Aspen Capital Markets, the third-party, ILS and alternative reinsurance capital management unit of global re/insurer Aspen, generated half of the fee income earned in calendar year 2024 from managing casualty insurance and reinsurance opportunities for its investors.The Aspen Capital Markets team has been a forerunner in the matching of longer-tailed liabilities such as casualty risk with the appetite of third-party investors, through a range of collateralized structures including sidecars.In the recent Aspen initial public offering (IPO) filings, the company provided some disclosure on the diversification within its third-party capital business.Unlike many re/insurers running insurance-linked securities (ILS) style third-party capital management and partnership operations, it turns out Aspen counts property catastrophe reinsurance as the smallest contributor to its growing fee income under the Aspen Capital Markets operation.

Recall that, .Impressively, from a diversification point of view, Aspen’s IPO disclosures show that roughly 62% of third-party capital within Aspen Capital Markets supported longer-tail lines of insurance and reinsurance business as of the end of 2024.Showing how the fee income generated by Aspen Capital Markets broke down for 2024, Aspen’s IPO disclosure shows that 50% came from casualty lines.

23% of the 2024 fee income came from casualty insurance business and 27% from casualty reinsurance.While a further 19% came from property catastrophe risks under management and the largest component actually came from FinPro insurance business, at 30% of the $169 million.With FinPro often considered to be largely financial and professional liability related, it shows that the majority of the fee income was derived from managing longer-tailed liabilities for the Aspen Capital Markets investor base.

On the Aspen Capital Markets business, the parent company said, “ACM is highly strategic to our business, providing a unique set of capabilities and tactical optionality to manage risk and improve our returns.Unlike other offerings in the market that are predominantly property catastrophe reinsurance focused, ACM offers investors a broader product suite that provides direct, fully aligned participation to risk underwritten by Aspen’s primary specialty insurance and reinsurance portfolios, including actively managed fund products and sidecars.Notably, ACM’s capabilities in longer-tail lines of business bring greater stability to our fee income, and thus our underwriting results, as this fee income is associated with “stickier” third-party capital structured over multiple years.” Within the IPO disclosures, Aspen also provided some insight into how the third-party capital fee income generation was tracking after the first-quarter of 2025.

As we reported, , representing an impressive 36% increase on the $33.6 million of fee income earned in Q1 2024.It’s worth remembering that one of the more recent structures launched by Aspen Capital Markets was not around in Q1 2024, as the .So, with Pando Re now gaining traction it is safe to assume the fee income could continue tracking higher, while the proportion of Aspen Capital Markets business derived through casualty lines is also likely to continue to grow.

Aspen Capital Markets is just one of the dedicated insurance-linked securities (ILS) fund managers, and reinsurers offering ILS-style investment opportunities, listed in our ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.