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Segment Reporting
 9 Months Ended
Sep. 30, 2024
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.
Insurance Segment. The Insurance segment consists of first party insurance, 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”).
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, non-
operating expenses, net investment income, net realized and unrealized investment gains or losses, changes in fair value of derivatives, interest expenses, net realized and unrealized foreign exchange gains or losses, 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 as we evaluate underwriting results of each segment separately from the results of our investment portfolio.
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 the twelve months ended December 31, 2023, 2022 and 2021:
Twelve Months Ended December 31, 2023
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$1,521.0 $2,446.6 $3,967.6 
Net written premiums1,098.0 1,483.9 2,581.9 
Gross earned premiums1,562.0 2,444.8 4,006.8 
Net earned premiums1,154.5 1,460.0 2,614.5 
Underwriting Expenses
Losses and loss adjustment expenses611.1 941.9 1,553.0 
Acquisition costs208.6 171.6 380.2 
General and administrative expenses120.6 233.9 354.5 
Underwriting income214.2 112.6 326.8 
Corporate and other expenses (1)
(114.0)
Non-operating expenses (2)
(35.1)
Net investment income275.7 
Realized and unrealized investment gains75.9 
Realized and unrealized investment losses(61.4)
Change in fair value of derivatives26.1 
Interest expense(55.2)
Net realized and unrealized foreign exchange (losses)(36.2)
Income before income taxes402.6 
Income tax benefit132.1 
Net income$534.7 
Net reserves for loss and loss adjustment expenses$1,373.1 $1,859.7 $3,232.8 
Ratios
Loss ratio52.9 %64.5 %59.4 %
Acquisition cost ratio18.1 11.8 14.5 
General and administrative expense ratio10.4 16.0 13.6 
Expense ratio28.5 27.8 28.1 
Combined ratio81.4 %92.3 %87.5 %
________________
(1)Corporate and other expenses includes other income/(expenses), which were previously presented separately.
(2)Non-operating expenses in the twelve months ended December 31, 2023 includes expenses in relation to consulting fees, non-recurring transformation program costs, and other non-recurring costs.
Twelve Months Ended December 31, 2022
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$1,807.0 $2,531.7 $4,338.7 
Net written premiums1,426.4 1,469.6 2,896.0 
Gross earned premiums1,617.2 2,370.8 3,988.0 
Net earned premiums1,251.8 1,436.9 2,688.7 
Underwriting Expenses
Losses and loss adjustment expenses770.3 909.7 1,680.0 
Acquisition costs252.4 179.4 431.8 
General and administrative expenses142.5 244.0 386.5 
Underwriting income
86.6 103.8 190.4 
Corporate expenses(71.7)
Non-operating expenses (1)
(36.0)
Net investment income188.1 
Realized and unrealized investment gains5.0 
Realized and unrealized investment losses(182.6)
Change in fair value of derivatives(80.5)
Interest expense(43.7)
Net realized and unrealized foreign exchange gains15.9 
Other income8.2 
Other expenses(20.1)
(Loss) before income taxes
(27.0)
Income tax benefit
78.1 
Net income$51.1 
Net reserves for loss and loss adjustment expenses$1,360.7 $1,452.5 $2,813.2 
Ratios
Loss ratio61.5 %63.3 %62.5 %
Acquisition cost ratio20.2 12.5 16.1 
General and administrative expense ratio11.4 17.0 14.4 
Expense ratio31.6 29.5 30.5 
Combined ratio93.1 %92.8 %93.0 %
________________
(1)Non-operating expenses in the twelve months ended December 31, 2022 includes expenses in relation to consulting fees, non-recurring transformation activities, and other non-recurring costs.
