ASPEN INSURANCE HOLDINGS LTD - FORM 8-K - EX-99.2 - EARNINGS RELEASE SUPPLEMENT FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2012

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8-K - FORM 8-K - ASPEN INSURANCE HOLDINGS LTD	d478451d8k.htm
EX-99.1 - PRESS RELEASE OF THE REGISTRANT, DATED FEBRUARY 7, 2013 - ASPEN INSURANCE HOLDINGS LTD	d478451dex991.htm

Exhibit 99.2

FINANCIAL SUPPLEMENT

As of December 31, 2012


		Aspen Insurance Holdings Limited
		This financial supplement is for information purposes only. It should be read in conjunction with other documents filed or to be filed by Aspen Insurance Holdings Limited with the United States Securities and Exchange Commission. www.aspen.co Investor Contact: Aspen Insurance Holdings Limited Kerry Calaiaro, Senior Vice President, Investor Relations T: +1 646-502-1076 email: kerry.calaiaro@aspen.co
		AHL: NYSE


		ASPEN INSURANCE HOLDINGS LIMITED

		Table Of Contents


	Page

Basis of Presentation		1

Financial Highlights		2

Consolidated Statements of Operations - Quarterly Results		3

Consolidated Statements of Operations - Full Year Results		4

Consolidated Balance Sheets		5

Earnings Per Share and Book Value Per Share		6

Return on Average Equity		7

Consolidated Underwriting Results by Operating Segment		8-9

Operating Segment - Quarterly Results		10-11

Written and Earned Premiums by Segment and Line of Business		12

Consolidated Statements of Changes in Shareholders’ Equity		13

Consolidated Statements of Comprehensive Income		14

Consolidated Statements of Cash Flows		15

Reserves for Losses and Loss Adjustment Expenses		16

Reserves by Operating Segment		17

Prior Year Reserve Movements		18

Worldwide Natural Catastrophe Exposures: Major Peril Zones		19

Consolidated Investment Portfolio		20

Investment Analysis		21

Book Value Per Ordinary Share		22

Operating Income/(Loss) Reconciliation		23


		ASPEN INSURANCE HOLDINGS LIMITED

		Basis of Presentation

Definitions and presentation: All financial information contained herein is unaudited except for information for the fiscal year ended December 31, 2011. Unless otherwise noted, all data is in U.S. dollars millions, except for per share amounts, percentages and ratio information.

In presenting Aspen’s results, management has included and discussed certain “non-GAAP financial measures”, as such term is defined in Regulation G. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain Aspen’s results of operations in a manner that allows for a more complete understanding of the underlying trends in Aspen’s business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in this financial supplement.

Operating income (a non-GAAP financial measure): Operating income is an internal performance measure used by Aspen in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized and unrealized capital gains or losses, including net realized and unrealized gains and losses on interest rate swaps, and after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses on foreign exchange contracts.

Aspen excludes these items from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Aspen believes these amounts are largely independent of its business and underwriting process and including them would distort the analysis of trends in its operations. In addition to presenting net income in accordance with GAAP, Aspen believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Aspen’s results of operations in a manner similar to how management analyzes Aspen’s underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see page 23 for a reconciliation of operating income to net income.

Annualized operating return on average equity (“Operating ROE”) (a non-GAAP financial measure): Annualized operating return on average equity is calculated using operating income, as defined above, and average equity is calculated as the arithmetic average on a monthly basis for the stated periods of shareholders’ equity excluding the aggregate value of the liquidation preferences of our preference shares net of issuance costs.

Aspen presents Operating ROE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. See page 23 for a reconciliation of operating income to net income and page 7 for a reconciliation of average ordinary shareholders’ equity to average shareholders’ equity.

Diluted operating earnings per share and basic operating earnings per share (non-GAAP financial measures): Aspen believes that the presentation of diluted operating earnings per share and basic operating earnings per share supports meaningful comparison from period to period and the analysis of normal business operations. Diluted operating earnings per share and basic operating earnings per share are calculated by dividing operating income by the diluted or basic weighted average number of shares outstanding for the period. See page 23 for a reconciliation of diluted and basic operating earnings per share to basic earnings per share.

Diluted book value per ordinary share (is not a non-GAAP financial measure): Aspen has included diluted book value per ordinary share as it illustrates the effect on basic book value per share of dilutive securities thereby providing a better benchmark for comparison with other companies. Diluted book value per share is calculated using the treasury stock method as defined on page 22.

Growth in adjusted diluted book value per share (“Adjusted BVPS”) (is not a non-GAAP financial measure): The growth in Adjusted BVPS is defined as the annual change in diluted book value per share after adding back dividends paid to ordinary shareholders during the year.

Underwriting ratios (GAAP financial measures): Aspen, along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of net claims and claims adjustment expenses to net premiums earned. The acquisition expense ratio is the ratio of underwriting expenses (commissions, premium taxes, licenses and fees, as well as other underwriting expenses) to net premiums earned. The general and administrative expense ratio is the ratio of general and administrative expenses to net premiums earned. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.

GAAP combined ratios differ from U.S. statutory combined ratios primarily due to the deferral of certain third-party acquisition expenses for GAAP reporting purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general and administrative expense ratios.


		ASPEN INSURANCE HOLDINGS LIMITED

		Financial Highlights


	Three Months Ended December 31,									Twelve Months Ended December 31,
(in US$ millions except for percentages, share and per share amounts)	2012			2011			Change			2012			2011			Change

Gross written premium		$576.2			$458.7			25.6	%		$2,583.3			$2,207.8			17.0	%
Net written premium		$524.4			$431.2			21.6	%		$2,246.9			$1,929.1			16.5	%
Net earned premium		$558.5			$489.4			14.1	%		$2,083.5			$1,888.5			10.3	%
Net income/(loss) after tax ⁽¹⁾		$2.0			$12.4			(83.9	%)		$280.4			$(110.1	)		NM
Operating (loss)/income after tax⁽¹⁾		$(2.9	)		$5.0			NM			$279.9			$(70.4	)		NM
Net investment income		$51.1			$54.2			(5.7	%)		$204.9			$225.6			(9.2	%)
Underwriting (loss)/income ⁽¹⁾		$(45.0	)		$(69.9	)		NM			$118.7			$(299.0	)		NM

