualty Reinsurance
 
74.1

 
68.9

 
81.8

 
88.3

 
78.3

 
74.1

 
67.0

 
Specialty Reinsurance
 
179.8

 
89.3

 
84.4

 
76.2

 
117.0

 
91.4

 
78.7

 
Total Reinsurance
 
$
382.0

 
$
272.7

 
$
277.5

 
$
285.9

 
$
316.3

 
$
299.4

 
$
280.3

 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Casualty Insurance
 
$
137.7

 
$
156.7

 
$
144.4

 
$
168.6

 
$
175.9

 
$
201.0

 
$
189.7

 
Marine, Aviation and Energy Insurance
 
53.8

 
52.7

 
77.4

 
59.2

 
86.4

 
86.9

 
93.9

 
Financial and Professional Lines Insurance
 
79.0

 
79.9

 
81.8

 
98.7

 
102.4

 
93.5

 
99.2

 
Total Insurance
 
$
270.5

 
$
289.3

 
$
303.6

 
$
326.5

 
$
364.7

 
$
381.4

 
$
382.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Earned Premiums
 
$
652.5

 
$
562.0

 
$
581.1

 
$
612.4

 
$
681.0

 
$
680.8

 
$
663.1




12


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Consolidated Statements of Changes in Shareholders' Equity
 
 
 
Nine Months Ended September 30,
(in US$ millions)
 
2017
 
2016
Ordinary shares
 
 
 
 
 
Beginning and end of period
 
$
0.1

 
$
0.1

Preference shares
 
 
 
 
 
Beginning and end of period
 
—

 
—

Non-controlling interest
 
 
 
 
 
Beginning of period
 
1.4

 
1.3

 
Net change for the period
 
0.8

 
—

 
End of period
 
2.2

 
1.3

Additional paid-in capital
 
 
 
 
 
Beginning of period
 
1,259.6

 
1,075.3

 
New shares issued
 
0.4

 
2.0

 
Ordinary shares repurchased
 
(30.0
)
 
(50.0
)
 
Preference shares issued
 
—

 
241.3

 
Preference shares redemption
 
(293.2
)
 
—

 
Preference share redemption costs
 
8.0

 
—

 
Share-based compensation
 
7.0

 
11.6

 
End of period
 
951.8

 
1,280.2

Retained earnings
 
 
 
 
 
Beginning of period
 
2,392.3

 
2,283.6

 
Net income for the period
 
(81.5
)
 
274.9

 
Dividends paid on ordinary and preference shares
 
(70.7
)
 
(67.9
)
 
Preference shares redemption costs
 
(8.0
)
 
—

 
Proportion due to non-controlling interest
 
(0.8
)
 
—

 
Share-based payment
 
2.8

 
—

 
End of period
 
2,234.1

 
2,490.6

Accumulated other comprehensive income:
 
 
 
 
Cumulative foreign currency translation adjustments, net of taxes:
 
 
 
 
 
Beginning of period
 
(27.1
)
 
0.6

 
Change for the period
 
(36.8
)
 
(19.3
)
 
End of period
 
(63.9
)
 
(18.7
)
Loss on derivatives:
 
 
 
 
 
Beginning of period
 
(0.5
)
 
(1.2
)
 
Net change from current period hedged transactions
 
2.8

 
(1.3
)
 
End of period
 
2.3

 
(2.5
)
Unrealized appreciation/(depreciation) on available for sale investments, net of taxes:
 
 
 
 
Beginning of period
 
22.5

 
60.2

 
Change for the period
 
13.8

 
92.9

 
End of period
 
36.3

 
153.1

Total accumulated other comprehensive (loss)/income
 
(25.3
)
 
131.9

 
 
 
 
 
Total shareholders' equity
 
$
3,162.9

 
$
3,904.1

 
 
 

13


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Consolidated Statements of Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in US$ millions)
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for non-controlling interest
 
$
(254.4
)
 
$
95.8

 
$
(82.3
)
 
$
274.9

Other comprehensive income, net of taxes:
 
 
 
 
 
 
 
 
 
Available for sale investments:
 
 
 
 
 
 
 
 
 
    Reclassification adjustment for net realized (gains) included in net income
 
(0.8
)
 
