UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2020
Commission File Number: 001-31909
ASPEN INSURANCE HOLDINGS LIMITED
(Translation of registrant’s name into English)
141 Front Street
Hamilton HM 19
Bermuda
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No x
In connection with the offering of debt securities (the “securities”) by Highlands Holdings Bond Issuer, Ltd., a Bermuda exempted company (the “Bermuda Issuer”), and Highlands Holdings Bond Co-Issuer, Inc., a Delaware corporation and direct, wholly owned subsidiary of the Bermuda Issuer, certain financial and other information about Aspen Insurance Holdings Limited (“Aspen”) was made available to potential investors in the securities.
The information about Aspen provided to potential investors in the securities is furnished as Exhibit 99.1 to this Form 6-K, is incorporated by reference as part of this Form 6-K.
EXHIBIT INDEX
Exhibit
99.1 | Information about Aspen furnished to potential investors. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ASPEN INSURANCE HOLDINGS LIMITED | |||
Dated: October 20, 2020 | By: | /s/ Kevin Chidwick | |
Name: | Kevin Chidwick | ||
Title: | Chief Financial Officer |
Exhibit 99.1
| | |
Year ended December 31, 2019
|
| |||||||||
Insurance
|
| |
Gross Written Premiums
|
| |
% of Total
|
| ||||||
| | |
($ in millions, except for percentages)
|
| |||||||||
Australia/Asia
|
| | | | 76.4 | | | | | | 3.9 | | |
Caribbean
|
| | | | 4.1 | | | | | | 0.2 | | |
Europe (excluding U.K.)
|
| | | | 13.6 | | | | | | 0.7 | | |
United Kingdom
|
| | | | 280.6 | | | | | | 14.3 | | |
United States & Canada(1)
|
| | | | 1,233.6 | | | | | | 63.1 | | |
Worldwide excluding United States(2)
|
| | | | 42.0 | | | | | | 2.1 | | |
Worldwide including United States(3)
|
| | | | 243.1 | | | | | | 12.4 | | |
Others
|
| | | | 63.5 | | | | | | 3.3 | | |
Total
|
| | | | 1,956.9 | | | | | | 100.0 | | |
|
| | |
($ in millions, unless
otherwise indicated) |
| |||
Gross written premiums
|
| | | | 996.3 | | |
Net written premiums
|
| | | | 594.0 | | |
Net earned premiums
|
| | | | 627.6 | | |
Loss ratio
|
| | | | 69.0% | | |
Expense ratio
|
| | | | 34.9% | | |
Combined Ratio
|
| | | | 103.9% | | |
Normalized combined ratio excluding bonuses
|
| | | | 95.0% | | |
| | |
Year ended December 31, 2019
|
| |||||||||
Reinsurance
|
| |
Gross Written Premiums
|
| |
% of Total
|
| ||||||
| | |
($ in millions, except for percentages)
|
| |||||||||
Australia/Asia
|
| | | | 139.5 | | | | | | 9.4 | | |
Caribbean
|
| | | | 5.2 | | | | | | 0.4 | | |
Europe (excluding U.K.)
|
| | | | 69.2 | | | | | | 4.7 | | |
United Kingdom
|
| | | | 15.1 | | | | | | 1.0 | | |
United States & Canada(1)
|
| | | | 770.3 | | | | | | 51.8 | | |
Worldwide excluding United States(2)
|
| | | | 21.0 | | | | | | 1.4 | | |
Worldwide including United States(3)
|
| | | | 371.8 | | | | | | 25.0 | | |
Others
|
| | | | 93.4 | | | | | | 6.3 | | |
Total
|
| | | | 1,485.5 | | | | | | 100.0 | | |
|
| | |
($ in millions, unless
otherwise indicated) |
| |||
Gross written premiums
|
| | | | 1,122.3 | | |
Net written premiums
|
| | | | 842.8 | | |
Net earned premiums
|
| | | | 564.1 | | |
Loss Ratio
|
| | | | 79.7% | | |
Expense Ratio
|
| | | | 29.8% | | |
Combined Ratio
|
| | | | 109.5% | | |
Normalized Combined Ratio excluding bonuses
|
| | | | 94.1% | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||||||||||||||||||||
Reinsurance
|
| |
Gross
Written Premiums |
| |
% of Total
|
| |
Gross
Written Premiums |
| |
% of Total
|
| |
Gross
Written Premiums |
| |
% of Total
|
| ||||||||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||
Aon Corporation(1)
|
| | | $ | 311.9 | | | | | | 21.0% | | | | | $ | 363.7 | | | | | | 24.3% | | | | | $ | 374.5 | | | | | | 24.2% | | |
Marsh & McLennan Companies, Inc.
|
| | | | 301.5 | | | | | | 20.3 | | | | | | 312.1 | | | | | | 20.9 | | | | | | 321.8 | | | | | | 20.8 | | |
Willis Group Holdings, Ltd.
|
| | | | 278.7 | | | | | | 18.8 | | | | | | 282.2 | | | | | | 18.9 | | | | | | 315.8 | | | | | | 20.4 | | |
Others(2) | | | | | 593.4 | | | | | | 39.9 | | | | | | 537.7 | | | | | | 35.9 | | | | | | 536.4 | | | | | | 34.6 | | |
Total
|
| | | $ | 1,485.5 | | | | | | 100.0% | | | | | $ | 1,495.7 | | | | | | 100.0% | | | | | $ | 1,548.5 | | | | | | 100.0% | | |
|
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||||||||||||||||||||
Insurance
|
| |
Gross
Written Premiums |
| |
% of Total
|
| |
Gross
Written Premiums |
| |
% of Total
|
| |
Gross
Written Premiums |
| |
% of Total
|
| ||||||||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||
Marsh & McLennan Companies, Inc.
|
| | | $ | 165.6 | | | | | | 8.5% | | | | | $ | 230.9 | | | | | | 11.9% | | | | | $ | 214.3 | | | | | | 11.8% | | |
Aon Corporation(1)
|
| | | | 147.7 | | | | | | 7.5 | | | | | | 180.8 | | | | | | 9.3 | | | | | | 176.5 | | | | | | 9.7 | | |
Brown & Brown Inc
|
| | | | 124.9 | | | | | | 6.4 | | | | | | 121.9 | | | | | | 6.2 | | | | | | 57.3 | | | | | | 3.2 | | |
Ryan Specialty
|
| | | | 111.6 | | | | | | 5.7 | | | | | | 101.1 | | | | | | 5.2 | | | | | | 94.7 | | | | | | 5.2 | | |
CRC Swett
|
| | | | 76.8 | | | | | | 3.9 | | | | | | 78.8 | | | | | | 4.0 | | | | | | 87.3 | | | | | | 4.8 | | |
Willis Group Holdings, Ltd.
|
| | | | 76.1 | | | | | | 3.9 | | | | | | 145.1 | | | | | | 7.4 | | | | | | 123.4 | | | | | | 6.8 | | |
AmWINS Group Inc.
|
| | | | 71.4 | | | | | | 3.6 | | | | | | 86.4 | | | | | | 4.4 | | | | | | 86.8 | | | | | | 4.8 | | |
Coastal Insurance Underwriters, Inc.
|
| | | | 61.0 | | | | | | 3.1 | | | | | | 56.1 | | | | | | 2.9 | | | | | | 44.3 | | | | | | 2.4 | | |
Arthur J Gallagher (UK)
Limited |
| | | | 52.5 | | | | | | 2.7 | | | | | | 70.8 | | | | | | 3.6 | | | | | | 69.7 | | | | | | 3.8 | | |
Lockton Inc
|
| | | | 51.4 | | | | | | 2.6 | | | | | | 56.0 | | | | | | 2.9 | | | | | | 55.9 | | | | | | 3.1 | | |
Jardine Lloyd Thompson Group Ltd.(2)
|
| | | | 35.5 | | | | | | 1.8 | | | | | | 58.5 | | | | | | 3.0 | | | | | | 56.6 | | | | | | 3.1 | | |
Others
|
| | | | 982.4 | | | | | | 50.3 | | | | | $ | 764.8 | | | | | | 39.2 | | | | | $ | 745.6 | | | | | | 41.3 | | |
Total
|
| | | $ | 1,956.9 | | | | | | 100.0% | | | | | $ | 1,951.2 | | | | | | 100.0% | | | | | $ | 1,812.4 | | | | | | 100.0% | | |
|
|
Sources of Funds
|
| |
Uses of Funds
|
| ||||||||||||
|
(dollars in millions)
|
| | ||||||||||||||
|
Notes offered hereby(1)
|
| | | $ | 500.0 | | | |
Distribution to Sponsor HoldCo
equityholders(2) |
| | | $ | 237.5 | | |
| | | | | | | | | |
Equity contribution to Highlands Holdings and Aspen Group(2)
|
| | | | 237.5 | | |
| | | | | | | | | |
Estimated costs, fees and expenses and estimated first coupon cash payment(3)
|
| | | | 25.0 | | |
|
Total sources of funds
|
| | | | 500.0 | | | |
Total uses of funds
|
| | | | 500.0 | | |
|
| | |
Year ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions, except per share amounts and percentages)
|
| |||||||||||||||||||||||||||
Summary Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross written premiums
|
| | | $ | 3,360.9 | | | | | $ | 3,446.9 | | | | | $ | 3,442.4 | | | | | $ | 1,854.4 | | | | | $ | 2,118.6 | | |
Net written premiums
|
| | | | 2,212.5 | | | | | | 2,082.0 | | | | | | 2,427.9 | | | | | | 1,206.9 | | | | | | 1,436.8 | | |
Net earned premiums
|
| | | | 2,306.6 | | | | | | 2,214.7 | | | | | | 2,293.3 | | | | | | 1,040.2 | | | | | | 1,191.7 | | |
Loss and loss adjustment expenses
|
| | | | (1,994.7) | | | | | | (1,573.0) | | | | | | (1,679.7) | | | | | | (631.9) | | | | | | (883.0) | | |
Amortization of deferred policy acquisition costs, general, administrative and corporate expenses(1)
|
| | | | (902.7) | | | | | | (863.3) | | | | | | (934.3) | | | | | | (454.0) | | | | | | (429.2) | | |
Net investment income
|
| | | | 189.0 | | | | | | 198.2 | | | | | | 197.3 | | | | | | 99.2 | | | | | | 84.9 | | |
(Loss) income from operations before income tax
|
| | | | (281.8) | | | | | | (156.0) | | | | | | (218.8) | | | | | | (44.1) | | | | | | (164.6) | | |
Net (loss) income after income tax
|
| | | | (266.4) | | | | | | (145.8) | | | | | | (241.7) | | | | | | (37.3) | | | | | | (168.7) | | |
Basic weighted average shares outstanding (millions)
|
| | | | 59.8 | | | | | | 59.7 | | | | | | 60.9 | | | | | | 60.2 | | | | | | 60.4 | | |
Summary Balance Sheet Data (period end)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total cash and investments(2)(3)
|
| | | $ | 8,687.8 | | | | | $ | 7,823.1 | | | | | $ | 7,801.9 | | | | | $ | 7,779.4 | | | | | $ | 7,786.8 | | |
Premiums receivable(4)
|
| | | | 1,596.3 | | | | | | 1,551.1 | | | | | | 1,403.4 | | | | | | 1,608.8 | | | | | | 1,863.1 | | |
Total assets
|
| | | | 12,906.4 | | | | | | 12,532.9 | | | | | | 12,580.5 | | | | | | 12,965.2 | | | | | | 14,148.0 | | |
Loss and loss adjustment expense reserves
|
| | | | 6,749.5 | | | | | | 7,074.2 | | | | | | 6,951.8 | | | | | | 6,782.7 | | | | | | 7,055.2 | | |
Reserves for unearned premiums
|
| | | | 1,820.8 | | | | | | 1,709.1 | | | | | | 1,737.7 | | | | | | 1,947.3 | | | | | | 2,150.4 | | |
Loan notes issued by variable interest entities, at fair value(5)
|
| | | | 86.6 | | | | | | 4.6 | | | | | | — | | | | | | — | | | | | | — | | |
Long-term debt
|
| | | | 549.5 | | | | | | 424.7 | | | | | | 299.8 | | | | | | 424.8 | | | | | | 299.9 | | |
Total shareholders’ equity
|
| | | | 2,912.9 | | | | | | 2,640.4 | | | | | | 2,725.5 | | | | | | 2,713.5 | | | | | | 2,678.8 | | |
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions, except percentages)
|
| |||||||||||||||||||||||||||
Income statement data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earned premiums
|
| | | | 2,306.6 | | | | | | 2,214.7 | | | | | | 2,293.3 | | | | | | 1,040.2 | | | | | | 1,191.7 | | |
Normalized net earned premiums(1)
|
| | | | 1,951.5 | | | | | | 1,833.6 | | | | | | 2,022.6 | | | | | | 890.3 | | | | | | 1,078.1 | | |
Net profit/(loss) after tax
|
| | | | (266.4) | | | | | | (145.8) | | | | | | (241.7) | | | | | | (37.3) | | | | | | (168.7) | | |
Underwriting profit/(loss)(2)
|
| | | | (499.8) | | | | | | (87.6) | | | | | | (140.6) | | | | | | 42.1 | | | | | | (78.7) | | |
Normalized underwriting profit/(loss)(3)
|
| | | | (204.6) | | | | | | (92.5) | | | | | | (57.8) | | | | | | 8.1 | | | | | | 55.5 | | |
Adjusted operating income H1 2020(4)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 82.9 | | |
Pro forma adjusted operating income H1 2020(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 139.3 | | |
Annualized pro forma adjusted operating income 2020(6)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 237.7 | | |
Other Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 86.5% | | | | | | 71.0% | | | | | | 73.2% | | | | | | 60.7% | | | | | | 74.1% | | |
Policy acquisition expense ratio
|
| | | | 17.4% | | | | | | 16.8% | | | | | | 18.0% | | | | | | 18.3% | | | | | | 19.4% | | |
General and administrative expense ratio
|
| | | | 21.8% | | | | | | 22.2% | | | | | | 22.7% | | | | | | 25.4% | | | | | | 16.6% | | |
Gross operating expense ratio
|
| | | | 12.4% | | | | | | 11.0% | | | | | | 10.8% | | | | | | 9.9% | | | | | | 8.2% | | |
Expense ratio
|
| | | | 39.2% | | | | | | 39.0% | | | | | | 40.7% | | | | | | 43.7% | | | | | | 36.0% | | |
Accident year ex-cat net loss ratio(7)
|
| | | | 66.5% | | | | | | 63.9% | | | | | | 64.3% | | | | | | 58.7% | | | | | | 54.7% | | |
Accident year ex-cat gross loss ratio(8)
|
| | | | 66.4% | | | | | | 60.4% | | | | | | 60.1% | | | | | | 54.5% | | | | | | 51.8% | | |
Retention ratio
|
| | | | 65.8% | | | | | | 60.4% | | | | | | 70.5% | | | | | | 65.1% | | | | | | 67.8% | | |
Cession ratio
|
| | | | 34.2% | | | | | | 39.6% | | | | | | 29.5% | | | | | | 34.9% | | | | | | 32.2% | | |
Combined ratio
|
| | | | 125.7% | | | | | | 110.0% | | | | | | 113.9% | | | | | | 104.4% | | | | | | 110.1% | | |
Normalized combined ratio(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 96.2% | | |
Normalized combined ratio excluding bonuses(10)
|
| | | | 110.5% | | | | | | 105.0% | | | | | | 102.9% | | | | | | 99.1% | | | | | | 94.9% | | |
Annualized pro forma normalized combined ratio H1 2020(11)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 93.0% | | |
Annualized pro forma normalized combined ratio excluding bonuses H1 2020(12)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 90.5% | | |
Average equity(13)
|
| | | | 2,799.9 | | | | | | 2,281.6 | | | | | | 2,154.8 | | | | | | 2,188.6 | | | | | | 1,927.9 | | |
Normalized return on equity H1 2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8.6% | | |
Annualized pro forma normalized return on equity 2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12.3% | | |
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||
Net earned premiums
|
| | | | 2,306.6 | | | | | | 2,214.7 | | | | | | 2,293.3 | | | | | | 1,040.2 | | | | | | 1,191.7 | | |
Legacy Lines
|
| | | | (355.0) | | | | | | (381.2) | | | | | | (270.8) | | | | | | (149.9) | | | | | | (113.6) | | |
Normalized net earned premiums
|
| | | | 1,951.6 | | | | | | 1,833.5 | | | | | | 2,022.5 | | | | | | 890.3 | | | | | | 1,078.1 | | |
|
| | |
Year ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||
Net profit/(loss)
|
| | | | (266.4) | | | | | | (145.8) | | | | | | (241.7) | | | | | | (37.3) | | | | | | (168.7) | | |
Income tax benefit/(expense)
|
| | | | (15.4) | | | | | | (10.2) | | | | | | 22.9 | | | | | | (6.8) | | | | | | 4.1 | | |
(Loss) before tax
|
| | | | (281.8) | | | | | | (156.0) | | | | | | (218.8) | | | | | | (44.1) | | | | | | (164.6) | | |
Other expenses
|
| | | | 4.9 | | | | | | 2.7 | | | | | | 1.7 | | | | | | 1.4 | | | | | | 1.8 | | |
Other income
|
| | | | (8.9) | | | | | | (9.0) | | | | | | (4.9) | | | | | | (3.0) | | | | | | (1.9) | | |
Net realized and unrealized foreign exchange (losses)/gains
|
| | | | 23.9 | | | | | | 3.5 | | | | | | 11.8 | | | | | | 13.9 | | | | | | (14.2) | | |
Interest expense on long term debt
|
| | | | 29.5 | | | | | | 25.9 | | | | | | 20.2 | | | | | | 11.0 | | | | | | 21.7 | | |
Change in fair value of derivatives
|
| | | | (27.7) | | | | | | 31.8 | | | | | | 144.2 | | | | | | 133.6 | | | | | | 87.8 | | |
Change in fair value of loan notes issued by
variable interest entities |
| | | | (21.2) | | | | | | 4.4 | | | | | | 3.1 | | | | | | 3.0 | | | | | | — | | |
Realized loss on debt extinguishment
|
| | | | — | | | | | | 8.6 | | | | | | 5.5 | | | | | | — | | | | | | — | | |
Realized and unrealized investment losses
|
