AM Best Affirms Credit Ratings of Aspen Insurance Holdings Limited and Its Rated Subsidiaries
12 Julio 2024 - 8:38AM
Business Wire
AM Best has affirmed the Financial Strength Ratings of A
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR)
of “a” (Excellent) of Aspen Insurance UK Limited (AIUK) (United
Kingdom), Aspen Bermuda Limited (ABL) (Bermuda), Aspen American
Insurance Company (AAIC) (Austin, TX) and Aspen Specialty Insurance
Company (ASIC) (Bismarck, ND). Concurrently, AM Best has affirmed
the Long-Term ICR of “bbb” (Good) of Aspen Insurance Holdings
Limited (Aspen) (Bermuda), a non-operating holding company. AM Best
also has affirmed the Long-Term Issue Credit Ratings (Long-Term
IRs) on the preference shares of Aspen, and the indicative
Long-Term IRs under the company’s universal shelf registration. The
outlook of these Credit Ratings (ratings) is stable. (Please see
below for a detailed listing of the Long-Term IRs.)
The ratings reflect Aspen’s consolidated balance sheet strength,
which AM Best assesses as very strong, as well as the group’s
adequate operating performance, neutral business profile and
appropriate enterprise risk management. The ratings of AIUK, ABL,
AAIC and ASIC reflect their integration and strategic importance to
Aspen.
Aspen’s balance sheet strength is underpinned by consolidated
risk-adjusted capitalisation at the strongest level, as measured by
Best’s Capital Adequacy Ratio (BCAR). After declining in 2022
following some unrealised losses in the group’s investment
portfolio, BCAR scores recovered at year-end 2023 supported by
solid internal capital generation. Risk-adjusted capitalisation is
expected to remain comfortably above the minimum required for the
strongest level prospectively. The assessment considers the group’s
conservative reserving approach since the takeover by Apollo Global
Management, Inc., while a loss portfolio transfer provides
protection against adverse reserve development for business written
up to 2019.
Aspen reported positive underwriting performance for a second
consecutive year in 2023, achieving a combined ratio of 92.1% (as
calculated by AM Best). The result followed years of historical
underwriting underperformance, as evidenced by a five-year
(2019-2023) weighted average combined ratio of 102.7% (as
calculated by AM Best). Prospective operating performance is
expected to remain adequate over the underwriting cycle, supported
by actions taken by management to improve technical profitability
and good investment results.
Aspen’s business profile benefits from its well-diversified
portfolio of property/casualty and specialty insurance and
reinsurance businesses, as well as a good geographic footprint. The
group has a good franchise, supported by its diverse underwriting
platforms in the United Kingdom, the United States and Bermuda,
that enable Aspen to accommodate its clients’ needs.
The following Long-Term IRs have been affirmed, with stable
outlooks:
Aspen Insurance Holdings Limited— -- “bb+” (Fair) on USD 275
million 5.95% fixed-to-floating rate perpetual non-cumulative
preference shares -- “bb+” (Fair) on USD 250 million 5.625%
perpetual non-cumulative preference shares -- “bb+” (Fair) on USD
250 million 5.625% perpetual non-cumulative preference shares
The following indicative Long-Term IRs under the universal shelf
registration have been affirmed, with stable outlooks:
Aspen Insurance Holdings Limited— -- “bbb” (Good) on senior
unsecured debt -- “bbb-” (Good) on senior subordinated debt --
“bb+” (Fair) on junior subordinated debt -- “bb+” (Fair) on
preferred stock
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specialising in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Romeo Berti Senior Financial Analyst +44 20
7397 0267 romeo.berti@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Ghislain Le Cam Senior Director, Analytics +44
20 7397 0268 ghislain.lecam@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com