Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Oct 2019 to Oct 2024
Aspen Insurance Holdings Limited ("Aspen”)
(NYSE:AHL) today announced two separate collateralized reinsurance
contracts to protect its balance sheet against severe California
Earthquake and US wind events.
Aspen has entered into a multi-year property catastrophe reinsurance
agreement with Ajax Re Limited (“Ajax Re”),
a Cayman Islands domiciled reinsurer, to provide up to $100 million of
reinsurance coverage for Aspen’s insurance
subsidiaries in the event of one or more California earthquakes.
The reinsurance agreement is fully collateralized by proceeds received
by Ajax Re from the issuance of catastrophe bonds, and its reinsurance
limit is proportionally available based on industry insured losses
between $23.1 billion and $25.9 billion in the covered area, as reported
by Property Claim Services ("PCS"). The full $100 million available is
exhausted when the reported industry insured losses by PCS reach $25.9
billion.
This transaction coincides with the expiration of the Company’s
existing catastrophe swap agreement and provides Aspen with coverage
effective from August 18, 2007 through May 1, 2009.
Ajax Re is a special purpose Cayman Islands exempted company licensed as
a restricted Class B insurer in the Cayman Islands and formed solely for
the purpose of entering into certain reinsurance agreements and other
risk transfer agreements with subsidiaries of Aspen to provide up to $1
billion of reinsurance protection covering various perils. The
protection provided by Ajax Re will be funded through the issuance of
one or more distinct series of notes (the “Notes”)
to qualified institutional buyers in permitted jurisdictions as part of
Ajax Re’s $1 billion principal at-risk
variable rate note program.
In a separate transaction, Aspen intends, subject to completion of
contractual arrangements, to enter into a $100 million Industry Loss
Warranty (“ILW”)
Reinsurance Contract to provide protection against United States
catastrophic wind events. The ILW is structured in three layers, with
trigger points ranging from $30 billion to $50 billion in industry
losses as reported by PCS.
Commenting on the financings, Chris O’Kane,
Aspen’s Chief Executive Officer said: “Aspen
continues to manage catastrophe risk exposures by using a combination of
capital markets and traditional reinsurance. These transactions enable
us to protect our balance sheet from exposure to significant specific
perils and support our ratings.”
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the Notes
in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. The Notes have not been, and will not be,
registered under the Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered or sold in the
United States absent registration under the Securities Act or an
applicable exemption from the registration requirements thereunder.
About Aspen Insurance Holdings Limited
Aspen Insurance Holdings Limited was established in June 2002. Aspen is
a Bermudian holding company that provides property and casualty
reinsurance in the global market, property and liability insurance
principally in the United Kingdom and the United States and specialty
insurance and reinsurance consisting mainly of marine and energy and
aviation worldwide. Aspen’s operations are
conducted through its wholly-owned subsidiaries located in London,
Bermuda and the United States: Aspen Insurance UK Limited, Aspen
Insurance Limited and Aspen Specialty Insurance Company. Aspen has four
operating segments: property reinsurance, casualty reinsurance,
specialty insurance and reinsurance and property and casualty insurance.
For more information about Aspen, please visit the Company’s
website at www.aspen.bm.
Application of the Safe Harbor of the
Private Securities Litigation Reform Act of 1995
This press release contains written, and Aspen's officers may make
related oral, "forward-looking statements" within the meaning of the
U.S. federal securities laws regarding Aspen's initial outlook for
certain operating results for 2007, the possible repurchase of Aspen's
ordinary shares and the financing of any such repurchases. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of words
such as "expect," "intend," "plan," "believe," "project," "anticipate,"
"seek," "will," "estimate," "may," "continue," and similar expressions
of a future or forward-looking nature. All forward-looking statements
rely on a number of assumptions, estimates and data concerning future
results and events and are subject to a number of uncertainties and
other factors, many of which are outside Aspen's control that could
cause actual results to differ materially from such statements. For a
detailed description of uncertainties and other factors that could
impact the forward-looking statements in this release, please see the
"Risk Factors" section in Aspen's Annual Report on Form 10-K for the
year ended December 31, 2006, filed with the U.S. Securities and
Exchange Commission on February 22, 2007.