| | | | 28.4 | | | | | | 174.7 | | | | | | 10.9 | | | | | | 10.6 | | | | | | 70.6 | | |
Realized and unrealized investment
gains |
| | | | (148.9) | | | | | | (110.0) | | | | | | (97.1) | | | | | | (72.9) | | | | | | (36.8) | | |
Net investment income
|
| | | | (189.0) | | | | | | (198.2) | | | | | | (197.3) | | | | | | (99.2) | | | | | | (84.9) | | |
Non-operating expenses
|
| | | | 32.7 | | | | | | 77.2 | | | | | | 125.6 | | | | | | 61.9 | | | | | | 11.6 | | |
Corporate expenses
|
| | | | 58.3 | | | | | | 56.8 | | | | | | 54.5 | | | | | | 25.9 | | | | | | 30.2 | | |
Underwriting (loss)/profit
|
| | | | (499.8) | | | | | | (87.6) | | | | | | (140.6) | | | | | | 42.1 | | | | | | (78.7) | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||
Underwriting profit/(loss)
|
| | | | (499.8) | | | | | | (87.6) | | | | | | | | | | | | 42.1 | | | | | | (78.7) | | |
Corporate expenses
|
| | | | (58.3) | | | | | | (56.8) | | | | | | (54.5) | | | | | | (25.9) | | | | | | (30.2) | | |
Bonuses and LTIP expenses
|
| | | | 52.8 | | | | | | 33.4 | | | | | | 22.7 | | | | | | 18.9 | | | | | | 6.5 | | |
Non-recurring expenses relating to write-offs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7.0 | | |
Underwriting (income)/loss from Legacy Lines(a)
|
| | | | 20.6 | | | | | | 61.7 | | | | | | 140.8 | | | | | | 23.6 | | | | | | 22.7 | | |
Losses associated with the COVID-19 crisis less the economic activity adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 162.3 | | |
Adjustment for catastrophe losses
|
| | | | 397.0 | | | | | | 118.8 | | | | | | 3.8 | | | | | | (23.1) | | | | | | (24.0) | | |
Net favorable/unfavorable prior-year loss development
|
| | | | (116.8) | | | | | | (162.2) | | | | | | (30.0) | | | | | | (27.2) | | | | | | (10.1) | | |
Normalized underwriting profit/(loss)
|
| | | | (204.6) | | | | | | (92.5) | | | | | | (57.8) | | | | | | 8.1 | | | | | | 55.5 | | |
|
| | |
Six Months
Ended June 30, 2020 |
| |||
| | |
($ in millions)
|
| |||
Normalized underwriting profit/(loss)
|
| | | | 55.5 | | |
Adjusted bonus
|
| | | | (14.3) | | |
Net investment income
|
| | | | 84.9 | | |
Interest payments and distributions on Preference Shares
|
| | | | (29.3) | | |
Taxes and other income
|
| | | | (13.9) | | |
Adjusted operating income H1 2020
|
| | | | 82.9 | | |
|
| | |
Six Months
Ended June 30, 2020 |
| |||
| | |
($ in millions)
|
| |||
Adjusted operating income H1 2020
|
| | | | 82.9 | | |
Rate impact adjustment
|
| | | | 78.6 | | |
Claims inflation adjustment
|
| | | | (4.6) | | |
Cost savings adjustment
|
| | | | 16.6 | | |
Acquisition expenses adjustment
|
| | | | (15.2) | | |
Pro forma bonus
|
| | | | (15.0) | | |
Tax
|
| | | | (3.9) | | |
Pro forma adjusted operating income H1 2020
|
| | | | 139.3 | | |
|
| | |
Six Months
Ended June 30, 2020 |
| |||
| | |
($ in millions)
|
| |||
Pro forma adjusted operating income H1 2020
|
| | | | 139.3 | | |
Annualization of H1 2020 position
|
| | | | 139.3 | | |
H2 2020 catastrophe losses adjustment
|
| | | | (41.0) | | |
Annualized pro forma adjusted operating income 2020
|
| | | | 237.7 | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions unless otherwise indicated)
|
| |||||||||||||||||||||||||||
Losses and loss adjustment expenses and
ceded recoveries |
| | | | 1,944.7 | | | | | | 1,573.0 | | | | | | 1,679.7 | | | | | | 631.9 | | | | | | 883.0 | | |
Prior-year loss development
|
| | | | 105.4 | | | | | | 111.1 | | | | | | (59.5) | | | | | | 9.1 | | | | | | (0.3) | | |
Catastrophe losses
|
| | | | (576.4) | | | | | | (274.4) | | | | | | (148.9) | | | | | | (29.7) | | | | | | (231.3) | | |
Accident year ex-cat net loss
|
| | | | 1,523.6 | | | | | | 1,409.7 | | | | | | 1,471.3 | | | | | | 611.3 | | | | | | 651.4 | | |
Divide by: net earned premiums excluding
catastrophe-related reinstatement premiums |
| | | | 2,292.4 | | | | | | 2,203.0 | | | | | | 2,287.7 | | | | | | 1,040.2 | | | | | | 1,191.6 | | |
Accident year ex-cat net loss ratio
|
| | | | 66.5% | | | | | | 63.9% | | | | | | 64.3% | | | | | | 58.7% | | | | | | 54.7% | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions unless otherwise indicated)
|
| |||||||||||||||||||||||||||
Losses and loss adjustment expenses
|
| | | | 3,073.6 | | | | | | 2,654.5 | | | | | | 2,563.6 | | | | | | 1,061.1 | | | | | | 1,236.7 | | |
Prior-year loss development
|
| | | | 32.1 | | | | | | 58.4 | | | | | | (236.6) | | | | | | (126.8) | | | | | | (51.5) | | |
Catastrophe losses
|
| | | | (973.5) | | | | | | (578.5) | | | | | | (271.2) | | | | | | (46.8) | | | | | | (308.6) | | |
Accident year ex-cat gross loss
|
| | | | 2,132.2 | | | | | | 2,134.5 | | | | | | 2,055.9 | | | | | | 887.5 | | | | | | 876.7 | | |
Divide by: gross earned premiums
|
| | | | 3,209.2 | | | | | | 3,534.4 | | | | | | 3,422.5 | | | | | | 1,627.8 | | | | | | 1,693.3 | | |
Accident year ex-cat gross loss ratio
|
| | | | 66.4% | | | | | | 60.4% | | | | | | 60.1% | | | | | | 54.5% | | | | | | 51.8% | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions, except percentages)
|
| |||||||||||||||||||||||||||
Combined ratio
|
| | | | 125.7% | | | | | | 110.0% | | | | | | 113.9% | | | | | | 104.4% | | | | | | 110.1% | | |
Operating expenses
|
| | | | (1.5)% | | | | | | (3.5)% | | | | | | (5.4)% | | | | | | (6.0)% | | | | | | (1.0)% | | |
Expenses from Legacy Lines
|
| | | | 3.3% | | | | | | (2.0)% | | | | | | (5.8)% | | | | | | (2.9)% | | | | | | (1.1)% | | |
Non-recurring expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.6)% | | |
Bonus, LTIP expenses and Restricted Stock Units
|
| | | | (2.7)% | | | | | | (1.8)% | | | | | | (1.1)% | | | | | | (2.1)% | | | | | | (0.6)% | | |
Losses associated with the COVID-19 crisis less the economic activity adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15.1)% | | |
Adjustment for catastrophe losses
|
| | | | (20.4)% | | | | | | (6.5)% | | | | | | (0.2)% | | | | | | 2.6% | | | | | | 2.2% | | |
Net favorable/unfavorable prior-year loss development
|
| | | | 6.0% | | | | | | 8.9% | | | | | | 1.5% | | | | | | 3.0% | | | | | | 0.9% | | |
Other expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.1% | | | | | | — | | |
Normalized combined ratio excluding bonuses
|
| | | | 110.5% | | | | | | 105.0% | | | | | | 102.9% | | | | | | 99.1% | | | | | | 94.9% | | |
|
| | |
Six Months Ended
June 30, 2020 |
| |||
| | |
(%)
|
| |||
Normalized combined ratio H1 2020
|
| | | | 96.2% | | |
Rate impact adjustment
|
| | | | (6.4)% | | |
Claims inflation adjustment
|
| | | | 0.4% | | |
Cost savings adjustment
|
| | | | (1.4)% | | |
Acquisition expenses adjustment
|
| | | | 1.3% | | |
Pro forma bonus
|
| | | | 1.3% | | |
H2 2020 catastrophe losses adjustment
|
| | | | 1.8% | | |
Annualized pro forma normalized combined ratio H1 2020
|
| | | | 93.0% | | |
|
| | |
Six Months Ended
June 30, 2020 |
| |||
| | |
(%)
|
| |||
Normalized combined ratio excluding bonuses H1 2020
|
| | | | 94.9% | | |
Rate impact adjustment
|
| | | | (6.4)% | | |
Claims inflation adjustment
|
| | | | 0.4% | | |
Cost savings adjustment
|
| | | | (1.4)% | | |
Acquisition expenses adjustment
|
| | | | 1.3% | | |
H2 2020 catastrophe losses adjustment
|
| | | | 1.8% | | |
Annualized pro forma normalized combined ratio excluding bonuses H1 2020
|
| | | | 90.5% | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
($ in millions, except percentages)
|
| |||||||||||||||||||||||||||
Total shareholders’ equity
|
| | | | 2,912.9 | | | | | | 2,640.4 | | | | | | 2,725.5 | | | | | | 2,713.5 | | | | | | 2,678.8 | | |
Non-controlling interest
|
| | | | (2.7) | | | | | | (3.7) | | | | | | — | | | | | | — | | | | | | — | | |
Preference shares less issue expenses
|
| | | | (511.9) | | | | | | (511.9) | | | | | | (753.5) | | | | | | (511.9) | | | | | | (753.5) | | |
Average adjustment(a)
|
| | | | 401.6 | | | | | | 156.8 | | | | | | 182.8 | | | | | | (13.0) | | | | | | 2.6 | | |
Average equity
|
| | | | 2,799.9 | | | | | | 2,281.6 | | | | | | 2,154.8 | | | | | | 2,188.6 | | | | | | 1,927.9 | | |
|
| | |
As of June 30,
2020 |
| |||
| | |
(unaudited)
|
| |||
| | |
($ in millions,
except percentages) |
| |||
Historical Metrics and Ratios | | | | | | | |
Aspen net tangible asset value(1)
|
| | | | 1,901.9 | | |
Cash and cash equivalents held by the Issuers, the Sponsor HoldCos and Highlands Holdings
|
| | | | 4.6 | | |
HoldCo net tangible asset value
|
| | | | 1,906.5 | | |
Aspen total financial indebtedness(2)
|
| | | | 1,053.4 | | |
Aspen total capitalization (excluding intangibles)(1)
|
| | | | 2,955.3 | | |
Ratio of Aspen total financial indebtedness to Aspen total capitalization (excluding intangibles)
|
| | | | 35.6% | | |
As Adjusted Metrics and Ratios | | | | | | | |
As adjusted Aspen net tangible asset value(3)
|
| | | | 2,139.4 | | |
As adjusted HoldCo net tangible asset value(5)
|
| | |
|
2,144.0
|
| |
As adjusted Aspen total financial indebtedness(4)
|
| | | | 1,053.4 | | |
As adjusted Aspen total capitalization (excluding intangibles)(3)
|
| | | | 3,192.8 | | |
Ratio of as adjusted Aspen total financial indebtedness to as adjusted Aspen total capitalization (excluding intangibles)(3)(4)
|
| | | | 33.0% | | |
As adjusted HoldCo debt(5)
|
| | | | 500.0 | | |
As adjusted HoldCo debt to as adjusted HoldCo net tangible asset value(3)(5)
|
| | | | 23.3% | | |
| | |
As of June 30,
2020 |
| |||
| | |
($ in millions)
|
| |||
Total shareholders’ equity
|
| | | | 2,678.8 | | |
Preference Shares(a)
|
| | | | (753.5) | | |
Intangible assets and goodwill
|
| | | | (23.4) | | |
Aspen net tangible asset value
|
| | | | 1,901.9 | | |
Aspen total financial indebtedness
|
| | | | 1,053.4 | | |
Aspen total capitalization (excluding intangibles)
|
| | | | 2,955.3 | | |
|
| | |
As of June 30,
2020 |
| |||
| | |
($ in millions)
|
| |||
Long-term debt(a)
|
| | | | 299.9 | | |
Preference Shares(b)
|
| | | | 753.5 | | |
Aspen total financial indebtedness
|
| | | | 1,053.4 | | |
|
| | |
As of June 30,
2020 |
| |||
| | |
($ in millions)
|
| |||
Total shareholders’ equity
|
| | | | 2,678.8 | | |
Preference Shares(a)
|
| | | | (753.5) | | |
Intangible assets and goodwill
|
| | | | (23.4) | | |
Aspen net tangible asset value
|
| | | | 1,901.9 | | |
Equity contributions from the proceeds of the Offering(b)
|
| | | | 237.5 | | |
As adjusted Aspen net tangible asset value
|
| | | | 2,139.4 | | |
As adjusted Aspen total financial indebtedness(4)
|
| | | | 1,053.4 | | |
As adjusted Aspen total capitalization (excluding intangibles)
|
| | | | 3,192.8 | | |
|
| | |
Year ended December 31, 2019
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Reinsurance
|
| |
Insurance
|
| | | | | | | ||||||||||||||||||||||||||||||||||||
| | |
Reinsurance
|
| |
U.S.
Agricultural(1) |
| |
Legacy(2)
|
| |
Reinsurance
Total |
| |
Insurance
|
| |
Legacy(2)
|
| |
Insurance
Total |
| |
Group
Total |
| ||||||||||||||||||||||||
Net earned premiums
|
| | | | 862.3 | | | | | | 299.4 | | | | | | 93.5 | | | | |
|
1,255.2
|
| | | | | 860.8 | | | | | | 177.3 | | | | |
|
1,038.1
|
| | | |
|
2,293.3
|
| |
Losses and loss adjustment
expenses |
| | | | 572.8 | | | | | | 280.8 | | | | | | 64.3 | | | | |
|
917.9
|
| | | | | 528.0 | | | | | | 233.8 | | | | |
|
761.8
|
| | | |
|
1,679.7
|
| |
Amortization of deferred policy acquisition expenses
|
| | | | 199.5 | | | | | | 31.3 | | | | | | 34.1 | | | | |
|
264.9
|
| | | | | 118.2 | | | | | | 29.6 | | | | |
|
147.8
|
| | | |
|
412.7
|
| |
General and administrative expenses
|
| | | | 108.3 | | | | | | — | | | | | | 3.4 | | | | |
|
111.7
|
| | | | | 203.2 | | | | | | 26.6 | | | | |
|
229.8
|
| | | |
|
341.5
|
| |
Underwriting (loss)/gain
|
| | | $ | (18.3) | | | | | $ | (12.7) | | | | | $ | (8.3) | | | | |
$
|
(39.3)
|
| | | | $ | 11.4 | | | | | $ | (112.7) | | | | |
$
|
(101.3)
|
| | | |
$
|
(140.6)
|
| |
Corporate expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(54.5)
|
| |
Non-operating expenses(3)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(125.6)
|
| |
Net investment income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
197.3
|
| |
Realized and unrealized investment gains
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
97.1
|
| |
Realized and unrealized investment losses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(10.9)
|
| |
Realized loss on debt
extinguishment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(5.5)
|
| |
Change in fair value of loan notes issued by variable interest entities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(3.1)
|
| |
Change in fair value of derivatives
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(144.2)
|
| |
Interest expense on long term debt
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(20.2)
|
| |
Net realized and unrealized foreign exchange (losses)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(11.8)
|
| |
Other income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
4.9
|
| |
Other expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1.7)
|
| |
(Loss) before tax
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (218.8) | | |
Income tax (expense)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(22.9)
|
| |
Net (loss)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
(241.7)
|
| |
Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 66.4% | | | | | | 93.8% | | | | | | 68.8% | | | | |
|
73.1%
|
| | | | | 61.3% | | | | | | 131.9% | | | | |
|
73.4%
|
| | | |
|
73.2%
|
| |
Policy acquisition expense ratio
|
| | | | 23.1% | | | | | | 10.5% | | | | | | 36.5% | | | | |
|
21.1%
|
| | | | | 13.7% | | | | | | 16.7% | | | | |
|
14.2%
|
| | | |
|
18.0%
|
| |
General and administrative expense ratio(4)
|
| | | | 12.6% | | | | | | 0.0% | | | | | | 3.6% | | | | |
|
8.9%
|
| | | | | 23.6% | | | | | | 15.0% | | | | |
|
22.1%
|
| | | |
|
22.7%
|
| |
Expense ratio
|
| | | | 35.7% | | | | | | 10.5% | | | | | | 40.1% | | | | |
|
30.0%
|
| | | | | 37.3% | | | | | | 31.7% | | | | |
|
36.3%
|
| | | |
|
40.7%
|
| |
Combined ratio
|
| | | | 102.1% | | | | | | 104.3% | | | | | | 108.9% | | | | |
|
103.1%
|
| | | | | 98.6% | | | | | | 163.6% | | | | |
|
109.7%
|
| | | |
|
113.9%
|
| |
Accident year ex-cat net loss ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 66.4% | | | | | | 93.8% | | | | | | 68.8% | | | | |
|
73.1%
|
| | | | | 61.3% | | | | | | 131.9% | | | | |
|
73.4%
|
| | | |
|
73.2%
|
| |
| | |
Year ended December 31, 2019
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Reinsurance
|
| |
Insurance
|
| | | | | | | ||||||||||||||||||||||||||||||||||||
| | |
Reinsurance
|
| |
U.S.
