Aspen’s underwriting income climbs 25% in Q2’25 as CoR improves

Aspen Insurance has continued to deliver a strong underwriting performance in Q2 2025, achieving a net combined ratio of 85.1% and underwriting income of $100 million.

In the firm’s Insurance Segment, underwriting income in Q2 2025 was $44 million with a combined ratio of 88.9%, marking a 1.7 percentage point improvement from the same period in the prior year.

Meanwhile, underwriting income in the Reinsurance Segment was $56 million with a combined ratio of 79.9%.

Aspen also reported a 2.4-point improvement in its adjusted combined ratio to 87.9% in Q2 2025, driven largely by lower catastrophe losses compared to the Dubai and German floods in the same quarter last year.

Despite underwriting figures improving, the firm’s total gross written premiums decreased by $12 million in Q2 2025 compared to Q2 2024.

According to Aspen, this was driven by its Reinsurance segment’s Property lines, which have seen rate decreases, smaller line sizes, and non-renewals of business that no longer fit its risk appetite under current market conditions.

Gross written premiums in the firm’s Insurance Segment in Q2 2025 were $9 million higher than in the same period of 2024, mainly driven by growth in Financial and Professional Lines Insurance and Other Insurance.

Gross written premiums of $545 million in the Reinsurance Segment in Q2 2025 marked a decrease of $21 million compared to the same period in the prior year.

However, Aspen’s Insurance Segment posted an improved adjusted loss ratio of 59.5% in Q2 2025, while the Reinsurance Segment saw a 7.7-point improvement year-over-year, bringing its loss ratio down to 50.1%.

The firm’s total net income in Q2 2025 stood at $36 million, while operating income was $111 million.

Mark Cloutier, Executive Chairman and Group Chief Executive Officer at Aspen, commented, “Aspen delivered a strong performance for the second quarter, with both of our earnings engines contributing to growth in our operating income and an improvement in our adjusted combined ratio in the context of evolving market dynamics.

“These results – our first quarter since our IPO – continue to demonstrate the strength and consistency of Aspen’s performance, which, alongside lower earnings volatility and an improved capital position, were recognised by S&P in May this year with an upgrade of our ratings outlook to Positive from Stable.

“Aspen’s nimble yet disciplined approach and multi-platform capabilities allow us to deliver much-needed solutions for our customers and trading partners while maintaining a profitable and well-balanced portfolio across market cycles.

“Looking forward, we remain confident that we have the business mix, risk appetite, market standing and culture to achieve sustainable growth and deliver shareholder value as a top quartile specialty re/insurer across market cycles.”

Christian Dunleavy, Group President at Aspen, said, “Aspen’s strong underwriting performance across both insurance and reinsurance in the second quarter is a testament to our continued focus on building a well-balanced portfolio, our disciplined risk selection, and our ability to allocate risk across platforms in competitive market conditions.

“Fee income from Aspen Capital Markets delivered strong growth through the last quarter, providing underwriting expertise to third-party capital investors while also enabling Aspen to further manage net exposures and volatility within our portfolio.

“We remain on track to deliver mid-teens operating return on equity and will continue to focus on deploying our specialty expertise, further deepening our customer and trade relationships, growing Aspen Capital Markets, and investing in the technology and tools that will make us even better risk allocators.

“By concentrating our efforts on total value creation and sustainable profitability, we are confident that Aspen has the resilience, strategy and positioning to succeed across market cycles.”

For the first half of 2025, Aspen’s net income stands at $55 million, with operating income at $161 million.

Adjusted underwriting income was $142 million in H1 2025, down $43 million from the same period in 2024, primarily due to higher catastrophe losses from the California wildfires in Q1.

Gross written premiums increased by $44 million in H1 2025 compared with H1 2024, driven by growth in the Insurance Segment, particularly across existing cross-class partnerships within Financial and Professional Lines.

As previously mentioned, this was partially offset by reductions in certain Property lines within the Reinsurance Segment, due to market rate decreases that no longer meet Aspen’s profitability expectations.