Aspen Insurance Reports Strong Profits Despite Industry Headwinds
Aspen Insurance Holdings Limited has announced strong financial outcomes for the fourth quarter and the full year ending December 31, 2024. The results demonstrate the company’s ability to achieve significant profitability despite ongoing challenges within the broader insurance industry.
For the fourth quarter of 2024, Aspen reported a net income available to ordinary shareholders of $235 million and an operating income of $145 million. The company’s annualized operating return on average equity reached 24.8%, with an adjusted combined ratio of 83.4% for the quarter. For the full year 2024, net income available to ordinary shareholders was $431 million, while operating income totaled $433 million. Aspen’s operating return on average equity for the year stood at 19.4%, with an adjusted combined ratio of 86.8%.
Key business highlights for Aspen included a 16.2% year-on-year increase in gross written premiums, reaching $4.6 billion. Net investment income also rose by 15.3% to $318 million. Additionally, Aspen Capital Markets reported a 24.8% surge in fee income, reaching $169 million. Adjusted underwriting income for the year increased by 7.2% to $381 million.
Group President Christian Dunleavy attributed Aspen’s strong underwriting performance to the company’s strategic portfolio management and effective risk allocation strategies. “All of these results reinforce our core strategies and underscore the relevance and importance of our platforms, products, and service offerings in their respective markets,” Dunleavy stated.
The company acknowledges its exposure to California wildfires, estimating that claims will be in the range of $50 to $75 million, which is within expectations. Looking ahead to 2025, Aspen anticipates continued financial success.
Executive Chairman and Group CEO Mark Cloutier commented, “2024 has seen Aspen deliver yet another excellent set of results driven by healthy performance from each of our powerful earnings engines, underwriting, investments, and capital markets. 2025 is set to be an important year for Aspen, and one we enter with confidence with the business now demonstrating sustained strong performance.”
