Aspen third quarter net profit rises

Aspen, the Bermudian (re)insurer, said that third quarter net profit was $144.7m, compared to a net loss after tax of $126.1m for the third quarter last year.

Aspen, the Bermudian (re)insurer, said that third quarter net profit was $144.7m. This compares to a net loss after tax of $126.1m for the third quarter last year.

Net earned premiums for the quarter rose to $470.9m, up from $434.2m this time last year.

The group also reported investment income of $58.9m, up strongly from the $19.2m it reported this time last year.

The combined ratio for the quarter dropped to 80.3% from 123.3% this time last year.

Predicting the rest of 2009, Aspen said: "The company anticipates total gross written premium of $2bn +/- 5%, premium ceded of 10% to 12% of gross earned premium, a combined ratio in the range of 84% to 88%, a tax rate of 13% to 16% and a cat-load of $40m for the last quarter of 2009, assuming normal loss experience."

Chris O'Kane, Aspen's CEO said: “I am delighted to report record earnings for the quarter of $145m which reflect both a benign period for cat losses and the welcome improvement in investment markets. Our combined ratio for the quarter was 80.3% reflecting particularly strong performance from our property reinsurance segment."

He added: "Such good results, however, could lead to even greater challenges for 2010. Responsible underwriting remains the watchword and we continue to manage our business with consideration of both risk and opportunity in equal measure.”