(4.4
)
 
(2.4
)
 
(9.1
)
 
    Change in net unrealized gains on available for sale securities held
 
0.7

 
(16.8
)
 
16.2

 
102.0

 
    Net change from current period hedged transactions
 
(0.4
)
 
2.5

 
2.8

 
(1.3
)
 
Change in foreign currency translation adjustment
 
(2.6
)
 
(6.5
)
 
(36.8
)
 
(19.3
)
 
Other comprehensive (loss)/income
 
(3.1
)
 
(25.2
)
 
(20.2
)
 
72.3

Comprehensive (loss)/income
 
$
(257.5
)
 
$
70.6

 
$
(102.5
)
 
$
347.2



14


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
 
 
Condensed Consolidated Statements of Cash Flows
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in US$ millions)
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
 
Net cash from operating activities
 
$
152.3

 
$
157.6

 
$
47.8

 
$
379.8

Net cash from/(used in) investing activities
 
27.7

 
(224.2
)
 
393.3

 
(322.7
)
Net cash (used in)/from financing activities
 
(204.3
)
 
211.8

 
(518.9
)
 
36.1

Effect of exchange rate movements on cash and cash equivalents
 
5.2

 
(0.7
)
 
13.3

 
(9.4
)
Decrease/(increase) in cash and cash equivalents
 
(19.1
)
 
144.5

 
(64.5
)
 
83.8

Cash at beginning of period
 
1,228.4

 
1,038.8

 
1,273.8

 
1,099.5

Cash at end of period
 
$
1,209.3

 
$
1,183.3

 
$
1,209.3

 
$
1,183.3



15


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Reserves for Losses and Loss Adjustment Expenses
 
 
 
 
 
 
 
 
(in US$ millions)
For the Nine Months Ended September 30, 2017
 
For the Nine Months Ended September 30, 2016
 
For the Twelve Months Ended
December 31, 2016
 
 
 
 
 
 
 
 
Provision for losses and loss adjustment expenses at the start of the period
$
5,319.9

 
4,938.2

 
$
4,938.2

Reinsurance recoverables
(560.7
)
 
(354.8
)
 
(354.8
)
Net loss and loss adjustment expenses at the start of the period
4,759.2

 
4,583.4

 
4,583.4

 
 
 
 
 
 
Net loss and loss adjustment expenses assumed
(125.7
)
 
5.7

 
(80.1
)
Provision for losses and loss adjustment expenses for claims incurred
 
 
 
 
 
    Current period
1,543.3

 
1,267.0

 
1,705.4

    Prior period release
(92.8
)
 
(78.2
)
 
(129.3
)
    Total incurred
1,450.5

 
1,188.8

 
1,576.1

 
 
 
 
 
 
Losses and loss adjustment expenses payments for claims incurred
(1,098.1
)
 
(915.2
)
 
(1,222.8
)
 
 
 
 
 
 
Foreign exchange losses/(gains)
135.2

 
(35.9
)
 
(97.4
)
 
 
 
 
 
 
Net loss and loss adjustment expenses reserves at the end of the period
5,121.1

 
4,826.8

 
4,759.2

Reinsurance recoverables on unpaid losses at the end of the period
1,369.5

 
419.8

 
560.7

Gross loss and loss adjustment expenses reserves at the end of the period
$
6,490.6

 
5,246.6

 
$
5,319.9



16


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
 
Reserves by Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at September 30, 2017
 
As at December 31, 2016
(in US$ millions)
Gross
 
Reinsurance Recoverables
 
Net
 
Gross
 
Reinsurance Recoverables
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance
$
3,120.0

 
$
(254.2
)
 
$
2,865.8

 
$
2,536.1

 
$
(74.0
)
 
$
2,462.1

Insurance
3,370.6

 
(1,115.3
)
 
2,255.3

 
2,783.8

 
(486.7
)
 
2,297.1

Total losses and loss adjustment expense reserves
$
6,490.6

 
$
(1,369.5
)
 
$
5,121.1

 
$
5,319.9

 
$
(560.7
)
 
$
4,759.2



17


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Prior Year Reserve Movements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
 
