UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 24, 2012
ASPEN INSURANCE HOLDINGS LIMITED
(Exact name of registrant as specified in its charter)
Bermuda | 001-31909 | Not Applicable | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
141 Front Street
Hamilton HM 19
Bermuda
(Address of principal executive offices)
(Zip Code)
Registrants telephone number, including area code: (441) 295-8201
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition
On October 24, 2012, Aspen Insurance Holdings Limited issued a press release announcing results for the quarter and nine months ended September 30, 2012, which has been attached as Exhibit 99.1. In addition, a copy of the Aspen Insurance Holdings Limited Earnings Release Supplement for the quarter and nine months ended September 30, 2012 is attached hereto as Exhibit 99.2.
Section 7 Regulation FD
Item 7.01 Regulation FD Disclosure
On October 24, 2012, Aspen Insurance Holdings Limited issued a press release announcing results for the quarter and nine months ended September 30, 2012, which has been attached as Exhibit 99.1. In addition, a copy of the Aspen Insurance Holdings Limited Earnings Release Supplement for the quarter and nine months ended September 30, 2012 is attached hereto as Exhibit 99.2.
Section 9. Financial Statements and Exhibits
Item 9.01- Financial Statements and Exhibits
(d) The following exhibits are furnished under Items 7.01 and 2.02 as part of this report:
99.1 | Press Release of the Registrant, dated October 24, 2012. | |
99.2 | Earnings Release Supplement for the quarter and nine months ended September 30, 2012. |
The information furnished under Item 7.01 Regulation FD Disclosure and Item 2.02 Results of Operations and Financial Condition shall not be deemed filed for purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
2
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 hereunto duly authorized.
ASPEN INSURANCE HOLDINGS LIMITED | ||||||
(Registrant) | ||||||
Dated: October 24, 2012 | By: | /s/ Julian Cusack | ||||
Name: | Julian Cusack | |||||
Title: | Chief Financial Officer |
3
Exhibit 99.1
Aspen reports results for the quarter and nine months ended September 30, 2012 and announces a $400 million share repurchase authorization.
Hamilton, Bermuda, October 24, 2012 Aspen Insurance Holdings Limited (Aspen) (NYSE: AHL) today reported net income after tax of $115.1 million and diluted earnings per share of $1.45 for the third quarter of 2012. Diluted book value per share increased by 3.8% from June 30, 2012 to $41.53.
Trading highlights in the quarter included low catastrophe levels, areas of pricing improvement, and net favorable reserve development with profitable performance in both the reinsurance and insurance segments.
Operating highlights for the quarter ended September 30, 2012
| Diluted net earnings per share of $1.45 for the quarter ended September 30, 2012 compared with diluted net earnings per share of $0.21 in the third quarter of 2011(1) |
| Diluted operating earnings per share of $1.34 for the quarter ended September 30, 2012 compared with diluted operating earnings per share of $0.68 in the third quarter of 2011(1)(2) |
| Diluted book value per share of $41.53, up 9.1% from the third quarter of 2011 and up 3.8% from June 30, 2012(1)(2 ) |
| Annualized net income return on average equity of 14.4% and annualized operating return on average equity of 13.2% for the third quarter of 2012 compared with 2.4% and 7.2%, respectively in the third quarter of 2011(1)(2) |
| Gross written premiums in the third quarter of 2012 increased 12.7% from the third quarter of 2011 to $558.4 million with the majority of the growth resulting from a 36.2% increase in the insurance segment |
| Combined ratio of 87.0% for the third quarter of 2012 compared with a combined ratio of 96.9%(1) for the third quarter 2011 |
| Net favorable development on prior year loss reserves of $29.8 million, or 5.8 combined ratio points, for the quarter compared with $15.6 million, or 3.2 combined ratio points, for the third quarter of 2011 |
(1) | See provision of ASU 2010-26 on page 12 |
(2) | See definition of non-GAAP financial measures on pages 11 and 12 |
Financial highlights, quarter ended September 30, 2012 (unaudited)
$ in millions, except per share amounts and percentages
Q3 2012 | Q3 2011(1) | |||||||
Gross written premiums |
$ | 558.4 | $ | 495.6 | ||||
Net earned premiums |
$ | 516.2 | $ | 486.9 | ||||
Net investment income |
$ | 48.6 | $ | 57.3 | ||||
Net income after tax |
$ | 115.1 | $ | 21.2 | ||||
Operating income after tax |
$ | 106.5 | $ | 55.5 | ||||
Diluted net income per share |
$ | 1.45 | $ | 0.21 | ||||
Diluted operating earnings per share |
$ | 1.34 | $ | 0.68 | ||||
Annualized net income return on equity |
14.4 | % | 2.4 | % | ||||
Annualized operating return on equity |
13.2 | % | 7.2 | % | ||||
Combined ratio |
87.0 | % | 96.9 | % | ||||
Combined ratio excluding catastrophes(2) |
86.6 | % | 85.8 | % | ||||
Book value per ordinary share |
$ | 42.90 | $ | 39.41 | ||||
Diluted book value per ordinary share |
$ | 41.53 | $ | 38.07 |
Financial highlights, nine months ended September 30, 2012 (unaudited)
$ in millions, except per share amounts and percentages
YTD 2012 | YTD 2011(1) | |||||||
Gross written premiums |
$ | 2,007.1 | $ | 1,749.1 | ||||
Net earned premiums |
$ | 1,525.0 | $ | 1,399.1 | ||||
Net investment income |
$ | 153.8 | $ | 171.4 | ||||
Net income (loss) after tax |
$ | 278.4 | $ | (122.5 | ) | |||
Operating income (loss) after tax |
$ | 282.8 | $ | (75.4 | ) | |||
Diluted net income (loss) per share |
$ | 3.47 | $ | (1.98 | ) | |||
Diluted operating earnings (loss) per share |
$ | 3.53 | $ | (1.32 | ) | |||
Annualized net income (loss) return on equity |
11.9 | % | (6.7 | )% | ||||
Annualized operating return (loss) on equity |
12.0 | % | (4.4 | )% | ||||
Combined ratio |
89.3 | % | 116.4 | % | ||||
Combined ratio excluding catastrophes(2) |
87.2 | % | 87.1 | % |
(1) | See provision of ASU 2010-26 on page 12 |
(2) | See definition of non-GAAP financial measures on pages 11 and 12 |
Chris OKane, Chief Executive Officer commented, Our operating income for the third quarter was $106.5 million, equivalent to diluted earnings per share of $1.34 and the result of positive performances in both reinsurance and insurance. Diluted book value per share grew 3.8% in the quarter to $41.53 and we generated an annualized operating return on equity of 13.2%. We enter the final quarter of the year with positive momentum and a strong capital position as we continue to execute our diversified business strategy and to manage capital effectively.
Segment highlights
Reinsurance
Operating highlights for Reinsurance for the quarter ended September 30, 2012 include:
| Gross written premiums of $259.5 million, down 6.0% compared with $276.1 million for the third quarter of 2011 as we continue to reduce exposure where we do not believe price reflects our current view of the risks |
2
| Combined ratio of 73.8% compared with 95.5% for the third quarter of 2011 |
| Favorable prior year loss reserve development of $22.0 million primarily in property and specialty reinsurance compared with $11.7 million in the third quarter of 2011 |
The combined ratio for the third quarter of 2012 was 73.8%, benefitting from benign catastrophe activity. There was no change in reserves for the 2010 and 2011 catastrophe events. In comparison, the combined ratio for the third quarter of 2011 was 95.5% or 77.7%(1)(2) excluding natural catastrophe losses.
The segment underwriting profit for the third quarter of 2012 was $73.2 million compared with an underwriting profit of $12.3 million for the third quarter of 2011.(1)
Operating highlights for Reinsurance for the nine months ended September 30, 2012 include:
| Gross written premiums of $1,033.5 million, up 3.2% compared with $1,001.2 million for the first nine months of 2011 |
| Combined ratio of 77.5% compared with 126.1% for the first nine months of 2011(1) |
| Favorable prior year loss reserve development for the first nine months of 2012 was $64.2 million compared with $57.8 million for the first nine months of 2011 |
The combined ratio of 77.5% for the first nine months of 2012 included pre-tax catastrophe losses, net of reinsurance recoveries and reinstatement premiums, of $19.5 million or 2.6 percentage points. In comparison, the combined ratio for the first nine months of 2011 was 126.1% or 77.6%(1 )(2) excluding natural catastrophe losses.
The segment underwriting profit for the first nine months of 2012 was $186.8 million compared with an underwriting loss of $214.5 million(1) for the first nine months of 2011 which was severely impacted by natural catastrophes, primarily the Japan and New Zealand earthquakes.
Insurance
Operating highlights for Insurance for the quarter ended September 30, 2012 include:
| Gross written premiums of $298.9 million, up 36.2% compared with $219.5 million in the third quarter of 2011 |
| Combined ratio of 96.4% compared with 93.5% for the third quarter of 2011(1) |
| Favorable prior year loss reserve development of $7.8 million compared with $3.9 million in the third quarter of 2011, primarily in property and casualty |
The increase in gross written premiums was mainly attributable to growth in our US-based insurance operations.
Operating highlights for Insurance for the nine months ended September 30, 2012 include:
| Gross written premiums of $973.6 million, up 30.2% compared with $747.9 million in the first nine months of 2011 |
| Combined ratio of 97.5% compared with 97.0% for the first nine months of 2011(1) |
| Favorable prior year loss reserve development of $31.2 million compared with $12.5 million in the first nine months of 2011 |
(1) | See provision of ASU 2010-26 on page 12 |
(2) | See definition of non-GAAP financial measures on pages 11 and 12 |
3
Investment performance
Net investment income for the third quarter of 2012 was $48.6 million compared with $57.3 million in the third quarter of 2011. Net realized and unrealized investment gains included in net income for the quarter were $2.7 million which included $8.1 million of losses from the Companys interest rate swaps.
Unrealized gains in the available for sale investment portfolio, including equity securities, at the end of September 30, 2012 were $392.9 million, an increase of $32.2 million from the end of the second quarter of 2012.
Book yield at September 30, 2012 on the fixed income portfolio was 3.04%, a decrease of 50 basis points from 3.54% at the end of the third quarter of 2011. The average credit quality of the fixed income portfolio was AA and it had an average duration of 2.8 years at September 30, 2012, excluding the impact of interest rate swaps.
Capital
Total shareholders equity increased $119.1 million in the quarter to $3.6 billion at September 30, 2012.
During the third quarter of 2012, Aspen repurchased 864,634 ordinary shares in the open market at an average price of $28.91 per share for a total cost of $25.0 million. Aspen had $142.4 million remaining under its current share buyback authorization at September 30, 2012.
Aspen today announced that its Board of Directors has approved a new share repurchase authorization for up to $400 million of outstanding ordinary shares. The share repurchase authorization, which is effective immediately and replaces the previous authorization, permits Aspen to effect the repurchases from time to time through a combination of transactions, including open market repurchases, privately negotiated transactions and accelerated share repurchase transactions.
Outlook for 2012
Aspen continues to anticipate gross written premiums for 2012 to be $2.4 billion +/- 5% and premiums ceded to be between 10% and 12% of gross earned premiums. The full year guidance range for combined ratio is reduced to 89% to 93% from 93% to 98% reflecting the absence of significant third quarter catastrophe losses and assuming normal loss experience in the fourth quarter. The revised combined ratio range includes a catastrophe load for the remainder of the year of $45 million. Aspen has also lowered its expectations for the effective tax rate in 2012 to be in the range of 5% to 8%.
See Forward-looking Statements Safe Harbor below.
Earnings conference call and web cast
Aspen will host a conference call to discuss the results at 9:00 am (EST) on Thursday, October 25, 2012.
To participate in the October 25 conference call by phone
Please call to register at least 10 minutes before the conference call begins by dialing:
+1 (888) 459 5609 (US toll free) or
+1 (404) 665 9920 (international)
Conference ID 30243864
To listen live online
Aspen will provide a live webcast at www.aspen.co
(Investors and Media > Investor Relations > Event calendar)
4
To download the materials
The earnings press release and a detailed financial supplement will also be published on Aspens website at www.aspen.co.
To listen later
A replay of the call will be available for 14 days via phone and internet, available two hours after the end of the live call. To listen to the replay by phone please dial:
+1 (855) 859 2056 (US toll free) or
+1 (404) 537 3406 (international)
Replay ID 30243864
The recording will be also available at www.aspen.co.