*Earnings Per Share and Book Value Per Share*
Basic earnings per ordinary share
Net (loss)/income adjusted for preference share dividend ⁽¹⁾		$(0.09	)		$0.09			NM			$3.51			$(1.88	)		NM
Operating (loss)/income adjusted for preference share dividend ⁽¹⁾		$(0.15	)		$(0.01	)		NM			$3.50			$(1.32	)		NM
Diluted earnings per ordinary share
Net (loss)/income adjusted for preference share dividend ⁽¹⁾		$(0.09	)		$0.09			NM			$3.38			$(1.88	)		NM
Operating (loss)/income adjusted for preference share dividend ⁽¹⁾		$(0.15	)		$(0.01	)		NM			$3.37			$(1.32	)		NM
Weighted average number of ordinary shares outstanding (in millions of shares)		71.007			70.615			0.6	%		71.096			70.665			0.6	%
Diluted weighted average number of ordinary shares outstanding (in millions of shares)		73.558			73.258			0.4	%		73.689			70.655			4.3	%
Book value per ordinary share⁽¹⁾		$42.12			$39.66			6.2	%		$42.12			$39.66			6.2	%
Diluted book value per ordinary share⁽¹⁾		$40.65			$38.21			6.4	%		$40.65			$38.21			6.4	%
Ordinary shares outstanding at December 31, 2012 and December 31, 2011 (in millions of shares)		70.754			70.656
Diluted ordinary shares outstanding at December 31, 2012 and December 31, 2011 (in millions of shares)		73.312			73.339

*Underwriting Ratios*
Loss ratio		78.3	%		80.6	%					59.4	%		82.4	%
Policy acquisition expense ratio		14.3	%		17.5	%					18.3	%		18.4	%
General, administrative and corporate expense ratio ⁽¹⁾		15.4	%		16.2	%					16.6	%		15.1	%
Expense ratio⁽¹⁾		29.7	%		33.7	%					34.9	%		33.5	%
Combined ratio ⁽¹⁾		108.0	%		114.3	%					94.3	%		115.9	%

*Return On Equity*
Average equity⁽²⁾		$3,013.2			$2,781.4						$2,933.8			$2,776.5
Return on average equity
Net (loss)/income adjusted for preference share dividend ⁽¹⁾		(0.2	%)		0.2	%					8.5	%		(4.8	%)
Operating (loss)/income adjusted for preference share dividend ⁽¹⁾		(0.4	%)		–						8.5	%		(3.4	%)
Annualized return on average equity
Net (loss)/income ⁽¹⁾		(0.8	%)		0.8	%					8.5	%		(4.8	%)
Operating (loss)/income ⁽¹⁾		(1.6	%)		–						8.5	%		(3.4	%)

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(1) In 2012, the Company adopted the provision of ASU 2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.” Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.

(2) Average equity excludes preference shares.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Statements of Operations - Quarterly Results


(in US$ millions except for percentages and per share amounts)	Q4 2012		Q3 2012		Q2 2012			Q1 2012		Q4 2011		Q3 2011			Q2 2011			Q1 2011
UNDERWRITING REVENUES
Gross written premiums		$576.2		$558.4		$666.6			$782.1		$458.7		$495.6			$582.2			$671.3
Premiums ceded		(51.8)		(51.3)		(84.7)			(148.6)		(27.5)		(33.0)			(56.5)			(161.7)

Net written premiums		524.4		507.1		581.9			633.5		431.2		462.6			525.7			509.6
Change in unearned premiums		34.1		9.1		(68.5)			(138.1)		58.2		24.3			(65.9)			(57.2)

Net earned premiums		558.5		516.2		513.4			495.4		489.4		486.9			459.8			452.4

UNDERWRITING EXPENSES
Losses and loss adjustment expenses		437.4		255.0		262.1			284.0		394.5		306.2			326.4			528.9
Policy acquisition expenses		80.0		103.1		102.0			96.1		85.5		93.4			86.7			81.4
General, administrative and corporate expenses ⁽¹⁾		86.1		90.7		83.5			84.8		79.3		72.0			70.7			62.5

Total underwriting expenses		603.5		448.8		447.6			464.9		559.3		471.6			483.8			672.8

Underwriting (loss)/income including corporate expenses		(45.0)		67.4		65.8			30.5		(69.9)		15.3			(24.0)			(220.4)

OTHER OPERATING REVENUE AND EXPENSES
Net investment income		51.1		48.6		52.8			52.4		54.2		57.3			58.6			55.5
Interest expense		(7.7)		(7.8)		(7.7)			(7.7)		(7.7)		(7.7)			(7.7)			(7.7)
Other (expense)/income		(6.2)		4.5		2.9			(0.3)		3.6		(9.1)			6.8			(8.1)

Total other operating revenue		37.2		45.3		48.0			44.4		50.1		40.5			57.7			39.7

OPERATING (LOSS)/INCOME BEFORE TAX		(7.8)		112.7		113.8			74.9		(19.8)		55.8			33.7			(180.7)
Net realized and unrealized exchange (losses)/gains ⁽²⁾		(0.4)		7.7		(13.0)			3.7		2.3		0.3			(7.7)			2.9
Net realized and unrealized investment gains/(losses) ⁽³⁾		5.6		2.7		(10.0)			5.5		6.0		(32.9)			(15.7)			8.5

(LOSS)/INCOME BEFORE TAX		(2.6)		123.1		90.8			84.1		(11.5)		23.2			10.3			(169.3)
Income tax recovery/(expense)		4.6		(8.0)		(6.2)			(5.4)		23.9		(2.0)			(1.2)			16.5

NET INCOME/(LOSS) AFTER TAX		2.0		115.1		84.6			78.7		12.4		21.2			9.1			(152.8)
Dividends paid on ordinary shares		(12.0)		(12.2)		(12.2)			(10.6)		(10.7)		(10.6)			(10.6)			(10.6)
Dividends paid on preference shares		(8.5)		(8.6)		(8.3)			(5.7)		(5.7)		(5.7)			(5.7)			(5.7)
Dividends paid to non-controlling interest		-		(0.1)		-			-		-		(0.1)			-			-
Proportion due to non-controlling interest		(0.1)		-		0.2			0.1		(0.2)		(0.1)			0.2			0.2

Retained (loss)/income		$(18.6)		$94.2		$64.3			$62.5		$(4.2)		$4.7			$(7.0)			$(168.9)

Components of net income/(loss) after tax
Operating (loss)/income		$(2.9)	$	106.5	$	105.8		$	70.5	$	5.0	$	55.5		$	30.8		$	(161.7	)
Net realized and unrealized exchange (losses)/gains after tax ⁽²⁾		(0.4)		6.1		(10.9	)		3.0		3.7		(0.8	)		(4.8	)		1.8
Net realized and unrealized investment gains/ (losses) after tax ⁽³⁾		5.3		2.5		(10.3	)		5.2		3.7		(33.5	)		(16.9	)		7.1

NET INCOME/(LOSS) AFTER TAX		$2.0		$115.1		$84.6			$78.7		$12.4		$21.2			$9.1			$(152.8)

