Aspen Insurance Holdings (AHL) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $71.50 million, or $ 0.34 a share in the quarter, against a net profit of $117.90 million, or $1.21 a share in the last year period.
Revenue during the quarter went down marginally by 2.75 percent to $612.40 million from $629.70 million in the previous year period. Net premium earned for the quarter went down marginally by 2.75 percent or $17.30 million to $612.40 million. During the quarter, the company has written premium worth $430.80 million on net basis, down 26.58 percent or $156 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $653.90 million, or 106.78 percent of premium earned from $578.10 million or 91.81 percent of premium earned in the last year period. Operating loss for the quarter was $41.50 million, compared with an operating income of $51.60 million in the previous year period.
Chris O'Kane, chief executive officer, commented "2016 was an important year in positioning Aspen for the future. Our Reinsurance business performed strongly once again despite a much higher level of catastrophe losses. We expanded further our geographic footprint, successfully integrated our diversifying AgriLogic business and continued to target opportunities for profitable growth in what continues to be a challenging market environment. During the year, our Insurance team took significant actions to reposition product lines where returns are not expected to meet our requirements while at the same time working to identify and invest in the best opportunities for long-term profitable growth."
Liabilities outpace assets growth
Total assets increased 8.65 percent or $955.50 million to $12,004.30 million on Dec. 31, 2016. On the other hand, total liabilities were at $8,356 million as on Dec. 31, 2016, up 9.53 percent or $727.10 million from year-ago.
Return on assets was negative at 0.60 percent in the quarter against a positive 1.33 percent in the last year period. Return on equity was negative at 2.69 percent in the quarter against a positive 2.80 percent in the last year period.
Investments move up marginally
Investments stood at $7,900.30 million as on Dec. 31, 2016, up 2.44 percent or $188.10 million from year-ago.
Meanwhile, reinsurance recoverables moved up 39.41 percent or $206.40 million over the year to $730.10 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $549.30 million on Dec. 31, 2016. Shareholders equity stood at $3,648.30 million as on Dec. 31, 2016, up 6.68 percent or $228.40 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.15 percent in the quarter from 0.16 percent in the last year period.
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