For further information please contact
Investors
Kerry Calaiaro, Senior Vice President, Investor Relations, Aspen
Kerry.Calaiaro@aspen.co
+1 646 502 1076
Media
International Citigate Dewe Rogerson
Caroline Merrell or Jos Bieneman
caroline.merrell@citigatedr.co.uk
jos.bieneman@citigatedr.co.uk
+44 20 7638 9571
North America Abernathy MacGregor
Allyson Morris
amv@abmac.com
+1 212 371 5999
5
Aspen Insurance Holdings Limited
Summary consolidated balance sheet (unaudited)
$ in millions, except per share data
As at September 30, 2012 |
As at December 31, 2011 |
|||||||
ASSETS |
||||||||
Total investments |
$ | 6,720.3 | $ | 6,335.1 | ||||
Cash and cash equivalents |
1,374.2 | 1,239.1 | ||||||
Reinsurance recoverables |
612.9 | 514.4 | ||||||
Premiums receivable |
993.4 | 894.4 | ||||||
Other assets(1) |
537.0 | 477.5 | ||||||
|
|
|
|
|||||
Total assets |
$ | 10,237.8 | $ | 9,460.5 | ||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Losses and loss adjustment expenses |
$ | 4,639.6 | $ | 4,525.2 | ||||
Unearned premiums |
1,184.0 | 916.1 | ||||||
Other payables |
360.9 | 364.2 | ||||||
Long-term debt |
499.1 | 499.0 | ||||||
|
|
|
|
|||||
Total liabilities |
6,683.6 | 6,304.5 | ||||||
SHAREHOLDERS EQUITY |
||||||||
Total shareholders equity(1) |
3,554.2 | 3,156.0 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity(1) |
$ | 10,237.8 | $ | 9,460.5 | ||||
|
|
|
|
|||||
Book value per share(1) |
$ | 42.90 | $ | 39.66 | ||||
Diluted book value per share (treasury stock method)(1) |
$ | 41.53 | $ | 38.21 |
(1) | See provision of ASU 2010-26 on page 12 |
6
Aspen Insurance Holdings Limited
Summary consolidated statement of income (unaudited)
$ in millions, except ratios
Three Months Ended | ||||||||
September 30, 2012 |
September 30, 2011(1) |
|||||||
UNDERWRITING REVENUES |
||||||||
Gross written premiums |
$ | 558.4 | $ | 495.6 | ||||
Premiums ceded |
(51.3 | ) | (33.0 | ) | ||||
|
|
|
|
|||||
Net written premiums |
507.1 | 462.6 | ||||||
Change in unearned premiums |
9.1 | 24.3 | ||||||
|
|
|
|
|||||
Net earned premiums |
516.2 | 486.9 | ||||||
|
|
|
|
|||||
UNDERWRITING EXPENSES |
||||||||
Losses and loss adjustment expenses |
255.0 | 306.2 | ||||||
Policy acquisition expenses |
103.1 | 93.4 | ||||||
General, administrative and corporate expenses |
90.7 | 72.0 | ||||||
|
|
|
|
|||||
Total underwriting expenses |
448.8 | 471.6 | ||||||
|
|
|
|
|||||
Underwriting income including corporate expenses |
67.4 | 15.3 | ||||||
|
|
|
|
|||||
OTHER OPERATING REVENUE |
||||||||
Net investment income |
48.6 | 57.3 | ||||||
Interest expense |
(7.8 | ) | (7.7 | ) | ||||
Other income/(expense) |
4.5 | (9.1 | ) | |||||
|
|
|
|
|||||
Total other operating revenue |
45.3 | 40.5 | ||||||
|
|
|
|
|||||
OPERATING INCOME BEFORE TAX |
112.7 | 55.8 | ||||||
Net realized and unrealized exchange gains |
7.7 | 0.3 | ||||||
Net realized and unrealized investment gains/(losses) |
2.7 | (32.9 | ) | |||||
|
|
|
|
|||||
INCOME BEFORE TAX |
123.1 | 23.2 | ||||||
Income taxes (expense) |
(8.0 | ) | (2.0 | ) | ||||
|
|
|
|
|||||
NET INCOME AFTER TAX |
115.1 | 21.2 | ||||||
Dividends paid on ordinary shares |
(12.2 | ) | (10.6 | ) | ||||
Dividends paid on preference shares |
(8.6 | ) | (5.7 | ) | ||||
Dividends paid to non-controlling interest |
(0.1 | ) | (0.1 | ) | ||||
Proportion due to non-controlling interest |
| (0.1 | ) | |||||
|
|
|
|
|||||
Retained income |
$ | 94.2 | $ | 4.7 | ||||
|
|
|
|
|||||
Components of net income (after tax) |
||||||||
Operating Income |
$ | 106.5 | $ | 55.5 | ||||
Net realized and unrealized exchange gains/(losses) after tax |
6.1 | (0.8 | ) | |||||
Net realized investment gains/(losses) after tax |
2.5 | (33.5 | ) | |||||
|
|
|
|
|||||
NET INCOME AFTER TAX |
$ | 115.1 | $ | 21.2 | ||||
|
|
|
|
|||||
Loss ratio |
49.4 | % | 62.9 | % | ||||
Policy acquisition expense ratio |
20.0 | % | 19.2 | % | ||||
General, administrative and corporate expense ratio |
17.6 | % | 14.8 | % | ||||
Expense ratio |
37.6 | % | 34.0 | % | ||||
Combined ratio |
87.0 | % | 96.9 | % |
(1) | See provision of ASU 2010-26 on page 12 |
7
Aspen Insurance Holdings Limited
Summary consolidated financial data (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
(in US$ except for number of shares) | September 30, 2012 |
September
30, 2011(1) |
September 30, 2012 |
September
30, 2011(1) |
||||||||||||
Basic earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$ | 1.50 | $ | 0.22 | $ | 3.60 | $ | (1.98 | ) | |||||||
Operating income/(loss) adjusted for preference dividend |
$ | 1.37 | $ | 0.70 | $ | 3.67 | $ | (1.32 | ) | |||||||
Diluted earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$ | 1.45 | $ | 0.21 | $ | 3.47 | $ | (1.98 | ) | |||||||
Operating income/(loss) adjusted for preference dividend |
$ | 1.34 | $ | 0.68 | $ | 3.53 | $ | (1.32 | ) | |||||||
Weighted average number of ordinary shares outstanding (in millions)(2) |
71.129 | 70.699 | 71.126 | 70.682 | ||||||||||||
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions)(2) |
||||||||||||||||
73.398 | 73.300 | 73.703 | 70.682 | |||||||||||||
Book value per ordinary share |
$ | 42.90 | $ | 39.41 | ||||||||||||
Diluted book value (treasury stock method) |
$ | 41.53 | $ | 38.07 | ||||||||||||
Ordinary shares outstanding at end of the period (in millions) |
71.012 | 70.595 | ||||||||||||||
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (treasury stock method) (in millions) |
||||||||||||||||
73.341 | 73.079 |
(1) | See provision of ASU 2010-26 on page 12 |
(2) | The basic and diluted number of ordinary shares for the nine months ended September 30, 2011 is the same, as the inclusion of dilutive shares in a loss-making period would be anti-dilutive |
8
Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios
Three Months Ended September 30, 2012 |
Three Months Ended September 30, 2011 |
|||||||||||||||||||||||
Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | |||||||||||||||||||
Gross written premiums |
$ | 259.5 | $ | 298.9 | $ | 558.4 | $ | 276.1 | $ | 219.5 | $ | 495.6 | ||||||||||||
Net written premiums |
256.9 | 250.2 | 507.1 | 270.5 | 192.1 | 462.6 | ||||||||||||||||||
Gross earned premiums |
299.8 | 302.0 | 601.8 | 303.2 | 246.7 | 549.9 | ||||||||||||||||||
Net earned premiums |
279.6 | 236.6 | 516.2 | 279.6 | 207.3 | 486.9 | ||||||||||||||||||
Losses and loss adjustment expenses |
117.1 | 137.9 | 255.0 | 188.8 | 117.4 | 306.2 | ||||||||||||||||||
Policy acquisition expenses |
55.7 | 47.4 | 103.1 | 51.8 | 41.6 | 93.4 | ||||||||||||||||||
General and administrative expenses(1) |
33.6 | 42.8 | 76.4 | 26.7 | 34.9 | 61.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Underwriting income/(loss) |
$ | 73.2 | $ | 8.5 | $ | 81.7 | $ | 12.3 | $ | 13.4 | $ | 25.7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
48.6 | 57.3 | ||||||||||||||||||||||
Net realized and unrealized investment gains/(losses)(2 ) |
2.7 | (32.9 | ) | |||||||||||||||||||||
Corporate expenses |
(14.3 | ) | (10.4 | ) | ||||||||||||||||||||
Other income/(expense) |
4.5 | (9.1 | ) | |||||||||||||||||||||
Interest expenses |
(7.8 | ) | (7.7 | ) | ||||||||||||||||||||
Net realized and unrealized foreign exchange gains(3 ) |
7.7 | 0.3 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Income before tax |
123.1 | 23.2 | ||||||||||||||||||||||
Income tax (expense) |
(8.0 | ) | (2.0 | ) | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net income |
$ | 115.1 | $ | 21.2 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Ratios |
||||||||||||||||||||||||
Loss ratio |
41.9 | % | 58.3 | % | 49.4 | % | 67.5 | % | 56.6 | % | 62.9 | % | ||||||||||||
Policy acquisition expense ratio |
19.9 | % | 20.0 | % | 20.0 | % | 18.5 | % | 20.1 | % | 19.2 | % | ||||||||||||
General and administrative expense ratio(4) |
12.0 | % | 18.1 | % | 17.6 | % | 9.5 | % | 16.8 | % | 14.8 | % | ||||||||||||
Expense ratio |
31.9 | % | 38.1 | % | 37.6 | % | 28.0 | % | 36.9 | % | 34.0 | % | ||||||||||||
Combined ratio |
73.8 | % | 96.4 | % | 87.0 | % | 95.5 | % | 93.5 | % | 96.9 | % |
(1) | See provision of ASU 2010-26 on page 12 |
(2) | Includes realized and unrealized capital gains and losses and realized and unrealized gains and losses on interest rate swaps |
(3) | Includes realized and unrealized foreign exchange gains and losses and realized and unrealized gains and losses on foreign exchange contracts |
(4) | The total group general and administrative expense ratio includes the impact from corporate expenses |
9
About Aspen Insurance Holdings Limited
Aspen provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Germany, Ireland, Singapore, Switzerland, the United Kingdom and the United States. For the year ended December 31, 2011, Aspen reported $9.5 billion in total assets, $4.5 billion in gross reserves, $3.2 billion in shareholders equity and $2.2 billion in gross written premiums. Its operating subsidiaries have been assigned a rating of A (Strong) by Standard & Poors, an A (Excellent) by A.M. Best and an A2 (Good) by Moodys Investors Service.
For more information about Aspen, please visit www.aspen.co.
Forward-looking Statements Safe Harbor
This press release contains, and Aspens earnings conference call will contain, written or oral forward-looking statements within the meaning of the US federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as expect, intend, plan, believe, do not believe, aim, project, anticipate, seek, will, estimate, may, continue, guidance, and similar expressions of a future or forward-looking nature.
All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements. Aspen believes these factors include, but are not limited to: the possibility of greater frequency or severity of claims and loss activity, including as a result of natural or man-made (including economic and political risks) catastrophic or material loss events, than our underwriting, reserving, reinsurance purchasing or investment practices have anticipated; the reliability of, and changes in assumptions to, natural and man-made catastrophe pricing, accumulation and estimated loss models; evolving issues with respect to interpretation of coverage after major loss events and any intervening legislative or governmental action; the effectiveness of our loss limitation methods; changes in the total industry losses, or our share of total industry losses, resulting from past events and, with respect to such events, our reliance on loss reports received from cedants and loss adjustors, our reliance on industry loss estimates and those generated by modeling techniques, changes in rulings on flood damage or other exclusions as a result of prevailing lawsuits and case law; the impact of acts of terrorism and related legislation and acts of war; decreased demand for our insurance or reinsurance products and cyclical changes in the insurance and reinsurance sectors; any changes in our reinsurers credit quality and the amount and timing of reinsurance recoverables; changes in the availability, cost or quality of reinsurance or retrocessional coverage; the continuing and uncertain impact of the current depressed economic environment in many of the countries in which we operate; the level of inflation in repair costs due to limited availability of labor and materials after catastrophes; changes in insurance and reinsurance market conditions; increased competition on the basis of pricing, capacity, coverage terms or other factors and the related demand and supply dynamics as contracts come up for renewal; a decline in our operating subsidiaries ratings with S&P, A.M. Best or Moodys; our ability to execute our business plan to enter new markets, introduce new products and develop new distribution channels, including their integration into our existing operations; the persistence of the global financial crisis and the Eurozone debt crisis, changes in general economic conditions, including inflation, foreign currency exchange rates, interest rates and other factors that could affect our investment portfolio; the risk of a material decline in the value or liquidity of all or parts of our investment portfolio; changes in our ability to exercise capital management initiatives or to arrange banking facilities as a result of prevailing market changes or changes in our financial position; changes in government regulations or tax laws in jurisdictions where we conduct business; Aspen Holdings or Aspen Bermuda becoming subject to income taxes in the United States or the United Kingdom; loss of key personnel; and increased counterparty risk due to the credit impairment of
10
financial institutions. For a more detailed description of these uncertainties and other factors, please see the Risk Factors section in Aspens Annual Report on Form 10-K as filed with the US Securities and Exchange Commission on February 28, 2012. Aspen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
In addition, any estimates relating to loss events involve the exercise of considerable judgment and reflect a combination of ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports and other sources. Due to the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates, there can be no assurance that Aspens ultimate losses will remain within the stated amount.