Loss ratio		78.3%		49.4%		51.1%			57.3%		80.6%		62.9%			71.0%			116.9%
Policy acquisition expense ratio		14.3%		20.0%		19.9%			19.4%		17.5%		19.2%			18.9%			18.0%
General, administrative and corporate expense ratio ⁽¹⁾		15.4%		17.6%		16.3%			17.1%		16.2%		14.8%			15.4%			13.8%
Expense ratio		29.7%		37.6%		36.2%			36.5%		33.7%		34.0%			34.3%			31.8%
Combined ratio		108.0%		87.0%		87.3%			93.8%		114.3%		96.9%			105.3%			148.7%
Basic (losses)/earnings per share ⁽⁴⁾		$(0.09)		$1.50		$1.07			$1.03		$0.09		$0.22			$0.05			$(2.25)
Diluted (losses)/earnings per share ⁽⁴⁾		$(0.09)		$1.45		$1.03			$0.99		$0.09		$0.21			$0.05			$(2.25)
Annualized return on average equity
Net (loss)/income		(0.8%)		14.4%		10.8%			10.4%		0.8%		2.4%			0.4%			(22.8%)
Operating (loss)/income		(1.6%)		13.2%		13.6%			9.2%		-		7.2%			3.6%			(24.0%)

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(2) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

(3) Includes the net realized and unrealized gains/(losses) from interest rate swaps.

(4) Adjusted for preference share dividends.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Statements of Operations - Full Year Results


	Twelve Months Ended December 31,
(in US$ millions except for percentages)	2012		2011		2010
UNDERWRITING REVENUES
Gross written premiums		$2,583.3		$2,207.8		$2,076.8
Premiums ceded		(336.4)		(278.7)		(185.7)

Net written premiums		2,246.9		1,929.1		1,891.1
Change in unearned premiums		(163.4)		(40.6)		7.8

Net earned premiums		2,083.5		1,888.5		1,898.9

UNDERWRITING EXPENSES
Losses and loss adjustment expenses		1,238.5		1,556.0		1,248.7
Policy acquisition expenses		381.2		347.0		328.5
General, administrative and corporate expenses ⁽¹⁾		345.1		284.5		258.6

Total underwriting expenses		1,964.8		2,187.5		1,835.8

Underwriting income/(loss) including corporate expenses		118.7		(299.0)		63.1

OTHER OPERATING REVENUE AND EXPENSES
Net investment income		204.9		225.6		232.0
Interest expense		(30.9)		(30.8)		(16.5)
Other income/(expense)		0.9		(6.8)		2.1

Total other operating revenue		174.9		188.0		217.6


OPERATING INCOME/(LOSS) BEFORE TAX		293.6		(111.0)		280.7

Net realized and unrealized exchange (losses)/gains ⁽²⁾		(2.0)		(2.2)		2.2
Net realized and unrealized investment gains/(losses) ⁽³⁾		3.8		(34.1)		57.4

INCOME/(LOSS) BEFORE TAX		295.4		(147.3)		340.3
Income tax (expense)/recovery		(15.0)		37.2		(27.6)

NET INCOME/(LOSS) AFTER TAX		280.4		(110.1)		312.7
Dividends paid on ordinary shares		(47.0)		(42.5)		(46.5)
Dividends paid on preference shares		(31.1)		(22.8)		(22.8)
Dividends paid to non-controlling interest		(0.1)		(0.1)		-
Proportion due to non-controlling interest		0.2		0.1		0.3

Retained income/(loss)		$202.4		$(175.4)		$243.7

Components of net income/(loss) after tax
Operating income/(loss)		279.9		(70.4)		258.9
Net realized and unrealized exchange (losses)/gains after tax ⁽²⁾		(2.2)		(0.1)		2.9
Net realized and unrealized investment gains/(losses) after tax ⁽³⁾		2.7		(39.6)		50.9

NET INCOME/(LOSS) AFTER TAX		$280.4		$(110.1)		$312.7

Loss ratio		59.4%		82.4%		65.8%
Policy acquisition expense ratio		18.3%		18.4%		17.3%
General, administrative and corporate expense ratio ⁽¹⁾		16.6%		15.1%		13.6%
Expense ratio		34.9%		33.5%		30.9%
Combined ratio		94.3%		115.9%		96.7%

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(2)	Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

(3)	Includes the net realized and unrealized gains/(losses) from interest rate swaps.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Balance Sheets


(in US$ millions except for per share amounts)	December 31, 2012		September 30, 2012		June 30, 2012		March 31, 2012		December 31, 2011		September 30, 2011		June 30, 2011		March 31, 2011
ASSETS
Investments
Fixed income maturities		$6,013.4		$5,983.1		$5,791.2		$5,842.1		$5,820.2		$5,992.8		$5,972.8		$5,896.1
Equity securities		200.1		197.1		187.4		188.1		179.5		163.8		178.1		173.5
Other investments		45.0		34.8		33.1		33.1		33.1		32.3		30.0		30.1
Short-term investments		433.9		505.3		503.6		433.8		302.3		295.9		202.8		187.6

Total investments		6,692.4		6,720.3		6,515.3		6,497.1		6,335.1		6,484.8		6,383.7		6,287.3

Cash and cash equivalents		1,463.6		1,374.2		1,309.0		1,173.3		1,239.1		1,038.8		1,074.1		1,116.9
Reinsurance recoverables
Unpaid losses		499.0		461.6		457.4		455.4		426.6		357.7		359.3		334.0
Ceded unearned premiums		122.6		151.3		190.8		175.3		87.8		129.9		146.2		167.4
Receivables
Underwriting premiums		1,057.5		993.4		1,063.3		1,061.2		894.4		957.2		1,054.3		940.0
Other		68.5		76.4		75.1		70.2		69.7		69.3		70.0		62.8
Funds withheld		84.3		79.5		91.0		86.9		90.7		65.1		81.9		86.3
Deferred policy acquisition costs ⁽¹⁾		223.0		232.0		233.2		215.3		184.5		192.2		191.0		178.2
Derivatives at fair value		2.0		5.8		3.3		0.9		1.3		5.8		5.7		7.4
Receivable for securities sold		0.2		14.6		9.5		2.0		1.1		0.5		21.2		10.6
Office properties and equipment		57.9		59.1		56.9		58.5		53.9		49.5		45.0		38.6
Income tax receivable		2.4		12.3		15.7		20.3		19.5		2.5		19.9		5.2
Other assets		18.2		38.1		39.3		31.1		36.8		31.2		30.2		29.4
Intangible assets		19.0		19.2		19.5		19.7		20.0		20.3		20.5		20.7

