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Aspen third quarter income drops on underwriting, takeover bid expenses

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Aspen Insurance Holdings Ltd.’s third quarter net income dropped 65.2% to $37.4 million on higher underwriting expenses and non-recurring corporate expenses reflecting the costs of fending off a hostile takeover bid, the Hamilton, Bermuda-based company said in its earnings statement Wednesday.

Net premiums written rose 6.5% to $577.3 million for the three months ended Sept. 30 while net investment income grew 6.7% to $48.0 million.

Third quarter underwriting expenses, however, jumped 18.1% to $342.7 million, and the company also took $20.2 million in non-recurring corporate expenses related to its defense of an unsolicited bid from Endurance Specialty Holdings Ltd.

The company's third quarter combined ratio worsened slightly to 94.6% from 91.8% during the year-ago period. Absent the defense expenses, the company said its combined ratio was 91.3% for the third quarter.

“During the third quarter we continued to execute our strategy to increase ROE and shareholder value with good operating results, opportunistic share repurchases and further rebalancing of our investment portfolio,” Aspen CEO Chris O'Kane said in the earnings statement.

For the nine months ended Sept. 30, net income grew 20.6% to $288.6 million.

Net written premiums rose 12.0% to $1.96 billion while net investment income increased 3.2% to $143.6 million.

Nine-month combined ratio improved to 90.9% from 93.1% during the year-ago period.

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