 
Gross
 
 Reinsurance Recoverables
 
Net
 
Gross
 
 Reinsurance Recoverables
 
Net
Reinsurance
$
15.5

 
$
1.7

 
$
17.2

 
$
18.5

 
$
1.6

 
$
20.1

Insurance
(1.7
)
 
2.4

 
0.7

 
11.9

 
3.4

 
15.3

Movements in reserves for prior years during the period
$
13.8

 
$
4.1

 
$
17.9

 
$
30.4

 
$
5.0

 
$
35.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
 
 
Gross
 
 Reinsurance Recoverables
 
Net
 
Gross
 
 Reinsurance Recoverables
 
Net
Reinsurance
$
60.3

 
$
10.7

 
$
71.0

 
$
52.4

 
$
(0.3
)
 
$
52.1

Insurance
(16.4
)
 
38.2

 
21.8

 
18.1

 
8.0

 
26.1

Movements in reserves for prior years during the period
$
43.9

 
$
48.9

 
$
92.8

 
$
70.5

 
$
7.7

 
$
78.2



18


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Investment Portfolio
(in US$ millions)
 
Fair Market Value
 
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31,
2016
 
September 30,
2016
 
June 30, 2016
 
March 31, 2016
Marketable Securities - Available For Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
$
1,172.7

 
$
1,220.8

 
$
1,267.1

 
$
1,206.1

 
$
1,086.4

 
$
1,147.4

 
$
1,111.7

U.S. agency securities
 
62.1

 
75.5

 
107.4

 
119.6

 
127.3

 
131.2

 
149.9

Municipal securities
 
50.1

 
32.8

 
24.4

 
24.4

 
26.2

 
26.2

 
32.9

Corporate securities
 
2,468.3

 
2,503.4

 
2,587.7

 
2,586.5

 
2,790.8

 
2,663.2

 
2,680.9

Non-U.S. government securities
 
531.7

 
525.9

 
494.2

 
488.7

 
583.1

 
641.7

 
674.5

Asset-backed securities
 
33.7

 
48.9

 
54.8

 
63.0

 
69.1

 
72.9

 
76.3

Non-U.S. government-backed corporate securities
 
94.0

 
92.6

 
84.5

 
89.8

 
82.4

 
69.5

 
72.5

Mortgage-backed securities
 
952.8

 
997.4

 
1,044.3

 
1,086.5

 
1,199.4

 
1,256.0

 
1,265.0

  Total fixed income securities
 
5,365.4

 
5,497.3

 
5,664.4

 
5,664.6

 
5,964.7

 
6,008.1

 
6,063.7

Short-term investments
 
34.4

 
41.9

 
163.5

 
145.3

 
169.1

 
108.9

 
135.3

  Total Available For Sale
 
$
5,399.8

 
$
5,539.2

 
$
5,827.9

 
$
5,809.9

 
$
6,133.8

 
$
6,117.0

 
$
6,199.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketable Securities - Trading
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
$
160.6