Total assets		$10,310.6		$10,237.8		$10,079.3		$9,867.2		$9,460.5		$9,404.8		$9,503.0		$9,284.8

LIABILITIES
Insurance reserves
Losses and loss adjustment expenses		$4,779.7		$4,639.6		$4,556.4		$4,585.7		$4,525.2		$4,399.4		$4,391.7		$4,229.3
Unearned premiums		1,120.8		1,184.0		1,223.8		1,146.3		916.1		1,014.5		1,086.2		1,028.3

Total insurance reserves		5,900.5		5,823.6		5,780.2		5,732.0		5,441.3		5,413.9		5,477.9		5,257.6

Payables
Reinsurance premiums		154.1		71.1		109.5		192.2		155.8		135.2		181.6		226.9
Taxation		11.8		23.7		22.5		22.9		18.5		35.2		49.1		45.3
Accrued expenses and other payables		249.3		261.4		230.3		208.9		187.8		186.0		204.8		214.5
Liabilities under derivative contracts		7.4		4.7		2.7		1.3		2.1		-		-		3.5

Total payables		422.6		360.9		365.0		425.3		364.2		356.4		435.5		490.2

Long-term debt		499.1		499.1		499.0		499.0		499.0		498.9		498.9		498.8

Total liabilities		6,822.2		6,683.6		6,644.2		6,656.3		6,304.5		6,269.2		6,412.3		6,246.6

SHAREHOLDERS’ EQUITY
Ordinary shares		0.1		0.1		0.1		0.1		0.1		0.1		0.1		0.1
Non-controlling interest		0.2		(0.1)		0.1		0.3		0.4		0.2		0.1		0.3
Preference shares		-		-		-		-		-		-		-		-
Additional paid-in capital		1,516.7		1,521.9		1,523.2		1,390.8		1,385.0		1,381.8		1,388.2		1,388.2
Retained earnings ⁽¹⁾		1,544.0		1,562.6		1,468.4		1,404.1		1,341.6		1,345.8		1,341.1		1,348.1
Accumulated other comprehensive income, net of taxes		427.4		469.7		443.3		415.6		428.9		407.7		361.2		301.5

Total shareholders’ equity		3,488.4		3,554.2		3,435.1		3,210.9		3,156.0		3,135.6		3,090.7		3,038.2

Total liabilities and shareholders’ equity		$10,310.6		$10,237.8		$10,079.3		$9,867.2		$9,460.5		$9,404.8		$9,503.0		$9,284.8

Book value per ordinary share		$42.12		$42.90		$41.41		$39.96		$39.66		$39.41		$38.64		$37.96
Book value per diluted ordinary share		$40.65		$41.53		$40.01		$38.58		$38.21		$38.07		$37.24		$36.48

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.


		ASPEN INSURANCE HOLDINGS LIMITED

		Earnings Per Share and Book Value Per Share


	Three Months Ended						Twelve Months Ended
(in US$ except for number of shares)	December 31, 2012			December 31, 2011 ⁽¹⁾			December 31, 2012		December 31, 2011 ⁽¹⁾

Basic earnings per ordinary share
Net (loss)/income adjusted for preference share dividend		$(0.09	)		$0.09			$3.51		$(1.88	)
Operating (loss)/income adjusted for preference share dividend		$(0.15	)		$(0.01	)		$3.50		$(1.32	)
Diluted earnings per ordinary share
Net (loss)/income adjusted for preference share dividend		$(0.09	)		$0.09			$3.38		$(1.88	)
Operating (loss)/income adjusted for preference share dividend		$(0.15	)		$(0.01	)		$3.37		$(1.32	)

Weighted average number of ordinary shares outstanding (in millions) ⁽²⁾		71.007			70.615			71.096		70.665
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions) ⁽²⁾		73.558			73.258			73.689		70.655

Book value per ordinary share		$42.12			$39.66			$42.12		$39.66
Diluted book value per ordinary share		$40.65			$38.21			$40.65		$38.21

Ordinary shares outstanding at end of the period (in millions)		70.754			70.656			70.754		70.656
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions)		73.312			73.339			73.312		73.339

(2) The basic and diluted number of ordinary shares for the twelve months ended December 31, 2011 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.


		ASPEN INSURANCE HOLDINGS LIMITED

		Return On Average Equity

Three Months Ended

Twelve Months Ended

(in US$ millions except for
percentages)

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

Average shareholders’ equity ⁽¹⁾

$3,521.3

$3,135.0

$3,394.4

$3,130.1

Average preference shares

(508.1)

(353.6)

(460.6)

(353.6)

Average ordinary shareholders’ equity

$3,013.2

$2,781.4

$2,933.8

$2,776.5

Return on average equity:

Net (loss)/income adjusted for preference share dividend

(0.2%)

0.2%

8.5%

(4.8%)

Operating (loss)/income adjusted for preference share dividend

(0.4%)

–

8.5%

(3.4%)

Annualized return on average equity:

Net (loss)/income

(0.8%)

0.8%

8.5%

(4.8%)

Operating (loss)/income

(1.6%)

–

8.5%

(3.4%)

Components of return on average equity:

Return on average equity from underwriting activity ⁽²⁾

(1.5%)

(2.5%)

4.0%

(10.8%)

Return on average equity from investment and other activity ⁽³⁾

1.0%

1.6%

4.9%

5.9%

Pre-tax operating (loss)/income return on average equity

(0.5%)

(0.9%)

8.9%

(4.8%)

Post-tax operating (loss)/income return on average equity ⁽⁴⁾

(0.4%)

–

8.5%

(3.4%)

See page 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(2) Calculated by using underwriting income.

(3) Calculated by using total other operating revenue and other income/(expense) adjusted for preference share dividends.

