Aspen Insurance Holdings Limited, through its subsidiaries, engages in insurance and reinsurance businesses in Bermuda, the United States, the United Kingdom, and internationally.
The last earnings update was 14 days ago.
Discounted Cash Flow Calculation for LSE:0U63 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Aspen Insurance Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Aspen Insurance Holdings
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Aspen Insurance Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Aspen Insurance Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aspen Insurance Holdings's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Aspen Insurance Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Aspen Insurance Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Aspen Insurance Holdings
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Aspen Insurance Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Aspen Insurance Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Aspen Insurance Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Aspen Insurance Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 15.7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Mark Bertrand Cloutier is an Executive Chairman and Group Chief Executive Officer at Aspen Insurance Holdings Limited since February 15, 2019. He has been Chairman of Brit Reinsurance (Bermuda) Ltd. since December 7, 2017. He was an Executive Chairman of Brit Limited at Fairfax Financial Holdings Limited until January 2019. Mr. Cloutier was an Executive Chairman at Brit Limited (alternate names: Brit PLC, Brit Group) since January 1, 2017 until December 17, 2018 and its Executive Director since March 27, 2014 until December 17, 2018. Mr. Cloutier served as Group CEO at Brit Limited until January 1, 2017. Mr. Cloutier has been an Executive Chairman at Brit Insurance Holdings N.V. since January 2017. He serves as the Group Chief Executive Officer of Brit Insurance Holdings Bv at Brit Syndicates Ltd. He has more than 35 years of experience in the international insurance and reinsurance sector. He served as the Chief Executive Officer of Brit Insurance Holdings N.V. from October 27, 2011 to January 5, 2017. He served as the Chief Executive Officer and President of Catalina Reinsurance Ltd. He served as Group Chief Executive Officer at RiverStone Insurance Limited since October 2011. He served as the Chief Executive Officer and Group President at Alea Group Holdings Bermuda Ltd. from September 1, 2006 to April 1, 2010. He served as the Chief Executive Officer of Brit PLC from October 2011 to December 31, 2016. He served as an Adviser to Brit management on defining strategy. He served as the Chief Claims Officer and Executive Vice President of Overseas Partners Ltd. since November 20, 2000 and served as its Chief Executive Officer. He served as the President and Chief Executive Officer of OPRe from May 2002 to April 14, 2005 and also served as the Chief Claims Officer since May 2002. He worked in partnership with a number of leading private equity and institutional investors including KKR, Fortress Investment Group, Apollo LP, CVC, Ontario Municipal Employees Retirement Services and Texas Teachers Retirement Services. Prior to joining OPL, he held senior management positions at E.W. Blanch Holdings, Inc. from 1999 to 2000 and TIG Holdings from 1995 to 1999. He served as the President of E.W. Blanch Insurance Services Inc. Prior to these positions he was at Brouwer and Company from 1986 to 1995 and Lindsey Morden Claim Services from 1978 to 1986. He was the Founder and President of an independent claim service company in British Columbia. He also worked with private equity investors such as Kohlberg Kravis Roberts and Fortress. He has been a Director of Brit Insurance Holdings N.V. since October 2011. He has been a Non-Executive Director of Society of Lloyd's since April 01, 2015. He serves as a Director at Lloyd's of London Limited since 1 April, 2015. He serves as a Director of RiverStone Insurance Limited. He has been a Non-Executive Director of Alea Group Holdings Bermuda Ltd. since 2010 and previously served as its Executive Director since September 1, 2006. He served as a Director of Overseas Partners Ltd. from 2002 to January 31, 2006.
Insufficient data for Mark to compare compensation growth.
Insufficient data for Mark to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the
Aspen Insurance Holdings
management team in years:
The tenure for the Aspen Insurance Holdings management team is about average.
Group Chief Financial Officer
Executive Chairman & Group CEO
Group Chief Operating Officer
Chief Accounting Officer
Senior Vice President
Group General Counsel & Company Secretary
Head of Group Communications
Group Head of Corporate Development & Office of the Group CEO
Aspen Insurance Holdings Limited, through its subsidiaries, engages in insurance and reinsurance businesses in Bermuda, the United States, the United Kingdom, and internationally. The company’s Aspen Insurance segment offers property and casualty insurance products, including U.S. and U.K. commercial property, commercial liability, U.S. primary casualty, excess casualty, environmental liability, and railroad liability products; and marine, aviation, and energy insurance products, such as marine and energy liability, onshore and offshore energy physical damage, marine hull, specie, inland and ocean marine, and aviation insurance products. This segment also provides financial and professional lines insurance products comprising financial and corporate risks, professional liability, management liability, credit and political risks, crisis management, accident and health, surety risks, and technology liability insurance products. The company’s Aspen Reinsurance segment offers property catastrophe reinsurance products; other property reinsurance products; casualty reinsurance products, including U.S. treaty, international treaty, and casualty facultative reinsurance products; and specialty reinsurance products comprising credit and surety, agriculture, mortgage, marine, aviation, terrorism, engineering, cyber, and other specialty lines. It distributes its products primarily through brokers and reinsurance intermediaries. The company was founded in 2002 and is headquartered in Hamilton, Bermuda. As of February 15, 2019, Aspen Insurance Holdings Limited was taken private.
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