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Aspen Reports Results for the Quarter and Year Ended December 31, 2012

  Aspen Reports Results for the Quarter and Year Ended December 31, 2012

  Announces new $500 million share repurchase authorization to replace prior
                                     plan

Business Wire

HAMILTON, Bermuda -- February 7, 2013

Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) today reported net
income after tax of $280.4 million for the year and $2.0 million for the
fourth quarter of 2012. This is equivalent to diluted net income per share of
$3.38 for the year and a diluted net loss per share of $0.09 for the fourth
quarter of 2012.

Results for the quarter were impacted by net catastrophe losses of $170
million, after tax and net of reinsurance and reinstatements, including $175
million from Superstorm Sandy and favorable development on the 2012 US storms.

Chris O’Kane, Chief Executive Officer commented, “In 2012 Aspen celebrated its
10 year anniversary. Our success reflects the support of our clients, with
whom we have built strong relationships, the hard work and skill of all our
people, and the diversified Reinsurance and Insurance platform that we have
built together. In 2012, despite the impact of Superstorm Sandy, we made
strong progress against our strategic objectives and generated an operating
return on equity of 8.5%.

In 2013, we will be intensely focused on further improving return on equity,
against a backdrop of modestly improving insurance pricing, lackluster global
economies, and a continued low interest rate environment. We will allocate
capital efficiently to profitable underwriting opportunities, scale back in
certain lines whose performance has not been consistent with our targeted risk
profile, and return excess capital to shareholders through our expanded share
repurchase authorization. We will also strive to generate increased returns
from our investment portfolio while ensuring that our investments remain
within our risk tolerance.”

Operating highlights for the quarter ended December 31, 2012

  *Diluted net loss per share of $0.09 for the quarter ended December 31,
    2012 compared with diluted net earnings per share of $0.09 in the fourth
    quarter of 2011^(1)
  *Diluted operating loss per share of $0.15 for the quarter ended December
    31, 2012 compared with diluted operating loss per share of $0.01 in the
    fourth quarter of 2011^(1)(2)
  *Diluted book value per share of $40.65, up 6.4% from the year ended
    2011^(1)(2)
  *Annualized net return on average equity of (0.8)% and annualized operating
    return on average equity of (1.6)% for the fourth quarter of 2012 compared
    with 0.8% and Nil%, respectively in the fourth quarter of 2011^(1)(2)
  *Gross written premiums of $576.2 million in the fourth quarter of 2012
    increased 25.6% from the fourth quarter of 2011 with the majority of the
    growth resulting from a 40.2% increase in the insurance segment
  *Combined ratio of 108.0% or 72.0% excluding catastrophes, pre-tax and net
    of reinsurance and reinstatements, for the fourth quarter of 2012 compared
    with a combined ratio of 114.3%^(1) or 85.9% excluding catastrophes for
    the fourth quarter 2011
  *Net favorable development on prior year loss reserves of $42.0 million, or
    7.5 combined ratio points, for the fourth quarter 2012 compared with $22.0
    million, or 4.5 combined ratio points, for the fourth quarter of 2011

Operating highlights for the year ended December 31, 2012

  *Net return on average equity of 8.5% and operating return on average
    equity of 8.5% for 2012 compared with (4.8)% and (3.4)%, respectively in
    2011^(1)(2)
  *Gross written premiums of $2,583.3 million, up 17.0% from 2011, with
    growth principally in the insurance segment
  *Combined ratio for 2012 of 94.3%, including $205.0 million or 10.8
    percentage points of pre-tax catastrophe losses, net of reinsurance and
    reinstatements compared with 115.9% for 2011, which included 31.5
    percentage points of net losses from catastrophes
  *Net favorable development on prior year loss reserves of $137.4 million,
    or 6.6 combined ratio points, for the year compared with $92.3 million, or
    4.9 combined ratio points, for 2011

Segment highlights

Reinsurance

Operating highlights for Reinsurance for the quarter ended December 31, 2012
include:

  *Gross written premiums of $194.4 million, up 4.3% compared with $186.3
    million for the fourth quarter of 2011, primarily due to increased
    reinstatement premiums and premium adjustments to business written in
    prior years
  *Combined ratio of 107.1% compared with 124.2% for the fourth quarter of
    2011
  *Favorable prior year loss reserve development of $37.8 million, or 12.6
    combined ratio points, with a favorable development in each of the four
    principal lines of business compared with $14.6 million favorable prior
    year loss reserve development, or 5.1 combined ratio points, in the fourth
    quarter of 2011