Non-GAAP Financial Measures
In presenting Aspens results, management has included and discussed certain non-GAAP financial measures as such term is defined in Regulation G. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain Aspens results of operations in a manner that allows for a more complete understanding of the underlying trends in Aspens business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in the financial supplement, which can be obtained from the Investor Relations section of Aspens website at www.aspen.co.
(1) Annualized Operating Return on Average Equity (Operating ROE) is a non-GAAP financial measure. Annualized Operating Return on Average Equity is calculated using operating income, as defined below, and average equity is calculated as the arithmetic average on a monthly basis for the stated periods of shareholders equity excluding the aggregate value of the liquidation preferences of our preference shares net of issuance costs.
Aspen presents Operating ROE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
See page 23 of Aspens financial supplement for a reconciliation of operating income to net income and page 7 for a reconciliation of average equity to closing shareholders equity.
(2) Operating Income is a non-GAAP financial measure. Operating income is an internal performance measure used by Aspen in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized and unrealized capital gains or losses, including net realized and unrealized gains or losses on interest rate swaps, and after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses from foreign exchange contracts.
Aspen excludes these items from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Aspen believes these amounts are largely independent of its business and underwriting process and including them would distort the analysis of trends in its operations. In addition to presenting net income determined in accordance with GAAP, Aspen believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Aspens results of operations in a manner similar to how management analyzes Aspens underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see above and page 23 of Aspens financial supplement for a reconciliation of operating income to net income. Aspens financial supplement can be obtained from the Investor Relations section of Aspens website at www.aspen.co.
11
(3) Diluted Book Value per Ordinary Share is a not a non-GAAP financial measure. Aspen has included diluted book value per ordinary share as it illustrates the effect on basic book value per share of dilutive securities thereby providing a better benchmark for comparison with other companies. Diluted book value per share is calculated using the treasury stock method, defined on page 22 of Aspens financial supplement, which can be obtained from the Investor Relations section of Aspens website at www.aspen.co.
(4) Diluted Operating Earnings per Share and Basic Operating Earnings per Share are non-GAAP financial measures. Aspen believes that the presentation of diluted operating earnings per share and basic operating earnings per share supports meaningful comparison from period to period and the analysis of normal business operations. Diluted operating earnings per share and basic operating earnings per share are calculated by dividing operating income by the diluted or basic weighted average number of shares outstanding for the period. See page 23 for a reconciliation of diluted and basic operating earnings per share to basic earnings per share. Aspens financial supplement can be obtained from the Investor Relations section of Aspens website at www.aspen.co.
(5) Combined Ratio Excluding Catastrophes is a non-GAAP financial measure. Aspen believes that the presentation of combined ratio excluding catastrophes supports meaningful comparison from period to period of the underlying performance of the business. Combined ratio excluding catastrophes is calculated by dividing net losses excluding catastrophe losses and net expenses by net earned premiums excluding catastrophe related reinstatement premiums. We have defined 2012 catastrophe losses as losses associated with the severe weather in the US in February and March 2012 and Hurricane Isaac in August 2012 and movements in losses associated with the 2011 catastrophe events. We have defined catastrophe losses in the comparative period as losses associated with the US storms (specifically related to Hurricane Irene which occurred in the third quarter of 2011, and related to the tornadoes which occurred in the second quarter of 2011), the Australian floods and the New Zealand and Japanese earthquakes which occurred in the first quarter of 2011, and movement in losses associated with the 2010 catastrophe events (Chilean and New Zealand earthquakes) which were recognized in the third quarter of 2011.
Other
(1) Provision of ASU 2010-26. In 2012, Aspen adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, Aspen is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Catastrophe Load included in our guidance is an estimate of the average annual aggregate loss before reinsurance and tax from natural catastrophe events based on 50,000 simulations of our internal capital model which, in relation to its catastrophe modeling components, is based on a combination of catastrophe models selected by Aspen to best fit its current understanding of the world wide natural catastrophe perils to which Aspen has known exposures. It does not include losses from non-natural catastrophe events such as terrorism or industrial accidents.
This load is attributed and then released quarter by quarter based on historic claims patterns. For example, there is a higher proportion allocated to the third quarter due to the historical frequency of US Wind events in this period. As an organization, Aspen monitors its current catastrophe losses to date against expected and updates the projected numbers accordingly based on this experience.
Actual catastrophe loss experience may materially differ from the catastrophe load in any one year for reasons which include natural variability in the frequency and severity of catastrophe events, and limitations in one or more of the models or uncertainties in the application of policy terms and limits.
12
Exhibit 99.2
![]() | ||||||
FINANCIAL SUPPLEMENT |
||||||
As of September 30, 2012 | ||||||
Aspen Insurance Holdings Limited |
||||||
This financial supplement is for information purposes only. It should be read in conjunction with other documents filed or to be filed by Aspen Insurance Holdings Limited with the United States Securities and Exchange Commission. |
||||||
www.aspen.co |
||||||
Investor Contact: |
||||||
Aspen Insurance Holdings Limited | ||||||
Kerry Calaiaro, Senior Vice President, Investor Relations | ||||||
T: +1 646 502 1076 | ||||||
email: kerry.calaiaro@aspen.co | ||||||
AHL: NYSE |
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
|
Page | ||||
1 | ||||
2 | ||||
3 | ||||
Consolidated Statements of Operations - Year to Date Results |
4 | |||
5 | ||||
6 | ||||
7 | ||||
8-9 | ||||
10-11 | ||||
12 | ||||
13 | ||||
14 | ||||
15 | ||||
16 | ||||
17 | ||||
18 | ||||
19 | ||||
20 | ||||
21 | ||||
22 | ||||
23 |
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Basis of Presentation |
Definitions and presentation: All financial information contained herein is unaudited except for information for the fiscal year ended December 31, 2011. Unless otherwise noted, all data is in U.S. dollars millions, except for per share amounts, percentages and ratio information.
In presenting Aspen's results, management has included and discussed certain "non-GAAP financial measures", as such term is defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, better explain Aspen's results of operations in a manner that allows for a more complete understanding of the underlying trends in Aspen's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in this financial supplement.
Operating income (a non-GAAP financial measure): Operating income is an internal performance measure used by Aspen in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized and unrealized capital gains or losses, including net realized and unrealized gains and losses on interest rate swaps, and after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses on foreign exchange contracts.
Aspen excludes these items from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Aspen believes these amounts are largely independent of its business and underwriting process and including them would distort the analysis of trends in its operations. In addition to presenting net income in accordance with GAAP, Aspen believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Aspen's results of operations in a manner similar to how management analyzes Aspen's underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see page 23 for a reconciliation of operating income to net income.
Annualized operating return on average equity (Operating ROE) (a non-GAAP financial measure): Annualized operating return on average equity is calculated using operating income, as defined above, and average equity calculated as the arithmetic average on a monthly basis for the stated periods of shareholders' equity excluding the aggregate value of the liquidation preferences of our preference shares net of issuance costs.
Aspen presents Operating ROE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. See page 23 for a reconciliation of operating income to net income and page 7 for a reconciliation of average equity to closing shareholders' equity.
Diluted operating earnings per share and basic operating earnings per share (non-GAAP financial measures): Aspen believes that the presentation of diluted operating earnings per share and basic operating earnings per share supports meaningful comparison from period to period and the analysis of normal business operations. Diluted operating earnings per share and basic operating earnings per share are calculated by dividing operating income by the diluted or basic weighted average number of shares outstanding for the period. See page 23 for a reconciliation of diluted and basic operating earnings per share to basic earnings per share.
Diluted book value per ordinary share (is not a non-GAAP financial measure): Aspen has included diluted book value per ordinary share as it illustrates the effect on basic book value per share of dilutive securities thereby providing a better benchmark for comparison with other companies. Diluted book value per share is calculated using the treasury stock method as defined on page 22.
Underwriting ratios (GAAP financial measures): Aspen, along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of net claims and claims adjustment expenses to net premiums earned. The acquisition expense ratio is the ratio of underwriting expenses (commissions, premium taxes, licenses and fees, as well as other underwriting expenses) to net premiums earned. The general and administrative expense ratio is the ratio of general and administrative expenses to net premiums earned. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.
GAAP combined ratios differ from U.S. statutory combined ratios primarily due to the deferral of certain third-party acquisition expenses for GAAP reporting purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general and administrative expense ratios.
1
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Financial Highlights |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in US$ millions except for percentages, share and per share amounts) | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
Gross written premium |
$ | 558.4 | $ | 495.6 | 12.7% | $ | 2,007.1 | $ | 1,749.1 | 14.8% | ||||||||||||||
Net written premium |
$ | 507.1 | $ | 462.6 | 9.6% | $ | 1,722.5 | $ | 1,497.9 | 15.0% | ||||||||||||||
Net earned premium |
$ | 516.2 | $ | 486.9 | 6.0% | $ | 1,525.0 | $ | 1,399.1 | 9.0% | ||||||||||||||
Net income/(loss) after tax (1) |
$ | 115.1 | $ | 21.2 | 442.9% | $ | 278.4 | $ | (122.5) | NM | ||||||||||||||
Operating income/(loss) after tax (1) |
$ | 106.5 | $ | 55.5 | 91.9% | $ | 282.8 | $ | (75.4) | NM | ||||||||||||||
Net investment income |
$ | 48.6 | $ | 57.3 | (15.2%) | $ | 153.8 | $ | 171.4 | (10.3%) | ||||||||||||||
Underwriting income/(loss) (1) |
$ | 67.4 | $ | 15.3 | 340.5% | $ | 163.7 | $ | (229.1) | NM | ||||||||||||||
Earnings Per Share and Book Value Per Share |
||||||||||||||||||||||||
Basic earnings per ordinary share |
||||||||||||||||||||||||
Net income/(loss) adjusted for preference share dividend (1) |
$ | 1.50 | $ | 0.22 | 581.8% | $ | 3.60 | $ | (1.98) | NM | ||||||||||||||
Operating income/(loss) adjusted for preference share dividend (1) |
$ | 1.37 | $ | 0.70 | 95.7% | $ | 3.67 | $ | (1.32) | NM | ||||||||||||||
Diluted earnings per ordinary share |
||||||||||||||||||||||||
Net income/(loss) adjusted for preference share dividend (1) |
$ | 1.45 | $ | 0.21 | 590.5% | $ | 3.47 | $ | (1.98) | NM | ||||||||||||||
Operating income/(loss) adjusted for preference share dividend (1) |
$ | 1.34 | $ | 0.68 | 97.1% | $ | 3.53 | $ | (1.32) | NM | ||||||||||||||
Weighted average number of ordinary shares outstanding (in millions of shares) |
71.129 | 70.699 | 0.6% | 71.126 | 70.682 | 0.6% | ||||||||||||||||||
Diluted weighted average number of ordinary shares outstanding (in millions of shares) |
73.398 | 73.300 | 0.1% | 73.703 | 70.682 | 4.3% | ||||||||||||||||||
Book value per ordinary share (1) |
$ | 42.90 | $ | 39.41 | 8.9% | $ | 42.90 | $ | 39.41 | 8.9% | ||||||||||||||
Diluted book value per ordinary share (1) |
$ | 41.53 | $ | 38.07 | 9.1% | $ | 41.53 | $ | 38.07 | 9.1% | ||||||||||||||
Ordinary shares outstanding at September 30, 2012 and September 30, 2011 |
71.012 | 70.595 | ||||||||||||||||||||||
Diluted ordinary shares outstanding at September 30, 2012 and September 30, 2011 (in millions of shares) |
73.341 | 73.079 | ||||||||||||||||||||||
Underwriting Ratios |
||||||||||||||||||||||||
Loss ratio |
49.4% | 62.9% | 52.5% | 83.0% | ||||||||||||||||||||
Policy acquisition expense ratio |
20.0% | 19.2% | 19.8% | 18.7% | ||||||||||||||||||||
General, administrative and corporate expense ratio (1) |
17.6% | 14.8% | 17.0% | 14.7% | ||||||||||||||||||||
Expense ratio (1) |
37.6% | 34.0% | 36.8% | 33.4% | ||||||||||||||||||||
Combined ratio (1) |
87.0% | 96.9% | 89.3% | 116.4% | ||||||||||||||||||||
Return On Equity |
||||||||||||||||||||||||
Average equity (2) |
$ | 2,981.1 | $ | 2,770.1 | $ | 2,886.2 | $ | 2,771.6 | ||||||||||||||||
Return on average equity |
||||||||||||||||||||||||
Net income/(loss) adjusted for preference share dividend (1) |
3.6% | 0.6% | 8.9% | (5.0%) | ||||||||||||||||||||
Operating income/(loss) adjusted for preference share dividend (1) |
3.3% | 1.8% | 9.0% | (3.3%) | ||||||||||||||||||||
Annualized return on average equity |
||||||||||||||||||||||||
Net income/(loss) (1) |
14.4% | 2.4% | 11.9% | (6.7%) | ||||||||||||||||||||
Operating income/(loss) (1) |
13.2% | 7.2% | 12.0% | (4.4%) |
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Average equity excludes preference shares.