Twelve Months Ended December 31, 2021
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$1,597.0 $2,341.4 $3,938.4 
Net written premiums1,199.0 1,388.7 2,587.7 
Gross earned premiums1,479.2 2,139.1 3,618.3 
Net earned premiums1,118.8 1,291.7 2,410.5 
Underwriting Expenses
Losses and loss adjustment expenses705.2 988.1 1,693.3 
Acquisition costs221.6 192.5 414.1 
General and administrative expenses121.3 211.8 333.1 
Underwriting income/(loss)
70.7 (100.7)(30.0)
Corporate expenses(64.3)
Non-operating expenses (1)
(20.6)
Net investment income147.5 
Realized and unrealized investment gains56.2 
Realized and unrealized investment losses(47.4)
Change in fair value of derivatives(35.9)
Interest expense(14.3)
Net realized and unrealized foreign exchange gains
40.0 
Other income14.7 
Other expenses(10.8)
Income before income taxes
35.1 
Income tax (expense)(5.3)
Net income
$29.8 
Net reserves for loss and loss adjustment expenses$2,148.4 $2,165.3 $4,313.7 
Ratios
Loss ratio63.0 %76.5 %70.2 %
Acquisition cost ratio19.8 14.9 17.2 
General and administrative expense ratio10.8 16.4 13.8 
Expense ratio30.6 31.3 31.0 
Combined ratio93.6 %107.8 %101.2 %
________________
(1)Non-operating expenses in the twelve months ended December 31, 2021 includes expenses in relation to consulting fees, non-recurring transformation activities, and other non-recurring costs.
Geographical Areas. The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2023, 2022 and 2021.
For the Twelve Months Ended
December 31, 2023December 31, 2022December 31, 2021
($ in millions)
Australia/Asia$177.8 $257.5 $275.8 
Europe179.4 194.5 140.6 
United Kingdom & Ireland
532.5 485.8 393.2 
United States & Canada (1)
2,472.0 2,715.7 2,301.8 
Worldwide excluding United States (2)
28.8 24.2 31.5 
Worldwide including United States (3)
417.2 541.7 592.2 
Other (4)
159.9 119.3 203.3 
Total
$3,967.6 $4,338.7 $3,938.4 
________________
(1)“United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere.
(2)“Worldwide excluding the United States” consists of individual policies that insure global risks with the specific exclusion of the United States.
(3)“Worldwide including the United States” consists of individual policies that insure global risks with the specific inclusion of the United States.
(4)“Other” comprises individual policies that insure risk in other countries including, but not limited to, the Caribbean, South America and Middle East.
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 adjustment 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 casualty reinsurance, property catastrophe reinsurance, other property reinsurance and specialty reinsurance. For a more detailed description of this business segment, refer to “Business—Our Business—Reinsurance” in this prospectus.
Insurance Segment.  The Insurance segment consists of financial and professional lines insurance, casualty and liability insurance, first party insurance, specialty insurance, and other insurance. The other insurance business line includes Aspen Underwriting Limited’s participation as a corporate member in Carbon Syndicate 4747, and the Company’s digital follow capacity offered through Ki’s Lloyd’s platform. For a more detailed description of this segment, refer to “Business—Our Business—Insurance” in this prospectus.
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 and other expenses, non-operating expenses, net investment income, realized and unrealized investment gains and losses, changes in fair value of derivatives, interest expenses, net realized and unrealized foreign exchange gains or losses, and income tax expenses. 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 as we evaluate underwriting results of each segment separately from the results of our investment portfolio.
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 the three months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$416.2 $700.6 $1,116.8 
Net written premiums263.7 409.9 673.6 
Gross earned premiums449.7 652.5 1,102.2 
Net earned premiums293.5 404.8 698.3 
Underwriting Expenses
Losses and loss adjustment expenses208.6 265.6 474.2 
Acquisition costs43.9 47.8 91.7 
General and administrative expenses41.2 58.2 99.4 
Underwriting (loss)/income(0.2)33.2 33.0 