The combined ratio for the fourth quarter of 2012 was 107.1%, and was impacted
by $124.0 million of net catastrophe losses, pre-tax net of reinsurance and
reinstatements, including $129.5 million from Superstorm Sandy. Excluding
catastrophe losses, the combined ratio was 55.0%. Favorable reserve movements
in the quarter included a $16.1 million release for the 2010 and 2011
catastrophe events. In comparison, the combined ratio for the fourth quarter
of 2011 was 124.2% or 76.1%^(1)(2) excluding catastrophe losses. The
acquisition ratio was 13.7% for the fourth quarter of 2012 compared to 16.4%
for the fourth quarter of 2011 due to a combination of increased reinstatement
premiums and a $4.2 million reduction in profit commissions.

The segment underwriting loss for the fourth quarter of 2012 was $21.4 million
compared with an underwriting loss of $70.0 million for the fourth quarter of
2011.^(1)

Operating highlights for Reinsurance for the twelve months ended December 31,
2012 include:

  *Gross written premiums of $1,227.9 million, up 3.4% compared with $1,187.5
    million for the twelve months ended December 31, 2011 as a result of
    improved market conditions in Property Other and Casualty sub segments,
    specifically US Casualty
  *Combined ratio of 85.4% compared with 125.6% for the twelve months ended
    December 31, 2011^(1)
  *Favorable prior year loss reserve development for 2012 was $102.2 million
    or 9.0 combined ratio points compared with $72.3 million favorable prior
    year loss reserve development or 6.5 combined ratio points, for 2011

The segment underwriting profit for the twelve months ended December 31, 2012
was $165.4 million compared with an underwriting loss of $284.5 million^(1)
for the twelve months ended December 31, 2011 which was severely impacted by
natural catastrophes, primarily the Japan and New Zealand earthquakes,
Thailand floods and US tornadoes.

The combined ratio for the twelve months of 2012, excluding net catastrophe
losses, pre-tax and net of reinsurance recoveries and reinstatement premiums
was 69.4%. In comparison, the combined ratio on the same basis for the full
year 2011 was 73.6%^(1)(2).

Insurance

Operating highlights for Insurance for the quarter ended December 31, 2012
include:

  *Gross written premiums of $381.8 million, up 40.2% compared with $272.4
    million in the fourth quarter of 2011
  *Combined ratio of 104.2% compared with 93.7% for the fourth quarter of
    2011^(1)
  *Favorable prior year loss reserve development of $4.2 million or 1.6
    combined ratio points compared with $7.4 million or 3.7 combined ratio
    points in the fourth quarter of 2011

The increase in gross written premiums was mainly attributable to growth in
our US based insurance operations. The combined ratio for the fourth quarter
of 2012 was 104.2%, negatively impacted by $61.1 million catastrophe losses,
pre-tax and net of reinsurance and reinstatements, primarily from Superstorm
Sandy.

Operating highlights for Insurance for the twelve months ended December 31,
2012 include:

  *Gross written premiums of $1,355.4 million, up 32.8% compared with
    $1,020.3 million in the twelve months ended December 31, 2011
  *Combined ratio of 99.3% compared with 96.1% for the twelve months ended
    December 31, 2011^(1)
  *Favorable prior year loss reserve development of $35.2 million or 3.7
    combined ratio points compared with $20.0 million or 2.6 combined ratio
    points in the twelve months ended December 31, 2011

The combined ratio of 99.3% for the twelve months of 2012 included catastrophe
losses, pre-tax and net of reinsurance recoveries and reinstatement premiums,
of $62.6 million or 4.2 percentage points. It also included losses, pre-tax
net of reinsurance recoveries and reinstatement premiums of $31.1 million or
2.2 percentage points related to the Costa Concordia event. In comparison, the
combined ratio for the twelve months of 2011 was 96.1% or 94.3%^(1)(2)
excluding catastrophe losses.

Investment performance

Net investment income for the fourth quarter of 2012 was $51.1 million
compared with $54.2 million in the fourth quarter of 2011. Net realized and
unrealized investment gains included in net income for the quarter were $5.6
million, which included $0.1 million of losses from the Company’s interest
rate swaps.

Unrealized gains in the available for sale investment portfolio, including
equity securities, at the end of December 31, 2012 were $355.0 million, a
decrease of $37.9 million from the end of the third quarter of 2012.

