Aspen bounces back with strong profits

Aspen today reported a net profit after tax for 2009 of $473.9m or an operating profit of $5.16 per diluted ordinary share and net profit after tax for the fourth quarter of 2009 of $126.3 million or an operating profit of $1.44 per diluted ordinary share.

This compares to a net profit after tax of $103.8 million for 2008, or operating earnings of $1.44 per diluted share and net profit after tax of $21.8 million, or operating earnings of $0.17 per diluted share for the fourth quarter last year.

Chris O’Kane, chief executive said: “2009 was a very good year and I am delighted to report a combined ratio of 84.1% and an operating return on equity of 18.0% for the group against a challenging pricing environment and historically low interest rates. We have entered 2010 in a very strong position and our $200 million share buy-back in early January demonstrated our continued commitment to active capital management. Trading conditions are demanding but I remain confident of achieving a 2010 ROE that reaches into the teens assuming normal loss experience as we seek to maximize the advantages of our diversified business model.”

Book value per share on a diluted basis of $34.04 increased by 21.1% when compared to December 31, 2008 and by 2.9% since the end of September 2009, as a result of $400.3 million of retained income and a $101.8 million increase in unrealized gains, net of tax, from the fixed income investment portfolio generated during 2009.