Agricultural(1) |
| |
Legacy(2)
|
| |
Reinsurance
Total |
| |
Insurance
|
| |
Legacy(2)
|
| |
Insurance
Total |
| |
Group
Total |
| ||||||||||||||||||||||||
Prior-year loss development
|
| | | | 5.6% | | | | | | —% | | | | | | 7.5% | | | | |
|
4.4%
|
| | | | | (2.3)% | | | | | | (53.4)% | | | | |
|
(11.0)%
|
| | | |
|
(2.6)%
|
| |
Catastrophe losses
|
| | | | (15.2)% | | | | | | —% | | | | | | —% | | | | |
|
(10.1)%
|
| | | | | (2.1)% | | | | | | (0.7)% | | | | |
|
(1.7)%
|
| | | |
|
(6.3)%
|
| |
Accident year ex-cat net loss ratio
|
| | | | 56.8% | | | | | | 93.8% | | | | | | 76.3% | | | | |
|
67.4%
|
| | | | | 56.9% | | | | | | 77.8% | | | | |
|
60.7%
|
| | | |
|
64.3%
|
| |
|
Sources of Funds
|
| |
Uses of Funds
|
| ||||||||||||
|
(dollars in millions)
|
| | ||||||||||||||
|
Notes offered hereby(1)
|
| | | $ | 500.0 | | | |
Distribution to Sponsor HoldCo equityholders(2)
|
| | | $ | 237.5 | | |
| | | | | | | | | |
Equity contribution to Highlands Holdings and Aspen Group(2)
|
| | | | 237.5 | | |
| | | | | | | | | |
Estimated costs, fees and expenses and estimated first coupon cash payment(3)
|
| | | | 25.0 | | |
|
Total sources of funds
|
| | | | 500.0 | | | |
Total uses of funds
|
| | | | 500.0 | | |
|
| | |
As of June 30, 2020
|
| |||||||||||||||
| | |
Aspen Holdings
Actual |
| |
Adjustments
|
| |
Aspen Holdings
As-Adjusted |
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Cash and cash equivalents(1)
|
| | | $ | 1,135.4 | | | | | | 237.5 | | | | | $ | 1,372.9 | | |
Long-term Debt Obligations(2): | | | | | | | | | | | | | | | | | | | |
Revolving credit facility(3)
|
| | | | — | | | | | | | | | | | | — | | |
4.650% Senior Notes due 2023
|
| | | | 299.9 | | | | | | | | | | | | 299.9 | | |
Total existing debt
|
| | | | 299.9 | | | | | | | | | | | | 299.9 | | |
Notes offered hereby
|
| | | | — | | | | | | | | | | | | — | | |
Total debt
|
| | | | 299.9 | | | | | | | | | | | | 299.9 | | |
Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Ordinary Shares: | | | | | | | | | | | | | | | | | | | |
Aspen Holdings’ 60,395,839 shares of par value $.01 each (December 31, 2019 – 60,395,839 of par value $0.01 each)
|
| | | | 0.6 | | | | | | | | | | | | 0.6 | | |
Aspen Holdings Preference Shares: | | | | | | | | | | | | | | | | | | | |
11,000,000 5.950% shares of par value 0.15144558¢ each (December 31, 2019 – 11,000,000)
|
| | | | — | | | | | | | | | | | | — | | |
10,000,000 5.625% shares of par value 0.15144558¢ each (December 31, 2019 – 10,000,000)
|
| | | | — | | | | | | | | | | | | — | | |
10,000 5.625% shares of par value 0.15144558¢ each, represented by 10,000,000 Depositary Shares, each representing 1/1000th interest in one preference share (December 31, 2019 – 10,000,000)
|
| | | | — | | | | | | | | | | | | — | | |
Non-controlling interest
|
| | | | — | | | | | | | | | | | | — | | |
Additional paid-in capital(4)
|
| | | | 1,201.7 | | | | | | 237.5 | | | | | | 1,439.2 | | |
Retained Earnings
|
| | | | 1,319.4 | | | | | | | | | | | | 1,319.4 | | |
Accumulated and other comprehensive income/(loss), net of taxes
|
| | | | 157.1 | | | | | | | | | | | | 157.1 | | |
Total shareholders’ equity(5)
|
| | | | 2,678.8 | | | | | | | | | | | | 2,916.3 | | |
Total capitalization
|
| | | $ | 2,978.7 | | | | | | | | | | | $ | 3,216.2 | | |
|
| | |
As of August 10, 2020
|
| |||||||||||||||
| | |
Bermuda Issuer
Actual |
| |
Adjustments
|
| |
Bermuda Issuer
As-Adjusted(3) |
| |||||||||
| | | | | | | | |
($ in millions)
|
| | | | | | | |||
Cash and cash equivalents
|
| | | $ | — | | | | | | | | | | | $ | — | | |
Long-term Debt Obligations: | | | | | | | | | | | | | | | | | | | |
Notes offered hereby(1)
|
| | | | — | | | | | | 500.0 | | | | | | 500.0 | | |
Total debt
|
| | | | — | | | | | | 500.0 | | | | |
|
500.0
|
| |
Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Ordinary Shares: | | | | | | | | | | | | | | | | | | | |
Bermuda Issuer’s 100 shares of par value $1.00 each
|
| | | | — | | | | | | | | | | | | — | | |
Non-controlling interest
|
| | | | — | | | | | | | | | | | | — | | |
Additional paid-in capital
|
| | | | — | | | | | | | | | | | | — | | |
Retained Earnings
|
| | | | — | | | | | | | | | | | | — | | |
Total shareholders’ equity(2)
|
| | | | — | | | | | | | | | | | | — | | |
Total capitalization
|
| | | $ | — | | | | |
|
500.0
|
| | | | $ | 500.0 | | |
|
| | |
($ in millions, unless
otherwise indicated) |
| |||
Gross written premiums
|
| | | | 996.3 | | |
Net written premiums
|
| | | | 594.0 | | |
Net earned premiums
|
| | | | 627.6 | | |
Loss ratio
|
| | | | 69.0% | | |
Expense ratio
|
| | | | 34.9% | | |
Combined Ratio
|
| | | | 103.9% | | |
Normalized combined ratio excluding bonuses
|
| | | | 95.0% | | |
| | |
($ in millions, unless
otherwise indicated) |
| |||
Gross written premiums
|
| | | | 1,122.3 | | |
Net written premiums
|
| | | | 842.8 | | |
Net earned premiums
|
| | | | 564.1 | | |
Loss Ratio
|
| | | | 79.7% | | |
Expense Ratio
|
| | | | 29.8% | | |
Combined Ratio
|
| | | | 109.5% | | |
Normalized Combined Ratio excluding bonuses
|
| | | | 94.1% | | |
| | |
Year Ended
|
| |
Six Months Ended
|
| ||||||||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
June 30,
2020 |
| |
June 30,
2019 |
| |||||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross written premiums
|
| | | $ | 3,442.4 | | | | | $ | 3,446.9 | | | | | $ | 3,360.9 | | | | | $ | 2,118.6 | | | | | $ | 1,854.4 | | |
Net written premiums
|
| | | | 2,427.9 | | | | | | 2,082.0 | | | | | | 2,212.5 | | | | | | 1,436.8 | | | | | | 1,206.9 | | |
Gross earned premiums
|
| | | | 3,422.4 | | | | | | 3,534.4 | | | | | | 3,209.2 | | | | | | 1,693.3 | | | | | | 1,627.8 | | |
Net earned premiums
|
| | | | 2,293.3 | | | | | | 2,214.7 | | | | | | 2,306.6 | | | | | | 1,191.7 | | | | | | 1,040.2 | | |
Net investment income
|
| | | | 197.3 | | | | | | 198.2 | | | | | | 189.0 | | | | | | 84.9 | | | | | | 99.2 | | |
Realized and unrealized investment gains
|
| | | | 97.1 | | | | | | 110.0 | | | | | | 148.9 | | | | | | 36.8 | | | | | | 72.9 | | |
Other income
|
| | | | 4.9 | | | | | | 9.0 | | | | | $ | 8.9 | | | | | | 1.9 | | | | | | 3.0 | | |
Total Revenues
|
| | | $ | 2,592.6 | | | | | $ | 2,531.9 | | | | | $ | 2,653.4 | | | | | $ | 1,315.3 | | | | | $ | 1,215.3 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance losses and loss adjustment expenses
|
| | | $ | 1,679.7 | | | | | $ | 1,573.0 | | | | | $ | 1,994.7 | | | | | $ | 883.0 | | | | | $ | 631.9 | | |
Amortization of deferred policy acquisition costs
|
| | | | 412.7 | | | | | | 371.6 | | | | | | 400.5 | | | | | | 230.9 | | | | | | 190.0 | | |
| | |
Year Ended
|
| |
Six Months Ended
|
| ||||||||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
June 30,
2020 |
| |
June 30,
2019 |
| |||||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||||||||
General, administrative and corporate expenses
|
| | | | 521.6 | | | | | | 491.7 | | | | | | 502.2 | | | | | | 198.3 | | | | | | 264.0 | | |
Interest on long-term debt
|
| | | | 20.2 | | | | | | 25.9 | | | | | | 29.5 | | | | | | 21.7 | | | | | | 11.0 | | |
Change in fair value of derivatives
|
| | | | 144.2 | | | | | | 31.8 | | | | | | (27.7) | | | | | | 87.8 | | | | | | 133.6 | | |
Change in fair value of loan notes issued by VIEs
|
| | | | 3.1 | | | | | | 4.4 | | | | | | (21.2) | | | | | | — | | | | | | 3.0 | | |
Realized and unrealized investment losses
|
| | | | 10.9 | | | | | | 174.7 | | | | | | 28.4 | | | | | | 70.6 | | | | | | 10.6 | | |
Realized loss on the debt extinguishment
|
| | | | 5.5 | | | | | | 8.6 | | | | | | — | | | | | | — | | | | | | — | | |
Net realized and unrealized exchange losses
|
| | | | 11.8 | | | | | | 3.5 | | | | | | 23.9 | | | | | | (14.2) | | | | | | 13.9 | | |
Other expenses
|
| | | | 1.7 | | | | | | 2.7 | | | | | | 4.9 | | | | | | 1.8 | | | | | | 1.4 | | |
Total Expenses
|
| | | $ | 2,811.4 | | | | | $ | 2,687.9 | | | | | $ | 2,935.2 | | | | | $ | 1,479.9 | | | | | $ | 1,259.4 | | |
(Loss) from operations before income tax
|
| | | $ | (218.8) | | | | | $ | (156.0) | | | | | $ | (281.8) | | | | | $ | (164.6) | | | | | $ | (44.1) | | |
Income tax (expense) / benefit
|
| | | | (22.9) | | | | | | 10.2 | | | | | | 15.4 | | | | | | (4.1) | | | | | | 6.8 | | |
Net (Loss)
|
| | | $ | (241.7) | | | | | $ | (145.8) | | | | | $ | (266.4) | | | | | $ | (168.7) | | | | | $ | (37.3) | | |
Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 73.2% | | | | | | 71.0% | | | | | | 86.5% | | | | | | 74.1% | | | | | | 60.7% | | |
Expense ratio
|
| | | | 40.7% | | | | | | 39.0% | | | | | | 39.2% | | | | | | 36.0% | | | | | | 43.7% | | |
Combined ratio
|
| | | | 113.9% | | | | | | 110.0% | | | | | | 125.7% | | | | | | 110.1% | | | | | | 104.4% | | |
| | |
Gross Written Premiums for the Six Months Ended June 30,
|
| |||||||||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 1,122.3 | | | | | | 27.3% | | | | | $ | 881.8 | | |
Insurance
|
| | | $ | 996.3 | | | | | | 2.4% | | | | | $ | 972.6 | | |
Total
|
| | | $ | 2,118.6 | | | | | | 14.2% | | | | | $ | 1,854.4 | | |
|
| | |
Ceded Written Premiums for the Six Months Ended June 30,
|
| |||||||||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance
|
| | | $ | 279.5 | | | | | | 41.7% | | | | | $ | 197.2 | | |
Insurance
|
| | | $ | 402.3 | | | | | | (10.7)% | | | | | $ | 450.3 | | |
Total
|
| | | $ | 681.8 | | | | | | 5.3% | | | | | $ | 647.5 | | |
|
| | |
Net Earned Premiums for the Six Months Ended June 30,
|
| |||||||||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 564.1 | | | | | | 2.0% | | | | | $ | 552.8 | | |
Insurance
|
| | | $ | 627.6 | | | | | | 28.8% | | | | | $ | 487.4 | | |
Total
|
| | | $ | 1,191.7 | | | | | | 14.6% | | | | | $ | 1,040.2 | | |
|
| | |
Combined Ratio for the Six Months Ended June 30,
|
| |||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Reinsurance
|
| | | | 109.5% | | | | | | 92.9% | | |
Insurance
|
| | | | 103.9% | | | | | | 99.4% | | |
Total(1) | | | | | 110.1% | | | | | | 104.4% | | |
|
For the Six Months Ended June 30, 2020
|
| |
Total
Loss Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 79.7% | | | | | | (0.1)% | | | | | | (28.5)% | | | | | | 51.1% | | |
Insurance
|
| | | | 69.0% | | | | | | —% | | | | | | (11.2)% | | | | | | 57.8% | | |
Total
|
| | | | 74.1% | | | | | | —% | | | | | | (19.4)% | | | | | | 54.7% | | |
|
For the Six Months Ended June 30, 2019
|
| |
Total
Loss Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 59.2% | | | | | | 3.4% | | | | | | (3.6)% | | | | | | 59.0% | | |
Insurance
|
| | | | 62.5% | | | | | | (2.0)% | | | | | | (2.0)% | | | | | | 58.5% | | |
Total
|
| | | | 60.7% | | | | | | 0.9% | | | | | | (2.9)% | | | | | | 58.7% | | |
|
| | |
For the Six Months Ended June 30, 2020
|
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 19.0% | | | | | | 20.7% | | | | | | 20.0% | | |
Effect of ceded reinsurance
|
| | | | 1.3% | | | | | | (2.2)% | | | | | | (0.6)% | | |
Net policy acquisition expense ratio
|
| | | | 20.3% | | | | | | 18.5% | | | | | | 19.4% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 7.8% | | | | | | 10.2% | | | | | | 11.7% | | |
Effect of ceded reinsurance premiums
|
| | | | 1.7% | | | | | | 6.2% | | | | | | 4.9% | | |
Net general and administrative expense ratio
|
| | | | 9.5% | | | | | | 16.4% | | | | | | 16.6% | | |
Total net expense ratio
|
| | | | 29.8% | | | | | | 34.9% | | | | | | 36.0% | | |
|
| | |
For the Six Months Ended June 30, 2019
|
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 21.1% | | | | | | 19.6% | | | | | | 20.2% | | |
Effect of ceded reinsurance
|
| | | | 1.8% | | | | | | (6.6)% | | | | | | (1.9)% | | |
Net policy acquisition expense ratio
|
| | | | 22.9% | | | | | | 13.0% | | | | | | 18.3% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 8.9% | | | | | | 12.2% | | | | | | 16.2% | | |
Effect of ceded reinsurance premiums
|
| | | | 1.9% | | | | | | 11.7% | | | | | | 9.2% | | |
Net general, administrative and corporate expense ratio
|
| | | | 10.8% | | | | | | 23.9% | | | | | | 25.4% | | |
Total net expense ratio
|
| | | | 33.7% | | | | | | 36.9% | | | | | | 43.7% | | |
|
| | |
For the Six Months Ended
|
| |||||||||
| | |
June 30, 2020
|
| |
June 30, 2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Underwriting income (loss)
|
| | | $ | (78.7) | | | | | $ | 42.1 | | |
Corporate expenses
|
| | | | (30.2) | | | | | | (25.9) | | |
Non-operating expenses
|
| | | | (11.6) | | | | | | (61.9) | | |
Net other income
|
| | | | 0.1 | | | | | | 1.6 | | |
Net investment income
|
| | | | 84.9 | | | | | | 99.2 | | |
Change in fair value of derivatives
|
| | | | (87.8) | | | | | | (133.6) | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | — | | | | | | (3.0) | | |
Realized and unrealized investment gains
|
| | | | 36.8 | | | | | | 72.9 | | |
Realized and unrealized investment losses
|
| | | | (70.6) | | | | | | (10.6) | | |
Realized loss on the debt extinguishment
|
| | | | — | | | | | | — | | |
Net realized and unrealized foreign exchange gains (losses)
|
| | | | 14.2 | | | | | | (13.9) | | |
Interest expense
|
| | | | (21.7) | | | | | | (11.0) | | |
(Loss) before tax
|
| | | $ | (164.6) | | | | | $ | (44.1) | | |
|
| | |
Gross Written Premiums for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 1,485.5 | | | | | | (0.7)% | | | | | $ | 1,495.7 | | |
Insurance
|
| | | | 1,956.9 | | | | | | 0.3% | | | | | | 1,951.2 | | |
Total
|
| | | $ | 3,442.4 | | | | | | (0.1)% | | | | | $ | 3,446.9 | | |
|
| | |
Ceded Written Premiums for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance
|
| | | $ | 234.4 | | | | | | (25.1)% | | | | | $ | 312.8 | | |
Insurance
|
| | | | 780.1 | | | | | | (25.9)% | | | | | | 1,052.1 | | |
Total
|
| | | $ | 1,014.5 | | | | | | (25.7)% | | | | | $ | 1,364.9 | | |
|
| | |
Net Premiums Earned for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 1,255.2 | | | | | | (0.1)% | | | | | $ | 1,256.4 | | |
Insurance
|
| | | | 1,038.1 | | | | | | 8.3% | | | | | | 958.3 | | |
Total
|
| | | $ | 2,293.3 | | | | | | 3.5% | | | | | $ | 2,214.7 | | |
|
| | |
Combined Ratios for the Year Ended December 31,
|
| |||||||||
Business Segment
|
| |
2019
|
| |
2018
|
| ||||||
Reinsurance
|
| | | | 103.1% | | | | | | 104.0% | | |
Insurance
|
| | | | 109.7% | | | | | | 104.0% | | |
Total(1) | | | | | 113.9% | | | | | | 110.0% | | |
|
For the Year Ended December 31, 2019
|
| |
Total Loss
Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 73.1% | | | | | | 4.4% | | | | | | (10.1)% | | | | | | 67.4% | | |
Insurance
|
| | | | 73.4% | | | | | | (11.0)% | | | | | | (1.7)% | | | | | | 60.7% | | |
Total
|
| | | | 73.2% | | | | | | (2.6)% | | | | | | (6.3)% | | | | | | 64.3% | | |
|
For the Year Ended December 31, 2018
|
| |
Total Loss
Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 73.8% | | | | | | 5.5% | | | | | | (17.1)% | | | | | | 62.2% | | |
Insurance
|
| | | | 67.4% | | | | | | 4.5% | | | | | | (5.5)% | | | | | | 66.4% | | |
Total
|
| | | | 71.0% | | | | | | 5.0% | | | | | | (12.1)% | | | | | | 63.9% | | |
|
| | |
For the Year Ended
December 31, 2019 |
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 19.4% | | | | | | 20.0% | | | | | | 19.8% | | |
Effect of ceded reinsurance
|
| | | | 1.7% | | | | | | (5.8)% | | | | | | (1.8)% | | |
Net policy acquisition expense ratio
|
| | | | 21.1% | | | | | | 14.2% | | | | | | 18.0% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 7.5% | | | | | | 11.9% | | | | | | 15.2% | | |
Effect of ceded reinsurance premiums
|
| | | | 1.4% | | | | | | 10.2% | | | | | | 7.5% | | |
Net general and administrative expense ratio
|
| | | | 8.9% | | | | | | 22.1% | | | | | | 22.7% | | |
Total net expense ratio
|
| | | | 30.0% | | | | | | 36.3% | | | | | | 40.7% | | |
|
| | |
For the Year Ended
December 31, 2018 |
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 19.1% | | | | | | 19.1% | | | | | | 19.1% | | |
Effect of ceded reinsurance
|
| | | | 1.7% | | | | | | (7.5)% | | | | | | (2.3)% | | |
Net policy acquisition expense ratio
|
| | | | 20.8% | | | | | | 11.6% | | | | | | 16.8% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 7.4% | | | | | | 12.3% | | | | | | 13.9% | | |
Effect of ceded reinsurance premiums
|
| | | | 2.0% | | | | | | 12.7% | | | | | | 8.3% | | |
Net general, administrative and corporate expense ratio
|
| | | | 9.4% | | | | | | 25.0% | | | | | | 22.2% | | |
Total net expense ratio
|
| | | | 30.2% | | | | | | 36.6% | | | | | | 39.0% | | |
|
| | |
For the Year Ended
|
| |||||||||
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Underwriting income (loss)
|
| | | $ | (140.6) | | | | | $ | (87.6) | | |
Corporate expenses
|
| | | | (54.5) | | | | | | (56.8) | | |
Non-operating expenses
|
| | | | (125.6) | | | | | | (77.2) | | |
Net other income
|
| | | | 3.2 | | | | | | 6.3 | | |
Net investment income
|
