Aspen profit plunges in second quarterPosted On: Jul. 28, 2015 12:00 AM CST
Aspen Insurance Holdings Ltd. on Tuesday posted net income of $49.0 million for the second quarter of 2015, a 62.5% drop compared with the second quarter of 2014.
Chris O'Kane, CEO of Aspen, said in a conference call with analysts that results had been affected by losses caused by U.S. weather, increased loss frequency in energy business and a rail loss, among other things.
Hamilton, Bermuda-based Aspen's combined ratio for the second quarter of 2015 was 93.6% compared with 90.1% for the second quarter of 2014.
Aspen's gross written premiums for the second quarter of 2015 were $722.8 million, down 7.3% compared with the second quarter of 2014.
Mr. O'Kane said the company had chosen not to renew some business, notably in physical damage energy business in the Gulf of Mexico, because of falling rates.
The company's reinsurance gross written premiums totaled $260.7 million for the second quarter of 2015, down 12.6% from the $298.4 million posted for the second quarter of 2014.
Mr. O'Kane said this was caused, in part, by the company's decision to redeploy capacity from lines such as property catastrophe, where rating pressure is intense, into other areas, such as specialty business.
Reinsurance gross written premium for the second half of the year will “meaningfully exceed” that posted for the comparable period last year, he added.