Aspen Insurance Holdings says its third-quarter profit skyrocketed on lower catastrophe losses and favorable reserve development.
Aspen says third-quarter net income was $115.1 million compared to net income of $21.2 million during the same quarter in 2011.
Profit from the third quarter makes up nearly 83 percent of Aspen's net income thus far in 2012. The Hamilton, Bermuda-based insurer and reinsurer recorded $278.4 million in net income after nine months compared to a net loss of $122.5 million after nine months in 2011—a year marked with catastrophes such as the Japan and New Zealand earthquakes.
After nine months a year ago, Aspen's reinsurance segment booked an underwriting loss of $214.5 million. This year after nine months the company scored a reinsurance underwriting profit of $186.8 million.
Aspen says its third-quarter combined ratio was 87 compared to about 97 during the same time a year ago.
Included within the third-quarter combined ratio is a favorable impact of 5.8 points from net favorable prior-year loss reserves of about $29.8 million.
About $7.8 million in favorable prior-year reserve development came from Aspen's insurance segment. The third-quarter combined ratio in this segment was 96.4 compared to 93.5 a year ago.
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