| | | | 197.3 | | | | | | 198.2 | | |
Change in fair value of derivatives
|
| | | | (144.2) | | | | | | (31.8) | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | (3.1) | | | | | | (4.4) | | |
Realized and unrealized investment gains
|
| | | | 97.1 | | | | | | 110.0 | | |
Realized and unrealized investment losses
|
| | | | (10.9) | | | | | | (174.7) | | |
Realized loss on the debt extinguishment
|
| | | | (5.5) | | | | | | (8.6) | | |
Net realized and unrealized foreign exchange (losses)
|
| | | | (11.8) | | | | | | (3.5) | | |
Interest expense
|
| | | | (20.2) | | | | | | (25.9) | | |
(Loss) before tax
|
| | | $ | (218.8) | | | | | $ | (156.0) | | |
|
| | |
Gross Written Premiums for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 1,495.7 | | | | | | (3.4)% | | | | | $ | 1,548.5 | | |
Insurance
|
| | | | 1,951.2 | | | | | | 7.7% | | | | | | 1,812.4 | | |
Total
|
| | | $ | 3,446.9 | | | | | | 2.6% | | | | | $ | 3,360.9 | | |
|
| | |
Ceded Written Premiums for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance
|
| | | $ | 312.8 | | | | | | 4.8% | | | | | $ | 298.5 | | |
Insurance
|
| | | | 1,052.1 | | | | | | 23.8% | | | | | | 849.9 | | |
Total
|
| | | $ | 1,364.9 | | | | | | 18.9% | | | | | $ | 1,148.4 | | |
|
| | |
Net Earned Premiums for the Year Ended December 31,
|
| |||||||||||||||
Business Segment
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Reinsurance(1) | | | | $ | 1,256.4 | | | | | | 4.2% | | | | | $ | 1,206.1 | | |
Insurance
|
| | | | 958.3 | | | | | | (12.9)% | | | | | | 1,100.5 | | |
Total
|
| | | $ | 2,214.7 | | | | | | (4.0)% | | | | | $ | 2,306.6 | | |
|
| | |
Combined Ratios for the Year Ended December 31,
|
| |||||||||
Business Segment
|
| |
2018
|
| |
2017
|
| ||||||
Reinsurance
|
| | | | 104.0% | | | | | | 125.1% | | |
Insurance
|
| | | | 104.0% | | | | | | 117.9% | | |
Total(1) | | | | | 110.0% | | | | | | 125.7% | | |
|
For the Year Ended December 31, 2018
|
| |
Total Loss
Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 73.8% | | | | | | 5.5% | | | | | | (17.1)% | | | | | | 62.2% | | |
Insurance
|
| | | | 67.4% | | | | | | 4.5% | | | | | | (5.5)% | | | | | | 66.4% | | |
Total
|
| | | | 71.0% | | | | | | 5.0% | | | | | | (12.1)% | | | | | | 63.9% | | |
|
For the Year Ended December 31, 2017
|
| |
Total Loss
Ratio |
| |
Prior-Year
Reserve Movements |
| |
Current Year
Adjustments |
| |
Accident year
ex-cat net loss ratio |
| ||||||||||||
Reinsurance
|
| | | | 92.6% | | | | | | 6.9% | | | | | | (37.7)% | | | | | | 61.8% | | |
Insurance
|
| | | | 79.8% | | | | | | 2.1% | | | | | | (10.4)% | | | | | | 71.5% | | |
Total
|
| | | | 86.5% | | | | | | 4.6% | | | | | | (24.6)% | | | | | | 66.5% | | |
|
| | |
For the Year Ended
December 31, 2018 |
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 19.1% | | | | | | 19.1% | | | | | | 19.1% | | |
Effect of ceded reinsurance
|
| | | | 1.7% | | | | | | (7.5)% | | | | | | (2.3)% | | |
Net policy acquisition expense ratio
|
| | | | 20.8% | | | | | | 11.6% | | | | | | 16.8% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 7.4% | | | | | | 12.3% | | | | | | 13.9% | | |
Effect of ceded reinsurance premiums
|
| | | | 2.0% | | | | | | 12.7% | | | | | | 8.3% | | |
Net general, administrative and corporate expense ratio
|
| | | | 9.4% | | | | | | 25.0% | | | | | | 22.2% | | |
Total net expense ratio
|
| | | | 30.2% | | | | | | 36.6% | | | | | | 39.0% | | |
|
| | |
For the Year Ended
December 31, 2017 |
| |||||||||||||||
Ratios Based on Gross Earned Premium
|
| |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
Gross policy acquisition expense ratio
|
| | | | 18.6% | | | | | | 18.5% | | | | | | 18.6% | | |
Effect of ceded reinsurance
|
| | | | 0.9% | | | | | | (3.5)% | | | | | | (1.2)% | | |
Net policy acquisition expense ratio
|
| | | | 19.5% | | | | | | 15.0% | | | | | | 17.4% | | |
Gross general, administrative and corporate expense ratio(1)
|
| | | | 10.8% | | | | | | 14.4% | | | | | | 15.6% | | |
Effect of ceded reinsurance premiums
|
| | | | 2.2% | | | | | | 8.7% | | | | | | 6.2% | | |
Net general, administrative and corporate expense ratio
|
| | | | 13.0% | | | | | | 23.1% | | | | | | 21.8% | | |
Total net expense ratio
|
| | | | 32.5% | | | | | | 38.1% | | | | | | 39.2% | | |
|
| | |
For the Year Ended
|
| |||||||||
| | |
December 31, 2018
|
| |
December 31, 2017
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Underwriting income (loss)
|
| | | $ | (87.6) | | | | | $ | (499.8) | | |
Corporate expenses
|
| | | | (56.8) | | | | | | (58.3) | | |
Non-operating expenses
|
| | | | (77.2) | | | | | | (32.7) | | |
Net other income
|
| | | | 6.3 | | | | | | 4.0 | | |
Net investment income
|
| | | | 198.2 | | | | | | 189.0 | | |
Change in fair value of derivatives
|
| | | | (31.8) | | | | | | 27.7 | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | (4.4) | | | | | | 21.2 | | |
Realized and unrealized investment gains
|
| | | | 110.0 | | | | | | 148.9 | | |
Realized and unrealized investment losses
|
| | | | (174.7) | | | | | | (28.4) | | |
Realized loss on the debt extinguishment
|
| | | | (8.6) | | | | | | — | | |
Net realized and unrealized foreign exchange (losses)
|
| | | | (3.5) | | | | | | (23.9) | | |
Interest expense
|
| | | | (25.9) | | | | | | (29.5) | | |
(Loss) before tax
|
| | | $ | (156.0) | | | | | $ | (281.8) | | |
|
| | |
Gross Written Premiums for the Six Months Ended June 30,
|
| |||||||||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Property catastrophe reinsurance
|
| | | $ | 241.1 | | | | | | 15.9% | | | | | $ | 208.1 | | |
Other property reinsurance
|
| | | $ | 205.3 | | | | | | 3.9% | | | | | $ | 197.6 | | |
Casualty reinsurance
|
| | | $ | 205.0 | | | | | | 15.2% | | | | | $ | 177.9 | | |
Specialty reinsurance
|
| | | $ | 470.9 | | | | | | 57.9% | | | | | $ | 298.2 | | |
Total
|
| | | $ | 1,122.3 | | | | | | 27.3% | | | | | $ | 881.8 | | |
|
| | |
For the Year Ended December 31,
|
| |||||||||||||||
Lines of Business
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in million)
|
| |||||||||
Property catastrophe reinsurance
|
| | | $ | 249.6 | | | | | | (5.0)% | | | | | $ | 262.8 | | |
Other property reinsurance
|
| | | | 356.9 | | | | | | 3.2% | | | | | | 346.0 | | |
Casualty reinsurance
|
| | | | 294.7 | | | | | | (10.2)% | | | | | | 328.1 | | |
Specialty reinsurance
|
| | | | 584.3 | | | | | | 4.6% | | | | | | 558.8 | | |
Total
|
| | | $ | 1,485.5 | | | | | | (0.7)% | | | | | $ | 1,495.7 | | |
|
| | |
For the Year Ended December 31,
|
| |||||||||||||||
Lines of Business
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
($ in million)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Property catastrophe reinsurance
|
| | | $ | 262.8 | | | | | | (5.9)% | | | | | $ | 279.3 | | |
Other property reinsurance
|
| | | | 346.0 | | | | | | (1.2)% | | | | | | 350.3 | | |
Casualty reinsurance
|
| | | | 328.1 | | | | | | 2.9% | | | | | | 319.0 | | |
Specialty reinsurance
|
| | | | 558.8 | | | | | | (6.9)% | | | | | | 599.9 | | |
Total
|
| | | $ | 1,495.7 | | | | | | (3.4)% | | | | | $ | 1,548.5 | | |
|
| | |
Gross Written Premiums for the Six Months Ended June 30,
|
| |||||||||||||||
Business Segment
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($ in millions)
|
| |
%change
|
| |
($ in millions)
|
| |||||||||
Property and casualty insurance
|
| | | $ | 465.2 | | | | | | 4.0% | | | | | $ | 447.3 | | |
Marine, aviation and energy insurance
|
| | | $ | 120.8 | | | | | | (20.7)% | | | | | $ | 152.4 | | |
Financial and professional lines insurance
|
| | | $ | 410.3 | | | | | | 10.0% | | | | | $ | 372.9 | | |
Total
|
| | | $ | 996.3 | | | | | | 2.4% | | | | | $ | 972.6 | | |
|
| | |
For the Year Ended December 31,
|
| |||||||||||||||
Lines of Business
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
($ in millions)
|
| |
% change
|
| |
($ in million)
|
| |||||||||
Property and casualty insurance
|
| | | $ | 861.2 | | | | | | (4.7)% | | | | | $ | 903.9 | | |
Marine, aviation and energy insurance
|
| | | | 301.7 | | | | | | (18.1)% | | | | | | 368.4 | | |
Financial and professional lines insurance
|
| | | | 794.0 | | | | | | 17.0% | | | | | | 678.9 | | |
Total
|
| | | $ | 1,956.9 | | | | | | 0.3% | | | | | $ | 1,951.2 | | |
|
| | |
For the Year Ended December 31,
|
| |||||||||||||||
Lines of Business
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
($ in million)
|
| |
% change
|
| |
($ in millions)
|
| |||||||||
Property and casualty insurance
|
| | | $ | 903.9 | | | | | | 5.5% | | | | | $ | 856.9 | | |
Marine, aviation and energy insurance
|
| | | | 368.4 | | | | | | (4.4)% | | | | | | 385.3 | | |
Financial and professional lines insurance
|
| | | | 678.9 | | | | | | 19.1% | | | | | | 570.2 | | |
Total
|
| | | $ | 1,951.2 | | | | | | 7.7% | | | | | $ | 1,812.4 | | |
|
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |
2020
|
| |
2019
|
| |||||||||||||||
| | | | | | | |
(audited)
|
| | | | | | | |
(unaudited)
|
| | | | | | | |||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Net cash (used in)/from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | (337.8) | | | | | $ | (304.5) | | | | | $ | (111.5) | | | | | $ | (93.6) | | | | | $ | (312.1) | | |
Investing activities
|
| | | | 218.3 | | | | | | 657.3 | | | | | | 419.0 | | | | | | 228.9 | | | | | | 445.7 | | |
Financing activities
|
| | | | 65.2 | | | | | | (307.2) | | | | | | (540.4) | | | | | | (22.2) | | | | | | (21.8) | | |
Change in cash and cash equivalents
|
| | | $ | (53.2) | | | | | $ | 28.9 | | | | | $ | (219.0) | | | | | $ | 104.8 | | | | | $ | 111.7 | | |
|
| | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||||||||
| | |
Estimated
Fair Value |
| |
Percentage of
Total Cash and Investments |
| |
Estimated
Fair Value |
| |
Percentage of
Total Cash and Investments |
| ||||||||||||
| | |
($ in millions except for percentages)
|
| |||||||||||||||||||||
Fixed Income Securities – Available for Sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | | 1,323.7 | | | | | | 17.0% | | | | | $ | 1,413.1 | | | | | | 18.1% | | |
U.S. agency
|
| | | | 36.7 | | | | | | 0.5% | | | | | | 39.6 | | | | | | 0.5 | | |
Municipal
|
| | | | 69.8 | | | | | | 0.9% | | | | | | 50.7 | | | | | | 0.6 | | |
Corporate
|
| | | | 2,216.9 | | | | | | 28.5% | | | | | | 1,959.8 | | | | | | 25.2 | | |
Non-U.S. government-backed corporate
|
| | | | 79.5 | | | | | | 1.0% | | | | | | 86.5 | | | | | | 1.1 | | |
Foreign government
|
| | | | 322.9 | | | | | | 4.1% | | | | | | 328.8 | | | | | | 4.2 | | |
Asset-backed
|
| | | | 2.6 | | | | | | —% | | | | | | 0.2 | | | | | | — | | |
Non-agency commercial mortgage-backed
|
| | | | 7.4 | | | | | | 0.1% | | | | | | 6.5 | | | | | | 0.1 | | |
Agency mortgage-backed
|
| | | | 1,034.7 | | | | | | 13.3% | | | | | | 1,073.0 | | | | | | 13.9 | | |
Total Fixed Income Securities – Available for Sale
|
| | | | 5,094.2 | | | | | | 65.4% | | | | | $ | 4,958.2 | | | | | | 63.7% | | |
Fixed Income Securities – Trading: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | | 194.9 | | | | | | 2.5% | | | | | | 185.0 | | | | | | 2.4% | | |
Municipal
|
| | | | 3.5 | | | | | | — | | | | | | 3.2 | | | | | | — | | |
Corporate
|
| | | | 118.4 | | | | | | 1.5% | | | | | | 243.2 | | | | | | 3.1 | | |
High Yield Loans
|
| | | | 6.9 | | | | | | 0.1% | | | | | | — | | | | | | — | | |
Foreign government
|
| | | | 39.0 | | | | | | 0.5% | | | | | | 151.2 | | | | | | 1.9 | | |
Asset-backed
|
| | | | 490.3 | | | | | | 6.3% | | | | | | 492.4 | | | | | | 6.3 | | |
Agency mortgage-backed securities
|
| | | | 34.1 | | | | | | 0.4% | | | | | | 53.8 | | | | | | 0.7 | | |
Total Fixed Income Securities – Trading
|
| | | | 887.1 | | | | | | 11.4% | | | | | $ | 1,128.8 | | | | | | 14.4% | | |
Total other investments, equity method
|
| | | | 68.2 | | | | | | 0.9% | | | | | | 67.9 | | | | | | 0.9 | | |
Total other investments(1)
|
| | | | 107.2 | | | | | | 1.4% | | | | | | 111.4 | | | | | | 1.4 | | |
Total catastrophe bonds – trading
|
| | | | 24.3 | | | | | | 0.3% | | | | | | 28.6 | | | | | | 0.4 | | |
Privately-held investments – Trading: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | | 175.9 | | | | | | 2.3% | | | | | | 156.6 | | | | | | 2.0 | | |
Middle market loans
|
| | | | 104.7 | | | | | | 1.3% | | | | | | 111.7 | | | | | | 1.4 | | |
Asset-backed securities
|
| | | | 8.4 | | | | | | 0.1% | | | | | | 8.7 | | | | | | 0.1 | | |
Equity securities
|
| | | | 2.7 | | | | | | —% | | | | | | 2.7 | | | | | | — | | |
Total privately-held investments – Trading
|
| | | | 291.7 | | | | | | 3.7% | | | | | $ | 279.7 | | | | | | 3.5% | | |
Total short-term investments – available for sale
|
| | | | 146.6 | | | | | | 1.9% | | | | | | 117.6 | | | | | | 1.5 | | |
Total short-term investments – trading
|
| | | | 31.9 | | | | | | 0.4% | | | | | | 79.2 | | | | | | 1.0 | | |
Total cash and cash equivalents
|
| | | | 1,135.4 | | | | | | 14.6% | | | | | | 1,030.5 | | | | | | 13.2 | | |
Total Cash and Investments
|
| | | $ | 7,786.6 | | | | | | 100.000% | | | | | $ | 7,801.9 | | | | | | 100.0% | | |
|
| | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||
| | |
Estimated
Fair Value |
| |
Percentage of
Total Cash and Investments |
| |
Estimated
Fair Value |
| |
Percentage of
Total Cash and Investments |
| ||||||
| | |
($ in millions except for percentages)
|
| |||||||||||||||
Net receivable/(payable) for securities sold/(purchased)
|
| | | | (33.4) | | | | | | | | $ | 2.9 | | | | | |
Accrued interest receivable
|
| | | | 36.3 | | | | | | | | | 39.6 | | | | | |
Total Investable Assets
|
| | | $ | 7,789.5 | | | | | | | | $ | 7,844.4 | | | | | |
|
| | |
AAA
|
| |
AA and Below
|
| |
Total
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Agency
|
| | | $ | — | | | | | $ | 1,068.80 | | | | | $ | 1,068.80 | | |
Non-agency commercial
|
| | | $ | — | | | | | $ | 7.40 | | | | | $ | 7.40 | | |
Total mortgage-backed securities
|
| | | $ | — | | | | | $ | 1,076.20 | | | | | $ | 1,076.20 | | |
| | |
As at June 30, 2020
|
| |||||||||||||||
Business Segment
|
| |
Gross
|
| |
Reinsurance Recoverable
|
| |
Net
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Reinsurance
|
| | | $ | 3,212.1 | | | | | $ | (1,153.8) | | | | | $ | 2,058.3 | | |
Insurance
|
| | | $ | 3,843.1 | | | | | $ | (2,082.9) | | | | | $ | 1,760.2 | | |
Total losses and loss expense reserves
|
| | | $ | 7,055.2 | | | | | $ | (3,236.7) | | | | | $ | 3,818.5 | | |
|
| | |
As at December 31, 2019
|
| |||||||||||||||
Business Segment
|
| |
Gross
|
| |
Reinsurance Recoverable
|
| |
Net
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Reinsurance
|
| | | $ | 3,152.9 | | | | | $ | (547.0) | | | | | $ | 2,605.9 | | |
Insurance
|
| | | $ | 3,798.9 | | | | | $ | (1,772.8) | | | | | $ | 2,026.1 | | |
Total losses and loss expense reserves
|
| | | $ | 6,951.8 | | | | | $ | (2,319.8) | | | | | $ | 4,632.0 | | |
|
| | | | | | | | |
As at June 30, 2020
|
| |||||||||||||||
| | |
Gross
Outstandings |
| |
Gross IBNR
|
| |
Gross Reserve
|
| |
% IBNR
|
| ||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||
Reinsurance
|
| | | $ | 1,697.5 | | | | | $ | 1,514.6 | | | | | $ | 3,212.1 | | | | | | 47.2% | | |
Insurance
|
| | | $ | 1,772.4 | | | | | $ | 2,070.7 | | | | | $ | 3,843.1 | | | | | | 53.9% | | |
Total losses and loss expense reserves
|
| | | $ | 3,469.9 | | | | | $ | 3,585.3 | | | | | $ | 7,055.2 | | | | | | 50.8% | | |
|
| | | | | | | | |
As at December 31, 2019
|
| |||||||||||||||
| | |
Gross
Outstandings |
| |
Gross IBNR
|
| |
Gross Reserve
|
| |
% IBNR
|
| ||||||||||||
| | |
($ in millions, except for percentages)
|
| |||||||||||||||||||||
Reinsurance
|
| | | $ | 1,535.8 | | | | | $ | 1,617.1 | | | | | $ | 3,152.9 | | | | | | 51.3% | | |
Insurance
|
| | | | 1,733.2 | | | | | | 2,065.7 | | | | | | 3,798.9 | | | | | | 54.4% | | |
Total losses and loss expense reserves
|
| | | $ | 3,269.0 | | | | | $ | 3,682.8 | | | | | $ | 6,951.8 | | | | | | 53.0% | | |
|
| | |
For the Six Months Ended
|
| |
For the Year Ended
|
| ||||||
Business Segment
|
| |
June 30, 2020
|
| |
December 31, 2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Reinsurance
|
| | | $ | (0.4) | | | | | $ | 54.9 | | |
Insurance
|
| | | | 0.1 | | | | | | (114.4) | | |
Total losses and loss expense reserves reductions
|
| | | $ | (0.3) | | | | | $ | (59.5) | | |
|
| | |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
Later Years
|
| |
Total
|
| |||||||||||||||||||||
| |
($ in millions)
|
| | |||||||||||||||||||||||||||||||||||||||
Operating lease obligations
|
| | | $ | 17.7 | | | | | $ | 16.4 | | | | | $ | 13.0 | | | | | $ | 12.2 | | | | | $ | 11.7 | | | | | $ | 73.6 | | | | | $ | 144.6 | | |
Long-term debt obligations(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 300.0 | | | | | | — | | | | | | — | | | | | | 300.0 | | |
Reserves for losses and loss adjustment expenses(2)