 
$
112.8

 
$
95.4

 
$
82.4

 
$
44.4

 
$
53.9

 
$
42.1

Municipal securities
 
32.3

 
5.7

 
15.6

 
15.5

 
4.9

 
4.8

 
4.0

Corporate securities
 
1,045.0

 
896.0

 
866.2

 
820.6

 
677.0

 
658.0

 
615.2

Non-U.S. government securities
 
210.9

 
186.5

 
191.7

 
202.8

 
213.1

 
202.2

 
198.5

Asset-backed securities
 
11.1

 
12.2

 
13.4

 
14.5

 
15.5

 
15.8

 
19.6

Mortgage-backed securities
 
203.1

 
142.3

 
130.9

 
130.0

 
42.0

 
23.1

 
17.4

Non-U.S. government-backed corporate securities
 
2.0

 
2.0

 
—

 
—

 
—

 
—

 
—

  Total fixed income securities
 
1,665.0

 
1,357.5

 
1,313.2

 
1,265.8

 
996.9

 
957.8

 
896.8

Short-term investments
 
90.4

 
73.7

 
184.6

 
185.4

 
169.6

 
12.9

 
7.7

Equity securities
 
468.5

 
658.7

 
623.6

 
584.7

 
797.7

 
785.6

 
757.8

Catastrophe bonds
 
30.3

 
28.3

 
41.8

 
42.5

 
17.8

 
21.5

 
46.1

 Total Trading
 
$
2,254.2

 
$
2,118.2

 
$
2,163.2

 
$
2,078.4

 
$
1,982.0

 
$
1,777.8

 
$
1,708.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments
 
$
4.0

 
$
3.9

 
$
5.0

 
$
12.1

 
$
13.0

 
$
8.7

 
$
8.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
1,209.3

 
1,228.4

 
873.1

 
1,273.8

 
1,183.3

 
1,038.8

 
903.1

Accrued interest
 
45.3

 
46.9

 
46.5

 
46.0

 
45.6

 
47.3

 
46.0

 
  Total Cash and Accrued Interest
 
$
1,254.6

 
$
1,275.3

 
$
919.6

 
$
1,319.8

 
$
1,228.9

 
$
1,086.1

 
$
949.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Total Cash and Investments
 
$
8,912.6

 
$
8,936.6

 
$
8,915.7

 
$
9,220.2

 
$
9,357.7

 
$
8,989.6

 
$
8,865.4


19


 
q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
 
Investment Analysis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for percentages)
Q3 2017
 
Q2 2017
 
Q1 2017
 
Q4 2016
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income from fixed income investments and cash
$
43.6

 
$
43.7

 
$
42.5

 
$
40.7

 
$
40.9

 
$
42.5

 
$
42.6

 
Net investment income from equity securities
2.8

 
3.7

 
5.2

 
2.5

 
5.5

 
5.5

 
6.9

 
Net investment income
46.4

 
47.4

 
47.7

 
43.2

 
46.4

 
48.0

 
49.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized investment gains/(losses) excluding the interest rate swaps
17.6

 
42.1

 
46.5

 
(58.1
)
 
21.5

 
36.8

 
45.0

 
Net realized investment (losses) from the interest rate swaps
—

 
—

 
—

 
—

 
—

 
(0.3
)
 
(2.8
)
 
Other-than-temporary impairment charges
(0.1
)
 
(0.1
)
 
(0.3
)
 
—

 
—

 
—

 
—

 
Net realized and unrealized investment gains/(losses)
17.5

 
42.0

 
46.2

 
(58.1
)
 
21.5

 
36.5

 
42.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized gains/(losses) on available for sale investments (gross of tax) 
0.3

 
12.9

 
2.0

 
(143.1
)
 
(23.2
)
 
42.2

 
85.0

 
Total return/(loss) on investments (1)
$
64.2

 
$
102.3

 
$
95.9

 
$
(158.0
)
 
$
44.7

 
$
126.7

 
$
176.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Characteristics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income portfolio book yield (excluding the impact of the interest rate swaps) (1)
2.54
%
 
2.53
%
 
2.53
%
 
2.49
%
 
2.46
%
 
2.50
%
 
2.56
%
 
Fixed income portfolio duration (excluding the impact of the interest rate swaps) (1)
3.9 years
 
3.9 years
 
3.9 years
 
3.9 years
 
3.6 years
 
3.6 years
 
3.6 years
 
 (1) On May 9, 2016, the Company terminated all remaining outstanding interest rate swaps under its International Swap Dealers Association agreement.
 


20


q3_2017smalllogoa01.jpg
ASPEN INSURANCE HOLDINGS LIMITED
Book Value Per Ordinary Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in US$ millions except for number of shares and per share amounts)
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
September 30, 2016
 
June 30, 2016
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets
 
$
3,162.9

 
$
3,620.9

 
$
3,594.4

 
$
3,648.3

 
$
3,904.1

 
$
3,616.8

 
$
3,557.1

Less: Preference shares
 
(511.9
)
 
(666.3
)
 
(666.3
)
 
(797.1
)
 
(797.1
)
 
(555.8
)
 
(555.8
)
Less: Non-controlling interest
 
 
(2.2
)
 
(1.6
)
 
(1.5
)
 
(1.4
)
 
(1.3
)
 
(1.5
)
 
(1.1
)
Total
 
 
 
