Company: AHL
Filing Date: 2025-04-29
Form Type: F-1/A
Source: 0001628280-25-020463
Chunk: 170

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-04-29
Form: F-1/A
Chunk 170
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 of our business for accident years 2020 onwards, which we believe reflects the underlying underwriting performance of the ongoing portfolio. Refer to Note 2 of our audited consolidated financial statements, “Basis of Presentation and Significant Accounting Policies” for additional details of the retroactive reinsurance contracts. The adjusted losses and loss adjustment expenses is the basis on which we report adjusted underwriting income and adjusted combined ratio, as well as the basis in which underwriting income contributes to operating income.

Impact of the LPT includes the impact of prior year development on 2019 and prior accident years, net of the change in the deferred gain recognized in relation to retroactive reinsurance contracts which is primarily driven by the LPT, totaling $28.5 million.

Acquisition costs and general and administrative expenses

We monitor the ratio of expenses to net earned premium as a measure of the cost effectiveness of our acquisition costs, and general and administrative expenses. The table below presents the contribution of the acquisition costs, and general and administrative expenses to the net expense ratios for the twelve months ended December 31, 2024, 2023 and 2022.

|                                          |     | Twelve Months Ended December 31, |      |   |     |      |      |   |     |      |      |   |
| Ratios Based on Net Earned Premiums      |     |                             2024 |      |   |     | 2023 |      |   |     | 2022 |      |   |
| Acquisition cost ratio                   |     |                                  | 14.5 | % |     |      | 14.5 | % |     |      | 16.1 | % |
| General and administrative expense ratio |     |                                  | 14.0 | % |     |      | 13.6 | % |     |      | 14.4 | % |
| Total expense ratio                      |     |                                  | 28.5 | % |     |      | 28.1 | % |     |      | 30.5 | % |

2024 compared to 2023

The acquisition cost ratio remained consistent at 14.5% in both 2023 and 2024, with the movements within the two segments offsetting one another. The Reinsurance segment saw a reduction in the acquisition cost ratio due to increases in ceding commissions resulting from additional reinsurance purchased, including higher cessions to our capital market partners. Whereas the Insurance segment saw an increase in the acquisition