|
| | | | 1,734.5 | | | | | | 1,242.8 | | | | | | 922.5 | | | | | | 695.4 | | | | | | 518.7 | | | | | | 1,837.9 | | | | | | 6,951.8 | | |
Total
|
| | | $ | 1,752.2 | | | | | $ | 1,259.2 | | | | | $ | 935.5 | | | | | $ | 1,007.6 | | | | | $ | 530.4 | | | | | $ | 1,911.5 | | | | | $ | 7,396.4 | | |
|
| | |
As at June 30, 2020
|
| |
At December 31, 2019
|
| ||||||
| | |
($ in millions, except percentages)
|
| |||||||||
Regulatory trusts and deposits: | | | | | | | | | | | | | |
Affiliated transactions
|
| | | $ | 637.0 | | | | | $ | 754.9 | | |
Third party
|
| | | | 2,852.0 | | | | | | 2,766.6 | | |
Letters of credit / guarantees
|
| | | | 558.5 | | | | | | 635.4 | | |
Other investments – real estate fund
|
| | | $ | 107.2 | | | | | $ | 111.4 | | |
Total restricted assets
|
| | | $ | 4,154.7 | | | | | $ | 4,268.3 | | |
Total as percent of investable assets
|
| | | | 53.3% | | | | | | 54.4% | | |
|
| | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Share capital, additional paid-in capital, retained income and accumulated other comprehensive income attributable to ordinary shareholders
|
| | | $ | 1,925.3 | | | | | $ | 1,972.0 | | |
Preference shares (liquidation preferences net of issue costs)
|
| | | | 753.5 | | | | | | 753.5 | | |
Long-term debt
|
| | | | 299.9 | | | | | | 299.8 | | |
Total capital
|
| | | $ | 2,978.7 | | | | | $ | 3,025.3 | | |
|
Effect of Changes in Interest Rates on Portfolio Given a Parallel Shift in the Yield Curve
|
| ||||||||||||||||||||||||||||||
Movement in Rates in Basis Points
|
| |
-100
|
| |
-50
|
| |
0
|
| |
50
|
| |
100
|
| |||||||||||||||
| | | | | | | | |
($ in millions, except percentages)
|
| | | | | | | |||||||||||||||
Market Value(1)
|
| | | | 6,773.5 | | | | | | 6,668.5 | | | | | | 6,563.5 | | | | | | 6,458.5 | | | | | | 6,353.5 | | |
Gain/Loss
|
| | | | 210.0 | | | | | | 105.0 | | | | | | — | | | | | | (105.0) | | | | | | (210.0) | | |
Percentage of Portfolio
|
| | | | 3.0% | | | | | | 1.5% | | | | | | — | | | | | | (1.5)% | | | | | | (3.1)% | | |
Corresponding percentage at December 31, 2018
|
| | | | 3.5% | | | | | | 1.8% | | | | | | — | | | | | | (1.8)% | | | | | | (3.5)% | | |
Change in assumption
|
| |
Reserve for losses and loss expenses
|
| |||
| | |
($ in millions)
|
| |||
Six month acceleration
|
| | | $ | 3,664.3 | | |
Three month acceleration
|
| | | $ | 3,736.6 | | |
No change (selected)
|
| | | $ | 3,818.5 | | |
Three month deceleration
|
| | | $ | 3,913.0 | | |
Six month deceleration
|
| | | $ | 4,041.2 | | |
Change in assumption
|
| |
Reserve for losses and loss expenses
|
| |||
| | |
($ in millions)
|
| |||
10% favorable
|
| | | $ | 3,596.6 | | |
5% favorable
|
| | | $ | 3,706.5 | | |
No change (selected)
|
| | | $ | 3,818.5 | | |
5% unfavorable
|
| | | $ | 3,933.8 | | |
10% unfavorable
|
| | | $ | 4,044.4 | | |
PART I
FINANCIAL INFORMATION
|
| ||||||||||||
Item 1. Unaudited Condensed Consolidated Financial Statements
|
| ||||||||||||
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As at June 30, 2020 and December 31, 2019 ($ in millions, except share and per share amounts) |
| ||||||||||||
| |
As at
June 30, 2020 |
| |
As at
December 31, 2019 |
| |||||||
ASSETS | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | |
Fixed income maturities, available for sale (amortized cost – $4,817.4
and $4,845.2) Net of allowance for expected credit losses of $0.2 as at June 30, 2020. |
| | | $ | 5,094.2 | | | | | $ | 4,958.2 | | |
Fixed income maturities, trading at fair value (amortized cost – $902.4 and $1,120.0)
|
| | | | 887.3 | | | | | | 1,128.8 | | |
Short-term investments, available for sale (amortized cost – $146.6 and
$106.1) |
| | | | 146.6 | | | | | | 117.6 | | |
Short-term investments, trading at fair value (amortized cost – $31.9 and $96.9)
|
| | | | 31.9 | | | | | | 79.2 | | |
Catastrophe bonds, trading at fair value ( cost – $24.3 and $31.8)
|
| | | | 24.3 | | | | | | 28.6 | | |
Privately-held investments, trading at fair value (amortized cost – $313.8 and $56.2)
|
| | | | 291.7 | | | | | | 279.7 | | |
Investments, equity method
|
| | | | 68.2 | | | | | | 67.9 | | |
Other investments
|
| | | | 107.2 | | | | | | 111.4 | | |
Total investments
|
| | | | 6,651.4 | | | | | | 6,771.4 | | |
Cash and cash equivalents (including cash within consolidated variable interest entities of – $69.9 and $85.7)
|
| | | | 1,135.4 | | | | | | 1,030.5 | | |
Reinsurance recoverables | | | | | | | | | | | | | |
Unpaid losses (Net of allowance for expected credit losses of $3.7 as at
June 30, 2020) |
| | | | 3,236.7 | | | | | | 2,319.8 | | |
Ceded unearned premiums
|
| | | | 622.1 | | | | | | 443.7 | | |
Receivables | | | | | | | | | | | | | |
Underwriting premiums (Net of allowance for expected credit losses of $20.7 as at June 30, 2020)
|
| | | | 1,780.8 | | | | | | 1,318.4 | | |
Other
|
| | | | 114.5 | | | | | | 114.3 | | |
Funds withheld
|
| | | | 82.3 | | | | | | 85.0 | | |
Deferred policy acquisition costs
|
| | | | 324.7 | | | | | | 291.1 | | |
Derivatives at fair value
|
| | | | 11.1 | | | | | | 12.9 | | |
Receivables for securities sold
|
| | | | 6.4 | | | | | | 5.1 | | |
Office properties and equipment
|
| | | | 67.9 | | | | | | 64.8 | | |
Right-of-use operating lease assets
|
| | | | 88.0 | | | | | | 93.5 | | |
Tax recoverable
|
| | | | — | | | | | | 4.5 | | |
Deferred tax assets
|
| | | | — | | | | | | — | | |
Other assets
|
| | | | 3.3 | | | | | | 1.6 | | |
Intangible assets and goodwill
|
| | | | 23.4 | | | | | | 23.9 | | |
Total assets
|
| | | $ | 14,148.0 | | | | | $ | 12,580.5 | | |
|
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As at June 30, 2020 and December 31, 2019 ($ in millions, except share and per share amounts) |
| ||||||||||||
| | |
As at
June 30, 2020 |
| |
As at
December 31, 2019 |
| ||||||
LIABILITIES | | | | | | | | | | | | | |
Insurance reserves
|
| | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | $ | 7,055.2 | | | | | $ | 6,951.8 | | |
Unearned premiums
|
| | | | 2,150.4 | | | | | | 1,737.7 | | |
Total insurance reserves
|
| | | | 9,205.6 | | | | | | 8,689.5 | | |
Payables | | | | | | | | | | | | | |
Reinsurance premiums(1)
|
| | | | 1,527.9 | | | | | | 439.6 | | |
Current taxation
|
| | | | 6.4 | | | | | | 2.7 | | |
Accrued expenses and other payables
|
| | | | 160.9 | | | | | | 220.8 | | |
Payment for securities purchased
|
| | | | 39.8 | | | | | | 2.2 | | |
Operating lease liabilities
|
| | | | 107.4 | | | | | | 113.2 | | |
Liabilities under derivative contracts
|
| | | | 121.3 | | | | | | 87.2 | | |
Total payables
|
| | | | 1,963.7 | | | | | | 865.7 | | |
Long-term debt
|
| | | | 299.9 | | | | | | 299.8 | | |
Total liabilities
|
| | | $ | 11,469.2 | | | | | $ | 9,855.0 | | |
Commitments and contingent liabilities (see Note 17)
|
| | | | — | | | | | | — | | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Ordinary shares: | | | | | | | | | | | | | |
60,395,839 shares of par value $0.01 each (December 31, 2019 – 60,395,839 of par value $0.01 each)
|
| | | $ | 0.6 | | | | | $ | 0.6 | | |
Preference shares: | | | | | | | | | | | | | |
11,000,000 5.95% shares of par value 0.15144558¢ each (December 31, 2019 – 11,000,000)
|
| | | | — | | | | | | — | | |
10,000,000 5.625% shares of par value 0.15144558¢ each (December 31, 2019 – 10,000,000)
|
| | | | — | | | | | | — | | |
10,000,000 5.625% depositary shares of par value 0.15144558¢ each
(December 31, 2019 – 10,000,000) |
| | | | — | | | | | | — | | |
Non-controlling interest
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 1,201.7 | | | | | | 1,201.7 | | |
Retained earnings
|
| | | | 1,319.4 | | | | | | 1,514.6 | | |
Accumulated other comprehensive income, net of taxes
|
| | | | 157.1 | | | | | | 8.6 | | |
Total shareholders’ equity
|
| | | | 2,678.8 | | | | | | 2,725.5 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 14,148.0 | | | | | $ | 12,580.5 | | |
|
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND OTHER COMPREHENSIVE INCOME ($ in millions) |
| ||||||||||||
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenues | | | | | | | | | | | | | |
Net earned premium
|
| | | $ | 1,191.7 | | | | | $ | 1,040.2 | | |
Net investment income
|
| | | | 84.9 | | | | | | 99.2 | | |
Realized and unrealized investment gains
|
| | | | 36.8 | | | | | | 72.9 | | |
Other income
|
| | | | 1.9 | | | | | | 3.0 | | |
Total revenues
|
| | | | 1,315.3 | | | | | | 1,215.3 | | |
Expenses | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 883.0 | | | | | | 631.9 | | |
Amortization of deferred policy acquisition costs
|
| | | | 230.9 | | | | | | 190.0 | | |
General, administrative and corporate expenses
|
| | | | 198.3 | | | | | | 264.0 | | |
Interest on long-term debt
|
| | | | 21.7 | | | | | | 11.0 | | |
Change in fair value of derivatives
|
| | | | 87.8 | | | | | | 133.6 | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | — | | | | | | 3.0 | | |
Realized and unrealized investment losses
|
| | | | 70.6 | | | | | | 10.6 | | |
Net realized and unrealized foreign exchange (gains)/losses
|
| | | | (14.2) | | | | | | 13.9 | | |
Other expenses
|
| | | | 1.8 | | | | | | 1.4 | | |
Total expenses
|
| | | | 1,479.9 | | | | | | 1,259.4 | | |
(Loss) from operations before income tax
|
| | | | (164.6) | | | | | | (44.1) | | |
Income tax (expense)/benefit
|
| | | | (4.1) | | | | | | 6.8 | | |
Net (loss)
|
| | | $ | (168.7) | | | | | $ | (37.3) | | |
Amount attributable to non-controlling interest
|
| | | | — | | | | | | 1.2 | | |
Net (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders
|
| | | $ | (168.7) | | | | |
$
|
(36.1)
|
| |
Other Comprehensive Income/(Loss): | | | | | | | | | | | | | |
Available for sale investments: | | | | | | | | | | | | | |
Reclassification adjustment for net realized gains on investments included in net
income |
| | | $ | (18.4) | | | | | $ | (1.1) | | |
Change in net unrealized gains/(losses) on available for sale securities held
|
| | | | 182.5 | | | | | | 147.9 | | |
Net change from current period hedged transactions
|
| | | | (5.1) | | | | | | (1.0) | | |
Change in foreign currency translation adjustment
|
| | | | (7.0) | | | | | | (11.0) | | |
Other comprehensive income, gross of tax
|
| | | | 152.0 | | | | | | 134.8 | | |
Tax thereon: | | | | | | | | | | | | | |
Reclassification adjustment for net realized gains on investments included in net
income |
| | | | — | | | | | | — | | |
Change in net unrealized (losses)/gains on available for sale securities held
|
| | | | (4.2) | | | | | | (10.3) | | |
Net change from current period hedged transactions
|
| | | | 0.4 | | | | | | 0.5 | | |
Change in foreign currency translation adjustment
|
| | | | 0.3 | | | | | | 2.5 | | |
Total tax on other comprehensive income
|
| | | | (3.5) | | | | | | (7.3) | | |
Other comprehensive income net of tax
|
| | | | 148.5 | | | | | | 127.5 | | |
Total comprehensive (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders
|
| | | $ | (20.2) | | | | |
$
|
91.4
|
| |
|
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions) |
| ||||||||||||
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Ordinary shares | | | | | | | | | | | | | |
Beginning of the period
|
| | | $ | 0.6 | | | | | $ | 0.1 | | |
Ordinary shares canceled
|
| | | | — | | | | | | (0.1) | | |
New ordinary shares issued
|
| | | | — | | | | | | 0.6 | | |
End of the period
|
| | | | 0.6 | | | | | | 0.6 | | |
Preference shares | | | | | | | | | | | | | |
Beginning and end of the period
|
| | | | — | | | | | | — | | |
Non-controlling interest
|
| | | | | | | | | | | | |
Beginning of the period
|
| | | | — | | | | | | 3.7 | | |
Net change attributable to non-controlling interest for the period
|
| | | | — | | | | | | (2.5) | | |
Minority interest buy-out
|
| | | | — | | | | | | (1.2) | | |
End of the period
|
| | | | — | | | | | | — | | |
Additional paid-in capital | | | | | | | | | | | | | |
Beginning of the period
|
| | | | 1,201.7 | | | | | | 967.5 | | |
New ordinary shares issued
|
| | | | — | | | | | | 0.8 | | |
Minority interest consideration
|
| | | | — | | | | | | (0.8) | | |
Minority interest buy-out
|
| | | | — | | | | | | 2.5 | | |
End of the period
|
| | | | 1,201.7 | | | | | | 970.0 | | |
Retained earnings | | | | | | | | | | | | | |
Beginning of the period
|
| | | | 1,514.6 | | | | | | 1,791.0 | | |
Net income for the period
|
| | | | (168.7) | | | | | | (37.3) | | |
Dividends on preference shares
|
| | | | (22.2) | | | | | | (15.2) | | |
Net change attributable to non-controlling interest for the period
|
| | | | — | | | | | | 1.2 | | |
Operating leases(1)
|
| | | | — | | | | | | (2.4) | | |
Opening Credit losses (CECL)(2)
|
| | | | (4.3) | | | | | | — | | |
End of the period
|
| | | | 1,319.4 | | | | | | 1,737.3 | | |
Accumulated other comprehensive income: | | | | | | | | | | | | | |
Cumulative foreign currency translation adjustments, net of taxes: | | | | | | | | | | | | | |
Beginning of the period
|
| | | | (80.2) | | | | | | (55.4) | | |
Change for the period, net of income tax
|
| | | | (6.7) | | | | | | (8.5) | | |
End of the period
|
| | | | (86.9) | | | | | | (63.9) | | |
Gain on derivatives, net of taxes: | | | | | | | | | | | | | |
Beginning of the period
|
| | | | 4.3 | | | | | | 0.3 | | |
Net change from current period hedged transactions
|
| | | | (4.7) | | | | | | (0.5) | | |
End of the period
|
| | | | (0.4) | | | | | | (0.2) | | |
Unrealized appreciation on investments, net of taxes: | | | | | | | | | | | | | |
Beginning of the period
|
| | | | 84.5 | | | | | | (66.8) | | |
Change for the period, net of taxes
|
| | | | 159.9 | | | | | | 136.5 | | |
End of the period
|
| | | | 244.4 | | | | | | 69.7 | | |
Total accumulated other comprehensive (loss), net of taxes
|
| | | | 157.1 | | | | | | 5.6 | | |
Total shareholders’ equity
|
| | | $ | 2,678.8 | | | | | $ | 2,713.5 | | |
|
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions) |
| ||||||||||||
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows (used in) operating activities: | | | | | | | | | | | | | |
Net (loss)
|
| | | $ | (168.7) | | | | | $ | (37.3) | | |
Proportion due to non-controlling interest
|
| | | | — | | | | | | 1.2 | | |
Adjustments to reconcile net income to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 14.5 | | | | | | 13.3 | | |
Amortization
|
| | | | 5.6 | | | | | | 4.3 | | |
Amortization of right-of-use operating lease assets
|
| | | | 5.9 | | | | | | 6.6 | | |
Interest on operating lease liabilities
|
| | | | 2.6 | | | | | | 2.4 | | |
Realized and unrealized investment gains
|
| | | | (36.8) | | | | | | (72.9) | | |
Realized and unrealized investment losses
|
| | | | 70.6 | | | | | | 10.6 | | |
Deferred taxes
|
| | | | — | | | | | | (1.4) | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | — | | | | | | 3.0 | | |
Net realized and unrealized investment foreign exchange losses/(gains)
|
| | | | 1.3 | | | | | | 48.1 | | |
Net change from current period hedged transactions
|
| | | | (4.7) | | | | | | (0.5) | | |
Changes in: | | | | | | | | | | | | | |
Insurance reserves:
|
| | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 146.2 | | | | | | (345.4) | | |
Unearned premiums
|
| | | | 419.8 | | | | | | 235.1 | | |
Reinsurance recoverables:
|
| | | | | | | | | | | | |
Unpaid losses
|
| | | | (932.9) | | | | | | (190.4) | | |
Ceded unearned premiums
|
| | | | (180.1) | | | | | | (59.9) | | |
Other receivables
|
| | | | 0.4 | | | | | | (27.5) | | |
Deferred policy acquisition costs
|
| | | | (34.5) | | | | | | (41.2) | | |
Reinsurance premiums payable
|
| | | | 1,090.1 | | | | | | 99.9 | | |
Funds withheld
|
| | | | 2.7 | | | | | | (0.8) | | |
Premiums receivable
|
| | | | (463.9) | | | | | | (53.9) | | |
Income tax payable
|
| | | | 7.8 | | | | | | 5.1 | | |
Accrued expenses and other payables
|
| | | | (65.3) | | | | | | (28.6) | | |
Fair value of derivatives and settlement of liabilities under derivatives
|
| | | | 35.9 | | | | | | 128.5 | | |
Long-term debt and loan notes issued by variable interest entities
|
| | | | 0.1 | | | | | | 0.1 | | |
Operating lease liabilities
|
| | | | (8.5) | | | | | | (9.0) | | |
Other assets
|
| | | | (1.7) | | | | | | (1.5) | | |
Net cash (used in) operating activities
|
| | | $ | (93.6) | | | | | $ | (312.1) | | |
|
ASPEN INSURANCE HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions) |
| ||||||||||||
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from investing activities: | | | | | | | | | | | | | |
(Purchases) of fixed income securities – Available for sale
|
| | | $ | (972.1) | | | | | $ | (651.8) | | |
(Purchases) of fixed income securities – Trading
|
| | | | (213.9) | | | | | | (620.8) | | |
Proceeds from sales and maturities of fixed income securities – Available for sale
|
| | | | 988.4 | | | | | | 1,065.2 | | |