2
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Statements of Operations - Quarterly |
(in US$ millions except for percentages and per share amounts) | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | |||||||||||||||||||||
UNDERWRITING REVENUES |
||||||||||||||||||||||||||||
Gross written premiums |
$ | 558.4 | $ | 666.6 | $ | 782.1 | $ | 458.7 | $ | 495.6 | $ | 582.2 | $ | 671.3 | ||||||||||||||
Premiums ceded |
(51.3) | (84.7) | (148.6) | (27.5) | (33.0) | (56.5) | (161.7) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net written premiums |
507.1 | 581.9 | 633.5 | 431.2 | 462.6 | 525.7 | 509.6 | |||||||||||||||||||||
Change in unearned premiums |
9.1 | (68.5) | (138.1) | 58.2 | 24.3 | (65.9) | (57.2) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net earned premiums |
516.2 | 513.4 | 495.4 | 489.4 | 486.9 | 459.8 | 452.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
UNDERWRITING EXPENSES |
||||||||||||||||||||||||||||
Losses and loss adjustment expenses |
255.0 | 262.1 | 284.0 | 394.5 | 306.2 | 326.4 | 528.9 | |||||||||||||||||||||
Policy acquisition expenses |
103.1 | 102.0 | 96.1 | 85.5 | 93.4 | 86.7 | 81.4 | |||||||||||||||||||||
General, administrative and corporate expenses (1) |
90.7 | 83.5 | 84.8 | 79.3 | 72.0 | 70.7 | 62.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total underwriting expenses |
448.8 | 447.6 | 464.9 | 559.3 | 471.6 | 483.8 | 672.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Underwriting income/(loss) including corporate expenses |
67.4 | 65.8 | 30.5 | (69.9) | 15.3 | (24.0) | (220.4) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
OTHER OPERATING REVENUE AND EXPENSES |
||||||||||||||||||||||||||||
Net investment income |
48.6 | 52.8 | 52.4 | 54.2 | 57.3 | 58.6 | 55.5 | |||||||||||||||||||||
Interest expense |
(7.8) | (7.7) | (7.7) | (7.7) | (7.7) | (7.7) | (7.7) | |||||||||||||||||||||
Other income/(expense) |
4.5 | 2.9 | (0.3) | 3.6 | (9.1) | 6.8 | (8.1) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total other operating revenue |
45.3 | 48.0 | 44.4 | 50.1 | 40.5 | 57.7 | 39.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
OPERATING INCOME/(LOSS) BEFORE TAX |
112.7 | 113.8 | 74.9 | (19.8) | 55.8 | 33.7 | (180.7) | |||||||||||||||||||||
Net realized and unrealized exchange gains/(losses) (2) |
7.7 | (13.0) | 3.7 | 2.3 | 0.3 | (7.7) | 2.9 | |||||||||||||||||||||
Net realized and unrealized investment gains/(losses) (3) |
2.7 | (10.0) | 5.5 | 6.0 | (32.9) | (15.7) | 8.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
INCOME/(LOSS) BEFORE TAX |
123.1 | 90.8 | 84.1 | (11.5) | 23.2 | 10.3 | (169.3) | |||||||||||||||||||||
Income tax (expense)/recovery |
(8.0) | (6.2) | (5.4) | 23.9 | (2.0) | (1.2) | 16.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NET INCOME/(LOSS) AFTER TAX |
115.1 | 84.6 | 78.7 | 12.4 | 21.2 | 9.1 | (152.8) | |||||||||||||||||||||
Dividends paid on ordinary shares |
(12.2) | (12.2) | (10.6) | (10.7) | (10.6) | (10.6) | (10.6) | |||||||||||||||||||||
Dividends paid on preference shares |
(8.6) | (8.3) | (5.7) | (5.7) | (5.7) | (5.7) | (5.7) | |||||||||||||||||||||
Dividends paid to non-controlling interest |
(0.1) | - | - | - | (0.1) | - | - | |||||||||||||||||||||
Proportion due to non-controlling interest |
- | 0.2 | 0.1 | (0.1) | (0.1) | 0.2 | 0.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Retained income/(loss) |
$ | 94.2 | $ | 64.3 | $ | 62.5 | $ | (4.1) | $ | 4.7 | $ | (7.0) | $ | (168.9) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Components of net income/(loss) after tax |
||||||||||||||||||||||||||||
Operating income/(loss) |
$ | 106.5 | $ | 105.8 | $ | 70.5 | $ | 5.0 | $ | 55.5 | $ | 30.8 | $ | (161.7) | ||||||||||||||
Net realized and unrealized exchange gains/(losses) after tax (2) |
6.1 | (10.9) | 3.0 | 3.7 | (0.8) | (4.8) | 1.8 | |||||||||||||||||||||
Net realized and unrealized investment gains/(losses) after tax (3) |
2.5 | (10.3) | 5.2 | 3.7 | (33.5) | (16.9) | 7.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NET INCOME/(LOSS) AFTER TAX |
$ | 115.1 | $ | 84.6 | $ | 78.7 | $ | 12.4 | $ | 21.2 | $ | 9.1 | $ | (152.8) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loss ratio |
49.4% | 51.1% | 57.3% | 80.6% | 62.9% | 71.0% | 116.9% | |||||||||||||||||||||
Policy acquisition expense ratio |
20.0% | 19.9% | 19.4% | 17.5% | 19.2% | 18.9% | 18.0% | |||||||||||||||||||||
General, administrative and corporate expense ratio (1) |
17.6% | 16.3% | 17.1% | 16.2% | 14.8% | 15.4% | 13.8% | |||||||||||||||||||||
Expense ratio |
37.6% | 36.2% | 36.5% | 33.7% | 34.0% | 34.3% | 31.8% | |||||||||||||||||||||
Combined ratio |
87.0% | 87.3% | 93.8% | 114.3% | 96.9% | 105.3% | 148.7% | |||||||||||||||||||||
Basic earnings/(losses) per share (4) |
$ | 1.50 | $ | 1.07 | $ | 1.03 | $ | 0.09 | $ | 0.22 | $ | 0.05 | $ | (2.25) | ||||||||||||||
Diluted earnings(losses) per share (4) |
$ | 1.45 | $ | 1.03 | $ | 0.99 | $ | 0.09 | $ | 0.21 | $ | 0.05 | $ | (2.25) | ||||||||||||||
Annualized return on average equity |
||||||||||||||||||||||||||||
Net income/(loss) |
14.4% | 10.8% | 10.4% | 0.8% | 2.4% | 0.4% | (22.8%) | |||||||||||||||||||||
Operating income/(loss) |
13.2% | 13.6% | 9.2% | - | 7.2% | 3.6% | (24.0%) |
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(3) Includes the net realized and unrealized gains/(losses) from interest rate swaps.
(4) Adjusted for preference share dividend.
3
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Statements of Operations - Year To Date |
Nine Months Ended September 30, | ||||||||||||
(in US$ millions except for percentages) | 2012 | 2011 | 2010 | |||||||||
UNDERWRITING REVENUES |
||||||||||||
Gross written premiums |
$ | 2,007.1 | $ | 1,749.1 | $ | 1,664.0 | ||||||
Premiums ceded |
(284.6) | (251.2) | (168.1) | |||||||||
|
|
|
|
|
|
|||||||
Net written premiums |
1,722.5 | 1,497.9 | 1,495.9 | |||||||||
Change in unearned premiums |
(197.5) | (98.8) | (96.7) | |||||||||
|
|
|
|
|
|
|||||||
Net earned premiums |
1,525.0 | 1,399.1 | 1,399.2 | |||||||||
|
|
|
|
|
|
|||||||
UNDERWRITING EXPENSES |
||||||||||||
Losses and loss adjustment expenses |
801.1 | 1,161.5 | 941.3 | |||||||||
Policy acquisition expenses |
301.2 | 261.5 | 237.9 | |||||||||
General, administrative and corporate expenses (1) |
259.0 | 205.2 | 180.1 | |||||||||
|
|
|
|
|
|
|||||||
Total underwriting expenses |
1,361.3 | 1,628.2 | 1,359.3 | |||||||||
|
|
|
|
|
|
|||||||
Underwriting income/(loss) including corporate expenses |
163.7 | (229.1) | 39.9 | |||||||||
|
|
|
|
|
|
|||||||
OTHER OPERATING REVENUE AND EXPENSES |
||||||||||||
Net investment income |
153.8 | 171.4 | 175.0 | |||||||||
Interest expense |
(23.2) | (23.1) | (11.7) | |||||||||
Other income/(expense) |
7.1 | (10.4) | (1.2) | |||||||||
|
|
|
|
|
|
|||||||
Total other operating revenue |
137.7 | 137.9 | 162.1 | |||||||||
|
|
|
|
|
|
|||||||
OPERATING INCOME/(LOSS) BEFORE TAX |
301.4 | (91.2) | 202.0 | |||||||||
OTHER |
||||||||||||
Net realized and unrealized exchange (losses)/gains (2) |
(1.6) | (4.5) | 2.3 | |||||||||
Net realized and unrealized investment (losses)/gains (3) |
(1.8) | (40.1) | 40.1 | |||||||||
|
|
|
|
|
|
|||||||
INCOME/(LOSS) BEFORE TAX |
298.0 | (135.8) | 244.4 | |||||||||
Income tax (expense)/recovery |
(19.6) | 13.3 | (24.4) | |||||||||
|
|
|
|
|
|
|||||||
NET INCOME/(LOSS) AFTER TAX |
278.4 | (122.5) | 220.0 | |||||||||
Dividends paid on ordinary shares |
(35.0) | (31.8) | (35.0) | |||||||||
Dividends paid on preference shares |
(22.6) | (17.1) | (17.1) | |||||||||
Dividends paid to non-controlling interest |
(0.1) | (0.1) | - | |||||||||
Proportion due to non-controlling interest |
0.3 | 0.3 | - | |||||||||
|
|
|
|
|
|
|||||||
Retained income/(loss) |
$ | 221.0 | $ | (171.2) | $ | 167.9 | ||||||
|
|
|
|
|
|
|||||||
Components of net income after tax |
||||||||||||
Operating income/(loss) |
$ | 282.8 | $ | (75.4) | $ | 180.7 | ||||||
Net realized and unrealized exchange (losses)/gains after tax (2) |
(1.8) | (3.8) | 2.7 | |||||||||
Net realized and unrealized investment (losses)/gains after tax (3) |
(2.6) | (43.3) | 36.6 | |||||||||
|
|
|
|
|
|
|||||||
NET INCOME/(LOSS) AFTER TAX |
$ | 278.4 | $ | (122.5) | $ | 220.0 | ||||||
|
|
|
|
|
|
|||||||
Loss ratio |
52.5% | 83.0% | 67.3% | |||||||||
Policy acquisition expense ratio |
19.8% | 18.7% | 17.0% | |||||||||
General, administrative and corporate expense ratio (1) |
17.0% | 14.7% | 12.9% | |||||||||
Expense ratio |
36.8% | 33.4% | 29.9% | |||||||||
Combined ratio |
89.3% | 116.4% | 97.2% |
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(3) Includes the net realized and unrealized gains/(losses) from interest rate swaps.
