Aspen Insurance (AHL) Registration Filing summary

Company overview and business model

• Operates as a leading specialty (re)insurer with a global presence, focusing on specialty insurance and opportunistic reinsurance, supported by capital markets capabilities.

• Utilizes a 'One Aspen' approach to integrate insurance, reinsurance, and capital markets, offering bespoke solutions across platforms and geographies.

• Underwriting operations are managed in two segments: Insurance (specialty lines) and Reinsurance (casualty, property, specialty), with third-party capital leveraged through Aspen Capital Markets (ACM).

• Business transformation since 2019 focused on underwriting discipline, reduced volatility, operational efficiency, and cultural alignment.

• ACM provides fee-based income and capital flexibility, supporting both insurance and reinsurance segments.

Financial performance and metrics

• Gross written premiums: $4.46B (LTM Q3 2024), $3.97B (FY 2023); Insurance segment: $2.58B (Q3 2024 LTM), $2.45B (2023); Reinsurance: $1.88B (Q3 2024 LTM), $1.52B (2023).

• Combined ratio: 90.2% (Q3 2024 LTM), 87.5% (2023); Adjusted combined ratio: 88.2% (Q3 2024 LTM), 86.4% (2023).

• Net income: $238M (9M 2024), $535M (2023); Operating income: $288M (9M 2024), $368M (2023).

• Return on average equity (ROE): 12.0% annualized (9M 2024), 26.7% (2023); Operating ROE: 17.6% annualized (9M 2024), 20.2% (2023).

• Total cash and investments: $7.7B (Q3 2024); Shareholders’ equity: $3.02B (Q3 2024).

• ACM fee income: $156M (Q3 2024 LTM), $136M (2023); third-party capital managed: $2.04B (Q3 2024).

Use of proceeds and capital allocation

• All net proceeds from the IPO will go to selling shareholders; the company will not receive any proceeds.

• Capital allocation strategy emphasizes dynamic deployment between insurance and reinsurance, supported by a strong balance sheet and ACM’s third-party capital.

• Recent capital actions include $195M in ordinary share dividends (9M 2024) and ongoing preference share dividends.

• Maintains a disciplined approach to capital management, with a Group BMA Bermuda Solvency Capital Requirement (BSCR) of 264% (2023).