Proceeds from sales and maturities of fixed income securities – Trading
|
| | | | 428.8 | | | | | | 731.6 | | |
(Purchases) of equity securities – Trading
|
| | | | (0.6) | | | | | | — | | |
Net (purchases) of catastrophe bonds – Trading
|
| | | | 4.3 | | | | | | (1.5) | | |
(Purchases) of short-term investments – Available for sale
|
| | | | (157.1) | | | | | | (126.9) | | |
Proceeds from sales of short-term investments – Available for sale
|
| | | | 123.7 | | | | | | 113.7 | | |
(Purchases) of short-term investments – Trading
|
| | | | (32.2) | | | | | | (154.6) | | |
Proceeds from sales of short-term investments – Trading
|
| | | | 79.1 | | | | | | 68.6 | | |
(Purchase) of privately-held investments
|
| | | | (58.6) | | | | | | (56.1) | | |
Proceeds from sale of privately-held investments
|
| | | | 21.0 | | | | | | — | | |
Net change in (payable)/receivable for securities sold
|
| | | | 36.3 | | | | | | 92.0 | | |
Net (purchases) of other investments
|
| | | | (0.3) | | | | | | — | | |
Net (purchases) of equipment
|
| | | | (17.9) | | | | | | (12.6) | | |
Investment in Bene
|
| | | | — | | | | | | (1.1) | | |
Net cash from investing activities
|
| | | | 228.9 | | | | | | 445.7 | | |
Cash flows (used in) financing activities: | | | | | | | | | | | | | |
Proceeds from the issuance of ordinary shares, net of issuance costs
|
| | | | — | | | | | | 1.4 | | |
Ordinary shares canceled
|
| | | | — | | | | | | (0.1) | | |
Minority interest consideration
|
| | | | — | | | | | | (0.8) | | |
Repayment of long-term debt issued by Silverton
|
| | | | — | | | | | | (4.3) | | |
Dividends paid on preference shares
|
| | | | (22.2) | | | | | | (15.2) | | |
Cash paid for tax withholding purposes
|
| | | | — | | | | | | (2.8) | | |
Net cash (used in) financing activities
|
| | | | (22.2) | | | | | | (21.8) | | |
Effect of exchange rate movements on cash and cash equivalents
|
| | | | (8.3) | | | | | | (0.1) | | |
Increase in cash and cash equivalents
|
| | | | 104.8 | | | | | | 111.7 | | |
Cash and cash equivalents at beginning of period
|
| | | | 1,030.5 | | | | | | 1,083.7 | | |
Cash and cash equivalents at end of period
|
| | | $ | 1,135.4 | | | | | $ | 1,195.4 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Net cash (received) during the period for income tax
|
| | | $ | 3.5 | | | | | $ | 2.7 | | |
Cash paid during the period for interest
|
| | | $ | 21.7 | | | | | $ | 11.0 | | |
| | |
Amount Reclassified from AOCI
|
| |
Affected Line Item in the Unaudited
Condensed Consolidated Statement of Operations |
| |||||||||
Details about the AOCI
Components |
| |
Six Months Ended
June 30, 2020 |
| |
Six Months Ended
June 30, 2019 |
| |||||||||
| | |
($ in millions)
|
| | | | |||||||||
Available for sale securities: | | | | | | | | | | | | | | | | |
Realized gains on sale of securities
|
| | | $ | 20.0 | | | | | $ | 6.8 | | | | Realized and unrealized investment gains | |
Realized (losses) on sale of
securities |
| | | | (1.6) | | | | | | (5.7) | | | | Realized and unrealized investment losses | |
| | | | | 18.4 | | | | | | 1.1 | | | | Income from operations before income tax | |
Tax on net realized (losses) on
securities |
| | | | — | | | | | | — | | | | Income tax benefit/(expense) | |
| | | | $ | 18.4 | | | | | $ | 1.1 | | | | Net income | |
Foreign currency translation adjustments:
|
| | | | ||||||||||||
Foreign currency translation
adjustments, before income tax |
| | | $ | 7.0 | | | | | $ | 11.0 | | | |
Net realized and unrealized foreign exchange gains/(losses)
|
|
Tax on foreign currency translation
adjustments |
| | | | (0.3) | | | | | | (2.5) | | | | Income tax expense | |
| | | | $ | 6.7 | | | | | $ | 8.5 | | | | Net income | |
Realized derivatives: | | | | | | | | | | | | | | | | |
Net realized gains on settled
derivatives |
| | | $ | 5.1 | | | | | $ | 1.0 | | | | General, administrative and corporate expenses | |
Tax on settled derivatives
|
| | | | (0.4) | | | | | | (0.5) | | | | Income tax benefit/(expense) | |
| | | | $ | 4.7 | | | | | $ | 0.5 | | | | Net income | |
Total reclassifications from AOCI to the statement of operations, net of income tax
|
| | | $ | 29.8 | | | | | $ | 10.1 | | | | Net income | |
|
| | |
Dividend
|
| |
Payable on:
|
| |
Record Date:
|
| |||||||||
5.95% Preference Shares (AHL PRC)
|
| | | $ | 0.3719 | | | | | | July 1,2020 | | | | | | June 15,2020 | | |
5.625% Preference Shares (AHL PRD)
|
| | | $ | 0.3516 | | | | | | July 1,2020 | | | | | | June 15,2020 | | |
5.625% Preference Shares, represented by Depositary Shares (AHL PRE)(1)
|
| | | $ | 351.6 | | | | | | July 1,2020 | | | | | | June 15,2020 | | |
| | |
Six Months Ended June 30, 2020
|
| |||||||||||||||
| | |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Underwriting Revenues | | | | | | | | | | | | | | | | | | | |
Gross written premiums
|
| | | $ | 1,122.3 | | | | | $ | 996.3 | | | | | $ | 2,118.6 | | |
Net written premiums
|
| | | | 842.8 | | | | | | 594.0 | | | | | | 1,436.8 | | |
Gross earned premiums
|
| | | | 685.1 | | | | | | 1,008.2 | | | | | | 1,693.3 | | |
Net earned premiums
|
| | | | 564.1 | | | | | | 627.6 | | | | | | 1,191.7 | | |
Underwriting Expenses | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 449.8 | | | | | | 433.2 | | | | | | 883.0 | | |
Amortization of deferred policy acquisition costs
|
| | | | 114.7 | | | | | | 116.2 | | | | | | 230.9 | | |
General and administrative expenses
|
| | | | 53.6 | | | | | | 102.9 | | | | | | 156.5 | | |
Underwriting (loss)
|
| | | $ | (54.0) | | | | | $ | (24.7) | | | | | | (78.7) | | |
Corporate expenses
|
| | | | | | | | | | | | | | | | (30.2) | | |
Non-operating expenses(1)
|
| | | | | | | | | | | | | | | | (11.6) | | |
Net investment income
|
| | | | | | | | | | | | | | | | 84.9 | | |
Realized and unrealized investment gains
|
| | | | | | | | | | | | | | | | 36.8 | | |
Realized and unrealized investment losses
|
| | | | | | | | | | | | | | | | (70.6) | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | | | | | | | | | | | | | — | | |
Change in fair value of derivatives
|
| | | | | | | | | | | | | | | | (87.8) | | |
Interest expense on long term debt
|
| | | | | | | | | | | | | | | | (21.7) | | |
Net realized and unrealized foreign exchange gains
|
| | | | | | | | | | | | | | | | 14.2 | | |
Other income
|
| | | | | | | | | | | | | | | | 1.9 | | |
| | |
Six Months Ended June 30, 2020
|
| |||||||||||||||
| | |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Other expenses
|
| | | | | | | | | | | | | | | | (1.8) | | |
(Loss) before tax
|
| | | | | | | | | | | | | | | $ | (164.6) | | |
Ratios | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 79.7% | | | | | | 69.0% | | | | | | 74.1% | | |
Policy acquisition expense ratio
|
| | | | 20.3 | | | | | | 18.5 | | | | | | 19.4 | | |
General and administrative expense ratio
|
| | | | 9.5 | | | | | | 16.4 | | | | | | 16.6(2) | | |
Expense ratio
|
| | | | 29.8 | | | | | | 34.9 | | | | | | 36.0 | | |
Combined ratio
|
| | | | 109.5% | | | | | | 103.9% | | | | | | 110.1% | | |
|
| | |
Six Months Ended June 30, 2019
|
| |||||||||||||||
| | |
Reinsurance
|
| |
Insurance
|
| |
Total
|
| |||||||||
| | |
( $ in millions)
|
| |||||||||||||||
Underwriting Revenues | | | | | | | | | | | | | | | | | | | |
Gross written premiums
|
| | | $ | 881.8 | | | | | $ | 972.6 | | | | | $ | 1,854.4 | | |
Net written premiums
|
| | | | 684.6 | | | | | | 522.3 | | | | | | 1,206.9 | | |
Gross earned premiums
|
| | | | 670.9 | | | | | | 956.9 | | | | | | 1,627.8 | | |
Net earned premiums
|
| | | | 552.8 | | | | | | 487.4 | | | | | | 1,040.2 | | |
Underwriting Expenses | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 327.5 | | | | | | 304.4 | | | | | | 631.9 | | |
Amortization of deferred policy acquisition costs
|
| | | | 126.4 | | | | | | 63.6 | | | | | | 190.0 | | |
General and administrative expenses
|
| | | | 59.9 | | | | | | 116.3 | | | | | | 176.2 | | |
Underwriting income
|
| | | $ | 39.0 | | | | | $ | 3.1 | | | | | | 42.1 | | |
Corporate expenses
|
| | | | | | | | | | | | | | | | (25.9) | | |
Non-operating expenses(1)
|
| | | | | | | | | | | | | | | | (61.9) | | |
Net investment income
|
| | | | | | | | | | | | | | | | 99.2 | | |
Realized and unrealized investment gains
|
| | | | | | | | | | | | | | | | 72.9 | | |
Realized and unrealized investment losses
|
| | | | | | | | | | | | | | | | (10.6) | | |
Change in fair value of loan notes issued by variable interest entities
|
| | | | | | | | | | | | | | | | (3.0) | | |
Change in fair value of derivatives
|
| | | | | | | | | | | | | | | | (133.6) | | |
Interest expense on long term debt
|
| | | | | | | | | | | | | | | | (11.0) | | |
Net realized and unrealized foreign exchange (losses)
|
| | | | | | | | | | | | | | | | (13.9) | | |
Other income
|
| | | | | | | | | | | | | | | | 3.0 | | |
Other expenses
|
| | | | | | | | | | | | | | | | (1.4) | | |
(Loss) before tax
|
| | | | | | | | | | | | | | | $ | (44.1) | | |
Ratios | | | | | | | | | | | | | | | | | | | |
Loss ratio
|
| | | | 59.2% | | | | | | 62.5% | | | | | | 60.7% | | |
Policy acquisition expense ratio
|
| | | | 22.9 | | | | | | 13.0 | | | | | | 18.3 | | |
General and administrative expense ratio
|
| | | | 10.8 | | | | | | 23.9 | | | | | | 25.4(2) | | |
Expense ratio
|
| | | | 33.7 | | | | | | 36.9 | | | | | | 43.7 | | |
Combined ratio
|
| | | | 92.9% | | | | | | 99.4% | | | | | | 104.4% | | |
|
| | |
For the Six Months Ended
|
| |||||||||
| | |
June 30, 2020
|
| |
June 30, 2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Fixed income securities – Available for sale
|
| | | $ | 59.4 | | | | | $ | 66.6 | | |
Fixed income securities – Trading
|
| | | | 18.9 | | | | | | 21.7 | | |
Short-term investments – Available for sale
|
| | | | 0.6 | | | | | | 1.3 | | |
Short-term investments – Trading
|
| | | | 0.4 | | | | | | 1.5 | | |
Fixed term deposits (included in cash and cash equivalents)
|
| | | | 5.3 | | | | | | 8.9 | | |
Catastrophe bonds – Trading
|
| | | | 0.7 | | | | | | 1.6 | | |
Privately-held investments – Trading
|
| | | | 10.6 | | | | | | (0.2) | | |
Other investments, at fair value
|
| | | | (4.2) | | | | | | 3.1 | | |
Total
|
| | | $ | 91.7 | | | | | $ | 104.5 | | |
Investment expenses
|
| | | | (6.8) | | | | | | (5.3) | | |
Net investment income
|
| | | $ | 84.9 | | | | | $ | 99.2 | | |
|
| | |
For the Six Months Ended
|
| |||||||||
| | |
June 30, 2020
|
| |
June 30, 2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Available for sale: | | | | | | | | | | | | | |
Fixed income securities – gross realized gains
|
| | | $ | 19.8 | | | | | $ | 6.8 | | |
Fixed income securities – gross realized (losses)
|
| | | | (1.2) | | | | | | (5.2) | | |
Cash and cash equivalents – gross realized gains
|
| | | | — | | | | | | — | | |
Cash and cash equivalents – gross realized (losses)
|
| | | | (0.4) | | | | | | (0.1) | | |
Net change in current expected credit gains/(losses)
|
| | | | 0.4 | | | | | | — | | |
Trading: | | | | | | | | | | | | | |
Fixed income securities – gross realized gains
|
| | | | 16.4 | | | | | | 10.9 | | |
Fixed income securities – gross realized (losses)
|
| | | | (3.8) | | | | | | (3.7) | | |
Short-term investments – gross realized (losses)
|
| | | | — | | | | | | — | | |
Cash and cash equivalents – gross realized gains
|
| | | | — | | | | | | — | | |
Cash and cash equivalents – gross realized (losses)
|
| | | | (0.3) | | | | | | (0.1) | | |
Equity securities – gross realized gains
|
| | | | — | | | | | | — | | |
Equity securities – gross realized (losses)
|
| | | | — | | | | | | — | | |
Privately-held investments – gross realized gains
|
| | | | — | | | | | | — | | |
Privately-held investments – gross realized (losses)
|
| | | | — | | | | | | — | | |
Privately-held investments – net change in gross unrealized gains (losses)
|
| | | | (22.1) | | | | | | (0.1) | | |
Catastrophe bonds – net unrealized gains
|
| | | | — | | | | | | (1.0) | | |
Net change in gross unrealized gains/(losses)
|
| | | | (42.6) | | | | | | 55.2 | | |
Investments – equity method: | | | | | | | | | | | | | |
Gross realized and unrealized (loss) in MVI
|
| | | | (0.2) | | | | | | — | | |
Gross realized and unrealized (loss) in Digital Risk
|
| | | | 0.1 | | | | | | (0.4) | | |
Gross realized and unrealized (loss) in Bene
|
| | | | 0.1 | | | | | | — | | |
Total net realized and unrealized investment gains/(losses) recorded in the statement of
operations |
| | | | (33.8) | | | | | | 62.3 | | |
Change in available for sale net unrealized gains/(losses): | | | | | | | | | | | | | |
Fixed income securities
|
| | | | 164.1 | | | | | | 146.8 | | |
Change in taxes
|
| | | | (4.2) | | | | | | (10.3) | | |
Total change in net unrealized gains/(losses), net of taxes, recorded in other comprehensive
income |
| | | $ | 159.9 | | | | | $ | 136.5 | | |
|
| | |
As at June 30, 2020
|
| |||||||||||||||||||||||||||
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Allowance for
Credit Losses |
| |
Fair Market
Value |
| |||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||
U.S. government
|
| | | $ | 1,240.0 | | | | | $ | 83.7 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,323.7 | | |
U.S. agency
|
| | | | 34.9 | | | | | | 1.8 | | | | | | — | | | | | | — | | | | | | 36.7 | | |
Municipal
|
| | | | 64.0 | | | | | | 5.8 | | | | | | — | | | | | | — | | | | | | 69.8 | | |
Corporate
|
| | | | 2,085.7 | | | | | | 131.7 | | | | | | (0.3) | | | | | | (0.2) | | | | | | 2,216.9 | | |
Non-U.S. government-backed corporate
|
| | | | 78.2 | | | | | | 1.3 | | | | | | — | | | | | | — | | | | | | 79.5 | | |
Non-U.S. government
|
| | | | 316.5 | | | | | | 6.4 | | | | | | — | | | | | | — | | | | | | 322.9 | | |
Asset-backed
|
| | | | 2.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.6 | | |
Non-agency commercial mortgage-backed
|
| | | | 6.7 | | | | | | 0.7 | | | | | | — | | | | | | — | | | | | | 7.4 | | |
Agency mortgage-backed
|
| | | | 988.8 | | | | | | 45.9 | | | | | | — | | | | | | — | | | | | | 1,034.7 | | |
Total fixed income securities – Available for sale
|
| | | | 4,817.4 | | | | | | 277.3 | | | | | | (0.3) | | | | | | (0.2) | | | | | | 5,094.2 | | |
Total short-term investments – Available for sale
|
| | | | 146.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | 146.6 | | |
Total
|
| | | $ | 4,964.0 | | | | | $ | 277.3 | | | | | $ | (0.3) | | | | | $ | (0.2) | | | | | $ | 5,240.8 | | |
|
| | |
As at December 31, 2019
|
| |||||||||||||||||||||
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Market
Value |
| ||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||
U.S. government
|
| | | $ | 1,383.2 | | | | | $ | 31.3 | | | | | $ | (1.4) | | | | | $ | 1,413.1 | | |
U.S. agency
|
| | | | 38.7 | | | | | | 0.9 | | | | | | — | | | | | | 39.6 | | |
Municipal
|
| | | | 47.8 | | | | | | 2.9 | | | | | | — | | | | | | 50.7 | | |
Corporate
|
| | | | 1,905.6 | | | | | | 54.8 | | | | | | (0.6) | | | | | | 1,959.8 | | |
Non-U.S. government-backed corporate
|
| | | | 86.1 | | | | | | 0.5 | | | | | | (0.1) | | | | | | 86.5 | | |
Non-U.S. government
|
| | | | 324.7 | | | | | | 4.5 | | | | | | (0.4) | | | | | | 328.8 | | |
Asset-backed
|
| | | | 0.2 | | | | | | — | | | | | | — | | | | | | 0.2 | | |
Non-agency commercial mortgage-backed
|
| | | | 6.7 | | | | | | — | | | | | | (0.2) | | | | | | 6.5 | | |
Agency mortgage-backed
|
| | | | 1,052.2 | | | | | | 21.9 | | | | | | (1.1) | | | | | | 1,073.0 | | |
Total fixed income securities – Available for sale
|
| | | | 4,845.2 | | | | | | 116.8 | | | | | | (3.8) | | | | | | 4,958.2 | | |
Total short-term investments – Available for sale
|
| | | | 117.6 | | | | | | — | | | | | | — | | | | | | 117.6 | | |
Total
|
| | | $ | 4,962.8 | | | | | $ | 116.8 | | | | | $ | (3.8) | | | | | $ | 5,075.8 | | |
|
| | |
As at June 30, 2020
|
| |||||||||||||||||||||
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Market
Value |
| ||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||
U.S. government
|
| | | $ | 191.1 | | | | | $ | 3.8 | | | | | $ | — | | | | | $ | 194.9 | | |
Municipal
|
| | | | 3.2 | | | | | | 0.3 | | | | | | — | | | | | | 3.5 | | |
Corporate
|
| | | | 111.2 | | | | | | 8.3 | | | | | | (1.1) | | | | | | 118.4 | | |
High Yield Loans
|
| | | | 8.5 | | | | | | — | | | | | | (1.6) | | | | | | 6.9 | | |
Non-U.S. government
|
| | | | 38.8 | | | | | | 0.2 | | | | | | — | | | | | | 39.0 | | |
Asset-backed
|
| | | | 517.1 | | | | | | 0.8 | | | | | | (27.6) | | | | | | 490.3 | | |
Agency mortgage-backed
|
| | | | 32.5 | | | | | | 1.6 | | | | | | — | | | | | | 34.1 | | |
Total fixed income securities – Trading
|
| | | | 902.4 | | | | | | 15.0 | | | | | | (30.3) | | | | | | 887.1 | | |
Total short-term investments – Trading
|
| | | | 31.9 | | | | | | — | | | | | | — | | | | | | 31.9 | | |
Total catastrophe bonds – Trading
|
