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Aspen Insurance Holdings Announces Initial Loss Estimate for the Tohoku Earthquake
Hamilton, Bermuda - 13 April, 2011 – Aspen Insurance Holdings Limited (“Aspen” or the “Company”; Ticker: NYSE:AHL; BSX: AHL.BH) announced an estimate of losses from the Tohoku Earthquake, which occurred off the coast of Northeast Japan and the ensuing tsunami on March 11, 2011 (“the Tohoku Earthquake”) and commented on current market conditions.
Chief Executive Officer Chris O’Kane said, “We wish to extend our deepest sympathies to all of those impacted by the events in
The Company’s initial estimate of losses from the Tohoku Earthquake is approximately $160 million, post tax and net of reinstatement premiums, and is consistent with an industry insured loss of $30 billion. This represents 5 percent of shareholders’ equity as at December 31, 2010.
The estimate is based on the Company’s review of the market loss, the individual treaties and policies expected to be impacted and discussions with clients and brokers. Given the magnitude and recent occurrence of these events, there is considerable uncertainty associated with this estimate and actual losses may differ materially.
Commenting on current market conditions, Chris O’Kane said, “The Tohoku earthquake has contributed to an extremely active first quarter in terms of natural catastrophe events, and we believe that it is important to highlight a positive change in trading conditions and market sentiment which took place in March. We had anticipated that rates for our property reinsurance account would reduce by between 5 percent and 10 percent in the April renewals whereas we have achieved average rate increases of 5 percent. This understates the improvement as approximately 40 percent of April renewal premium was quoted or completed prior to the Tohoku Earthquake. Furthermore, we are aware of 17 catastrophe programs where the placement had initially been quoted pre the Tohoku earthquake and, which had to be re-priced to secure completion.”
Chris O’Kane further commented, “We believe that the catastrophe events in the first quarter, combined with low investment returns and the profound change in exposure modelling implied by the latest release from one of the principle vendor modelling agencies, have created conditions for much better pricing for catastrophe exposed property lines of business. Up to 35 percent of our 2011 business could consequently be subject to meaningful positive price changes. Our balance sheet remains strong and we believe that we are well positioned to benefit from an improved pricing environment.”
About
The Company 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 twelve months ended December 31, 2010, the Company reported gross written premiums of $2,076.8 million, net income of $312.7 million and total assets of $8.8 billion. Its operating subsidiaries have been assigned a financial strength rating of “A” (“Strong”) by Standard & Poor's, an “A” (“Excellent”) by A.M. Best and an “A2” (“Good”) by Moody's Investors Service.
Investor Contact:
Aspen Insurance Holdings Limited:
Kerry Calaiaro, Senior Vice President, Investor Relations
T: +1 646 502 1076
Noah Fields, Vice President, Investor Relations
T: +1 441-297-9382
European Press Contact:
Citigate Dewe Rogerson
Justin Griffiths/Sarah Gestetner T: +44 (0) 20 7282 2920
North American Press Contact:
Abernathy MacGregor
Carina Davidson/Allyson Morris T: +1 212-371-5999