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| ASPEN INSURANCE HOLDINGS LIMITED |
Consolidated Statements of Operations - Year To Date Results |
| | | | Nine Months Ended September 30, |
(in US$ millions except for percentages) | | 2013 | | 2012 | | 2011 |
UNDERWRITING REVENUES | | | | | |
Gross written premiums | | $ | 2,042.3 |
| | $ | 2,007.1 |
| | $ | 1,749.1 |
|
Premiums ceded | | (290.6 | ) | | (284.6 | ) | | (251.2 | ) |
Net written premiums | | 1,751.7 |
| | 1,722.5 |
| | 1,497.9 |
|
Change in unearned premiums | | (152.5 | ) | | (197.5 | ) | | (98.8 | ) |
Net earned premiums | | 1,599.2 |
| | 1,525.0 |
| | 1,399.1 |
|
UNDERWRITING EXPENSES | | | | | | |
Losses and loss adjustment expenses | | 892.3 |
| | 801.1 |
| | 1,161.5 |
|
Policy acquisition expenses | | 322.3 |
| | 301.2 |
| | 261.5 |
|
General, administrative and corporate expenses (1) | | 273.2 |
| | 259.0 |
| | 205.2 |
|
Total underwriting expenses | | 1,487.8 |
| | 1,361.3 |
| | 1,628.2 |
|
Underwriting income/(loss) including corporate expenses | | 111.4 |
| | 163.7 |
| | (229.1 | ) |
OTHER OPERATING REVENUE AND EXPENSES | | | | | | |
Net investment income | | 139.2 |
| | 153.8 |
| | 171.4 |
|
Interest expense | | (23.2 | ) | | (23.2 | ) | | (23.1 | ) |
Other income/(expense) | | 3.0 |
| | 7.1 |
| | (10.4 | ) |
Total other operating revenue | | 119.0 |
| | 137.7 |
| | 137.9 |
|
OPERATING INCOME/(LOSS) BEFORE TAX | | 230.4 |
| | 301.4 |
| | (91.2 | ) |
Net realized and unrealized exchange (losses) (2) | | (10.7 | ) | | (1.6 | ) | | (4.5 | ) |
Net realized and unrealized investment gains/(losses) (3) | | 29.4 |
| | (1.8 | ) | | (40.1 | ) |
INCOME/(LOSS) BEFORE TAX | | 249.1 |
| | 298.0 |
| | (135.8 | ) |
Income tax (expense)/recovery | | (9.8 | ) | | (19.6 | ) | | 13.3 |
|
NET INCOME/(LOSS) AFTER TAX | | 239.3 |
| | 278.4 |
| | (122.5 | ) |
Dividends paid on ordinary shares | | (36.0 | ) | | (35.0 | ) | | (31.8 | ) |
Dividends paid on preference shares | | (26.1 | ) | | (22.6 | ) | | (17.1 | ) |
Dividends paid to non-controlling interest | | — |
| | (0.1 | ) | | (0.1 | ) |
Change in redemption value of the PIERS | | (7.1 | ) | | — |
| | — |
|
Proportion due to non-controlling interest | | 0.3 |
| | 0.3 |
| | 0.3 |
|
Retained income/(loss) | | $ | 170.4 |
| | $ | 221.0 |
| | $ | (171.2 | ) |
Components of net income/(loss) after tax | | | | | | |
| Operating income/(loss) | | $ | 219.9 |
| | $ | 282.8 |
| | $ | (75.4 | ) |
| Net realized and unrealized exchange (losses) after tax (2) | | (9.5 | ) | | (1.8 | ) | | (3.8 | ) |
| Net realized and unrealized investment gains/(losses) after tax (3) | | 28.9 |
| | (2.6 | ) | | (43.3 | ) |
NET INCOME/(LOSS) AFTER TAX | | $ | 239.3 |
| | $ | 278.4 |
| | $ | (122.5 | ) |
Loss ratio | | 55.8 | % | | 52.5 | % | | 83.0 | % |
| Policy acquisition expense ratio | | 20.2 | % | | 19.8 | % | | 18.7 | % |
| General, administrative and corporate expense ratio (1) | | 17.1 | % | | 17.0 | % | | 14.7 | % |
Expense ratio | | 37.3 | % | | 36.8 | % | | 33.4 | % |
Combined ratio | | 93.1 | % | | 89.3 | % | | 116.4 | % |
| |
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) 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. | |