| | | | 25.0 | | | | | | — | | | | | | (0.7) | | | | | | 24.3 | | |
Privately-held investments
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Mortgage Loans
|
| | | | 193.0 | | | | | | 0.1 | | | | | | (17.2) | | | | | | 175.9 | | |
Middle Market Loans
|
| | | | 109.4 | | | | | | — | | | | | | (4.7) | | | | | | 104.7 | | |
Asset-backed securities
|
| | | | 8.7 | | | | | | — | | | | | | (0.3) | | | | | | 8.4 | | |
Equity Securities
|
| | | | 2.7 | | | | | | — | | | | | | — | | | | | $ | 2.7 | | |
Total Privately-held investments
|
| | | | 313.8 | | | | | | 0.1 | | | | | | (22.2) | | | | | | 291.7 | | |
Total
|
| | | $ | 1,273.1 | | | | | $ | 15.1 | | | | | $ | (53.2) | | | | | $ | 1,235.0 | | |
|
| | |
As at December 31, 2019
|
| |||||||||||||||||||||
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Market
Value |
| ||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||
Fixed Income Securities – Trading | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | $ | 183.3 | | | | | $ | 1.8 | | | | | $ | (0.1) | | | | | $ | 185.0 | | |
Municipal
|
| | | | 3.1 | | | | | | 0.1 | | | | | | — | | | | | | 3.2 | | |
Corporate
|
| | | | 231.7 | | | | | | 11.6 | | | | | | (0.1) | | | | | | 243.2 | | |
Non-U.S. government
|
| | | | 143.9 | | | | | | 7.4 | | | | | | (0.1) | | | | | | 151.2 | | |
Asset-backed
|
| | | | 491.7 | | | | | | 2.4 | | | | | | (1.7) | | | | | | 492.4 | | |
Agency mortgage-backed
|
| | | | 52.9 | | | | | | 0.9 | | | | | | — | | | | | | 53.8 | | |
Total fixed income securities – Trading
|
| | | | 1,106.6 | | | | | | 24.2 | | | | | | (2.0) | | | | | | 1,128.8 | | |
Short-term investments – Trading
|
| | | | 79.2 | | | | | | — | | | | | | — | | | | | | 79.2 | | |
Catastrophe bonds – Trading
|
| | | | 29.4 | | | | | | — | | | | | | (0.8) | | | | | | 28.6 | | |
Privately-held investments – Trading | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | $ | 156.3 | | | | | $ | 0.3 | | | | | $ | — | | | | | $ | 156.6 | | |
Middle market loans
|
| | | | 111.7 | | | | | | 0.2 | | | | | | (0.2) | | | | | | 111.7 | | |
Asset-backed securities
|
| | | | 8.7 | | | | | | — | | | | | | — | | | | | | 8.7 | | |
Equity securities
|
| | | | 2.5 | | | | | | 0.2 | | | | | | — | | | | | | 2.7 | | |
Total privately-held investments – Trading
|
| | | | 279.2 | | | | | | 0.7 | | | | | | (0.2) | | | | | | 279.7 | | |
Total Investments – Trading
|
| | | $ | 1,494.4 | | | | | $ | 24.9 | | | | | $ | (3.0) | | | | | $ | 1,516.3 | | |
|
| | |
For the Six Months Ended June 30, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
MVI
|
| |
Multi-line
Reinsurer |
| |
Bene
|
| |
Digital Re
|
| |
Crop Re
|
| |
Total
|
| ||||||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||||||||
Opening undistributed value of investment as at January 1, 2020
|
| | | $ | 0.4 | | | | | $ | — | | | | | $ | 4.3 | | | | | $ | 0.7 | | | | | $ | 62.5 | | | | | $ | 67.9 | | |
Investment in the period
|
| | | | — | | | | | | 0.3 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 0.3 | | |
Realized/unrealized (losses)/gains for the six months to June 30,
2020 |
| | | | (0.2) | | | | | | — | | | | | | 0.1 | | | | | | 0.1 | | | | | | — | | | | | | — | | |
Closing value of investment as at June 30, 2020
|
| | | $ | 0.2 | | | | | $ | 0.3 | | | | | $ | 4.4 | | | | | $ | 0.8 | | | | | $ | 62.5 | | | | | $ | 68.2 | | |
|
| | |
For the Twelve Months Ended December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
MVI
|
| |
Multi-line
Reinsurer |
| |
Bene
|
| |
Digital Re
|
| |
Crop Re
|
| |
Total
|
| ||||||||||||||||||
Opening undistributed value of investment as at January 1, 2019
|
| | | $ | 0.5 | | | | | $ | — | | | | | $ | 3.2 | | | | | $ | 0.9 | | | | | $ | 62.5 | | | | | $ | 67.1 | | |
Investment in the period
|
| | | | — | | | | | | — | | | | | | 1.1 | | | | | | — | | | | | | — | | | | | | 1.1 | | |
Unrealized (loss)/gain for the twelve months to December 31, 2019
|
| | | | (0.1) | | | | | | — | | | | | | — | | | | | | (0.2) | | | | | | — | | | | | | (0.3) | | |
Closing value of investment as at December 31, 2019
|
| | | $ | 0.4 | | | | | $ | — | | | | | $ | 4.3 | | | | | $ | 0.7 | | | | | $ | 62.5 | | | | | $ | 67.9 | | |
|
| | |
As at June 30, 2020
|
| |||||||||||||||
| | |
Amortized
Cost or Cost |
| |
Fair Market
Value |
| |
Average
S&P Ratings by Maturity |
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Due one year or less
|
| | | $ | 505.4 | | | | | $ | 510.3 | | | | | | AA | | |
Due after one year through five years
|
| | | | 2,213.5 | | | | | | 2,316.1 | | | | | | AA- | | |
Due after five years through ten years
|
| | | | 951.0 | | | | | | 1,040.2 | | | | | | AA- | | |
Due after ten years
|
| | | | 149.4 | | | | | | 182.9 | | | | | | AA- | | |
Subtotal
|
| | | | 3,819.3 | | | | | | 4,049.5 | | | | | | | | |
Non-agency commercial mortgage-backed
|
| | | | 6.7 | | | | | | 7.4 | | | | | | AA+ | | |
Agency mortgage-backed
|
| | | | 988.8 | | | | | | 1,034.7 | | | | | | AA+ | | |
Asset-backed
|
| | | | 2.6 | | | | | | 2.6 | | | | | | AAA | | |
Total fixed income securities – Available for sale
|
| | | $ | 4,817.4 | | | | | $ | 5,094.2 | | | | | | | | |
|
| | |
As at December 31, 2019
|
| |||||||||||||||
| | |
Amortized
Cost or Cost |
| |
Fair Market
Value |
| |
Average
S&P Ratings by Maturity |
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Due one year or less
|
| | | $ | 572.7 | | | | | $ | 574.6 | | | | | | AA | | |
Due after one year through five years
|
| | | | 2,230.3 | | | | | | 2,269.3 | | | | | | AA- | | |
Due after five years through ten years
|
| | | | 864.1 | | | | | | 896.3 | | | | | | AA- | | |
Due after ten years
|
| | | | 119.0 | | | | | | 138.3 | | | | | | AA- | | |
Subtotal
|
| | | | 3,786.1 | | | | | | 3,878.5 | | | | | | | | |
Non-agency commercial mortgage-backed
|
| | | | 6.7 | | | | | | 6.5 | | | | | | AA+ | | |
Agency mortgage-backed
|
| | | | 1,052.2 | | | | | | 1,073.0 | | | | | | AA+ | | |
Asset-backed
|
| | | | 0.2 | | | | | | 0.2 | | | | | | AAA | | |
Total fixed income securities – Available for sale
|
| | | $ | 4,845.2 | | | | | $ | 4,958.2 | | | | | | | | |
|
| | |
As at June 30, 2020
|
| |||||||||||||||||||||||||||||||||||||||
| | |
0-12 months
|
| |
Over 12 months
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
| | |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Number of
Securities |
| |||||||||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||||||||||||||
U.S. government
|
| | | $ | 51.0 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 51.0 | | | | | $ | — | | | | | | 8 | | |
U.S. agency
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Municipal
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate
|
| | | | 36.9 | | | | | | (0.3) | | | | | | 3.4 | | | | | | — | | | | | | 40.3 | | | | | | (0.3) | | | | | | 28 | | |
Non-U.S. government-backed corporate
|
| | | | 2.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.9 | | | | | | — | | | | | | 1 | | |
Non-U.S. government
|
| | | | 39.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | 39.2 | | | | | | — | | | | | | 6 | | |
Asset-backed
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Agency mortgage-backed
|
| | | | 17.0 | | | | | | — | | | | | | 3.9 | | | | | | — | | | | | | 20.9 | | | | | | — | | | | | | 16 | | |
Total fixed income securities – Available for sale
|
| | | | 147.0 | | | | | | (0.3) | | | | | | 7.3 | | | | | | — | | | | | | 154.3 | | | | | | (0.3) | | | | | | 59 | | |
Total short-term investments – Available for sale
|
| | | | 0.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.4 | | | | | | — | | | | | | 1 | | |
Total
|
| | | $ | 147.4 | | | | | $ | (0.3) | | | | | $ | 7.3 | | | | | $ | — | | | | | $ | 154.7 | | | | | $ | (0.3) | | | | | | 60 | | |
|
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||||||||
| | |
0-12 months
|
| |
Over 12 months
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
| | |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Fair
Market Value |
| |
Gross
Unrealized Loss |
| |
Number of
Securities |
| |||||||||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||||||||||||||
U.S. government
|
| | | $ | 142.0 | | | | | $ | (1.0) | | | | | $ | 138.2 | | | | | $ | (0.4) | | | | | $ | 280.2 | | | | | $ | (1.4) | | | | | | 49 | | |
U.S. agency
|
| | | | 3.0 | | | | | | — | | | | | | 6.0 | | | | | | — | | | | | | 9.0 | | | | | | — | | | | | | 2 | | |
Municipal
|
| | | | 3.7 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3.7 | | | | | | — | | | | | | 2 | | |
Corporate
|
| | | | 167.7 | | | | | | (0.6) | | | | | | 37.1 | | | | | | — | | | | | | 204.8 | | | | | | (0.6) | | | | | | 91 | | |
Non-U.S. government-backed corporate
|
| | | | 31.8 | | | | | | (0.1) | | | | | | — | | | | | | — | | | | | | 31.8 | | | | | | (0.1) | | | | | | 9 | | |
Non-U.S. government
|
| | | | 48.6 | | | | | | (0.4) | | | | | | 0.6 | | | | | | — | | | | | | 49.2 | | | | | | (0.4) | | | | | | 20 | | |
Asset-backed
|
| | | | — | | | | | | — | | | | | | 0.2 | | | | | | — | | | | | | 0.2 | | | | | | — | | | | | | 1 | | |
Non-agency commercial mortgage-backed
|
| | | | 6.5 | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | 6.5 | | | | | | (0.2) | | | | | | 1 | | |
Agency mortgage-backed
|
| | | | 149.7 | | | | | | (0.3) | | | | | | 68.4 | | | | | | (0.8) | | | | | | 218.1 | | | | | | (1.1) | | | | | | 80 | | |
Total fixed income securities – Available for sale
|
| | | | 553.0 | | | | | | (2.6) | | | | | | 250.5 | | | | | | (1.2) | | | | | | 803.5 | | | | | | (3.8) | | | | | | 255 | | |
Total short-term investments – Available for sale
|
| | | | 29.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29.5 | | | | | | — | | | | | | 5 | | |
Total
|
| | | $ | 582.5 | | | | | $ | (2.6) | | | | | $ | 250.5 | | | | | $ | (1.2) | | | | | $ | 833.0 | | | | | $ | (3.8) | | | | | | 260 | | |
|
| | |
For the Six Months Ended June 30, 2020
|
| |||||||||||||||
| | |
Third Party
|
| |
Aspen Holdings
|
| |
Total
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Opening balance
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total change in fair value for the period
|
| | | | — | | | | | | — | | | | | | — | | |
Total distributed in the period
|
| | | | — | | | | | | — | | | | | | — | | |
Closing balance as at June 30, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Liability | | | | | | | | | | | | | | | | | | | |
Loan notes (long-term liabilities)
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Accrued expenses (current liabilities)
|
| | | | — | | | | | | — | | | | | | — | | |
Total aggregate unpaid balance as at June 30, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
| | |
Six Months Ended June 30, 2019
|
| |||||||||||||||
| | |
Third Party
|
| |
Aspen Holdings
|
| |
Total
|
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Opening balance
|
| | | | 4.6 | | | | | | 1.1 | | | | | | 5.7 | | |
Total change in fair value for the period
|
| | | | 3.0 | | | | | | 0.8 | | | | | | 3.8 | | |
Total distributed in the period
|
| | | | (5.8) | | | | | | (1.5) | | | | | | (7.3) | | |
Closing balance as at June 30, 2019
|
| | | | 1.8 | | | | | | 0.4 | | | | | | 2.2 | | |
Liability | | | | | | | | | | | | | | | | | | | |
Loan notes (long-term liabilities)
|
| | | | — | | | | | | — | | | | | | — | | |
Accrued expenses (current liabilities)
|
| | | | 1.8 | | | | | | 0.4 | | | | | | 2.2 | | |
Total aggregate unpaid balance as at June 30, 2019
|
| | | | 1.8 | | | | | | 0.4 | | | | | | 2.2 | | |
| | |
As at June 30, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||
Available for sale financial assets, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | $ | 1,323.7 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,323.7 | | |
U.S. agency
|
| | | | — | | | | | | 36.7 | | | | | | — | | | | | | 36.7 | | |
Municipal
|
| | | | — | | | | | | 69.8 | | | | | | — | | | | | | 69.8 | | |
Corporate
|
| | | | — | | | | | | 2,216.9 | | | | | | — | | | | | | 2,216.9 | | |
Non-U.S. government-backed corporate
|
| | | | — | | | | | | 79.5 | | | | | | — | | | | | | 79.5 | | |
Non-U.S. government
|
| | | | 205.2 | | | | | | 117.7 | | | | | | — | | | | | | 322.9 | | |
Asset-backed
|
| | | | — | | | | | | 2.6 | | | | | | — | | | | | | 2.6 | | |
Non-agency commercial mortgage-backed
|
| | | | — | | | | | | 7.4 | | | | | | — | | | | | | 7.4 | | |
Agency mortgage-backed
|
| | | | — | | | | | | 1,034.7 | | | | | | — | | | | | | 1,034.7 | | |
Total fixed income securities available for sale, at fair value
|
| | | | 1,528.9 | | | | | | 3,565.3 | | | | | | — | | | | | | 5,094.2 | | |
Short-term investments available for sale, at fair value
|
| | | | 143.6 | | | | | | 3.0 | | | | | | — | | | | | | 146.6 | | |
Held for trading financial assets, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | | 194.9 | | | | | | — | | | | | | — | | | | | | 194.9 | | |
Municipal
|
| | | | — | | | | | | 3.5 | | | | | | — | | | | | | 3.5 | | |
Corporate
|
| | | | — | | | | | | 118.4 | | | | | | — | | | | | | 118.4 | | |
Non-U.S. government
|
| | | | 38.6 | | | | | | 0.4 | | | | | | — | | | | | | 39.0 | | |
Asset-backed
|
| | | | — | | | | | | 490.3 | | | | | | — | | | | | | 490.3 | | |
Agency mortgage-backed
|
| | | | — | | | | | | 34.1 | | | | | | — | | | | | | 34.1 | | |
High Yield Loans
|
| | | | — | | | | | | 6.9 | | | | | | — | | | | | | 6.9 | | |
Total fixed income securities trading, at fair value
|
| | | | 233.5 | | | | | | 653.6 | | | | | | — | | | | | | 887.1 | | |
Short-term investments trading, at fair value
|
| | | | 31.9 | | | | | | — | | | | | | — | | | | | | 31.9 | | |
Privately-held investments trading, at fair value
|
| | | | — | | | | | | — | | | | | | 291.7 | | | | | | 291.7 | | |
Catastrophe bonds trading, at fair value
|
| | | | — | | | | | | 24.3 | | | | | | — | | | | | | 24.3 | | |
Other investments(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 107.2 | | |
Other financial assets and liabilities, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives at fair value – foreign exchange contracts
|
| | | | — | | | | | | 11.2 | | | | | | — | | | | | | 11.2 | | |
Liabilities under derivative contracts – foreign exchange contracts
|
| | | | — | | | | | | (111.9) | | | | | | — | | | | | | (111.9) | | |
Liabilities under derivative contracts – interest rate swaps
|
| | | | — | | | | | | (9.5) | | | | | | — | | | | | | (9.5) | | |
Loan notes issued by variable interest entities, at fair value
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,937.9 | | | | | $ | 4,136.0 | | | | | $ | 291.7 | | | | | $ | 6,472.8 | | |
|
| | |
As at December 31, 2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||
Available for sale financial assets, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | $ | 1,413.1 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,413.1 | | |
U.S. agency
|
| | | | — | | | | | | 39.6 | | | | | | — | | | | | | 39.6 | | |
Municipal
|
| | | | — | | | | | | 50.7 | | | | | | — | | | | | | 50.7 | | |
Corporate
|
| | | | — | | | | | | 1,959.8 | | | | | | — | | | | | | 1,959.8 | | |
Non-U.S. government-backed corporate
|
| | | | — | | | | | | 86.5 | | | | | | — | | | | | | 86.5 | | |
Non-U.S. government
|
| | | | 199.8 | | | | | | 129.0 | | | | | | — | | | | | | 328.8 | | |
Asset-backed
|
| | | | — | | | | | | 0.2 | | | | | | — | | | | | | 0.2 | | |
Non-agency commercial mortgage-backed
|
| | | | — | | | | | | 6.5 | | | | | | — | | | | | | 6.5 | | |
Agency mortgage-backed
|
| | | | — | | | | | | 1,073.0 | | | | | | — | | | | | | 1,073.0 | | |
Total fixed income securities available for sale, at fair value
|
| | | | 1,612.9 | | | | | | 3,345.3 | | | | | | — | | | | | | 4,958.2 | | |
Short-term investments available for sale, at fair value
|
| | | | 108.1 | | | | | | 9.5 | | | | | | — | | | | | | 117.6 | | |
Held for trading financial assets, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government
|
| | | | 185.0 | | | | | | — | | | | | | — | | | | | | 185.0 | | |
Municipal
|
| | | | — | | | | | | 3.2 | | | | | | — | | | | | | 3.2 | | |
Corporate
|
| | | | — | | | | | | 243.2 | | | | | | — | | | | | | 243.2 | | |
Non-U.S. government-backed corporate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-U.S. government
|
| | | | 48.3 | | | | | | 102.9 | | | | | | — | | | | | | 151.2 | | |
Asset-backed
|
| | | | — | | | | | | 492.4 | | | | | | — | | | | | | 492.4 | | |
Agency mortgage-backed
|
| | | | — | | | | | | 53.8 | | | | | | — | | | | | | 53.8 | | |
Total fixed income securities trading, at fair value
|
| | | | 233.3 | | | | | | 895.5 | | | | | | — | | | | | | 1,128.8 | | |
Short-term investments trading, at fair value
|
| | | | 79.2 | | | | | | — | | | | | | — | | | | | | 79.2 | | |
Privately-held investments
|
| | | | — | | | | | | — | | | | | | 279.7 | | | | | | 279.7 | | |
Catastrophe bonds trading, at fair value