(4) Calculated by using operating income after-tax adjusted for preference share dividends.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Underwriting Results by Operating Segment

Three Months Ended December 31, 2012

Three Months Ended December 31, 2011

(in US$ millions except for
percentages)

Reinsurance

Insurance

Total

Reinsurance

Insurance

Total

Gross written premiums

$194.4

$381.8

$576.2

$186.3

$272.4

$458.7

Net written premiums

193.7

330.7

524.4

182.3

248.9

431.2

Gross earned premiums

317.2

328.2

645.4

311.9

245.7

557.6

Net earned premiums

299.8

258.7

558.5

288.7

200.7

489.4

Losses and loss adjustment expenses

248.9

188.5

437.4

278.1

116.4

394.5

Policy acquisition expenses

41.0

39.0

80.0

47.4

38.1

85.5

General and administrative expenses ⁽¹⁾

31.3

41.9

73.2

33.2

33.5

66.7

Underwriting (loss)/income

$(21.4)

$(10.7)

$(32.1)

$(70.0)

$12.7

$(57.3)

Net investment income

51.1

54.2

Net realized and unrealized investment gains ⁽²⁾

5.6

6.0

Corporate (expenses)

(12.9)

(12.6)

Other (expenses)/income

(6.2)

3.6

Interest (expense)

(7.7)

(7.7)

Net realized and unrealized foreign exchange (losses)/gains ⁽³⁾

(0.4)

2.3

(Loss) before income taxes

$(2.6)

$(11.5)

Income tax recovery

4.6

23.9

Net income

$2.0

$12.4

Ratios

Loss ratio

83.0%

72.9%

78.3%

96.3%

58.0%

80.6%

Policy acquisition expense ratio

13.7%

15.1%

14.3%

16.4%

19.0%

17.5%

General and administrative expense ratio ^(1,4)

10.4%

16.2%

15.4%

11.5%

16.7%

16.2%

Expense ratio

24.1%

31.3%

29.7%

27.9%

35.7%

33.7%

Combined ratio

107.1%

104.2%

108.0%

124.2%

93.7%

114.3%

(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.

(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

(4) The total group general and administrative expense ratio includes the impact from corporate expenses.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Underwriting Results by Operating Segment

Twelve Months Ended December 31, 2012

Twelve Months Ended December 31, 2011

(in US$ millions except for
percentages)

Reinsurance

Insurance

Total

Reinsurance

Insurance

Total

Gross written premiums

$1,227.9

$1,355.4

$2,583.3

$1,187.5

$1,020.3

$2,207.8

Net written premiums

1,156.9

1,090.0

2,246.9

1,098.1

831.0

1,929.1

Gross earned premiums

1,208.0

1,177.0

2,385.0

1,190.6

950.5

2,141.1

Net earned premiums

1,132.4

951.1

2,083.5

1,108.3

780.2

1,888.5

Losses and loss adjustment expenses

635.3

603.2

1,238.5

1,083.3

472.7

1,556.0

Policy acquisition expenses

207.8

173.4

381.2

197.7

149.3

347.0

General and administrative expenses ⁽¹⁾

123.9

168.2

292.1

111.8

128.0

239.8

Underwriting income/(loss)

$165.4

$6.3

$171.7

$(284.5)

$30.2

$(254.3)

Net investment income

204.9

225.6

Net realized and unrealized investment gains/(losses) ⁽²⁾

3.8

(34.1)

Corporate (expenses)

(53.0)

(44.7)

Other income/(expenses)

0.9

(6.8)

Interest (expense)

(30.9)

(30.8)

Net realized and unrealized foreign exchange (losses) ⁽³⁾

(2.0)

(2.2)

Income/(loss) before income tax

$295.4

$(147.3)

Income tax (expense)/recovery

(15.0)

37.2

Net income/(loss)

$280.4

$(110.1)

Ratios

Loss ratio

56.1%

63.4%

59.4%

97.7%

60.6%

82.4%

Policy acquisition expense ratio

18.4%

18.2%

18.3%

17.8%

19.1%

18.4%

General and administrative expense ratio ^(1,4)

10.9%

17.7%

16.6%

10.1%

16.4%

15.1%

Expense ratio

29.3%

35.9%

34.9%

27.9%

35.5%

33.5%

Combined ratio

85.4%

99.3%

94.3%

125.6%

96.1%

115.9%

(2) Includes the net realized and unrealized gains/(losses) from interest rate swaps.

(3) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.

(4) The total group general and administrative expense ratio includes the impact from corporate expenses.


		ASPEN INSURANCE HOLDINGS LIMITED

		Reinsurance Segment - Quarterly Results


(in US$ millions except for percentages)	Q4 2012		Q3 2012		Q2 2012		Q1 2012		Q4 2011		Q3 2011		Q2 2011		Q1 2011

Gross written premiums		$194.4		$259.5		$299.8		$474.2		$186.3		$276.1		$288.0		$437.1
Net written premiums		193.7		256.9		276.8		429.5		182.3		270.5		256.9		388.4
Gross earned premiums		317.2		299.8		300.8		290.2		311.9		303.2		290.7		284.8
Net earned premiums		299.8		279.6		282.0		271.0		288.7		279.6		268.0		272.0
Net losses and loss adjustment expenses		248.9		117.1		133.7		135.6		278.1		188.8		206.3		410.1
Policy acquisition expenses		41.0		55.7		59.3		51.8		47.4		51.8		49.1		49.4
General and administrative expenses ⁽¹⁾		31.3		33.6		30.0		29.0		33.2		26.7		26.9		25.0

Underwriting (loss)/income		$(21.4)		$73.2		$59.0		$54.6		$(70.0)		$12.3		$(14.3)		$(212.5)

Ratios
Loss ratio		83.0%		41.9%		47.4%		50.0%		96.3%		67.5%		77.0%		150.8%
Policy acquisition expense ratio		13.7%		19.9%		21.0%		19.1%		16.4%		18.5%		18.3%		18.2%
General and administrative expense ratio⁽¹⁾		10.4%		12.0%		10.6%		10.7%		11.5%		9.5%		10.0%		9.2%
Expense ratio		24.1%		31.9%		31.6%		29.8%		27.9%		28.0%		28.3%		27.4%
Combined ratio		107.1%		73.8%		79.0%		79.8%		124.2%		95.5%		105.3%		178.2%


		ASPEN INSURANCE HOLDINGS LIMITED

		Insurance Segment - Quarterly Results


(in US$ millions except for percentages)	Q4 2012		Q3 2012		Q2 2012		Q1 2012		Q4 2011		Q3 2011		Q2 2011		Q1 2011
Gross written premiums		$381.8		$298.9		$366.8		$307.9		$272.4		$219.5		$294.2		$234.2
Net written premiums		330.7		250.2		305.1		204.0		248.9		192.1		268.8		121.2
Gross earned premiums		328.2		302.0		279.9		266.9		245.7		246.7		234.1		224.0
Net earned premiums		258.7		236.6		231.4		224.4		200.7		207.3		191.8		180.4
Net losses and loss adjustment expenses		188.5		137.9		128.4		148.4		116.4		117.4		120.1		118.8
Policy acquisition expenses		39.0		47.4		42.7		44.3		38.1		41.6		37.6		32.0
General and administrative expenses ⁽¹⁾		41.9		42.8		42.1		41.4		33.5		34.9		29.8		29.8

Underwriting (loss)/income		$(10.7)		$8.5		$18.2		$(9.7)		$12.7		$13.4		$4.3		$(0.2)

