Aspen Capital Markets saw a 25% rise in fee income, reaching $169 million, with AUM climbing to $2.2 billion in 2024.

Aspen Capital Markets, Aspen’s third-party and alternative reinsurance capital management arm, continued its strong growth in 2024, with assets under management (AUM) reaching a record $2.2 billion — up 30% from $1.7 billion in 2023. Fee income also rose by 25% to $169 million, driven by its diversified multi-line ILS and reinsurance investment strategy.

Aspen has been a pioneer in casualty ILS, enabling third-party investors to access returns from longer-tailed reinsurance business. This approach has generated meaningful synergies and incremental income for Aspen.

Aspen CEO Mark Cloutier highlighted the importance of third-party capital, noting that despite industry-wide loss events, Aspen achieved an operating return on average equity of 19.4%, supported by strong underwriting, solid investment performance, and increasing contributions from Aspen Capital Markets.

Group President Christian Dunleavy added that Aspen’s gross written premiums grew 16.2% to $4.6 billion in 2024, while net investment income rose 15.3% to $318 million. Overall operating income increased 17.7% to $433 million, underpinned by an adjusted combined ratio of 86.8% and adjusted underwriting income growth of 7.2% to $381 million.

Aspen Capital Markets’ consistent growth continues to enhance Aspen’s broader performance, with the unit’s expanding AUM directly contributing to rising fee income. In April 2024, Aspen partnered with asset manager PIMCO to launch Pando Re Ltd., a Bermuda-based casualty-focused sidecar, expected to further boost third-party capital inflows and fee income.

Additionally, Aspen estimated a $50 million to $75 million net loss from California wildfires in 2024, based on an industry loss estimate between $35 billion and $45 billion.