Aspen Insurance Holdings Ltd. (AHL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Aspen Insurance Holdings is a Bermudian holding company that provides property and casualty reinsurance in the global market property and liability insurance principally in the United Kingdom and surplus lines insurance in the United States. Aspen's operations are conducted through its wholly-owned subsidiaries located in London Bermuda and the United States: Aspen Insurance UK Limited Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen Insurance Holdings Ltd. has a market cap of $1.88 billion; its shares were traded at around $23.11 with a P/E ratio of 13.1 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.6%.
Overall, reserve releases in the quarter decreased by $29.7 million from the comparative quarter in 2008 mainly as a result of a reduction in reserve releases from the casualty reinsurance and the international insurance segments. Casualty reinsurance reserve releases decreased by $11.2 million to $3.1 million mainly as a result of loss experience in the international casualty reinsurance line of business. The international insurance segment has seen net reserve strengthening of $2.0 million compared to reserve releases of $6.9 million in the first quarter of 2008, with the first quarter of 2009 being impacted by $9.8 million of reserve strengthening in respect of our lines exposed to the global financial crisis. Further information relating to the movement of prior year reserves can be found below under Reserves for Loss and Loss Adjustment Expenses.
Net investment income. In the first quarter of 2009, we generated net investment income of $59.2 million (2008 $39.1 million). The increase in net investment income was due primarily to gains of $4.0 million from our investment in funds of hedge funds compared with losses of $16.9 million in the comparative period in 2008. Investment income from fixed maturities decreased by $0.8 million to $55.2 million compared to March 31, 2008 as a result of slightly lower yields.
Change in fair value of derivatives. In the three months ended March 31, 2009, we recorded a reduction of $2.0 million (2008 $2.2 million) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.3 million). Further information on these contracts can be found in Note 7 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended March 31, 2009 included $2.3 million of foreign currency exchange gains (2008 $4.3 million gain) and $12.2 million of realized and unrealized investment losses (2008 $1.0 million gain). The realized investment losses in 2009 compared with a gain in 2008 is the result of taking a charge in 2009 of $15.2 million for investments we believe to be other-than-temporarily impaired.
Capital Management. On March 31, 2009, we purchased 2,672,500 of our 7.401% $25 liquidation value preference shares (NYSE: AHL-PA) at a price of $12.50 per share. Under FASB-EITF Issue D-42, The Effect on the Calculation of Earnings Per Share for Redemption or Induced Conversion of Preferred Stock the purchase resulted in a gain attributable to ordinary shareholders of $31.5 million for the first quarter of 2009, which is not recognized in the income statement but is included in the calculation of earnings per share for the quarter.
Read the The complete ReportAHL is in the portfolios of Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management, Third Avenue Management, NWQ Managers of NWQ Investment Management Co.
Aspen Insurance Holdings is a Bermudian holding company that provides property and casualty reinsurance in the global market property and liability insurance principally in the United Kingdom and surplus lines insurance in the United States. Aspen's operations are conducted through its wholly-owned subsidiaries located in London Bermuda and the United States: Aspen Insurance UK Limited Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen Insurance Holdings Ltd. has a market cap of $1.88 billion; its shares were traded at around $23.11 with a P/E ratio of 13.1 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.6%.
Highlight of Business Operations:
Gross written premiums have increased from $596.2 million in the first quarter of 2008 to $636.8 million at the end of the first quarter of 2009 due mainly to favorable market conditions particularly in property reinsurance and favorable premium adjustments related to prior years. Premium rate increases within our property reinsurance segment as a result of 2008 Hurricanes Ike and Gustav and Credit and Surety premium of $7.3 million contributed to the growth in premiums for the quarter. Favorable prior year premium adjustments were $35.0 million compared with negative premium adjustments of $5.5 million in the comparative quarter of 2008. The favorable prior year premium adjustment in the first quarter of 2009 related mainly to cedant advised premium increases on reinsurance contracts written in 2008 in our property reinsurance segment.Overall, reserve releases in the quarter decreased by $29.7 million from the comparative quarter in 2008 mainly as a result of a reduction in reserve releases from the casualty reinsurance and the international insurance segments. Casualty reinsurance reserve releases decreased by $11.2 million to $3.1 million mainly as a result of loss experience in the international casualty reinsurance line of business. The international insurance segment has seen net reserve strengthening of $2.0 million compared to reserve releases of $6.9 million in the first quarter of 2008, with the first quarter of 2009 being impacted by $9.8 million of reserve strengthening in respect of our lines exposed to the global financial crisis. Further information relating to the movement of prior year reserves can be found below under Reserves for Loss and Loss Adjustment Expenses.
Net investment income. In the first quarter of 2009, we generated net investment income of $59.2 million (2008 $39.1 million). The increase in net investment income was due primarily to gains of $4.0 million from our investment in funds of hedge funds compared with losses of $16.9 million in the comparative period in 2008. Investment income from fixed maturities decreased by $0.8 million to $55.2 million compared to March 31, 2008 as a result of slightly lower yields.
Change in fair value of derivatives. In the three months ended March 31, 2009, we recorded a reduction of $2.0 million (2008 $2.2 million) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.3 million). Further information on these contracts can be found in Note 7 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended March 31, 2009 included $2.3 million of foreign currency exchange gains (2008 $4.3 million gain) and $12.2 million of realized and unrealized investment losses (2008 $1.0 million gain). The realized investment losses in 2009 compared with a gain in 2008 is the result of taking a charge in 2009 of $15.2 million for investments we believe to be other-than-temporarily impaired.
Capital Management. On March 31, 2009, we purchased 2,672,500 of our 7.401% $25 liquidation value preference shares (NYSE: AHL-PA) at a price of $12.50 per share. Under FASB-EITF Issue D-42, The Effect on the Calculation of Earnings Per Share for Redemption or Induced Conversion of Preferred Stock the purchase resulted in a gain attributable to ordinary shareholders of $31.5 million for the first quarter of 2009, which is not recognized in the income statement but is included in the calculation of earnings per share for the quarter.
Read the The complete ReportAHL is in the portfolios of Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management, Third Avenue Management, NWQ Managers of NWQ Investment Management Co.
