Aspen eyeing expansion of third-party capital as key growth strategy, says Dunleavy

Aspen is targeting growth within its third-party capital operations, with a particular focus on casualty, according to recently promoted group president and Bermuda CEO Christian Dunleavy.

"There is meaningful appetite [from investors] for more casualty risk on the ILS side," Dunleavy told The Insurer TV, highlighting the growing demand for capital solutions.

Aspen’s Bermuda-domiciled collateralised (re)insurer Pando Re, which was launched in April this year with a focus on casualty business, is well-positioned to grow, though Dunleavy emphasised that such expansion would only occur if pricing remains adequate.

"We're really focused on the price adequacy side and making sure that we understand the risk that is coming on," he said.

Aspen’s commitment to treating third-party capital as if it were its own remains a core principle as the group looks to scale operations. Dunleavy noted that Aspen is also exploring new opportunities within specialty risks and ILS, though he acknowledged this could take time.

“We are dabbling in that, testing it out, seeing if the appetite is there,” he said. Dunleavy sees specialty classes as complementary to Aspen’s existing offerings, especially in terms of building a diversified portfolio for investors.

"The more classes we can offer ... the better it is, both for Aspen, but also for the investors,” he explained.

Strategic evolution, not revolution

Dunleavy downplayed the prospect of any radical overhauls at Aspen following his recent promotion, with the carrier instead focusing on refining and improving internal coordination.

"It's evolution, not revolution for Aspen," he said, explaining that the new structure will allow for better collaboration between underwriting, claims and actuarial teams. This, he believes, will be crucial in what is likely to be a challenging market environment in the coming years.

When asked about expanding into areas where Aspen has previously contracted, such as property catastrophe, Dunleavy noted that the carrier had never fully exited the cat space. Instead, it restructured its risk portfolio by shifting some of the exposure to third-party investors while retaining a 50 percent share.

"We still retain 50 percent of all cat risk that we write across Aspen," he said, emphasising that Aspen remains committed to supporting its clients while managing its risk profile carefully.

Geopolitical risks and casualty focus

Dunleavy also highlighted Aspen's proactive approach to managing geopolitical risks, especially within its credit and political risk lines.

He noted the company’s effort to strengthen its focus on man-made perils, including terror and cyber, saying: "Our exposure management team has been really making a push on man-made perils over the last couple years."

Aspen has been collecting and automating data to better understand these risks, which Dunleavy believes will be vital as global tensions persist.

“Our view is that's not going to go away over the next few years,” he added, emphasising the importance of rigorous monitoring.

On the casualty side, Aspen's large loss portfolio transfer deal with Enstar has allowed the company to move past loss-making years and focus on future opportunities.

"We anticipate growing the reinsurance casualty book more than we do the insurance book at this point in time," Dunleavy stated, with the reinsurance segment presenting a more attractive growth path.

Watch the full interview with Aspen’s Christian Dunleavy to hear more about Aspen’s strategy…