Aspen Insurance Holdings Ltd. (AHL, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $2.17 billion; its shares were traded at around $26.14 with a P/E ratio of 6.8 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.3%.
Reinsurance. Total reinsurance ceded for the quarter of $28.2 million has decreased by $9.3 million from the third quarter of 2008. Ceded written premiums in the third quarter of 2008 included $7.4 million of reinstatement premiums in relation to Hurricanes Ike and Gustav.
Reserve releases in the quarter increased by $28.6 million from the third quarter in 2008 due mainly to an increase in releases in the property reinsurance and the international insurance segments. Property reinsurance reserve releases increased by $15.8 million to $19.1 million due to better than expected development on outstanding claims particularly in our risk excess and property pro-rata lines of business. Our international insurance segment has also seen net reserve releases of $16.4 million as a result of favorable loss experience across most lines of business. These have been partially offset by reductions in reserve releases of $0.2 million in the casualty reinsurance segment and reserve strengthening in the U.S. insurance segment. The U.S. insurance segment strengthened prior year reserves by $0.8 million due to adverse experience from the casualty insurance business line compared to reserve releases of $0.7 million in the third quarter of 2008. 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 third quarter of 2009, we generated net investment income of $58.9 million (2008 $19.3 million). The increase in net investment income was due primarily to the comparative quarter in 2008 experiencing a loss of $42.2 million from our investment in funds of hedge funds. Investment income from fixed maturities decreased by $2.6 million compared to September 30, 2008 as a result of lower bond yields.
Change in fair value of derivatives. In the three months ended September 30, 2009, we recorded a reduction of $2.0 million (2008 $2.1 million reduction in the credit insurance contract less an adjustment of $1.4 million in changes in foreign exchange) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.2 million). Further information on these contracts can be found in Note 8 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended September 30, 2009 included $7.9 million of foreign currency exchange gains (2008 $2.7 million loss) and $14.6 million of realized and unrealized investment gains (2008 $58.1 million loss). Realized and unrealized gains included $8.7 million (2008 ) of unrealized gains and $1.3 million (2008 ) of net realized gains from our fixed income maturities trading portfolio for the three months ended September 30, 2009. The realized investment gains
Read the The complete ReportAHL is in the portfolios of David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, Richard Snow of Snow Capital Management, L.P., 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 $2.17 billion; its shares were traded at around $26.14 with a P/E ratio of 6.8 and P/S ratio of 1.1. The dividend yield of Aspen Insurance Holdings Ltd. stocks is 2.3%.
Highlight of Business Operations:
Gross written premiums for the quarter have increased to $490.3 million from $441.3 million in the third quarter of 2008 due mainly to increased contributions from our property reinsurance and casualty reinsurance segments. The casualty reinsurance segment has benefited principally from $13.0 million of premium adjustments, particularly in our U.S. treaty business. The property reinsurance segment has benefited from a $27.3 million contribution from the newly established credit, surety and political risk business line compensating for reductions in premiums written in our treaty risk excess business line. Our U.S. insurance segment has also experienced growth in the quarter particularly in the property line due mainly to new business subsequent to the reshaping of the portfolio in 2008 and increased prices for catastrophe-exposed business. Gross written premiums in the international insurance segment have increased marginally by 1.7% to $183.9 million when compared to the third quarter of 2008 due to a $4.7 million contribution from the specie and management and technology liability business lines which commenced underwriting after the third quarter of 2008, compensating for a small net reduction in premiums written in the other business lines.Reinsurance. Total reinsurance ceded for the quarter of $28.2 million has decreased by $9.3 million from the third quarter of 2008. Ceded written premiums in the third quarter of 2008 included $7.4 million of reinstatement premiums in relation to Hurricanes Ike and Gustav.
Reserve releases in the quarter increased by $28.6 million from the third quarter in 2008 due mainly to an increase in releases in the property reinsurance and the international insurance segments. Property reinsurance reserve releases increased by $15.8 million to $19.1 million due to better than expected development on outstanding claims particularly in our risk excess and property pro-rata lines of business. Our international insurance segment has also seen net reserve releases of $16.4 million as a result of favorable loss experience across most lines of business. These have been partially offset by reductions in reserve releases of $0.2 million in the casualty reinsurance segment and reserve strengthening in the U.S. insurance segment. The U.S. insurance segment strengthened prior year reserves by $0.8 million due to adverse experience from the casualty insurance business line compared to reserve releases of $0.7 million in the third quarter of 2008. 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 third quarter of 2009, we generated net investment income of $58.9 million (2008 $19.3 million). The increase in net investment income was due primarily to the comparative quarter in 2008 experiencing a loss of $42.2 million from our investment in funds of hedge funds. Investment income from fixed maturities decreased by $2.6 million compared to September 30, 2008 as a result of lower bond yields.
Change in fair value of derivatives. In the three months ended September 30, 2009, we recorded a reduction of $2.0 million (2008 $2.1 million reduction in the credit insurance contract less an adjustment of $1.4 million in changes in foreign exchange) in the estimated fair value of our credit insurance contract including an interest expense charge of $0.2 million (2008 $0.2 million). Further information on these contracts can be found in Note 8 to the financial statements.
Other revenues and expenses. Other revenues and expenses in the three months ended September 30, 2009 included $7.9 million of foreign currency exchange gains (2008 $2.7 million loss) and $14.6 million of realized and unrealized investment gains (2008 $58.1 million loss). Realized and unrealized gains included $8.7 million (2008 ) of unrealized gains and $1.3 million (2008 ) of net realized gains from our fixed income maturities trading portfolio for the three months ended September 30, 2009. The realized investment gains
Read the The complete ReportAHL is in the portfolios of David Einhorn of Greenlight Capital Inc, David Dreman of Dreman Value Management, Richard Snow of Snow Capital Management, L.P., Third Avenue Management, NWQ Managers of NWQ Investment Management Co.
