Aspen Insurance (AHL) Q4 2024 earnings summary

Executive summary

• 2024 net income was $486.1 million and operating income was $432.5 million, up 17.7% YoY; combined ratio was 87.9% (adjusted 86.8%).

• Underwriting, investment income and ACM fees supported results; active portfolio management and increased reinsurance protection were aimed at reducing catastrophe volatility.

Financial highlights

• Gross written premiums rose 16.2% to $4,609.3 million; net earned premiums increased 10.5% to $2,889.7 million YoY.

• Net income was $486.1 million vs. $534.7 million; net income available to ordinary shareholders was $431.2 million vs. $484.8 million, and EPS was $7.14 vs. $8.03.

• Net investment income rose 15.3% to $318.0 million; fixed-income portfolio book yield was 4.2% vs. 3.8%.

• Net realized and unrealized investment losses were $49.5 million vs. gains of $14.5 million, including realized losses from portfolio rotations and private investments.

• Income tax benefit was $22.0 million, including a $106.6 million benefit from reversal of U.K. deferred-tax valuation allowances; 2023 tax benefit was $132.1 million.

Outlook and guidance

• Pricing is expected to remain generally favorable, supported by catastrophe activity, inflation and tighter capacity; focus remains on profitable growth, underwriting returns and prudent catastrophe risk management.

• Reinsurance market profitability is expected to moderate in 2025 from 2023–24 peak margins but remain acceptable; property catastrophe rates were adjusting down by single digits.

• A similar share of gross premiums is expected in non-U.S. currencies in 2025 as in 2024, when 25.2% was non-U.S.-dollar denominated.