$
2,648.8

 
$
2,953.0

 
$
2,926.6

 
$
2,849.8

 
$
3,105.7

 
$
3,059.5

 
$
3,000.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares outstanding (in millions)
 
59.407

 
59.844

 
59.988

 
59.774

 
60.211

 
60.329

 
60.675

Ordinary shares and dilutive potential ordinary shares (in millions)
 
60.200

 
60.712

 
61.107

 
61.001

 
61.516

 
61.767

 
62.213

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per ordinary share
 
$
44.59

 
$
49.34

 
$
48.79

 
$
47.68

 
$
51.58

 
$
50.71

 
$
49.45

Diluted book value per ordinary share
 
$
44.00

 
$
48.64

 
$
47.89

 
$
46.72

 
$
50.49

 
$
49.53

 
$
48.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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_2017smalllogoa01.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
 
Nine Months Ended
(in US$ millions except where stated)
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
 
 
 
 
 
 
 
 
 
Net (loss)/income as reported
 
$
(253.8
)
 
$
95.6

 
$
(81.5
)
 
$
274.9

Preference share redemption costs
 
(5.6
)
 
—

 
(8.0
)
 
—

Net change attributable to non-controlling interest
 
(0.6
)
 
0.2

 
(0.8
)
 
—

Preference share dividends
 
(7.7
)
 
(9.5
)
 
(28.7
)
 
(28.4
)
Net (loss)/income available to ordinary shareholders
 
(267.7
)
 
86.3

 
(119.0
)
 
246.5

Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange (gains)/losses
 
(10.6
)
 
(11.1
)
 
(2.5
)
 
10.7

 
Net realized (gains) on investments
 
(16.6
)
 
(21.0
)
 
(101.8
)
 
(98.1
)
 
Preference share redemption costs
 
5.6

 
—

 
8.0

 
—

 
Amortization and non-recurring expenses
 
4.4

 
5.8

 
8.2

 
5.8

Operating (loss)/income after tax available to ordinary shareholders
 
(284.9
)
 
60.0

 
(207.1
)
 
164.9

Tax (credit)/expense on operating income
 
(11.6
)
 
4.6

 
(9.4
)
 
10.5

Operating (loss)/income before tax available to ordinary shareholders
 
$
(296.5
)
 
$
64.6

 
$
(216.5
)
 
$
175.4

 
 
 
 
 
 
 
 
 
Basic earnings per ordinary share
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for preference share dividends and non-controlling interest
 
$
(4.48
)
 
1.43

 
$
(1.99
)
 
$
4.07

Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange (gains)/losses
 
(0.18
)
 
(0.19
)
 
(0.04
)
 
0.17

 
Net realized (gains) on investments
 
(0.28
)
 
(0.35
)
 
(1.70
)
 
(1.62
)
 
Preference share redemption costs
 
0.09

 
—

 
0.13

 
—

 
Amortization and non-recurring expenses
 
0.07

 
0.10

 
0.14

 
0.10

Operating (loss)/income adjusted for preference shares dividends and non-controlling interest
 
$
(4.78
)
 
0.99

 
$
(3.46
)
 
$
2.72

 
 
 
 
 
 
 
 
 
Diluted earnings per ordinary share
 
 
 
 
 
 
 
 
Net (loss)/income adjusted for preference share dividends and non-controlling interest
 
$
(4.48
)
 
1.40

 
$
(1.99
)
 
$
3.97

Add (deduct) after tax income:
 
 
 
 
 
 
 
 
 
Net foreign exchange (gains)/losses
 
(0.18
)
 
(0.18
)
 
(0.04
)
 
0.17

 
Net realized (gains) on investments
 
(0.28
)
 
(0.34
)
 
(1.70
)
 
(1.58
)
 
Preference share redemption costs
 
0.09

 
—

 
0.13

 
—

 
Amortization and non-recurring expenses
 
0.07

 
0.09

 
0.14

 
0.09

Operating (loss)/income adjusted for preference shares dividends and non-controlling interest
 
$
(4.78
)
 
0.97

 
$
(3.46
)
 
$
2.65

 
 
 
The basic and diluted number of ordinary shares for the three and nine months ended September 30, 2017 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

22

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