4
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Balance Sheets |
(in US$ millions except for per share amounts) | September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
|||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Fixed income maturities |
$ | 5,983.1 | $ | 5,791.2 | $ | 5,842.1 | $ | 5,820.2 | $ | 5,992.8 | $ | 5,972.8 | $ | 5,896.1 | ||||||||||||||
Equity securities |
197.1 | 187.4 | 188.1 | 179.5 | 163.8 | 178.1 | 173.5 | |||||||||||||||||||||
Other investments |
34.8 | 33.1 | 33.1 | 33.1 | 32.3 | 30.0 | 30.1 | |||||||||||||||||||||
Short-term investments |
505.3 | 503.6 | 433.8 | 302.3 | 295.9 | 202.8 | 187.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total investments |
6,720.3 | 6,515.3 | 6,497.1 | 6,335.1 | 6,484.8 | 6,383.7 | 6,287.3 | |||||||||||||||||||||
Cash and cash equivalents |
1,374.2 | 1,309.0 | 1,173.3 | 1,239.1 | 1,038.8 | 1,074.1 | 1,116.9 | |||||||||||||||||||||
Reinsurance recoverables |
||||||||||||||||||||||||||||
Unpaid losses |
461.6 | 457.4 | 455.4 | 426.6 | 357.7 | 359.3 | 334.0 | |||||||||||||||||||||
Ceded unearned premiums |
151.3 | 190.8 | 175.3 | 87.8 | 129.9 | 146.2 | 167.4 | |||||||||||||||||||||
Receivables |
||||||||||||||||||||||||||||
Underwriting premiums |
993.4 | 1,063.3 | 1,061.2 | 894.4 | 957.2 | 1,054.3 | 940.0 | |||||||||||||||||||||
Other |
76.4 | 75.1 | 70.2 | 69.7 | 69.3 | 70.0 | 62.8 | |||||||||||||||||||||
Funds withheld |
79.5 | 91.0 | 86.9 | 90.7 | 65.1 | 81.9 | 86.3 | |||||||||||||||||||||
Deferred policy acquisition costs (1) |
232.0 | 233.2 | 215.3 | 184.5 | 192.2 | 191.0 | 178.2 | |||||||||||||||||||||
Derivatives at fair value |
5.8 | 3.3 | 0.9 | 1.3 | 5.8 | 5.7 | 7.4 | |||||||||||||||||||||
Receivable for securities sold |
14.6 | 9.5 | 2.0 | 1.1 | 0.5 | 21.2 | 10.6 | |||||||||||||||||||||
Office properties and equipment |
59.1 | 56.9 | 58.5 | 53.9 | 49.5 | 45.0 | 38.6 | |||||||||||||||||||||
Income tax receivable |
12.3 | 15.7 | 20.3 | 19.5 | 2.5 | 19.9 | 5.2 | |||||||||||||||||||||
Other assets |
38.1 | 39.3 | 31.1 | 36.8 | 31.2 | 30.2 | 29.4 | |||||||||||||||||||||
Intangible assets |
19.2 | 19.5 | 19.7 | 20.0 | 20.3 | 20.5 | 20.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total assets |
$ | 10,237.8 | $ | 10,079.3 | $ | 9,867.2 | $ | 9,460.5 | $ | 9,404.8 | $ | 9,503.0 | $ | 9,284.8 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||||||||||||||
Insurance reserves |
||||||||||||||||||||||||||||
Losses and loss adjustment expenses |
$ | 4,639.6 | $ | 4,556.4 | $ | 4,585.7 | $ | 4,525.2 | $ | 4,399.4 | $ | 4,391.7 | $ | 4,229.3 | ||||||||||||||
Unearned premiums |
1,184.0 | 1,223.8 | 1,146.3 | 916.1 | 1,014.5 | 1,086.2 | 1,028.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total insurance reserves |
5,823.6 | 5,780.2 | 5,732.0 | 5,441.3 | 5,413.9 | 5,477.9 | 5,257.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Payables |
||||||||||||||||||||||||||||
Reinsurance premiums |
71.1 | 109.5 | 192.2 | 155.8 | 135.2 | 181.6 | 226.9 | |||||||||||||||||||||
Taxation |
23.7 | 22.5 | 22.9 | 18.5 | 35.2 | 49.1 | 45.3 | |||||||||||||||||||||
Accrued expenses and other payables |
261.4 | 230.3 | 208.9 | 187.8 | 186.0 | 204.8 | 214.5 | |||||||||||||||||||||
Liabilities under derivative contracts |
4.7 | 2.7 | 1.3 | 2.1 | - | - | 3.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total payables |
360.9 | 365.0 | 425.3 | 364.2 | 356.4 | 435.5 | 490.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Long-term debt |
499.1 | 499.0 | 499.0 | 499.0 | 498.9 | 498.9 | 498.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
6,683.6 | 6,644.2 | 6,656.3 | 6,304.5 | 6,269.2 | 6,412.3 | 6,246.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
SHAREHOLDERS EQUITY |
||||||||||||||||||||||||||||
Ordinary shares |
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
Non-controlling interest |
(0.1) | 0.1 | 0.3 | 0.4 | 0.2 | 0.1 | 0.3 | |||||||||||||||||||||
Preference shares |
- | - | - | - | - | - | - | |||||||||||||||||||||
Additional paid-in capital |
1,521.9 | 1,523.2 | 1,390.8 | 1,385.0 | 1,381.8 | 1,388.2 | 1,388.2 | |||||||||||||||||||||
Retained earnings (1) |
1,562.6 | 1,468.4 | 1,404.1 | 1,341.6 | 1,345.8 | 1,341.1 | 1,348.1 | |||||||||||||||||||||
Accumulated other comprehensive income, net of taxes |
469.7 | 443.3 | 415.6 | 428.9 | 407.7 | 361.2 | 301.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total shareholders equity |
3,554.2 | 3,435.1 | 3,210.9 | 3,156.0 | 3,135.6 | 3,090.7 | 3,038.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and shareholders equity |
$ | 10,237.8 | $ | 10,079.3 | $ | 9,867.2 | $ | 9,460.5 | $ | 9,404.8 | $ | 9,503.0 | $ | 9,284.8 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Book value per ordinary share (1) |
$ | 42.90 | $ | 41.41 | $ | 39.96 | $ | 39.66 | $ | 39.41 | $ | 38.64 | $ | 37.96 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Book value per diluted ordinary share (1) |
$ | 41.53 | $ | 40.01 | $ | 38.58 | $ | 38.21 | $ | 38.07 | $ | 37.24 | $ | 36.48 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
5
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Earnings Per Share and Book Value Per Share |
Three Months Ended | Nine Months Ended | |||||||||||||||
(in US$ except for number of shares) | September 30, 2012 | September 30, 2011 (1) | September 30, 2012 | September 30, 2011 (1) | ||||||||||||
Basic earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$ | 1.50 | $ | 0.22 | $ | 3.60 | $ | (1.98) | ||||||||
Operating income/(loss) adjusted for preference share dividend |
$ | 1.37 | $ | 0.70 | $ | 3.67 | $ | (1.32) | ||||||||
Diluted earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$ | 1.45 | $ | 0.21 | $ | 3.47 | $ | (1.98) | ||||||||
Operating income/(loss) adjusted for preference share dividend |
$ | 1.34 | $ | 0.68 | $ | 3.53 | $ | (1.32) | ||||||||
Weighted average number of ordinary shares outstanding |
71.129 | 70.699 | 71.126 | 70.682 | ||||||||||||
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions) (2) |
73.398 | 73.300 | 73.703 | 70.682 | ||||||||||||
Book value per ordinary share |
$ | 42.90 | $ | 39.41 | $ | 42.90 | $ | 39.41 | ||||||||
Diluted book value per ordinary share |
$ | 41.53 | $ | 38.07 | $ | 41.53 | $ | 38.07 | ||||||||
Ordinary shares outstanding at end of the period (in millions) |
71.012 | 70.595 | 71.012 | 70.595 | ||||||||||||
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions) |
73.341 | 73.079 | 73.341 | 73.079 |
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) The basic and diluted number of ordinary shares for the nine months ended September 30, 2011 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
6
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Return On Average Equity |
Three Months Ended | Nine Months Ended | |||||||||||||||
(in US$ millions except for percentages) | September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | ||||||||||||
Average shareholders' equity (1) |
$3,494.7 | $3,123.7 | $3,335.8 | $3,125.2 | ||||||||||||
Average preference shares |
(513.6) | (353.6) | (449.6) | (353.6) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Average equity |
$2,981.1 | $2,770.1 | $2,886.2 | $2,771.6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Return on average equity: |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
3.6% | 0.6% | 8.9% | (5.0%) | ||||||||||||
Operating income/(loss) adjusted for preference share dividend |
3.3% | 1.8% | 9.0% | (3.3%) | ||||||||||||
Annualized return on average equity: |
||||||||||||||||
Net income/(loss) |
14.4% | 2.4% | 11.9% | (6.7%) | ||||||||||||
Operating income/(loss) |
13.2% | 7.2% | 12.0% | (4.4%) | ||||||||||||
Components of return on average equity: |
||||||||||||||||
Return on average equity from underwriting activity (2) |
2.3% | 0.6% | 5.7% | (8.3%) | ||||||||||||
Return on average equity from investment and other activity (3) |
1.2% | 1.3% | 4.0% | 4.4% | ||||||||||||
Pre-tax operating income/(loss) return on average equity |
3.5% | 1.8% | 9.7% | (3.9%) | ||||||||||||
Post-tax operating income/(loss) return on average equity (4) |
3.3% | 1.8% | 9.0% | (3.3%) |
See page 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Calculated by using underwriting income.
(3) Calculated by using total other operating revenue and other income/(expense) adjusted for preference share dividends.
(4) Calculated by using operating income after-tax adjusted for preference share dividends.
7
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Underwriting Results by Operating Segment |
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | |||||||||||||||||||||||
(in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
Gross written premiums |
$259.5 | $298.9 | $558.4 | $276.1 | $ | 219.5 | $495.6 | |||||||||||||||||
Net written premiums |
256.9 | 250.2 | 507.1 | 270.5 | 192.1 | 462.6 | ||||||||||||||||||
Gross earned premiums |
299.8 | 302.0 | 601.8 | 303.2 | 246.7 | 549.9 | ||||||||||||||||||
Net earned premiums |
279.6 | 236.6 | 516.2 | 279.6 | 207.3 | 486.9 | ||||||||||||||||||
Losses and loss adjustment expenses |
117.1 | 137.9 | 255.0 | 188.8 | 117.4 | 306.2 | ||||||||||||||||||
Policy acquisition expenses |
55.7 | 47.4 | 103.1 | 51.8 | 41.6 | 93.4 | ||||||||||||||||||
General and administrative expenses (1) |
33.6 | 42.8 | 76.4 | 26.7 | 34.9 | 61.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Underwriting income |
$ 73.2 | $ 8.5 | $ 81.7 | $ 12.3 | $ | 13.4 | $ 25.7 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
48.6 | 57.3 | ||||||||||||||||||||||
Net realized and unrealized investment gains/(losses) (2) |
2.7 | (32.9) | ||||||||||||||||||||||
Corporate (expenses) |
(14.3) | (10.4) | ||||||||||||||||||||||
Other income/(expenses) |
4.5 | (9.1) | ||||||||||||||||||||||
Interest (expense) |
(7.8) | (7.7) | ||||||||||||||||||||||
Net realized and unrealized foreign exchange gains (3) |
7.7 | 0.3 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Income before income taxes |
$ 123.1 | $ 23.2 | ||||||||||||||||||||||
Income tax (expense) |
(8.0) | (2.0) | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net income |
$ 115.1 | $ 21.2 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Ratios |
||||||||||||||||||||||||
Loss ratio |
41.9% | 58.3% | 49.4% | 67.5% | 56.6% | 62.9% | ||||||||||||||||||
Policy acquisition expense ratio |
19.9% | 20.0% | 20.0% | 18.5% | 20.1% | 19.2% | ||||||||||||||||||
General and administrative expense ratio (1,4) |
12.0% | 18.1% | 17.6% | 9.5% | 16.8% | 14.8% | ||||||||||||||||||
Expense ratio |
31.9% | 38.1% | 37.6% | 28.0% | 36.9% | 34.0% | ||||||||||||||||||
Combined ratio |
73.8% | 96.4% | 87.0% | 95.5% | 93.5% | 96.9% |
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.