Ratios
Loss ratio		72.9%		58.3%		55.5%		66.1%		58.0%		56.6%		62.6%		65.9%
Policy acquisition expense ratio		15.1%		20.0%		18.5%		19.7%		19.0%		20.1%		19.6%		17.7%
General and administrative expense ratio ⁽¹⁾		16.2%		18.1%		18.2%		18.4%		16.7%		16.8%		15.5%		16.5%
Expense ratio		31.3%		38.1%		36.7%		38.1%		35.7%		36.9%		35.1%		34.2%
Combined ratio		104.2%		96.4%		92.2%		104.2%		93.7%		93.5%		97.7%		100.1%


		ASPEN INSURANCE HOLDINGS LIMITED

		Written and Earned Premiums by Segment and Line of Business


(in US$ millions)

Gross Written Premiums	Q4 2012		Q3 2012		Q2 2012		Q1 2012		Q4 2011		Q3 2011		Q2 2011		Q1 2011
Reinsurance
Property Catastrophe Reinsurance		$23.8		$42.7		$91.9		$152.9		$9.4		$53.5		$93.0		$151.0
Other Property Reinsurance		61.3		92.6		81.0		78.5		64.8		78.6		70.9		64.8
Casualty Reinsurance		55.7		76.3		66.6		138.9		42.5		83.4		44.6		138.6
Specialty Reinsurance		53.6		47.9		60.3		103.9		69.6		60.6		79.5		82.7

Total Reinsurance		$194.4		$259.5		$299.8		$474.2		$186.3		$276.1		$288.0		$437.1

Insurance
Property Insurance		$53.7		$51.5		$82.1		$52.4		$53.1		$37.0		$73.6		$38.6
Casualty Insurance		61.3		49.9		53.0		28.6		36.6		38.1		32.9		19.6
Marine, Energy and Transportation Insurance		145.4		102.2		133.7		149.6		107.6		70.5		130.3		123.8
Financial and Professional Lines Insurance		89.8		63.8		68.3		49.7		52.5		68.4		57.4		52.2
Programs		31.6		31.5		29.7		27.6		22.6		5.5		-		-

Total Insurance		$381.8		$298.9		$366.8		$307.9		$272.4		$219.5		$294.2		$234.2



Total Gross Written Premiums		$576.2		$558.4		$666.6		$782.1		$458.7		$495.6		$582.2		$671.3

Net Written Premiums

Reinsurance
Property Catastrophe Reinsurance		$23.9		$43.7		$76.0		$123.5		$9.2		$53.5		$69.6		$116.1
Other Property Reinsurance		62.3		89.2		76.8		64.8		61.0		73.8		63.5		53.3
Casualty Reinsurance		53.9		76.1		66.5		137.3		42.5		82.6		44.3		136.4
Specialty Reinsurance		53.6		47.9		57.5		103.9		69.6		60.6		79.5		82.6

Total Reinsurance		$193.7		$256.9		$276.8		$429.5		$182.3		$270.5		$256.9		$388.4

Insurance
Property Insurance		$41.4		$37.9		$72.1		$21.0		$46.1		$26.9		$65.2		$1.6
Casualty Insurance		43.6		35.5		42.1		20.0		25.7		31.2		24.9		10.5
Marine, Energy and Transportation Insurance		142.2		93.1		103.4		140.7		107.5		59.8		121.5		98.8
Financial and Professional Lines Insurance		82.0		57.9		59.0		(3.1)		48.0		69.9		57.2		10.3
Programs		21.5		25.8		28.5		25.4		21.6		4.3		-		-

Total Insurance		$330.7		$250.2		$305.1		$204.0		$248.9		$192.1		$268.8		$121.2



Total Net Written Premiums		$524.4		$507.1		$581.9		$633.5		$431.2		$462.6		$525.7		$509.6

Net Earned Premiums

Reinsurance
Property Catastrophe Reinsurance		$83.3		$62.3		$60.8		$62.9		$60.4		$52.1		$58.5		$71.6
Other Property Reinsurance		68.0		72.7		68.2		68.2		70.0		64.4		57.0		60.1
Casualty Reinsurance		88.1		82.3		88.1		66.9		75.7		95.3		75.7		82.4
Specialty Reinsurance		60.4		62.3		64.9		73.0		82.6		67.8		76.8		57.9

Total Reinsurance		$299.8		$279.6		$282.0		$271.0		$288.7		$279.6		$268.0		$272.0

Insurance
Property Insurance		$42.8		$36.9		$38.4		$38.4		$37.2		$27.9		$29.1		$28.2
Casualty Insurance		32.5		29.6		29.9		26.3		23.5		25.4		26.5		25.4
Marine, Energy and Transportation Insurance		126.3		108.2		110.9		102.6		100.4		96.6		99.2		93.3
Financial and Professional Lines Insurance		47.0		45.4		39.9		51.5		36.9		57.3		37.0		33.5
Programs		10.1		16.5		12.3		5.6		2.7		0.1		-		-

Total Insurance		$258.7		$236.6		$231.4		$224.4		$200.7		$207.3		$191.8		$180.4



Total Net Earned Premiums		$558.5		$516.2		$513.4		$495.4		$489.4		$486.9		$459.8		$452.4


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Statements of Changes in Shareholders’ Equity


	Twelve Months Ended December 31,
(in US$ millions)	2012		2011
Ordinary shares
Beginning and end of period		$0.1		$0.1

Preference shares
Beginning and end of period		-		-

Non-controlling interest
Beginning of period		0.4		0.5
Net (loss) for the period		(0.2)		(0.1)

End of period		0.2		0.4

Additional paid-in capital
Beginning of period		1,385.0		1,388.3
New shares issued		22.1		0.8
Ordinary shares repurchased		(62.7)		(8.1)
Preference shares issued		154.5		-
Share-based compensation		17.8		4.0

End of period		1,516.7		1,385.0

Retained earnings
Beginning of period ⁽¹⁾		1,341.6		1,517.0
Net income/(loss) for the period⁽¹⁾		280.4		(110.1)
Dividends paid on ordinary and preference shares		(78.2)		(65.4)
Proportion due to non-controlling interest		0.2		0.1

End of period		1,544.0		1,341.6

Accumulated other comprehensive income:
Cumulative foreign currency translation adjustments, net of taxes:
Beginning of period		124.2		113.4
Change for the period		(11.5)		10.8

End of period		112.7		124.2

Loss on derivatives:
Beginning of period		(0.7)		(1.0)
Reclassification to interest payable		0.2		0.3

End of period		(0.5)		(0.7)

Unrealized appreciation/(depreciation) on investments, net of taxes:
Beginning of period		305.4		211.9
Change for the period		9.8		93.5

End of period		315.2		305.4

Total accumulated other comprehensive income		427.4		428.9



Total shareholders’ equity		$3,488.4		$3,156.0


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Statements of Comprehensive Income

