Fitch Publishes Unrated Issuer Report on Aspen Insurance Holdings Limited

The following is from Fitch Ratings on September 23:

Fitch Ratings has published an Unrated Issuer Report (UIR) on Aspen Insurance Holdings Limited.

UIRs provide analytical perspective and transparency on key issues that impact an organization's creditworthiness but without providing a credit rating or rating-like opinion.

In addition to highlighting what Fitch considers to be Aspen's main credit issues and trends, the report takes a closer look at:

--Business profile;

--Financial performance and earnings.

Aspen and other small to midsize reinsurers are facing increasing market pressures to become larger as a means to survive. This stress can create underwriting and operating risks for companies as they determine how to best adapt to the new world or risk becoming irrelevant. Fitch believes that Aspen may seek to boost operating scale in the future through an acquisition, or become a target for a larger buyer.

Changes in Aspen's business mix, including a shift away from reinsurance and more into insurance should reduce volatility. Expansion into more specialty businesses, Lloyd's of London, and the recent entrance into crop (re)insurance could potentially improve the company's competitive market position and profitability, but also create additional risks in underwriting quality and pricing adequacy on new business.

Aspen's profitability is characterized by combined ratios in the 85 percent-95 percent range and high single-digit to low double-digit returns on equity in most years. However, earnings are exposed to potential volatility and can decline materially in response to large catastrophe-related events. This was the case in 2005 and 2011, when significant insured catastrophe events pushed the company to an underwriting loss and an overall net loss in each year.

A peer analysis and a summary of market-based indicators round out the UIR.

UIRs are not solicited by the issuer, and Fitch receives no compensation from the issuer for the provision of an UIR. While a UIR is typically based primarily on public information, Fitch analysts may ask questions of an issuer's management while preparing the report. The level of management participation, if any, can vary significantly from case to case.

Additional information is available at 'fitchratings.com'.

For more information on Unrated Issuer Reports please go to:


Related Research

Aspen Insurance Holdings Limited (Challenging Market Conditions Pressure Earnings and Could Force Consolidation)


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  • Alexandra Scarborough
    Papyrus Joins Forces with Designer Lela Rose

    Papyrus is looking to bring the “elegance and style” of fashion to its greeting cards via a new designer collaboration series.

    According to a release, the collaboration marks the first time a fashion design house and greeting card brand have joined forces to develop a custom greeting card collection.

    Papyrus said it is partnering with American fashion designer Lela Rose to introduce the series. Rose will feature her "sophisticated yet modern style" in the debut card and gift collection, slated to launch during New York Fashion Week. The collection will be available in New York City Papyrus stores and select retailers in September, with availability expanding to all Papyrus locations and retailers in October.

    "The fashion designer collaboration series is a celebration of the commitment Papyrus has to the arts, including a focus on the fashion industry, quality craftsmanship and trend-forward design," said Christy Kaprosy, President of Papyrus-Recycled Greetings. "We are delighted to have Lela Rose's elegant line lead the first Papyrus fashion designer collaboration program, and we are excited to bring more fashion designers to our loyal customers in the future."

    The company noted the collection, which draws inspiration from some of Rose's recent runway designs, consists of 16 cards and five gift accessories, including gift bags, gift tissue, roll wrap and a gift tag set. It also will be available online at papyrusonline.com

    "I'm thrilled to be the first designer to collaborate with Papyrus on their exclusive new fashion series," said Lela Rose. "This is a unique way to showcase our designs, silhouettes and prints, and extend the brand into a new category."





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