(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(4) The total group general and administrative expense ratio includes the impact from corporate expenses.
8
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Underwriting Results by Operating Segment |
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||
(in US$ millions except for percentages) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||
Gross written premiums |
$ | 1,033.5 | $ | 973.6 | $ | 2,007.1 | $ | 1,001.2 | $ | 747.9 | $ | 1,749.1 | ||||||||||||
Net written premiums |
963.2 | 759.3 | 1,722.5 | 915.8 | 582.1 | 1,497.9 | ||||||||||||||||||
Gross earned premiums |
890.8 | 848.8 | 1,739.6 | 878.7 | 704.8 | 1,583.5 | ||||||||||||||||||
Net earned premiums |
832.6 | 692.4 | 1,525.0 | 819.6 | 579.5 | 1,399.1 | ||||||||||||||||||
Losses and loss adjustment expenses |
386.4 | 414.7 | 801.1 | 805.2 | 356.3 | 1,161.5 | ||||||||||||||||||
Policy acquisition expenses |
166.8 | 134.4 | 301.2 | 150.3 | 111.2 | 261.5 | ||||||||||||||||||
General and administrative expenses (1) |
92.6 | 126.3 | 218.9 | 78.6 | 94.5 | 173.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Underwriting income/(loss) |
$ | 186.8 | $ | 17.0 | $ | 203.8 | $ | (214.5) | $ | 17.5 | $ | (197.0) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
153.8 | 171.4 | ||||||||||||||||||||||
Net realized and unrealized investment (losses) (2) |
(1.8) | (40.1) | ||||||||||||||||||||||
Corporate (expenses) |
(40.1) | (32.1) | ||||||||||||||||||||||
Other income/(expenses) |
7.1 | (10.4) | ||||||||||||||||||||||
Interest (expense) |
(23.2) | (23.1) | ||||||||||||||||||||||
Net realized and unrealized foreign exchange (losses) (3) |
(1.6) | (4.5) | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Income/(loss) before income tax |
$ | 298.0 | $ | (135.8) | ||||||||||||||||||||
Income tax (expense)/recovery |
(19.6) | 13.3 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net income/(loss) |
$ | 278.4 | $ | (122.5) | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Ratios |
||||||||||||||||||||||||
Loss ratio |
46.4% | 59.9% | 52.5% | 98.2% | 61.5% | 83.0% | ||||||||||||||||||
Policy acquisition expense ratio |
20.0% | 19.4% | 19.8% | 18.3% | 19.2% | 18.7% | ||||||||||||||||||
General and administrative expense ratio (1,4) |
11.1% | 18.2% | 17.0% | 9.6% | 16.3% | 14.7% | ||||||||||||||||||
Expense ratio |
31.1% | 37.6% | 36.8% | 27.9% | 35.5% | 33.4% | ||||||||||||||||||
Combined ratio |
77.5% | 97.5% | 89.3% | 126.1% | 97.0% | 116.4% |
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.
(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(4) The total group general and administrative expense ratio includes the impact from corporate expenses.
9
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Reinsurance Segment - Quarterly Results |
(in US$ millions except for percentages) | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | |||||||||||||||||||||
Gross written premiums |
$259.5 | $299.8 | $474.2 | $186.3 | $276.1 | $288.0 | $437.1 | |||||||||||||||||||||
Net written premiums |
256.9 | 276.8 | 429.5 | 182.3 | 270.5 | 256.9 | 388.4 | |||||||||||||||||||||
Gross earned premiums |
299.8 | 300.8 | 290.2 | 311.9 | 303.2 | 290.7 | 284.8 | |||||||||||||||||||||
Net earned premiums |
279.6 | 282.0 | 271.0 | 288.7 | 279.6 | 268.0 | 272.0 | |||||||||||||||||||||
Net losses and loss adjustment expenses |
117.1 | 133.7 | 135.6 | 278.1 | 188.8 | 206.3 | 410.1 | |||||||||||||||||||||
Policy acquisition expenses |
55.7 | 59.3 | 51.8 | 47.4 | 51.8 | 49.1 | 49.4 | |||||||||||||||||||||
General and administrative expenses (1) |
33.6 | 30.0 | 29.0 | 33.2 | 26.7 | 26.9 | 25.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Underwriting income/(loss) |
$73.2 | $59.0 | $54.6 | $(70.0) | $12.3 | $(14.3) | $(212.5) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ratios |
||||||||||||||||||||||||||||
Loss ratio |
41.9% | 47.4% | 50.0% | 96.3% | 67.5% | 77.0% | 150.8% | |||||||||||||||||||||
Policy acquisition expense ratio |
19.9% | 21.0% | 19.1% | 16.4% | 18.5% | 18.3% | 18.2% | |||||||||||||||||||||
General and administrative expense ratio (1) |
12.0% | 10.6% | 10.7% | 11.5% | 9.5% | 10.0% | 9.2% | |||||||||||||||||||||
Expense ratio |
31.9% | 31.6% | 29.8% | 27.9% | 28.0% | 28.3% | 27.4% | |||||||||||||||||||||
Combined ratio |
73.8% | 79.0% | 79.8% | 124.2% | 95.5% | 105.3% | 178.2% |
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
10
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Insurance Segment - Quarterly Results |
(in US$ millions except for percentages) | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | |||||||||||||||||||||
Gross written premiums |
$298.9 | $366.8 | $307.9 | $272.4 | $219.5 | $294.2 | $234.2 | |||||||||||||||||||||
Net written premiums |
250.2 | 305.1 | 204.0 | 248.9 | 192.1 | 268.8 | 121.2 | |||||||||||||||||||||
Gross earned premiums |
302.0 | 279.9 | 266.9 | 245.7 | 246.7 | 234.1 | 224.0 | |||||||||||||||||||||
Net earned premiums |
236.6 | 231.4 | 224.4 | 200.7 | 207.3 | 191.8 | 180.4 | |||||||||||||||||||||
Net losses and loss adjustment expenses |
137.9 | 128.4 | 148.4 | 116.4 | 117.4 | 120.1 | 118.8 | |||||||||||||||||||||
Policy acquisition expenses |
47.4 | 42.7 | 44.3 | 38.1 | 41.6 | 37.6 | 32.0 | |||||||||||||||||||||
General and administrative expenses (1) |
42.8 | 42.1 | 41.4 | 33.5 | 34.9 | 29.8 | 29.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Underwriting income/(loss) |
$8.5 | $18.2 | $(9.7) | $12.7 | $13.4 | $4.3 | $(0.2) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ratios |
||||||||||||||||||||||||||||
Loss ratio |
58.3% | 55.5% | 66.1% | 58.0% | 56.6% | 62.6% | 65.9% | |||||||||||||||||||||
Policy acquisition expense ratio |
20.0% | 18.5% | 19.7% | 19.0% | 20.1% | 19.6% | 17.7% | |||||||||||||||||||||
General and administrative expense ratio (1) |
18.1% | 18.2% | 18.4% | 16.7% | 16.8% | 15.5% | 16.5% | |||||||||||||||||||||
Expense ratio |
38.1% | 36.7% | 38.1% | 35.7% | 36.9% | 35.1% | 34.2% | |||||||||||||||||||||
Combined ratio |
96.4% | 92.2% | 104.2% | 93.7% | 93.5% | 97.7% | 100.1% |
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
11
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Written and Earned Premiums by Segment and Line of Business |
(in US$ millions)
Gross Written Premium |
Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | |||||||||||||||||||||
Reinsurance |
||||||||||||||||||||||||||||
Property Catastrophe Reinsurance |
$ | 42.7 | $ | 91.9 | $ | 152.9 | $ | 9.4 | $ | 53.5 | $ | 93.0 | $ | 151.0 | ||||||||||||||
Other Property Reinsurance |
92.6 | 81.0 | 78.5 | 64.8 | 78.6 | 70.9 | 64.8 | |||||||||||||||||||||
Casualty Reinsurance |
76.3 | 66.6 | 138.9 | 42.5 | 83.4 | 44.6 | 138.6 | |||||||||||||||||||||
Specialty Reinsurance |
47.9 | 60.3 | 103.9 | 69.6 | 60.6 | 79.5 | 82.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Reinsurance |
$ | 259.5 | $ | 299.8 | $ | 474.2 | $ | 186.3 | $ | 276.1 | $ | 288.0 | $ | 437.1 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Insurance |
||||||||||||||||||||||||||||
Property Insurance |
$ | 76.5 | $ | 113.0 | $ | 73.6 | $ | 65.7 | $ | 42.5 | $ | 73.6 | $ | 38.6 | ||||||||||||||
Casualty Insurance |
56.4 | 51.8 | 35.0 | 46.6 | 38.1 | 32.9 | 19.6 | |||||||||||||||||||||
Marine, Energy and Transportation Insurance |
102.2 | 133.7 | 149.6 | 107.6 | 70.5 | 130.3 | 123.8 | |||||||||||||||||||||
Financial and Professional Lines Insurance |
63.8 | 68.3 | 49.7 | 52.5 | 68.4 | 57.4 | 52.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
$ | 298.9 | $ | 366.8 | $ | 307.9 | $ | 272.4 | $ | 219.5 | $ | 294.2 | $ | 234.2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Gross Written Premiums |
$ | 558.4 | $ | 666.6 | $ | 782.1 | $ | 458.7 | $ | 495.6 | $ | 582.2 | $ | 671.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Written Premium |
||||||||||||||||||||||||||||
Reinsurance |
||||||||||||||||||||||||||||
Property Catastrophe Reinsurance |
$ | 43.7 | $ | 76.0 | $ | 123.5 | $ | 9.2 | $ | 53.5 | $ | 69.6 | $ | 116.1 | ||||||||||||||
Other Property Reinsurance |
89.2 | 76.8 | 64.8 | 61.0 | 73.8 | 63.5 | 53.3 | |||||||||||||||||||||
Casualty Reinsurance |
76.1 | 66.5 | 137.3 | 42.5 | 82.6 | 44.3 | 136.4 | |||||||||||||||||||||
Specialty Reinsurance |
47.9 | 57.5 | 103.9 | 69.6 | 60.6 | 79.5 | 82.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Reinsurance |
$ | 256.9 | $ | 276.8 | $ | 429.5 | $ | 182.3 | $ | 270.5 | $ | 256.9 | $ | 388.4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Insurance |
||||||||||||||||||||||||||||
Property Insurance |
$ | 57.2 | $ | 101.8 | $ | 40.0 | $ | 58.7 | $ | 31.2 | $ | 65.2 | $ | 1.6 | ||||||||||||||
Casualty Insurance |
42.0 | 40.9 | 26.4 | 34.7 | 31.2 | 24.9 | 10.5 | |||||||||||||||||||||
Marine, Energy and Transportation Insurance |
93.1 | 103.4 | 140.7 | 107.5 | 59.8 | 121.5 | 98.8 | |||||||||||||||||||||
Financial and Professional Lines Insurance |
57.9 | 59.0 | (3.1) | 48.0 | 69.9 | 57.2 | 10.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
$ | 250.2 | $ | 305.1 | $ | 204.0 | $ | 248.9 | $ | 192.1 | $ | 268.8 | $ | 121.2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Net Written Premiums |
$ | 507.1 | $ | 581.9 | $ | 633.5 | $ | 431.2 | $ | 462.6 | $ | 525.7 | $ | 509.6 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Earned Premium |
||||||||||||||||||||||||||||
Reinsurance |