Three Months Ended December 31,

Twelve Months Ended December 31,

(in US$ millions)

2012

2011

2012

2011

Net income/(loss) ⁽¹⁾

$2.0

$12.4

$280.4

$(110.1)

Other comprehensive income/(loss), net of taxes:

Available for sale investments:

Reclassification adjustment for net realized losses/(gains) included in net income

(3.1)

(3.0)

2.0

(16.6)

Change in net unrealized gains and losses on available for sale securities held

(43.4)

13.6

7.8

110.1

Loss on derivatives reclassified to interest expense

(0.1)

0.1

0.2

0.3

Change in foreign currency translation adjustment

4.3

10.5

(11.5)

10.8

Other comprehensive (loss)/income

(42.3)

21.2

(1.5)

104.6

Comprehensive (loss)/income

$(40.3)

$33.6

$278.9

$(5.5)


		ASPEN INSURANCE HOLDINGS LIMITED

		Condensed Consolidated Statements of Cash Flows

Three Months Ended December 31,

Twelve Months Ended December 31,

(in US$ millions)

2012

2011

2012

2011

Net cash from operating activities

$157.8

$65.1

$502.9

$343.5

Net cash (used in)/from investing activities

(30.0)

157.9

(317.2)

(210.5)

Net cash (used in)/from financing activities

(30.8)

(16.2)

35.7

(72.7)

Effect of exchange rate movements on cash and cash equivalents

(7.6)

(6.5)

3.1

(0.3)

Increase in cash and cash equivalents

89.4

200.3

224.5

60.0

Cash at beginning of period

1,374.2

1,038.8

1,239.1

1,179.1

Cash at end of period

$1,463.6

$1,239.1

$1,463.6

$1,239.1


		ASPEN INSURANCE HOLDINGS LIMITED

		Reserves for Losses and Loss Adjustment Expenses


(in US$ millions)	For the Twelve Months Ended December 31, 2012		For the Twelve Months Ended December 31, 2011
Provision for losses and loss adjustment expenses at the start of the period		$4,525.2		$3,820.5
Reinsurance recoverables		(426.6)		(279.9)

Net loss and loss adjustment expenses at the start of the period		4,098.6		3,540.6

Net loss and loss adjustment expenses disposed		(9.0)		(20.6)

Provision for losses and loss adjustment expenses for claims incurred
Current period		1,375.9		1,648.3
Prior period release		(137.4)		(92.3)

Total incurred		1,238.5		1,556.0

Losses and loss adjustment expenses payments for claims incurred		(1,080.0)		(982.2)

Foreign exchange losses		32.6		4.8

Net loss and loss adjustment expenses reserves at the end of the period		4,280.7		4,098.6
Reinsurance recoverables on unpaid losses at the end of the period		499.0		426.6

Gross loss and loss adjustment expenses reserves at the end of the period		$4,779.7		$4,525.2


		ASPEN INSURANCE HOLDINGS LIMITED

		Reserves by Operating Segment

As At December 31, 2012

As At December 31, 2011

(in US$ millions)

Gross

Reinsurance
Recoverables

Net

Gross

Reinsurance
Recoverables

Net

Reinsurance

$2,983.7

$(186.2)

$2,797.5

$2,953.5

$(183.5)

$2,770.0

Insurance

1,796.0

(312.8)

1,483.2

1,571.7

(243.1)

1,328.6

Total losses and loss adjustment expense reserves

$4,779.7

$(499.0)

$4,280.7

$4,525.2

$(426.6)

$4,098.6


		ASPEN INSURANCE HOLDINGS LIMITED

		Prior Year Reserve Movements

(in US$ millions)

Three Months Ended December 31, 2012

Three Months Ended December 31, 2011

Gross

Reinsurance
Recoverables

Net

Gross

Reinsurance
Recoverables

Net

Reinsurance

$38.6

$(0.8)

$37.8

$13.5

$1.1

$14.6

Insurance

7.6

(3.4)

4.2

(1.1)

8.5

7.4

Release in reserves for prior years during the period

$46.2

$(4.2)

$42.0

$12.4

$9.6

$22.0

Twelve Months Ended December 31, 2012

Twelve Months Ended December 31, 2011

Gross

Reinsurance
Recoverables

Net

Gross

Reinsurance
Recoverables

Net

Reinsurance

$97.9

$4.3

$102.2

$69.6

$2.7

$72.3

Insurance

30.9

4.3

35.2

(22.7)

42.7

20.0

Release in reserves for prior years during the period

$128.8

$8.6

$137.4

$46.9

$45.4

$92.3


		ASPEN INSURANCE HOLDINGS LIMITED

		Worldwide Natural Catastrophe Exposures: Major Peril Zones

LOGO

Based on shareholders’ equity of $3,488.4 million at December 31, 2012. The estimates reflect Aspen’s own view of the modelled maximum losses (“PML’s”) at the return periods shown which include input from various third party vendor models and our own proprietary adjustments to these models. Catastrophe loss experience may materially differ from the modelled PML’s due to limitations in one or more of the models or uncertainties in the application of policy terms and limits.


		ASPEN INSURANCE HOLDINGS LIMITED

		Consolidated Investment Portfolio

(in US$ millions)


	Fair Market Value
Marketable Securities - Available For Sale	As At December 31, 2012		As At September 30, 2012		As At June 30, 2012		As At March 31, 2012		As At December 31, 2011

U.S. government securities		$1,126.3		$1,068.6		$975.7		$897.8		$932.4
U.S. agency securities		308.6		311.7		309.2		331.3		295.5
Municipal securities		39.7		39.9		39.9		38.7		35.6
Corporate securities		2,038.5		1,929.7		1,896.7		1,889.1		1,846.5
Foreign government securities		641.0		628.5		596.3		619.5		660.4
Asset-backed securities		53.8		63.8		62.0		63.4		61.0
FDIC Guaranteed		-		3.0		3.0		63.6		72.9
Bonds backed by foreign government		101.1		139.1		119.8		158.5		167.8
Mortgage-backed securities		1,248.3		1,363.5		1,384.8		1,382.7		1,353.7

Total fixed income maturities		5,557.3		5,547.8		5,387.4		5,444.6		5,425.8
Short-term investments		431.5		494.7		489.6		423.5		298.2
Equity securities		200.1		197.1		187.4		188.1		179.5

