Aspen Insurance Holdings Ltd · NYSE:AHL/PE
Aspen Insurance — Q3 2017 Earnings Presentation
20 slides from Aspen Insurance's earnings presentation, Nov 15, 2017
Slide 1: Investor Presentation Third Quarter 2017
AHL: NYSE INVESTOR PRESENTATION THIRD QUARTER 2017 Aspen Insurance Holdings Limited Exhibit 99.1
Slide 2: Safe Harbor Disclosure
AHL: NYSE SAFE HARBOR DISCLOSURE This slide presentation is for information purposes only. It should be read in conjunction with our financial supplement posted on our website on the Investor Relations page and with other documents filed or to be filed by Aspen Insurance Holdings Limited (the “Compa
Slide 3: Agenda
AHL: NYSE AGENDA 3 Overview │ Value Creation Approach │ 4 Background and Strategy │ 5 Market Overview │ 10 Financial Performance │ 13 Operating Segments │ Insurance │ 15 Reinsurance │ 16 Appendix │ 19
Slide 4: Aspen's Approach to Creating Shareholder Value
AHL: NYSE Levers to Higher RO E (1 ) 1. Optimizing risk and reward by allocating capital to products and geographies where underwriting expertise is rewarded, and higher, more stable returns are achieved over time 2. Return capital to shareholders if it creates more value than deploying in the busin
Slide 5: Strong and Diversified Franchise
AHL: NYSE (1) AgriLogic is reported within the Reinsurance segment. Reinsurance GWP of 47% for TTM Q3 2017 is comprised of 39% Reinsurance and 8% AgriLogic. (2) TTM refers to trailing twelve months through September 30, 2017. Insurance Reinsurance AgriLogic 53%39% 8% STRONG AND DIVERSIFIED FRANCHISE
Slide 6: Sustained Record of Proactive Capital Management
AHL: NYSE ▪ Continued focus on responsible capital stewardship: return capital to shareholders when it is financially more attractive to do so than deploying elsewhere ▪ Aspen has generated approximately $4.4 BN of capital since inception ▪ Returned approximately $2.2 BN of cumulative repurchases an
Slide 7: Effectiveness and Efficiency Program
AHL: NYSE EFFECTIVENESS AND EFFICIENCY PROGRAM In October 2017, Aspen launched a program to drive greater operational effectiveness and efficiency across the Company and to enhance its market position ▪ Reduce spend on procurement and real estate ▪ Centralize and improve processes and activities, in
Slide 8: Prudent Reserving Philosophy
AHL: NYSE 2011 2012 2013 2014 2015 2016 9M 2016 9M 2017 $92 $137 $108 $104 $157 $129 $78.2 $92.8 PRUDENT RESERVING PHILOSOPHY • Achieved consistent favorable prior year reserve releases every year since inception; over $1.2 BN net favorable reserve development since inception • Independent actuarial
Slide 9: Strong and Consistent Investment Returns
AHL: NYSE 41% IG Credit 16% US Treasury 12% Cash & Short-Term 13% Agency MBS 5% Equities 7% Sovereign 3% Non US Agency 1% US Agency 1% ABS 1% Non US Govt Guaranteed 1% Munis 41% 16% 12% 13% 5% 7% 3% STRONG AND CONSISTENT INVESTMENT RETURNS 100% = $8.6 BN(1) • Dynamically manage the risk asset portfo
Slide 10: Market Overview: Recent Catastrophe Events
AHL: NYSE MARKET OVERVIEW: RECENT CATASTROPHE EVENTS See "Safe Harbor Disclosure" slide 2. 10 Aspen’s losses from Hurricanes Harvey, Irma and Maria, at less than 10% of total shareholders equity(3),, were lower than market expectations and lower than peer average(4) (1) PCS is U.S. only; excludes ma
Slide 11: Market Overview: Areas of Expected Significant Rate Increase
AHL: NYSE Insurance Lines of Business Rate Change Global Energy and Construction 10%-20% Global Marine 7.5%-15% U.S. Property and Programs 5%-15% Reinsurance Lines of Business Rate Change U.S. Property Catastrophe 5%-20% (more if loss affected) International Property Catastrophe 2.5%-10% U.S. Risk E
Slide 12: Agenda
AHL: NYSE AGENDA Overview │ Value Creation Approach │ 4 Background and Strategy │ 5 Market Overview 10 Financial Performance │ 13 Operating Segments │ Insurance │ 15 Reinsurance │ 16 Appendix │ 19 12
Slide 13: Financial Performance Metrics
AHL: NYSE 2012 2013 2014 2015 2016 9M 2017 87.0% 86.9% 86.7% 88.3% 82.4% 70.1% 2012 2013 2014 2015 2016 9M 2017 8.5% 9.7% 11.5% 10.0% 4.8% (9.6)% 2012 2013 2014 2015 2016 9M 2017 59.4% 56.3% 54.4% 55.2% 59.8% 80.8% 2012 2013 2014 2015 2016 TTM Q3 2017 $2,583 $2,647 $2,903 $2,997 $3,147 $3,279 FINANC
Slide 14: Agenda
AHL: NYSE AGENDA 14 Overview │ Value Creation Approach │ 4 Background and Strategy │ 5 Market Overview 10 Financial Performance │ 13 Operating Segments │ Insurance │ 15 Reinsurance │ 16 Appendix │ 19
Slide 15: Insurance Segment
AHL: NYSE U.S. Regional U.K. Regional Professional Lines and Management Liability Marine Excess Casualty Energy Other Global Specialty Products (3) 19% 14% 16%12% 10% 6% 23% • Specialty insurer offering creative, customized solutions to complex risks, deep underwriting expertise, and superior claims
Slide 16: Reinsurance Segment
AHL: NYSE 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M 2017 82.7% 88.2% 70.4% 88.2% 125.4% 85.4% 76.4% 77.6% 80.4% 90.0% 118.0% Specialty AgriLogic Other Property Casualty Property Cat 22% 16% 23% 22% 17% 16 • Significant industry experience and focused on providing expertise and exceptional
Slide 17: Aspen Re Growth & Diversification – AgriLogic
AHL: NYSE • Aspen acquired AgriLogic in January 2016 • High quality, diversifying business for Aspen, strong prior relationship with Aspen Re and product expertise within Aspen Re to help manage the business and provide market wide experience • Significant intellectual capital, strong analytical too
Slide 18: Agenda
AHL: NYSE AGENDA 18 Overview │ Value Creation Approach │ 4 Background and Strategy │ 5 Market Overview 10 Financial Performance │ 13 Operating Segments │ Insurance │ 15 Reinsurance │ 16 Appendix │ 19
Slide 19: Aspen's Natural Catastrophe Exposures in Major Peril Zones
AHL: NYSE $0 $100 $200 $300 $400 $500 100 year return period as $ MM of Total Shareholder Equity U.S. Eastern Quake Cascadia Quake Japan All Perils Northeast and MidAtlantic WS European Wind Texas and Gulf WS California EQ Florida and Southeast WS $55 $62 $118 $170 $174 $289 $334 $338 $0 $100 $200 $
Slide 20: Superior Risk Management Culture
AHL: NYSE Risk management is genuine differentiator for Aspen SUPERIOR RISK MANAGEMENT CULTURE Aspen’s internal capital model was one of very few approved by the U.K. Prudential Regulation Authority to operate under Solvency II regulatory framework Risk-Return Optimization • Extensive use of interna
Aspen Insurance Holdings — Q3 2017 Earnings Presentation on 6ix