||||||||||||||||||||||||||||
Property Catastrophe Reinsurance |
$ | 62.3 | $ | 60.8 | $ | 62.9 | $ | 60.4 | $ | 52.1 | $ | 58.5 | $ | 71.6 | ||||||||||||||
Other Property Reinsurance |
72.7 | 68.2 | 68.2 | 70.0 | 64.4 | 57.0 | 60.1 | |||||||||||||||||||||
Casualty Reinsurance |
82.3 | 88.1 | 66.9 | 75.7 | 95.3 | 75.7 | 82.4 | |||||||||||||||||||||
Specialty Reinsurance |
62.3 | 64.9 | 73.0 | 82.6 | 67.8 | 76.8 | 57.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Reinsurance |
$ | 279.6 | $ | 282.0 | $ | 271.0 | $ | 288.7 | $ | 279.6 | $ | 268.0 | $ | 272.0 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Insurance |
||||||||||||||||||||||||||||
Property Insurance |
$ | 49.8 | $ | 49.6 | $ | 42.4 | $ | 38.8 | $ | 28.0 | $ | 29.1 | $ | 28.2 | ||||||||||||||
Casualty Insurance |
33.2 | 31.0 | 27.9 | 24.6 | 25.4 | 26.5 | 25.4 | |||||||||||||||||||||
Marine, Energy and Transportation Insurance |
108.2 | 110.9 | 102.6 | 100.4 | 96.6 | 99.2 | 93.3 | |||||||||||||||||||||
Financial and Professional Lines Insurance |
45.4 | 39.9 | 51.5 | 36.9 | 57.3 | 37.0 | 33.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
$ | 236.6 | $ | 231.4 | $ | 224.4 | $ | 200.7 | $ | 207.3 | $ | 191.8 | $ | 180.4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Net Earned Premiums |
$ | 516.2 | $ | 513.4 | $ | 495.4 | $ | 489.4 | $ | 486.9 | $ | 459.8 | $ | 452.4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Statements of Changes in Shareholders Equity |
Nine Months Ended September 30, | ||||||||
(in US$ millions) | 2012 | 2011 | ||||||
Ordinary shares |
||||||||
Beginning and end of period |
$0.1 | $0.1 | ||||||
|
|
|
|
|||||
Preference shares |
||||||||
Beginning and end of period |
- | - | ||||||
|
|
|
|
|||||
Non-controlling interest |
||||||||
Beginning of period |
0.3 | 0.5 | ||||||
Dividends paid to non-controlling interest |
(0.1) | (0.1) | ||||||
Net (loss) for the period |
(0.3) | (0.2) | ||||||
|
|
|
|
|||||
End of period |
(0.1) | 0.2 | ||||||
|
|
|
|
|||||
Additional paid-in capital |
||||||||
Beginning of period |
1,385.0 | 1,388.3 | ||||||
New shares issued |
21.5 | 0.5 | ||||||
Ordinary shares repurchased |
(51.9) | (8.1) | ||||||
Preference shares issued |
154.5 | - | ||||||
Share-based compensation |
12.8 | 1.1 | ||||||
|
|
|
|
|||||
End of period |
1,521.9 | 1,381.8 | ||||||
|
|
|
|
|||||
Retained earnings |
||||||||
Beginning of period (1) |
1,341.6 | 1,517.0 | ||||||
Net income/(loss) for the period (1) |
278.7 | (122.3) | ||||||
Dividends paid on ordinary and preference shares |
(57.7) | (48.9) | ||||||
|
|
|
|
|||||
End of period |
1,562.6 | 1,345.8 | ||||||
|
|
|
|
|||||
Accumulated other comprehensive income: |
||||||||
Cumulative foreign currency translation adjustments, net of taxes: |
||||||||
Beginning of period |
124.2 | 113.4 | ||||||
Change for the period |
(15.8) | 0.3 | ||||||
|
|
|
|
|||||
End of period |
108.4 | 113.7 | ||||||
|
|
|
|
|||||
Loss on derivatives: |
||||||||
Beginning of period |
(0.7) | (1.0) | ||||||
Reclassification to interest payable |
0.3 | 0.2 | ||||||
|
|
|
|
|||||
End of period |
(0.4) | (0.8) | ||||||
|
|
|
|
|||||
Unrealized appreciation/(depreciation) on investments, net of taxes: |
||||||||
Beginning of period |
305.4 | 211.9 | ||||||
Change for the period |
56.3 | 82.9 | ||||||
|
|
|
|
|||||
End of period |
361.7 | 294.8 | ||||||
|
|
|
|
|||||
Total accumulated other comprehensive income |
469.7 | 407.7 | ||||||
|
|
|
|
|||||
Total shareholders equity |
$3,554.2 | $3,135.6 | ||||||
|
|
|
|
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
13
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Statements of Comprehensive Income |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in US$ millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income/(loss) (1) |
$ 115.1 | $ 21.2 | $278.4 | $(122.5) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income/(loss), net of taxes: |
||||||||||||||||
Available for sale investments: |
||||||||||||||||
Reclassification adjustment for net realized losses/(gains) included in net income |
4.8 | (5.2) | 5.1 | (13.6) | ||||||||||||
Change in net unrealized gains and losses on available for sale securities held |
26.3 | 69.0 | 51.2 | 96.5 | ||||||||||||
Loss on derivatives reclassified to interest expense |
0.2 | 0.1 | 0.3 | 0.2 | ||||||||||||
Change in foreign currency translation adjustment |
(4.9) | (17.4) | (15.8) | 0.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income |
26.4 | 46.5 | 40.8 | 83.4 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income/(loss) |
$141.5 | $67.7 | $319.2 | $(39.1) | ||||||||||||
|
|
|
|
|
|
|
|
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
14
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Condensed Consolidated Statements of Cash Flows |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in US$ millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net cash from operating activities |
$ | 185.6 | $ | 84.4 | $ | 345.2 | $ | 278.4 | ||||||||
Net cash (used in) investing activities |
(107.6) | (88.6) | (287.2) | (368.4) | ||||||||||||
Net cash (used in)/from financing activities |
(26.5) | (22.7) | 66.4 | (56.5) | ||||||||||||
Effect of exchange rate movements on cash and cash equivalents |
13.7 | (8.4) | 10.7 | 6.2 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase in cash and cash equivalents |
65.2 | (35.3) | 135.1 | (140.3) | ||||||||||||
Cash at beginning of period |
1,309.0 | 1,074.1 | 1,239.1 | 1,179.1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash at end of period |
$ | 1,374.2 | $ | 1,038.8 | $ | 1,374.2 | $ | 1,038.8 | ||||||||
|
|
|
|
|
|
|
|
15
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Reserves for Losses and Loss Adjustment Expenses |
(in US$ millions) | For the Nine Months Ended September 30, 2012 |
For
the Twelve Months Ended December 31, 2011 |
||||||
Provision for losses and loss adjustment expenses at the start of the period |
$4,525.2 | $3,820.5 | ||||||
Reinsurance recoverables |
(426.6) | (279.9) | ||||||
|
|
|
|
|||||
Net loss and loss adjustment expenses at the start of the period |
4,098.6 | 3,540.6 | ||||||
|
|
|
|
|||||
Net loss and loss adjustment expenses disposed |
(8.8) | (20.6) | ||||||
|
|
|
|
|||||
Provision for losses and loss adjustment expenses for claims incurred |
||||||||
Current period |
896.5 | 1,648.3 | ||||||
Prior period release |
(95.4) | (92.3) | ||||||
|
|
|
|
|||||
Total incurred |
801.1 | 1,556.0 | ||||||
|
|
|
|
|||||
Losses and loss adjustment expenses payments for claims incurred |
(756.9) | (982.2) | ||||||
|
|
|
|
|||||
Foreign exchange losses |
44.0 | 4.8 | ||||||
|
|
|
|
|||||
Net loss and loss adjustment expenses reserves at the end of the period |
4,178.0 | 4,098.6 | ||||||
Reinsurance recoverables on unpaid losses at the end of the period |
461.6 | 426.6 | ||||||
|
|
|
|
|||||
Gross loss and loss adjustment expenses reserves at the end of the period |
$4,639.6 | $4,525.2 | ||||||
|
|
|
|
16
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Reserves by Operating Segment |
(in US$ millions) | As At September 30, 2012 | As At December 31, 2011 | ||||||||||||||||||||||
Gross | Reinsurance Recoverables |
Net | Gross | Reinsurance Recoverables |
Net | |||||||||||||||||||
Reinsurance |
$2,946.2 | $(191.1) | $2,755.1 | $2,953.5 | $(183.5) | $2,770.0 | ||||||||||||||||||
Insurance |
1,693.4 | (270.5) | 1,422.9 | 1,571.7 | (243.1) | 1,328.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total losses and loss adjustment expense reserves |
$4,639.6 | $(461.6) | $4,178.0 | $4,525.2 | $(426.6) | $4,098.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
17
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Prior Year Reserve Releases |
(in US$ millions) | Three Months Ended September 30, 2012 |
Three Months Ended September 30, 2011 |
||||||||||||||||||||||
Gross | Reinsurance Recoverables |
Net | Gross | Reinsurance Recoverables |
Net | |||||||||||||||||||
Reinsurance |
$22.0 | - | $22.0 | $10.1 | $1.6 | $11.7 | ||||||||||||||||||
Insurance |
4.6 | 3.2 | 7.8 | (6.1) | 10.0 | 3.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Release in reserves for prior years during the period |
$26.6 | $3.2 | $29.8 | $4.0 | $11.6 | $15.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Nine Months Ended September 30, 2012 |
Nine Months Ended September 30, 2011 |
|||||||||||||||||||||||
Gross | Reinsurance Recoverables |
Net | Gross | Reinsurance Recoverables |
Net | |||||||||||||||||||
Reinsurance |
$59.2 | $5.0 | $64.2 | $56.1 | $1.7 | $57.8 | ||||||||||||||||||
Insurance |
23.4 | 7.8 | 31.2 | (21.6) | 34.1 | 12.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Release in reserves for prior years during the period |
$82.6 | $12.8 | $95.4 | $34.5 | $35.8 | $70.3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
18
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Worldwide Natural Catastrophe Exposures: Major Peril Zones |
Based on shareholders equity of $3,554.2 million at September 30, 2012. The estimates reflect Aspens own view of the modelled maximum losses at the return periods shown which include input from various third party vendor models and our own proprietary adjustments to these models. Catastrophe loss experience may materially differ from the modelled PMLs due to limitations in one or more of the models or uncertainties in the application of policy terms and limits.
