|
| | | | | | | | | | | | | | | | | | | | | | |
| ASPEN INSURANCE HOLDINGS LIMITED |
Consolidated Statements of Operations - Quarterly Results |
(in US$ millions except for percentages and per share amounts) | | Q4 2014 | | Q3 2014 | | Q2 2014 | | Q1 2014 | | Q4 2013 |
UNDERWRITING REVENUES | | | | | | | | | | |
Gross written premiums | | $ | 615.4 |
| | $ | 652.5 |
| | $ | 779.3 |
| | $ | 855.5 |
| | $ | 604.4 |
|
Premiums ceded | | (61.4 | ) | | (75.2 | ) | | (92.9 | ) | | (158.0 | ) | | (56.4 | ) |
Net written premiums | | 554.0 |
| | 577.3 |
| | 686.4 |
| | 697.5 |
| | 548.0 |
|
Change in unearned premiums | | 58.2 |
| | 33.1 |
| | (70.2 | ) | | (131.0 | ) | | 24.6 |
|
Net earned premiums | | 612.2 |
| | 610.4 |
| | 616.2 |
| | 566.5 |
| | 572.6 |
|
UNDERWRITING EXPENSES | | | | | | | | | | |
Losses and loss adjustment expenses | | 339.6 |
| | 342.7 |
| | 337.1 |
| | 288.1 |
| | 331.4 |
|
Amortization of deferred policy acquisition costs | | 114.8 |
| | 115.5 |
| | 108.9 |
| | 112.0 |
| | 99.7 |
|
General, administrative and corporate expenses (excluding non-recurring corporate expenses) | | 121.5 |
| | 99.6 |
| | 103.5 |
| | 92.6 |
| | 94.9 |
|
Total underwriting expenses | | 575.9 |
| | 557.8 |
| | 549.5 |
| | 492.7 |
| | 526.0 |
|
Underwriting income including corporate expenses | | 36.3 |
| | 52.6 |
| | 66.7 |
| | 73.8 |
| | 46.6 |
|
OTHER OPERATING REVENUE AND EXPENSES | | | | | | | | | | |
Net investment income | | 46.7 |
| | 48.0 |
| | 46.1 |
| | 49.5 |
| | 47.2 |
|
Interest expense | | (7.4 | ) | | (7.4 | ) | | (7.3 | ) | | (7.4 | ) | | (9.5 | ) |
Other (expense)/income | | (3.9 | ) | | (7.8 | ) | | 2.0 |
| | (0.1 | ) | | 3.5 |
|
Total other operating revenue | | 35.4 |
| | 32.8 |
| | 40.8 |
| | 42.0 |
| | 41.2 |
|
OPERATING INCOME BEFORE TAX | | 71.7 |
| | 85.4 |
| | 107.5 |
| | 115.8 |
| | 87.8 |
|
Non-recurring corporate expenses | | — |
| | (20.2 | ) | | (5.3 | ) | | (3.0 | ) | | — |
|
Net realized and unrealized exchange (losses)/gains (1) (3) | | (2.8 | ) | | (9.9 | ) | | 7.7 |
| | 2.6 |
| | (3.8 | ) |
Net realized and unrealized investment (losses)/gains (2) (3) | | (0.9 | ) | | (16.6 | ) | | 27.1 |
| | 8.8 |
| | 9.6 |
|
INCOME BEFORE TAX | | 68.0 |
| | 38.7 |
| | 137.0 |
| | 124.2 |
| | 93.6 |
|
Income tax expense | | (0.8 | ) | | (1.3 | ) | | (6.2 | ) | | (3.8 | ) | | (3.6 | ) |
NET INCOME AFTER TAX | | 67.2 |
| | 37.4 |
| | 130.8 |
| | 120.4 |
| | 90.0 |
|
Dividends paid on ordinary shares | | (12.4 | ) | | (13.1 | ) | | (13.1 | ) | | (11.7 | ) | | (11.8 | ) |
Dividends paid on preference shares | | (9.4 | ) | | (9.5 | ) | | (9.4 | ) | | (9.5 | ) | | (9.4 | ) |
Dividends paid to non-controlling interest | | (0.1 | ) | | — |
| | — |
| | — |
| | (0.1 | ) |
Change in redemption value of the PIERS | | — |
| | — |
| | — |
| | — |
| | — |
|
Proportion due to non-controlling interest | | (0.8 | ) | | 0.1 |
| | — |
| | (0.1 | ) | | 0.2 |
|
Retained income | | $ | 44.5 |
| | $ | 14.9 |
| | $ | 108.3 |
| | $ | 99.1 |
| | $ | 68.9 |
|
Components of net income after tax | | | | | | | | | | |
Operating income | | 71.3 |
| | 81.7 |
| | 102.8 |
| | 112.7 |
| | 84.4 |
|
Non-recurring corporate expenses | | — |
| | (20.2 | ) | | (5.3 | ) | | (3.0 | ) | | — |
|
Net realized and unrealized exchange (losses)/gains after tax (1) (3) | | (3.1 | ) | | (7.5 | ) | | 6.3 |
| | 2.1 |
| | (3.8 | ) |
Net realized and unrealized investment (losses)/gains after tax (2) (3) | | (1.0 | ) | | (16.6 | ) | | 27.0 |
| | 8.6 |
| | 9.4 |
|
NET INCOME AFTER TAX | | $ | 67.2 |
| | $ | 37.4 |
| | $ | 130.8 |
| | $ | 120.4 |
| | $ | 90.0 |
|
Loss ratio | | 55.5 | % | | 56.1 | % | | 54.7 | % | | 50.9 | % | | 57.9 | % |
Policy acquisition expense ratio | | 18.8 | % | | 18.9 | % | | 17.7 | % | | 19.8 | % | | 17.4 | % |
General, administrative and corporate expense ratio | | 19.8 | % | | 19.6 | % | | 17.7 | % | | 16.9 | % | | 16.6 | % |
General, administrative and corporate expense ratio (excluding non-recurring corporate expenses) | | 19.8 | % | | 16.3 | % | | 16.8 | % | | 16.3 | % | | 16.6 | % |
Expense ratio | | 38.6 | % | | 38.5 | % | | 35.4 | % | | 36.7 | % | | 34.0 | % |
Expense ratio (excluding non-recurring corporate expenses) | | 38.6 | % | | 35.2 | % | | 34.5 | % | | 36.1 | % | | 34.0 | % |
Combined ratio | | 94.1 | % | | 94.6 | % | | 90.1 | % | | 87.6 | % | | 91.9 | % |
Combined ratio (excluding non-recurring corporate expenses) | | 94.1 | % | | 91.3 | % | | 89.2 | % | | 87.0 | % | | 91.9 | % |
Basic earnings per share (4) | | $ | 0.92 |
| | $ | 0.43 |
| | $ | 1.85 |
| | $ | 1.70 |
| | $ | 1.23 |
|
Diluted earnings per share (4) | | $ | 0.90 |
| | $ | 0.42 |
| | $ | 1.82 |
| | $ | 1.66 |
| | $ | 1.21 |
|
Annualized return on average equity | | | | | | | | | | |
Net income | | 8.0 | % | | 4.0 | % | | 16.8 | % | | 16.0 | % | | 12.0 | % |
Operating income | | 8.8 | % | | 10.0 | % | | 12.8 | % | | 14.8 | % | | 11.2 | % |
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. |
(1) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts. |
(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps. |
(3) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and unrealized investment gains/(losses). | | | | |
(4) Adjusted for preference share dividends and non-controlling interest. | | | | | | | | | | |