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Segment Reporting | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company manages its underwriting operations as two business segments: Aspen Reinsurance and Aspen Insurance. The Company has determined its reportable segments by taking into account the manner in which management makes operating decisions and assesses operating performance. Profit or loss for each of the Company’s business segments is measured by underwriting income or loss. Underwriting profit is the excess of net earned premiums over the sum of losses and loss expenses, acquisition costs and general and administrative expenses. Underwriting income or loss provides a basis for management to evaluate the segment’s underwriting performance. Reinsurance Segment. The reinsurance segment consists of property catastrophe reinsurance, other property reinsurance, casualty reinsurance and specialty reinsurance. For a more detailed description of this business segment, refer to the Item 4, “Information on the Company — Business Overview — Aspen Reinsurance” in the Company’s 2022 Annual Report on Form 20-F filed with the SEC. Insurance Segment. The insurance segment consists of first party and specialty insurance, casualty and liability insurance and financial and professional lines insurance. Additionally, the insurance segment includes Aspen Underwriting Limited’s participation as a corporate member in Carbon Syndicate 4747 (“Carbon Syndicate”). For a more detailed description of this segment, refer to the Item 4, “Information on the Company — Business Overview — Aspen Insurance” in the Company’s 2022 Annual Report on Form 20-F filed with the SEC. Non-underwriting Disclosures. The Company provides additional disclosures for corporate and other (non-operating) income and expenses. Corporate and other income and expenses include: corporate expenses, net investment income, net realized and unrealized investment gains or losses, other strategic and other costs, changes in fair value of derivatives or the loan notes issued by variable interest entities, interest expenses, net realized and unrealized foreign exchange gains or losses, asset impairments and income taxes. These income and expense items are not allocated to the Company’s business segments as they are not directly related to the Company’s business segment operations and is consistent with how management measures the performance of its segments. The Company does not allocate its assets by business segment. The Company uses underwriting ratios as measures of performance. The loss ratio is the ratio of losses and loss adjustment expenses to net earned premiums. The acquisition cost ratio is the ratio of acquisition costs to net earned premiums. The general and administrative expense ratio is the ratio of general and administrative expenses to net earned premiums. The combined ratio is the sum of the loss ratio, the acquisition cost ratio and the general and administrative expense ratio. The following tables provide a summary of gross and net written and earned premiums, underwriting income or loss, ratios and reserves for each of the Company’s business segments for six months ended June 30, 2023 and 2022:
| Six Months Ended June 30, 2023
| Reinsurance |  | Insurance |  | Total
| ($ in millions)
Underwriting Revenues |  |  |  |  |
Gross written premiums | $ | 875.7 |  |  | $ | 1,249.5 |  |  | $ | 2,125.2 |
Net written premiums | 605.0 |  |  | 745.5 |  |  | 1,350.5 |
Net earned premiums | 572.0 |  |  | 715.4 |  |  | 1,287.4 |
Underwriting Expenses |  |  |  |  |
Losses and loss adjustment expenses | 297.2 |  |  | 419.9 |  |  | 717.1 |
Acquisition costs | 105.7 |  |  | 87.2 |  |  | 192.9 |
General and administrative expenses | 58.4 |  |  | 110.6 |  |  | 169.0 |
Underwriting income | 110.7 |  |  | 97.7 |  |  | 208.4 |
Corporate and other expenses (1) |  |  |  |  | (53.1) |
Non-operating expenses |  |  |  |  | (10.6) |
Net investment income |  |  |  |  | 129.4 |
Realized and unrealized investment gains |  |  |  |  | 36.1 |
Realized and unrealized investment losses |  |  |  |  | (18.1) |
Change in fair value of derivatives |  |  |  |  | 19.6 |
Interest expense |  |  |  |  | (42.9) |
Net realized and unrealized foreign exchange losses |  |  |  |  | (13.7) |
Income before income taxes |  |  |  |  | 255.1 |
Income tax (expense) |  |  |  |  | (36.2) |
Net income |  |  |  |  | $ | 218.9 |
Net reserves for loss and loss adjustment expenses | $ | 1,441.2 |  |  | $ | 1,641.7 |  |  | $ | 3,082.9 |
Ratios |  |  |  |  |
Loss ratio | 52.0 | % |  | 58.7 | % |  | 55.7 | %
Acquisition cost ratio | 18.5 |  |  | 12.2 |  |  | 15.0 |
General and administrative expense ratio | 10.2 |  |  | 15.5 |  |  | 13.1 |
Expense ratio | 28.7 |  |  | 27.7 |  |  | 28.1 |
Combined ratio | 80.7 | % |  | 86.4 | % |  | 83.8 | %
_____________ (1) Corporate and other operating expenses includes other income/expenses, which were previously presented separately.
| Six Months Ended June 30, 2022
| Reinsurance |  | Insurance |  | Total
| ( $ in millions)
Underwriting Revenues |  |  |  |  |
Gross written premiums | $ | 1,045.6 |  |  | $ | 1,305.7 |  |  | $ | 2,351.3 |
Net written premiums | 783.7 |  |  | 722.4 |  |  | 1,506.1 |
Net earned premiums | 600.8 |  |  | 726.4 |  |  | 1,327.2 |
Underwriting Expenses |  |  |  |  |
Losses and loss adjustment expenses | 369.0 |  |  | 398.7 |  |  | 767.7 |
Acquisition costs | 124.1 |  |  | 92.4 |  |  | 216.5 |
General and administrative expenses | 69.7 |  |  | 116.8 |  |  | 186.5 |
Underwriting income | 38.0 |  |  | 118.5 |  |  | 156.5 |
Corporate and other expenses (1) |  |  |  |  | (43.3) |
Non-operating expenses |  |  |  |  | (3.6) |
Net investment income |  |  |  |  | 88.7 |
Realized and unrealized investment gains |  |  |  |  | 2.5 |
Realized and unrealized investment losses |  |  |  |  | (128.9) |
Change in fair value of derivatives |  |  |  |  | (84.9) |
Interest expense |  |  |  |  | (9.1) |
Net realized and unrealized foreign exchange gains |  |  |  |  | 75.2 |
Income before income taxes |  |  |  |  | 53.1 |
Income tax (expense) |  |  |  |  | (4.7) |
Net income |  |  |  |  | $ | 48.4 |
Net reserves for loss and loss adjustment expenses | $ | 1,190.4 |  |  | $ | 1,314.9 |  |  | $ | 2,505.3 |
Ratios |  |  |  |  |
Loss ratio | 61.4 | % |  | 54.9 | % |  | 57.8 | %
Acquisition cost ratio | 20.7 |  |  | 12.7 |  |  | 16.3 |
General and administrative expense ratio | 11.6 |  |  | 16.1 |  |  | 14.1 |
Expense ratio | 32.3 |  |  | 28.8 |  |  | 30.4 |
Combined ratio | 93.7 | % |  | 83.7 | % |  | 88.2 | %
_____________ (1) Corporate and other operating expenses includes other income/expenses, which were previously presented separately.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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