Corporate and other expenses(18.6)
Non-operating expenses (7.6)
Net investment income79.6 
Realized and unrealized investment gains22.0 
Realized and unrealized investment losses(15.9)
Change in fair value of derivatives 37.8 
Interest expense(20.9)
Net realized and unrealized foreign exchange losses(46.3)
Income before income taxes63.1 
Income tax expense(6.4)
Net income$56.7 
Net reserves for losses and loss adjustment expenses$1,655.0 $2,115.0 $3,770.0 
Ratios
Loss ratio71.1 %65.6 %67.9 %
Acquisition cost ratio15.0 11.8 13.1 
General and administrative expense ratio14.0 14.4 14.2 
Expense ratio29.0 26.2 27.3 
Combined ratio100.1 %91.8 %95.2 %
Three Months Ended September 30, 2023
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$367.5 $615.2 $982.7 
Net written premiums261.2 367.4 628.6 
Gross earned premiums403.1 618.1 1,021.2 
Net earned premiums291.8 368.2 660.0 
Underwriting Expenses
Losses and loss adjustment expenses154.7 275.8 430.5 
Acquisition costs54.9 39.4 94.3 
General and administrative expenses29.7 57.6 87.3 
Underwriting income/(loss)52.5 (4.6)47.9 
Corporate and other expenses(32.6)
Non-operating expenses (0.2)
Net investment income77.9 
Realized and unrealized investment gains11.3 
Realized and unrealized investment losses(13.1)
Change in fair value of derivatives (35.6)
Interest income1.8 
Net realized and unrealized foreign exchange gains34.1 
Income before income taxes91.5 
Income tax expense(5.2)
Net income$86.3 
Net reserves for losses and loss adjustment expenses$1,404.8 $1,769.3 $3,174.1 
Ratios
Loss ratio53.0 %74.9 %65.2 %
Acquisition cost ratio18.8 10.7 14.3 
General and administrative expense ratio10.2 15.6 13.2 
Expense ratio29.0 26.3 27.5 
Combined ratio82.0 %101.2 %92.7 %
The following tables provide a summary of gross and net written and earned premiums, underwriting income or loss, ratios and reserves for each of the Company’s business segments for the nine months ended September 30, 2024 and 2023:
Nine Months Ended September 30, 2024
ReinsuranceInsuranceTotal
($ in millions)
Underwriting Revenues
Gross written premiums$1,596.8 $2,001.8 $3,598.6 
Net written premiums1,052.0 1,173.6 2,225.6 
Gross earned premiums1,298.2 1,876.2 3,174.4 
Net earned premiums925.3 1,144.1 2,069.4 
Underwriting Expenses
Losses and loss adjustment expenses553.0 725.9 1,278.9 
Acquisition costs158.5 131.7 290.2 
General and administrative expenses113.7 183.8 297.5 
Underwriting income100.1 102.7 202.8 
Corporate and other expenses (83.3)
Non-operating expenses (19.3)
Net investment income238.9 
Realized and unrealized investment gains48.8 
Realized and unrealized investment losses(69.8)
Change in fair value of derivatives 22.2 
Interest expense(51.0)
Net realized and unrealized foreign exchange losses(19.7)
Income before income taxes269.6 
Income tax expense(32.1)
Net income$237.5 
Net reserves for losses and loss adjustment expenses$1,655.0 $2,115.0 $3,770.0 
Ratios
Loss ratio59.8 %63.4 %61.8 %
Acquisition cost ratio17.1 11.5 14.0 
General and administrative expense ratio12.3 16.1 14.4 
Expense ratio29.4 27.6 28.4 
Combined ratio89.2 %91.0 %90.2 %
Nine Months Ended September 30, 2023
ReinsuranceInsuranceTotal
( $ in millions)
Underwriting Revenues
Gross written premiums$1,243.2 $1,864.7 $3,107.9 
Net written premiums866.2 1,112.9 1,979.1 
Gross earned premiums1,158.8 1,821.7 2,980.5 
Net earned premiums863.8 1,083.6 1,947.4 
Underwriting Expenses
Losses and loss adjustment expenses451.9 695.7 1,147.6 
Acquisition costs160.6 126.6 287.2 
General and administrative expenses88.1 168.2 256.3 
Underwriting income163.2 93.1 256.3 
Corporate and other expenses(85.7)
Non-operating expenses (10.8)
Net investment income207.3 
Realized and unrealized investment gains47.4 
Realized and unrealized investment losses(31.2)
Change in fair value of derivatives(16.0)
Interest expense(41.1)
Net realized and unrealized foreign exchange gains20.4 
Income before income taxes346.6 
Income tax expense(41.4)
Net income$305.2 
Net reserves for losses and loss adjustment expenses$1,404.8 $1,769.3 $3,174.1 
Ratios
Loss ratio52.3 %64.2 %58.9 %
Acquisition cost ratio18.6 11.7 14.7 
General and administrative expense ratio 10.2 15.5 13.2 
Expense ratio28.8 27.2 27.9 
Combined ratio81.1 %91.4 %86.8 %