19
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Consolidated Investment Portfolio |
(in US$ millions)
Fair Market Value | ||||||||||||||||||||
Marketable Securities - Available For Sale | As At September 30, 2012 |
As At June 30, 2012 |
As At March 31, 2012 |
As At December 31, 2011 |
As At September 30, 2011 |
|||||||||||||||
U.S. government securities |
$1,068.6 | $975.7 | $897.8 | $932.4 | $889.4 | |||||||||||||||
U.S. agency securities |
311.7 | 309.2 | 331.3 | 295.5 | 281.5 | |||||||||||||||
Municipal securities |
39.9 | 39.9 | 38.7 | 35.6 | 36.5 | |||||||||||||||
Corporate securities |
1,929.7 | 1,896.7 | 1,889.1 | 1,846.5 | 1,968.3 | |||||||||||||||
Foreign government securities |
628.5 | 596.3 | 619.5 | 660.4 | 681.2 | |||||||||||||||
Asset-backed securities |
63.8 | 62.0 | 63.4 | 61.0 | 59.0 | |||||||||||||||
FDIC Guaranteed |
3.0 | 3.0 | 63.6 | 72.9 | 93.6 | |||||||||||||||
Bonds backed by foreign government |
139.1 | 119.8 | 158.5 | 167.8 | 191.2 | |||||||||||||||
Mortgage-backed securities |
1,363.5 | 1,384.8 | 1,382.7 | 1,353.7 | 1,408.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed income maturities |
5,547.8 | 5,387.4 | 5,444.6 | 5,425.8 | 5,608.7 | |||||||||||||||
Short-term investments |
494.7 | 489.6 | 423.5 | 298.2 | 290.6 | |||||||||||||||
Equity securities |
197.1 | 187.4 | 188.1 | 179.5 | 163.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Available For Sale |
$6,239.6 | $6,064.4 | $6,056.2 | $5,903.5 | $6,063.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Marketable Securities - Trading |
||||||||||||||||||||
U.S. government securities |
$38.8 | $38.8 | $37.4 | $32.3 | $18.0 | |||||||||||||||
U.S. agency securities |
2.0 | 1.9 | 1.8 | 1.8 | 1.7 | |||||||||||||||
Municipal securities |
2.9 | 2.9 | 2.9 | 2.9 | 2.9 | |||||||||||||||
Corporate securities |
368.2 | 337.7 | 341.9 | 349.3 | 346.1 | |||||||||||||||
Foreign government securities |
21.8 | 21.9 | 12.9 | 7.4 | 9.6 | |||||||||||||||
Mortgage-backed securities |
0.3 | - | - | - | - | |||||||||||||||
Asset-backed securities |
1.3 | 0.6 | 0.6 | 0.7 | 5.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed income maturities |
435.3 | 403.8 | 397.5 | 394.4 | 384.1 | |||||||||||||||
Short-term investments |
10.6 | 14.0 | 10.3 | 4.1 | 5.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Trading |
$445.9 | $417.8 | $407.8 | $398.5 | $389.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other investments |
$34.8 | $33.1 | $33.1 | $33.1 | $32.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash |
1,374.2 | 1,309.0 | 1,173.3 | 1,239.1 | 1,038.8 | |||||||||||||||
Accrued interest |
49.7 | 48.8 | 48.7 | 49.6 | 53.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Cash and Accrued Interest |
$1,423.9 | $1,357.8 | $1,222.0 | $1,288.7 | $1,092.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Cash and Investments |
$8,144.2 | $7,873.1 | $7,719.1 | $7,623.8 | $7,577.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
20
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Investment Analysis |
(in US$ millions except for percentages) | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 | |||||||||||||||||||||
Net investment income from fixed income investments and cash |
$46.9 | $51.0 | $51.0 | $52.9 | $55.6 | $55.6 | $55.3 | |||||||||||||||||||||
Net investment income from equity securities |
1.7 | 1.8 | 1.4 | 1.3 | 1.7 | 3.0 | 0.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net investment income |
48.6 | 52.8 | 52.4 | 54.2 | 57.3 | 58.6 | 55.5 | |||||||||||||||||||||
Net realized and unrealized investment gains excluding the interest-rate swaps |
12.9 | 2.2 | 9.0 | 8.9 | 3.2 | 9.8 | 8.4 | |||||||||||||||||||||
Net realized investment (losses)/gains from the interest-rate swaps |
(8.1) | (11.3) | (3.5) | (2.9) | (36.1) | (25.5) | 0.1 | |||||||||||||||||||||
Other-than-temporary impairment charges |
(2.1) | (0.9) | - | - | - | - | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net realized and unrealized investment gains/(losses) |
2.7 | (10.0) | 5.5 | 6.0 | (32.9) | (15.7) | 8.5 | |||||||||||||||||||||
Change in unrealized gains/(losses) on available for sale investments (gross of tax) |
32.2 | 36.6 | (11.7) | 6.1 | 71.6 | 52.1 | (33.6) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total return on investments |
$83.5 | $79.4 | $46.2 | $66.3 | $96.0 | $95.0 | $30.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Portfolio Characteristics |
||||||||||||||||||||||||||||
Fixed income portfolio book yield (excluding the impact from interest rate swaps) |
3.04% | 3.19% | 3.31% | 3.37% | 3.54% | 3.64% | 3.65% | |||||||||||||||||||||
Fixed income portfolio duration (excluding the impact from interest rate swaps) |
2.8 years | 2.9 years | 3.0 years | 2.9 years | 3.1 years | 3.1 years | 3.2 years |
21
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Book Value Per Ordinary Share |
(in US$ millions except for number of shares and per share amounts) | September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
|||||||||||||||
Net assets (1) |
$ | 3,554.2 | $ | 3,435.1 | $ | 3,210.9 | $ | 3,156.0 | $ | 3,135.6 | ||||||||||
Less: Preference shares |
(508.1) | (508.1) | (353.6) | (353.6) | (353.6) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$3,046.1 | $2,927.0 | $2,857.3 | $2,802.4 | $2,782.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ordinary shares outstanding (in millions) |
71.012 | 70.687 | 71.496 | 70.656 | 70.595 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ordinary shares and dilutive potential ordinary shares (in millions) |
73.341 | 73.161 | 74.064 | 73.339 | 73.079 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Book value per ordinary share (1) |
$42.90 | $41.41 | $39.96 | $39.66 | $39.41 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted book value per ordinary share (1) |
$41.53 | $40.01 | $38.58 | $38.21 | $38.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to purchase the Company's ordinary shares at the average market price during the period of calculation.
(1) In 2012, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
22
![]() |
ASPEN INSURANCE HOLDINGS LIMITED | |||
Operating Income/(Loss) Reconciliation |
Net income/(loss) is adjusted to exclude after-tax change in net foreign exchange gains and losses and realized gains and losses in investments.
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |||||||||||||
(in US$ millions except where stated) | ||||||||||||||||
Net income/(loss) as reported (1) |
$115.1 | $21.2 | $278.4 | ($122.5) | ||||||||||||
Preference share dividends |
(8.6) | (5.7) | (22.6) | (17.1) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income/(loss) available to ordinary shareholders |
106.5 | 15.5 | 255.8 | (139.6) | ||||||||||||
Add (deduct) after tax income: |
||||||||||||||||
Net foreign exchange (gains)/losses |
(6.1) | 0.8 | 1.8 | 3.8 | ||||||||||||
Net realized (gains)/losses on investments |
(2.5) | 33.5 | 2.6 | 43.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(loss) after tax available to ordinary shareholders |
97.9 | 49.8 | 260.2 | (92.5) | ||||||||||||
Tax on operating income/(loss) |
6.2 | 0.3 | 18.6 | (15.8) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(loss) before tax available to ordinary shareholders |
$104.1 | $50.1 | $278.8 | ($108.3) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$1.50 | $0.22 | $3.60 | $(1.98) | ||||||||||||
Add (deduct) after tax income: |
||||||||||||||||
Net foreign exchange (gains)/losses |
(0.09) | 0.01 | 0.03 | 0.05 | ||||||||||||
Net realized (gains)/losses on investments |
(0.04) | 0.47 | 0.04 | 0.61 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(loss) adjusted for preference shares dividend |
$1.37 | $0.70 | $3.67 | $(1.32) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings per ordinary share |
||||||||||||||||
Net income/(loss) adjusted for preference share dividend |
$1.45 | $0.21 | $3.47 | $(1.98) | ||||||||||||
Add (deduct) after tax income: |
||||||||||||||||
Net foreign exchange (gains)/losses |
(0.08) | 0.01 | 0.02 | 0.05 | ||||||||||||
Net realized (gains)/losses on investments |
(0.03) | 0.46 | 0.04 | 0.61 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(losses) adjusted for preference shares dividend |
$1.34 | $0.68 | $3.53 | $(1.32) | ||||||||||||
|
|
|
|
|
|
|
|
(1) In 2011, the Company adopted the provision of ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
23
:6V
MBPX[:,IK_2R/=;7B^K=7Z?\`.J]>SZS]2P+V.IIZ3FTOJNPGLR'WUV/K=ZKZ
M,OTJ<.QN+;Z;:+MOJ?H[O^#5O&Z]B9%N%2:K\>[J#+K*:KZG5/`QRQEWK5V>
M^K^=9Z?[Z;K'7\3I%F/5=5D9%V67BFK%J=<\^F`^SV5^[VM 7E!46%QH3(DU=:W6'@:@9&QP4(7&?`SE$4GUQ$!`0`"
M`00!!0`"`P$```````$1`B$Q05$2(F%Q,@,S@5*Q0A,C_]H`#`,!``(1`Q$`
M/P#?QP'`1X#@.`X#@.`X#@.`X#@.`X#@.`X'__0W\:5DDTOPH0->34*X=&^J
M!Q]M$#`=4H\UKK[7Z);A^9Y;=L]DK+L([V+F,TW]7-*=J5G6M_;6-^UEHM\1
MV8Q$(8S94K:,AVY`]I-DBF5H5O\`@O;$G4HXS<]7>:Z^N,-LI6IQ60('8T?$52#\'[0F
MWMKC%[.$N .:C9+[>[!%52FT^%D;%9[+./$8^(@X.):J/9
M*3D7K@Q$6[1FU1, H<=V>U4B^,2+\L$GX[-;FI/0QABA]CB2;4
M97)\=FY]?&L2XLMC3*O:&T"!ZR[?)O#*']M$HHG2[2F#J)N/'EK;&;U7!Z&:
ME+Z1:@TW7Z3N"5^GZZ2^6*UVAE&?)(>1L]]M$]=)Q*OP93J$B8)@]FA;-4B@
M3N22!0Q"G.8H$O.6=?Q?WG9"(T.P#'4CRE:'8"K#>+NA8C$>6\>8\F,CTM-;
M)UT57;624F,IUR1=+R#M51\@*S%$2M'*1?K@`*'D:VF;?C6I[7>6F)G!V/Y*
MR94H.;I]:`,2 ,KZWP
ML;*8IRE.0Q3D.4#%,40,4Q3!U*8I@Z@8I@'J`A]/"*]LC>6#QRXGR$]Q9?-N
M\20]XC)`T3+Q;63DK`RA)5(_M.8V>L5;BY>M04@P6ZIN47;Q%1JH4Q%0(8I@
M!E?6^$Z*C<*G?ZS"72BV:`N=/LL>A*UVU568CY^NSL8Y`3-Y"(F8IPZCI%FL
M`?5414.0>GT\(]CX#@.`X'__U]_'`"+M=[AB=E
M(VBVV''D!(6*D78M+=^)ZHRJ;+
M23]G9M-9IR,;8W;^]O6@[ZE=#=:21?\`9'6>J_IHOL^QN?O]?<[!W^AM];])
MZ/\`1_\`@D7+^JO3LK.OS_6S,>_)V>M]FRKJ&N]-HJK+JZ+*V^UC4E)O3^LO
MI_S^%ZGH1/HV[?M&_P"GM^T_T7[/[/2_G?6_2>M_@TE#_FWB^CZ/VO/CTO1W
M?;+]T>K]JW[_`%=WK;_T7K?SOV;]7_FDDE/_V3A"24T$(0``````50````$!
M````#P!!`&0`;P!B`&4`(`!0`&@`;P!T`&\`Z(MXAE&Q"3M)G(V+$I9-%S)Y.B8N169MC(-3,G"YP4%PBD)O:8[
M9^+?O.N/DV5ZMZNX
2C=.0>,G/HV4;BW$3+B1O[ARQB=9CJI.+(&A>3
M;;)WU_G8EIN.=,JH%.$O/YLN#F'F#Y%B"29EU'#FG3=9AS1IGW>=V$.BHZ*)
ME%2<82[
F9AYZ3U`_^UFO_`-+K2^KN'=C]2WVX&7C-=6]@LNZFW(:7';MK
M%#+7.WOCVV?F)TH#4@_33_OETH#4@_2Q_%[)),WZ(TC3@F3]Z=1L:E6N+W.T
M9<)]LL+0!!^G[GJR@9#7%S2*W/@?FO+.?WF[F[DE.+]91DGIC?3KZH7^JR1@
M6,;?`%GYS?4;Z/\`I?\`K2YEM74+'MK-?UJ8'N#2\Y#8:'';O^A^:NE^LV&;
M>F-K^P/S/TS"*/MGV8Z-L_2>N]_YF[^:_P`(N7_9#O\`YW+/_ C&H#4>&'I[#13F.E0XDWYOS4+C"VA!T#PG
MYF209FU@@@:=Q()""84"2<.Q^!9_DZ6!8+[3850@H!0"@%`*`4`H!0"@%`*`
M4`H!0"@%`*`4`H#_U._B@%`*`4!\7+9N\;KM':"+IHZ15;.FKE+!=NY;KX9)
M+H+H*XY)K(K)Y7QRQRM?'+&][7MT4!^TTTT4TT44\$DDL,4TDD\<<$TT\,;8
MX)IX8VMCAAAC:UK6M:UK6M0'[H!0"@%`*`T5<^^ZGC_>% 33-'+'J6PM@I;*WR]-OZ*W&[-[IEVY
M%9D,J+9J3'HZ*N5L()"'U5-PNU>V9=R169#*BV:DQZ.BKE;""0A]53%#]LY!
M_>YE?J?$>T"MFXI3[&9XBZ!LO%&?8[/$70'[9R#^]S*_4^(]H%.*4^QF>(N@
M.*,^QV>(N@/VSD'][F5^I\1[0*<4I]C,\1=`<49]CL\1=`?MG(/[W,K]3XCV
M@4XI3[&9XBZ`XHS['9XBZ`_;.0?WN97ZGQ'M`IQ2GV,SQ%T!Q1GV.SQ%T!^V
M<@_O;FO]&ZQ[&>UMFZS=2UEF]CG^W^NN;/U
M+S1`/0.E">/UG)7:];O=B]/LRV-WVTENP$N:/>YM1_FRUWT7K`_;O43S2R=-
M"Z_0`?3'N3AE,107QG("@Y#OJ5F1#N@=*$Z?TG)'*WFV_7BDRW`Z8PF&SZM@
MG]T?05=W7L\LEU+-K)DEV1I'YVZ4(_67(OIA'H+RMEB
M,:>CR>!J4$&D8#R9
)I62QA8TF3FAM=\C$N06Y-T\A@VGPSJ6Z[UYK:!,
MM,2R7282RAT$G^YIIX,HJ@BWNY4;I4BP@
MB(Y/,"NJ@_:+D'9.Y:)SICK5QEH.-R+8LF"O2-\
M