Total Available For Sale		$6,188.9		$6,239.6		$6,064.4		$6,056.2		$5,903.5


Marketable Securities - Trading

U.S. government securities		$9.4		$38.8		$38.8		$37.4		$32.3
U.S. agency securities		0.2		2.0		1.9		1.8		1.8
Municipal securities		2.9		2.9		2.9		2.9		2.9
Corporate securities		414.4		368.2		337.7		341.9		349.3
Foreign government securities		26.3		21.8		21.9		12.9		7.4
Mortgage-backed securities		-		0.3		-		-		-
Asset-backed securities		2.9		1.3		0.6		0.6		0.7

Total fixed income maturities		456.1		435.3		403.8		397.5		394.4
Short-term investments		2.4		10.6		14.0		10.3		4.1

Total Trading		$458.5		$445.9		$417.8		$407.8		$398.5

Other investments		$45.0		$34.8		$33.1		$33.1		$33.1

Cash		1,463.6		1,374.2		1,309.0		1,173.3		1,239.1
Accrued interest		47.7		49.7		48.8		48.7		49.6

Total Cash and Accrued Interest		$1,511.3		$1,423.9		$1,357.8		$1,222.0		$1,288.7



Total Cash and Investments		$8,203.7		$8,144.2		$7,873.1		$7,719.1		$7,623.8


		ASPEN INSURANCE HOLDINGS LIMITED

		Investment Analysis


(in US$ millions except for percentages)	Q4 2012			Q3 2012			Q2 2012			Q1 2012			Q4 2011			Q3 2011			Q2 2011			Q1 2011

Net investment income from fixed income investments and cash		$49.8			$46.9			$51.0			$51.0			$52.9			$55.6			$55.6			$55.3
Net investment income from equity securities		1.3			1.7			1.8			1.4			1.3			1.7			3.0			0.2

Net investment income		51.1			48.6			52.8			52.4			54.2			57.3			58.6			55.5

Net realized and unrealized investment gains excluding the interest rate swaps		5.7			12.9			2.2			9.0			8.9			3.2			9.8			8.4
Net realized investment (losses)/gains from the interest rate swaps		(0.1	)		(8.1	)		(11.3	)		(3.5	)		(2.9	)		(36.1	)		(25.5	)		0.1
Other-than-temporary impairment charges		-			(2.1	)		(0.9	)		-			-			-			-			-

Net realized and unrealized investment gains/(losses)		5.6			2.7			(10.0	)		5.5			6.0			(32.9	)		(15.7	)		8.5


Change in unrealized (losses)/gains on available for sale investments (gross of tax)		(37.9	)		32.2			36.6			(11.7	)		6.1			71.6			52.1			(33.6	)

Total return on investments		$18.8			$83.5			$79.4			$46.2			$66.3			$96.0			$95.0			$30.4


Portfolio Characteristics
Fixed income portfolio book yield (excluding the impact of the interest rate swaps)		2.88	%		3.04	%		3.19	%		3.31	%		3.37	%		3.54	%		3.64	%		3.65	%
Fixed income portfolio duration (excluding the impact of the interest rate swaps)		3.0 years			2.8 years			2.9 years			3.0 years			2.9 years			3.1 years			3.1 years			3.2 years


		ASPEN INSURANCE HOLDINGS LIMITED

		Book Value Per Ordinary Share


(in US$ millions except for number of shares and per share amounts)	December 31, 2012		September 30, 2012		June 30, 2012		March 31, 2012		December 31, 2011
Net assets⁽¹⁾		$3,488.4		$3,554.2		$3,435.1		$3,210.9		$3,156.0
Less: Preference shares		(508.1)		(508.1)		(508.1)		(353.6)		(353.6)

Total		$2,980.3		$3,046.1		$2,927.0		$2,857.3		$2,802.4

Ordinary shares outstanding (in millions)		70.754		71.012		70.687		71.496		70.656
Ordinary shares and dilutive potential ordinary shares (in millions)		73.312		73.341		73.161		74.064		73.339
Book value per ordinary share		$42.12		$42.90		$41.41		$39.96		$39.66
Diluted book value per ordinary share		$40.65		$41.53		$40.01		$38.58		$38.21

The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to purchase the Company’s ordinary shares at the average market price during the period of calculation.


		ASPEN INSURANCE HOLDINGS LIMITED

		Operating Income/(Loss) Reconciliation

Net income/(loss) is adjusted to exclude after-tax change in net foreign exchange gains and losses and realized gains and losses in investments.

Three Months Ended

Twelve Months Ended

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

(in US$ millions except where stated)

Net income/(loss) as reported ⁽¹⁾

$2.0

$12.4

$280.4

$(110.1)

Preference share dividends

(8.5)

(5.7)

(31.1)

(22.8)

Net (loss)/income available to ordinary shareholders

(6.5)

6.7

249.3

(132.9)

Add (deduct) after tax income:

Net foreign exchange losses/(gains)

0.4

(3.7)

2.2

0.1

Net realized (gains)/losses on investments

(5.3)

(3.7)

(2.7)

39.6

Operating (loss)/income after tax available to ordinary shareholders

(11.4)

(0.7)

248.8

(93.2)

Tax on operating (loss)/income

(4.9)

(24.8)

13.7

(40.6)

Operating (loss)/income before tax available to ordinary shareholders

$(16.3)

$(25.5)

$262.5

$(133.8)

Weighted average ordinary shares outstanding (in millions of shares)

Basic

71.007

70.615

71.096

70.665

Dilutive share equivalents:

Employee options

0.356

0.585

0.573

Options issued to Appleby Trust (Bermuda) Limited (Names Trust)

0.097

0.036

Performance shares

1.129

1.622

1.247

Restricted share units

0.540

0.339

0.562

PIERS ⁽²⁾

0.525

0.176

Weighted average diluted shares outstanding

73.557

73.258

73.690

70.655

Basic (losses)/earnings per ordinary share

Net (loss)/income adjusted for preference share dividend

$(0.09)

$0.09

$3.51

$(1.88)

Add (deduct) after tax income:

Net foreign exchange losses/(gains)

0.01

(0.05)

0.03

Net realized (gains)/losses on investments

(0.07)

(0.05)

(0.04)

0.56

Operating (loss)/income adjusted for preference shares dividend

$(0.15)

$(0.01)

$3.50

$(1.32)

Diluted (losses)/earnings per ordinary share

Net (loss)/income adjusted for preference share dividend

$(0.09)

$0.09

$3.38

$(1.88)

Add (deduct) after tax income:

Net foreign exchange losses/(gains)

0.01

(0.05)

0.03

Net realized (gains)/losses on investments

(0.07)

(0.05)

(0.04)

0.56

Operating (loss)/income adjusted for preference shares dividend

$(0.15)

$(0.01)

$3.37

$(1.32)

(1) In 2011, the Company adopted the provision of ASU 2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.” Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.

(2) Preferred Income Equity Replacement Securities

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