|
| | | | — | | | | | | 28.6 | | | | | | — | | | | | | 28.6 | | |
Other investments(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 111.4 | | |
Other financial assets and liabilities, at fair value | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives at fair value – foreign exchange contracts
|
| | | | — | | | | | | 12.9 | | | | | | — | | | | | | 12.9 | | |
Liabilities under derivative contracts – foreign exchange contracts
|
| | | | — | | | | | | (8.9) | | | | | | — | | | | | | (8.9) | | |
Derivatives at fair value – interest rate swaps
|
| | | | — | | | | | | (78.3) | | | | | | — | | | | | | (78.3) | | |
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 2,033.5 | | | | | $ | 4,204.6 | | | | | $ | 279.7 | | | | | $ | 6,629.2 | | |
|
As at June 30, 2020
|
| |
Fair Value
Level 3 |
| |
Valuation Techniques
|
| |
Unobservable (U)
inputs |
| |
Ranges
|
| |
Weighted
Average |
| |||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |||
Privately-held investments – Trading | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | $ | 175.9 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 6.1% | | | | | | 9.0% | | | | | | 7.2% | | |
Commercial mortgage loans
|
| | | | — | | | | Transaction Value | | | n/a | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
Middle market loans
|
| | | | 104.7 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 6.2% | | | | | | 13.0% | | | | | | 9.0% | | |
Asset-backed securities
|
| | | | 8.4 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 8.1% | | | | | | 8.1% | | | | | | 8.1% | | |
Equity securities
|
| | | $ | 2.7 | | | | Transaction Value | | | n/a | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
| | | | $ | 291.7 | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
At December 31, 2019
|
| |
Fair Value
Level 3 |
| |
Valuation Techniques
|
| |
Unobservable (U)
inputs |
| |
Ranges
|
| |
Weighted
Average |
| |||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |||
Privately-held investments – Trading | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | | 125.7 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 5.0% | | | | | | 6.3% | | | | | | 5.8% | | |
Commercial mortgage loans
|
| | | | 30.9 | | | | Transaction Value | | | n/a | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
Middle market loans
|
| | | $ | 111.7 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 6.8% | | | | | | 10.3% | | | | | | 7.9% | | |
Asset-backed securities
|
| | | | 8.7 | | | |
Discounted cash flow
|
| | Discount rate | | | | | 6.4% | | | | | | 6.4% | | | | | | 6.4% | | |
Equity securities
|
| | | $ | 2.7 | | | | Transaction Value | | | n/a | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
| | | | $ | 279.7 | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Six Months Ended June 30, 2020
|
| |
Balance at
beginning of year |
| |
Purchases
and issuances |
| |
Settlements
and sales |
| |
Increase/(decrease)
in fair value included net income |
| |
Balance at
end of year |
| |
Change in
unrealized investment gains (losses) relating to assets held at end of year |
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Privately-held investments – trading | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | $ | 156.4 | | | | | $ | 58.1 | | | | | $ | (18.7) | | | | | $ | (19.9) | | | | | $ | 175.9 | | | | | $ | (17.1) | | |
Middle market loans
|
| | | | 111.7 | | | | | | 0.5 | | | | | | (2.3) | | | | | | (5.2) | | | | | | 104.7 | | | | | | (4.7) | | |
Asset-backed securities
|
| | | | 8.7 | | | | | | — | | | | | | — | | | | | | (0.3) | | | | | | 8.4 | | | | | | (0.3) | | |
Equity securities
|
| | | | 2.7 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.7 | | | | | | — | | |
Total Level 3 assets
|
| | | $ | 279.5 | | | | | $ | 58.6 | | | | | $ | (21.0) | | | | | $ | (25.4) | | | | | $ | 291.7 | | | | | $ | (22.1) | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan notes issued by Silverton(1)
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total Level 3 liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
Twelve Months Ended December 31, 2019
|
| |
Balance at
beginning of year |
| |
Purchases
and issuances |
| |
Settlements
and sales |
| |
Increase/(decrease)
in fair value included net income |
| |
Balance at
end of year |
| |
Change in
unrealized investment gains (losses) relating to assets held at end of year |
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Privately-held investments – trading | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage loans
|
| | | $ | — | | | | | $ | 174.7 | | | | | $ | (20.1) | | | | | $ | 1.7 | | | | | $ | 156.6 | | | | | $ | 0.3 | | |
Middle market loans
|
| | | | — | | | | | | 115.5 | | | | | | (3.8) | | | | | | 0.1 | | | | | | 111.7 | | | | | | — | | |
Asset-backed securities
|
| | | | — | | | | | | 8.7 | | | | | | — | | | | | | — | | | | | | 8.7 | | | | | | — | | |
Equity securities
|
| | | | — | | | | | | 2.7 | | | | | | — | | | | | | — | | | | | | 2.7 | | | | | | — | | |
Total Level 3 assets
|
| | | $ | — | | | | | $ | 301.5 | | | | | $ | (23.9) | | | | | $ | 1.8 | | | | | $ | 279.7 | | | | | $ | 0.3 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan notes issued by Silverton (1)
|
| | | $ | 4.6 | | | | | $ | — | | | | | $ | (7.7) | | | | | $ | 3.1 | | | | | $ | — | | | | | $ | — | | |
Total Level 3 liabilities
|
| | | $ | 4.6 | | | | | $ | — | | | | | $ | (7.7) | | | | | $ | 3.1 | | | | | $ | — | | | | | $ | — | | |
|
| | | | | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||||||||
Derivatives Not Designated as Hedging
Instruments Under ASC 815 |
| |
Balance Sheet Location
|
| |
Notional
Amount |
| |
Fair
Value |
| |
Notional
Amount |
| |
Fair
Value |
| ||||||||||||
| | | | | |
($ in millions)
|
| |
($ in millions)
|
| ||||||||||||||||||
Foreign Exchange Contracts
|
| | Derivatives at Fair Value | | | | $ | 393.4 | | | | | $ | 11.1 | | | | | $ | 687.3 | | | | | $ | 8.1 | | |
Foreign Exchange Contracts
|
| |
Liabilities under Derivative Contracts
|
| | | $ | 640.3 | | | | | $ | (9.4)(1) | | | | | $ | 1,009.0 | | | | | $ | (8.9) | | |
Interest Rate Swaps
|
| |
Liabilities under Derivative Contracts
|
| | | $ | 1,250.0 | | | | | $ | (111.9)(2) | | | | | $ | 1,800.0 | | | | | $ | (78.3) | | |
| | | | | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||||||||
Derivatives Designated as Hedging Instruments
Under ASC 815 |
| |
Balance Sheet Location
|
| |
Notional
Amount |
| |
Fair
Value |
| |
Notional
Amount |
| |
Fair
Value |
| ||||||||||||
| | | | | |
($ in millions)
|
| |
($ in millions)
|
| ||||||||||||||||||
Foreign Exchange Contracts
|
| | Derivatives at Fair Value | | | | $ | 42.9 | | | | | $ | — | | | | | $ | 85.5 | | | | | $ | 4.8 | | |
Foreign Exchange Contracts
|
| |
Liabilities under Derivative Contracts
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | | | |
Amount of Gain Recognized on Derivatives
|
| |||||||||
Derivatives not designated as hedges
|
| |
Location of Gain
Recognized on Derivatives |
| |
Six Months Ended
|
| |||||||||
|
June 30, 2020
|
| |
June 30, 2019
|
| |||||||||||
| | | |
($ in millions)
|
| |||||||||||
Foreign Exchange Contracts
|
| | Change in Fair Value of Derivatives | | | | $ | (7.1) | | | | | $ | (13.1) | | |
Interest Rate Swaps
|
| | Change in Fair Value of Derivatives | | | | $ | (80.7) | | | | | $ | (120.5) | | |
Derivatives designated as hedges | | | | | | | | | | | | | | | | |
Foreign Exchange Contracts
|
| | General, administrative and corporate expenses | | | | $ | (1.3) | | | | | $ | 0.7 | | |
Foreign Exchange Contracts
|
| |
Net change from current period hedged transactions
|
| | | $ | (5.1) | | | | | $ | (1.0) | | |
| | |
Six months ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
($ in millions)
|
| |||||||||
Balance at the beginning of the period
|
| | | $ | 291.1 | | | | | $ | 248.5 | | |
Acquisition costs deferred
|
| | | | 264.5 | | | | | | 231.6 | | |
Amortization of deferred policy acquisition costs
|
| | | | (230.9) | | | | | | (190.0) | | |
Balance at the end of the period
|
| | | $ | 324.7 | | | | | $ | 290.1 | | |
|
| | |
Six Months Ended
June 30, 2020 |
| |
Six Months Ended
June 30, 2019 |
| |
Twelve Months Ended
December 31, 2019 |
| |||||||||
| | |
($ in millions)
|
| |||||||||||||||
Provision for losses and LAE at the start of the year
|
| | | $ | 6,951.8 | | | | | $ | 7,074.2 | | | | | $ | 7,074.2 | | |
Less reinsurance recoverable
|
| | | | (2,319.8) | | | | | | (2,077.6) | | | | | | (2,077.6) | | |
Net loss and LAE at the start of the year
|
| | | | 4,632.0 | | | | | | 4,996.6 | | | | | | 4,996.6 | | |
Provision for losses and LAE for claims incurred: | | | | | | | | | | | | | | | | | | | |
Current year
|
| | | | 882.7 | | | | | | 641.0 | | | | | | 1,620.2 | | |
Prior years
|
| | | | 0.3 | | | | | | (9.1) | | | | | | 59.5 | | |
Total incurred
|
| | | | 883.0 | | | | | | 631.9 | | | | | | 1,679.7 | | |
Losses and LAE payments for claims incurred: | | | | | | | | | | | | | | | | | | | |
Current year
|
| | | | (44.5) | | | | | | (31.4) | | | | | | (428.5) | | |
Prior years
|
| | | | (836.5) | | | | | | (1,100.5) | | | | | | (1,694.1) | | |
Total paid
|
| | | | (881.0) | | | | | | (1,131.9) | | | | | | (2,122.6) | | |
Foreign exchange losses/(gains)
|
| | | | (45.5) | | | | | | 19.3 | | | | | | 78.3 | | |
Net losses and LAE reserves at period end
|
| | | | 3,818.5 | | | | | | 4,515.9 | | | | | | 4,632.0 | | |
Plus reinsurance recoverable on unpaid losses at period end
|
| | | | 3,236.7 | | | | | | 2,266.8 | | | | | | 2,319.8 | | |
Provision for losses and LAE at the end of the relevant period
|
| | | $ | 7,055.2 | | | | | $ | 6,782.7 | | | | | $ | 6,951.8 | | |
|
| | |
As at June 30, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||||||||
| | |
Number
|
| |
$ in
Thousands |
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Number
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$ in
Thousands |
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Authorized share capital: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary Shares $0.01 per share (2019: $0.01 per share)
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| | | | 70,000,000 | | | | | | 700 | | | | | | 70,000,000 | | | | | | 700 | | |
Preference Shares 0.15144558¢ per share
|
| | | | 30,000,000 | | | | | | 45 | | | | | | 30,000,000 | | | | | | 45 | | |
Total authorized share capital
|
| | | | | | | | | | 745 | | | | | | | | | | | | 745 | | |
Issued share capital: | | | | | | | | | | | | | | | | | | | | | | | | | |
Issued ordinary shares of $0.01 per share (2019: $0.01 per share)
|
| | | | 60,395,839 | | | | | | 604 | | | | | | 60,395,839 | | | | | | 604 | | |
Issued 5.95% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share
|
| | | | 11,000,000 | | | | | | 17 | | | | | | 11,000,000 | | | | | | 17 | | |
Issued 5.625% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share
|
| | | | 10,000,000 | | | | | | 15 | | | | | | 10,000,000 | | | | | | 15 | | |
Issued 5.625% preference shares of 0.15144558¢ represented by depositary shares, each with a liquidation preference of $25 per share(1)
|
| | | | 10,000 | | | | | | — | | | | | | 10,000 | | | | | | — | | |
Total issued share capital
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| | | | | | | | | | 636 | | | | | | | | | | | | 636 | | |
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Six Months Ended June 30, 2020
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Six Months Ended June 30, 2019
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Beginning of
the Period |
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Amortization
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Impairment
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End of the
Period |
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Beginning of
the Period |
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Amortization
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Impairment
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End of the
Period |
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($ in millions)
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($ in millions)
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Intangible Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trademarks
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| | | $ | 1.9 | | | | | $ | (0.1) | | | | | | — | | | | | $ | 1.8 | | | | | $ | 2.5 | | | | | $ | (0.2) | | | | | | — | | | | | $ | 2.3 | | |
Insurance Licenses
|
| | | | 16.7 | | | | | | — | | | | | | — | | | | | | 16.7 | | | | | | 16.7 | | | | | | — | | | | | | — | | | | | | 16.7 | | |
Agency Relationships
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| | | | 1.2 | | | | | | (0.2) | | | | | | — | | | | | | 1.0 | | | | | | 1.8 | | | | | | (0.4) | | | | | | — | | | | | | 1.4 | | |
Non-compete Agreements
|
| | | | 0.2 | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | 0.4 | | | | | | (0.2) | | | | | | — | | | | | | 0.2 | | |
Goodwill
|
| | | | 3.9 | | | | | | — | | | | | | — | | | | | | 3.9 | | | | | | 3.9 | | | | | | — | | | | | | — | | | | | | 3.9 | | |
Renewal Rights
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1.0 | | | | | | (0.1) | | | | | | (0.9) | | | | | | — | | |
Total
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| | | $ | 23.9 | | | | | $ | 0.5 | | | | | $ | — | | | | | $ | 23.4 | | | | | $ | 26.3 | | | | | $ | (0.9) | | | | | $ | (0.9) | | | | | $ | 24.5 | | |
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| | |
For the Six Months Ended
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| | |
June 30, 2020
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June 30, 2019
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($ in millions)
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Amortization charge on Right-of-use operating leased assets
|
| | | $ | 6.1 | | | | | $ | 6.6 | | |
Interest on operating lease liabilities
|
| | | $ | 2.6 | | | | | $ | 2.4 | | |
Operating lease charge
|
| | | $ | 8.7 | | | | | $ | 9.0 | | |
|
| | |
June 30, 2020
|
| |
December 31, 2019
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($ in millions)
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Operating leases – maturities | | | | | | | | | | | | | |
2019
|
| | | $ | — | | | | | | — | | |
2020
|
| | | $ | 17.6 | | | | | $ | 17.7 | | |
2021
|
| | | $ | 16.4 | | | | | | 16.4 | | |
2022
|
| | | $ | 13.2 | | | | | | 13.0 | | |
2023
|
| | | $ | 12.3 | | | | | | 12.2 | | |
Later years
|
| | | $ | 84.0 | | | | | | 85.3 | | |
Total minimum lease payments
|
| | | $ | 143.5 | | | | | $ | 144.6 | | |
Less imputed interest
|
| | | $ | (36.1) | | | | | | (31.4) | | |
Total lease liabilities
|
| | | $ | 107.4 | | | | | $ | 113.2 | | |
|
| | |
For the Six Months Ended
|
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| | |
June 30, 2020
|
| |
June 30, 2019
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($ in millions)
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Cash paid for amounts included in the measurement of lease liabilities | | | | | | | | | | | | | |
– Operating cash outflow from operating leases
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| | | $ | (8.5) | | | | | $ | (9.0) | | |
Right-of-use assets obtained in exchange for lease obligations | | | | | | | | | | | | | |
– Operating leases
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| | | $ | 2.5 | | | | | $ | 3.1 | | |
Reduction to Right-of-use assets resulting from reductions to lease obligations | | | | | | | | | | | | | |
– Operating leases
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| | | $ | 2.6 | | | | | $ | 2.4 | | |
Weighted Averages | | | | | | | | | | | | | |
– Operating leases, remaining lease terms (years)
|
| | | | 9.9 | | | | | | 10.5 | | |
– Operating leases, average discount rate
|
| | | | 5.0% | | | | | | 5.0% | | |
| | |
As at June 30, 2020
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| |
As at December 31, 2019
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| | |
($ in millions, except percentages)
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Regulatory trusts and deposits: | | | | | | | | | | | | | |
Affiliated transactions
|
| | | $ | 637.0 | | | | | $ | 754.9 | | |
Third party
|
| | | | 2,852.0 | | | | | | 2,766.6 | | |
Letters of credit / guarantees(1)
|
| | | | 558.5 | | | | | | 635.4 | | |
Investment commitment – real estate fund
|
| | | | — | | | | | | — | | |
Other investments – real estate fund
|
| | | | 107.2 | | | | | | 111.4 | | |
Total restricted assets
|
| | | $ | 4,154.7 | | | | | $ | 4,268.3 | | |
Total as percent of investable assets(2)
|
| | | | 53.3% | | | | | | 54.4% | | |
|
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