Investment Thesis
Aspen Insurance is experiencing severe operational distress with negative net income of -$146.8M and significantly negative operating cash flow of -$179.5M, indicating the company is burning cash despite positive operating margins. The combination of deteriorating profitability, negative returns on equity and assets, and lack of insider confidence (zero Form 4 filings) suggests fundamental business challenges that undermine financial stability.
AHL-PF Strengths
- Strong interest coverage ratio of 53.4x indicating minimal debt servicing risk
- Conservative leverage with debt-to-equity of 0.16x providing balance sheet cushion
- Adequate liquidity with $975.9M in cash and equivalents representing 7.5% of total assets
AHL-PF Risks
- Negative net income of -$146.8M with -24.2% net margin indicating unprofitable core operations
- Operating cash flow of -$179.5M demonstrates cash burn despite positive operating income, suggesting quality of earnings concerns
- Negative ROE of -5.4% and ROA of -1.1% indicate shareholder capital is being destroyed
- Zero insider purchases in last 90 days suggests lack of management confidence in company trajectory
- Data freshness limited to March 31, 2019, making current assessment potentially outdated
Key Metrics to Watch
- Operating cash flow trend - critical to distinguish between accounting profits and actual cash generation
- Loss ratio and combined ratio - insurance-specific metrics showing underwriting profitability
- Cash balance depletion rate - to assess runway before liquidity concerns emerge
- Return to profitability timeline - need positive net income to validate operational turnaround
AHL-PF Financial Metrics
AHL-PF Profitability Ratios
AHL-PF Balance Sheet & Liquidity
AHL-PF 5-Year Financial Trend
5-Year Trend Summary: ASPEN INSURANCE HOLDINGS LTD's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.68 reflects profitable operations.
AHL-PF Growth Metrics (YoY)
AHL-PF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2019 | $605.8M | $10.8M | N/A |
| Q3 2018 | $674.4M | $800.0K | $-0.37 |
| Q2 2018 | $575.5M | $600.0K | $0.01 |
| Q1 2018 | $683.5M | $23.0M | $0.38 |
| Q3 2017 | $726.6M | $70.6M | $1.40 |
| Q2 2017 | $662.0M | $55.1M | $0.89 |
| Q1 2017 | $683.6M | $83.5M | $1.36 |
| Q3 2016 | $694.0M | $23.0M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AHL-PF Capital Allocation
AHL-PF SEC Filings
Access official SEC EDGAR filings for ASPEN INSURANCE HOLDINGS LTD (CIK: 0001267395)