Aspen Insurance Holdings LimitedNYSE
Aspen Insurance Trying To Defy Expectations And Tough Markets
Stephen Simpson, CFA
Stephen Simpson, CFA
Skepticism Can Still Benefit Aspen Insurance Shareholders
Stephen Simpson, CFA
Stephen Simpson, CFA
Today, 4:26 PM
Today, 8:47 AM
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Thu, Oct. 20, 11:32 AM
- Reinsurers sell coverage to other insurance companies for natural disasters and such. While they wait for loss-triggering events to happen, the reinsurers collect premiums which they can then invest. Warren Buffett (BRK.A, BRK.B) credits this "float" as a big factor behind his great fortune.
- But business isn't what it used to be, write Sonali Basak and Noah Buhayar in Bloomberg, and Buffett sold stakes in Swiss Re and Munich Re last year, saying prospects over the next decade don't look great. He also put new leadership in charge of Berkshire's General Re to try and reverse more than a decade of shrinking float.
- Among the issues are what's turned into years of barely visible interest rates. “It is no fun,” says The Oracle, to “find out that a great many of the things that you were buying a few years ago now have negative yields.” It's also become a more crowded field with the entrants first of David Einhorn (NASDAQ:GLRE) and more recently Dan Loeb (NYSE:TPRE) helping to create a price war, with premiums down 40% over the past decade.
- Insurers can also now turn to investment banks to lay off risk by issuing catastrophe bonds - a market that's grown from $9.2B to $25B over the last ten years.
- A shakeout is already underway as there have been a number of sector mergers. What might further shake things up would be a catastrophe big enough to cause significant industry losses.
- Interested parties: CB, RNR, AHL, ENH, AXS, ACGL, RGA, UNM
Fri, Sep. 23, 8:12 AM
- Global catastrophe reinsurance prices fell again this year, and they're now below levels last seen in 2001 before the 9/11 attacks, according to research firm Guy Carpenter.
- Source: WSJ's Paul Davies
- At issue are barely visible interest rates which have led to a wider range of investors looking to earn some sort of return by underwriting reinsurance risks. There's also been a lack of costly disasters in recent years, leading to a buildup of capital in search of work. Even as some insist reinsurance prices may soon find a floor, there's another issue - ordinary property insurance is suffering low demand, meaning demand from ordinary insurers for reinsurance is slowing.
- Options to improve returns, then, are narrowed to taking on more insurance risk or boosting balance sheet leverage, and there are signs the industry is doing both. Moody's notes reinsurers writing policies with higher probable maximum losses, especially those linked to U.S. hurricanes.
- There's also worry insurers will put less money aside today to cover futures claims as a way to boost underwriting profits.
- Finally, reinsurers looking for new business are attempting to move more structured policies.
- Interested parties: Chubb (NYSE:CB), PartnerRe (NYSE:PRE), Everest Re (NYSE:RE), RenaissanceRe (NYSE:RNR), Aspen (NYSE:AHL), Endurance Specialty (NYSE:ENH), Axis (NYSE:AXS), Arch Capital (NASDAQ:ACGL), Reinsurance Group of America (NYSE:RGA), Unum Group (NYSE:UNM).
Mon, Sep. 12, 12:24 PM
- The company, of course, lost a big bidding war for PartnerRe last year, but CEO Albert Benchimol says there are other fish in the sea. though they may not be of the size of PartnerRe or as pure of a reinsurance play.
- Axis (AXS -0.2%), he says, could do anything in the $3B to $5B range (PartnerRe was sold for $6.9B), but for now the focus is on organic growth trough JVs and partnerships.
- Bloomberg's Jonathan Adams mentions the likes of Aspen Insurance (AHL) or Navigator Group (NAVG +0.4%) as relatively smaller targets which could meet Axis' goals of expanding selective business lines and create a more efficient underwriting platform.
- "There will certainly be more M&A in the reinsurance market,” says Hanover Re CEO Ulrich Wallin, though adding that his company is not in any talks.
Wed, Jul. 27, 4:25 PM
Wed, Jul. 27, 1:20 PM
Tue, Jul. 26, 5:35 PM
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Wed, Jul. 13, 11:03 PM
- Aspen Insurance Holdings (NYSE:AHL) estimates approx. $65M in pre-tax losses, net related to natural catastrophes in 2Q16.
- Catastrophe losses are attributed approx. 75% to the Reinsurance segment and approx. 25% to the Insurance segment.
- Wildfires in Alberta, Canada accounts for 50%; weather related events in U.S. approx. 30%.
Thu, Apr. 21, 4:22 PM
- Aspen Insurance Holdings (NYSE:AHL): Q1 EPS of $1.29 misses by $0.03.
- Net earned premiums of $663.1M (+11.7% Y/Y) misses by $18.13M.
Thu, Apr. 21, 10:18 AM
- Aspen Insurance Holdings (NYSE:AHL) declares $0.22/share quarterly dividend, 4.8% increase from prior dividend of $0.21.
- Forward yield 1.85%
- Payable May 25; for shareholders of record May 9; ex-div May 5.
Wed, Apr. 20, 5:35 PM
Thu, Feb. 4, 4:18 PM
- Aspen Insurance Holdings (NYSE:AHL): Q4 EPS of $1.21 misses by $0.08.
- Revenue of $629.7M (+2.9% Y/Y) misses by $26.88M.
Thu, Feb. 4, 11:22 AM
- Aspen Insurance Holdings (NYSE:AHL) declares $0.21/share quarterly dividend, in line with previous.
- Forward yield 1.83%
- Payable March 8; for shareholders of record Feb. 19; ex-div Feb. 17.
Wed, Feb. 3, 5:35 PM
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