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Aspen Insurance sees about $135M pre-tax losses related to CA fires in Q4.

Aspen Insurance Holdings announced a preliminary estimate of approximately $135M in pre-tax losses, net of reinsurance and reinstatement premiums, related to wildfires in California in the fourth quarter of 2017. The estimated losses are predominantly attributed to Aspen's Reinsurance segment. Aspen expects to record an underwriting loss of approximately $245M in the fourth quarter of 2017. These results reflect the natural catastrophe losses described above as well as an increased frequency of mid-sized and attritional losses primarily in Aspen's Insurance segment. These include property and fire-related losses in the U.K. and the U.S. and, to a lesser extent, cyber losses and an increase in a previously reported surety loss. Aspen's reserves for losses and loss adjustment expenses remain strong and the expected fourth quarter 2017 underwriting loss includes a release of reserves from prior years. Updated loss estimates and full operating results for the fourth quarter of 2017 will be reflected in Aspen's press release containing its fourth quarter 2017 financial results, which are scheduled for release on Wednesday, February 7, 2018, following the close of the New York Stock Exchange. Aspen's preliminary estimates of losses in the fourth quarter of 2017 involve the exercise of considerable judgment and are based, among other factors, on a review of the individual treaties and policies expected to be impacted, information available to date from clients and brokers, market intelligence, initial loss reports, modeled loss projections and exposure analysis. Due to the complexity of losses from natural catastrophes and the uncertainty associated with Aspen's assumptions and the preliminary information used to prepare these estimates, Aspen's actual losses from these natural catastrophes may differ materially from the preliminary estimates provided above. Based on its initial assessment of the Tax Cuts and Jobs Act of 2017, Aspen does not anticipate a significant impact on its net income in 2018.

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Publication:The Fly
Date:Jan 25, 2018
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