ASPEN SPECIALTY INS CO
Major Rating Factors:
Weak overall results on stability tests (2.2 on a scale of 0 to 10) including weak risk adjusted capital in prior years and weak results on operational trends. The largest net exposure for one risk is high at 3.3% of capital. Strengths include potentially strong support from affiliation with Aspen Insurance Holdings Ltd. Poor long-term capitalization index (1.3) based on weak current risk adjusted capital (severe and moderate loss scenarios).
Other Rating Factors:
Fair reserve development (4.1) as reserves have generally been sufficient to cover claims. In 2018, the two year reserve development was 56% deficient. Fair profitability index (4.5) with operating losses during 2018, 2019 and 2020. Average return on equity over the last five years has been poor at -7.1%. Good liquidity (5.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (12.1%), med mal (4.2%), comm multi (2.3%), other (81.4%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (75.5%), non investment grade bonds (3.5%), cash (0.6%), other (20.4%)