Aspen Insurance (AHL) Q4 2025 earnings summary

Executive summary

• Gross written premiums rose 1.4% year-over-year to $4.67 billion, driven by new business and program partnerships, offset by selective underwriting in property lines due to market conditions.

• Underwriting income increased to $370.8 million (combined ratio 86.9%), with catastrophe losses of $151.5 million, mainly from California wildfires and other weather events.

• Net income was $340.2 million, down from $486.1 million in 2024, reflecting higher general and administrative expenses and non-operating costs.

• Favorable prior year reserve development of $127.3 million for post-LPT years, compared to minor adverse development in 2024.

• The company was acquired by Sompo Holdings in February 2026, resulting in delisting from the NYSE and becoming a wholly owned subsidiary.

Financial highlights

• Gross written premiums: $4,673.2 million (+1.4% YoY); Insurance segment up 1.6%, Reinsurance up 1.0%.

• Net earned premiums: $2,831.9 million (-2.0% YoY), due to increased ceded premiums.

• Underwriting income: $370.8 million (2024: $345.8 million); adjusted underwriting income: $390.5 million.

• Combined ratio: 86.9% (2024: 87.9%); adjusted combined ratio: 86.2%.

• Net income: $340.2 million (2024: $486.1 million).

• Operating return on average equity: 15.9% (2024: 19.4%).

• Book value per ordinary share: $31.85 (2024: $26.44).

• Total shareholders’ equity: $3,625.1 million (+7.5% YoY).

• ACM fee income: $194.4 million (+$25.4 million YoY); third-party capital grew to $2,724.5 million.

Outlook and guidance

• Market conditions remain attractive but show softening in short-tail lines due to increased competition and benign catastrophe activity.

• The company expects continued opportunities for profitable growth, especially in specialty and casualty lines, while maintaining underwriting discipline.

• Higher interest rates are expected to support investment income.