Company: AHL
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001267395-25-000019
Chunk: 156

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-03-19
Form: 20-F
Item: Item 4
Chunk 156
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3 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  

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 cost ratio, largely due to a change in business mix.

The general and administrative expense ratio increased from 13.6% in 2023 to 14.0% in 2024. This increase in general and administrative expenses of $51.4 million, from $354.5 million in 2023 to $405.9 million in 2024, is largely due to an increase in the number of employees, investment in operational excellence enhancements and expense alignment in our functions which support corporate activities.

Aspen Capital Markets

ACM sources third-party capital and develops reinsurance structures that leverage the Company’s underwriting and analytical expertise and earns underwriting, management and performance fees from third-party investors primarily through the placement and management of collateralized quota share sidecar vehicles.

Table of Contents

The following table sets forth a summary of fee income and third-party capital with respect to our ACM activity, for the twelve months ended December 31, 2024, 2023 and 2022. The increase in fee income was due to the growth achieved in the third-party capital and greater ceded earned premium, including the expansion of our capital markets business into long-tail casualty lines.

                           Twelve Months Ended December 31,                                                             
  ACM ($ in millions)      2024                                               2023                   2022               
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Fee income (1)           $                                       169.0      $           135.5      $           103