Aspen Insurance Holdings Ltd. reported a net profit of $ 87.4 million for the six months ended June 30, 2021, helped in part by the sector's strong pricing, compared to a net loss of $ 172.8 million in the six months ended June 30, 2020.
Strong pricing conditions for commercial insurance companies and reinsurance companies should remain for some time, according to Mark Cloutier, CEO and CEO, who spoke to Business Insurance on Tuesday when Aspen reported results.
"The grounds exist for this to be a fairly protracted and sustainable pricing period", says Cloutier, referring to factors such as previous years' underpricing and an "industry gap in accident reserves."
Gross writing premiums fell by 4.7% to 2 .0185 billion, but this included a $ 800 million renewal in business as Aspen continued to relocate its book "continuing business", such as surpluses, where the company has seen significant growth, according to Cloutier, helped offset non- renewals, which included about $ 300 million in crops, he said.
Aspen's combined ratio improved to 98.0% in the six months ended June 30, 2021, compared to 110.1% in the six months ended June 30. June 2020, as disaster losses plummeted to $ 84.5 million six months ago from $ 231.3 million a year ago.
Last Year's Disaster Loss The companies included $ 187.3 million in covid-19-related losses in the event of events (cancellation of events), business interruptions and business classes, Cloutier said.
Net investment decreased by 19.1% to $ 68.7 million for the six months ended June 30, 2021.
Aspen sees growth potential for its Aspen Capital Markets business, which contributed a total fee income of 30, $ 5 million during the period.
Mr. Cloutier said that while most capital market activities have focused on the real estate sector with retrocessional operations, Aspen has signed security transfer agreements with complex structures and conditions for long-tail risks in both its insurance and reinsurance operations.