Book yield at December 31, 2012 on the fixed income portfolio was 2.88%, a
decrease of 49 basis points from 3.37% at the end of the fourth quarter of
2011. The average credit quality of the fixed income portfolio was AA and it
had an average duration of 3.0 years at December 31, 2012, excluding the
impact of interest rate swaps, or 2.5 years including the impact of interest
rate swaps.

Capital

Total shareholders’ equity decreased $65.8 million in the quarter to $3.5
billion at December 31, 2012.

During the fourth quarter of 2012, Aspen repurchased 308,674 ordinary shares
in the open market at an average price of $31.85 per share for a total cost of
$9.8 million. Between January 1, 2013 and February 6, 2013, Aspen repurchased
956,879 ordinary shares under its Rule 10b5-1 plan at an average price of
$33.23 per share for a total cost of $31.8 million. Aspen had $358 million
remaining under its current share repurchase authorization at February 6,
2013.

Aspen today announced that its Board of Directors has replaced its existing
share repurchase authorization with a new authorization of $500 million. The
total share repurchase authorization, which is effective immediately through
February 7, 2015, permits Aspen to effect the repurchases from time to time
through a combination of transactions, including open market repurchases,
privately negotiated transactions and accelerated share repurchase
transactions.

Guidance

Assuming a pre-tax catastrophe load of $190 million per annum, normal loss
experience and given the current interest rate and pricing environment, we
expect to achieve an operating return on equity of 10% in 2014.

See “Forward-looking Statements Safe Harbor” below.

(1) See provision of ASU 2010-26 on page 14
(2) See definition of non-GAAP financial measures on pages 13 and 14

Earnings conference call and web cast

Aspen will host a conference call to discuss the results at 9:00 am (EST) on
Friday, February 8, 2013.

To participate in the February 8 conference call by phone
Please call to register at least 10 minutes before the conference call begins
by dialing:

+1 (888) 459 5609 (US toll free) or
+1 (404) 665 9920 (international)
Conference ID 86526888

To listen live online
Aspen will provide a live webcast on Aspen’s website at www.aspen.co

To download the materials
The earnings press release and a detailed financial supplement will also be
published on Aspen’s website at www.aspen.co.

To listen later
A replay of the call will be available for 14 days via phone and internet,
available two hours after the end of the live call. To listen to the replay by
phone please dial:

+1 (855) 859 2056 (US toll free) or
+1 (404) 537 3406 (international)
Replay ID 86526888

The recording will be also available at www.aspen.co on the Event Calendar
page within the Investor Relations section.


Aspen Insurance Holdings Limited

Summary consolidated balance sheet (unaudited)

$ in millions, except per share data

                                               As at              As at

                                           December 31,    December 31,

                                               2012               2011
                                                              
ASSETS
Total investments                              $6,692.4           $6,335.1
Cash and cash equivalents                      1,463.6            1,239.1
Reinsurance recoverables                       621.6              514.4
Premiums receivable                            1,057.5            894.4
Other assets^(1)                               475.5           477.5
Total assets                                   $10,310.6       $9,460.5
                                                                  
LIABILITIES
Losses and loss adjustment expenses            $4,779.7           $4,525.2
Unearned premiums                              1,120.8            916.1
Other payables                                 422.6              364.2
Long-term debt                                 499.1           499.0
Total liabilities                              6,822.2            6,304.5
                                                                  
SHAREHOLDERS’ EQUITY
Total shareholders’ equity^(1)                 3,488.4         3,156.0
Total liabilities and shareholders’            $10,310.6       $9,460.5
equity^(1)
                                                                  
Book value per share^(1)                       $42.12             $39.66
Diluted book value per share (treasury         $40.65          $38.21
stock method) ^ (1)

(1) See provision of ASU 2010-26 on page 14



Aspen Insurance Holdings Limited

Summary consolidated statement of income (unaudited)

$ in millions, except ratios

                                         Three Months Ended
                                               December 31,       December 31,
                                                              
                                               2012               2011^(1)
UNDERWRITING REVENUES                                         
Gross written premiums                         $576.2             $458.7
Premiums ceded                                 (51.8)          (27.5)
Net written premiums                           524.4              431.2
Change in unearned premiums                    34.1            58.2
Net earned premiums                            558.5           489.4
UNDERWRITING EXPENSES
Losses and loss adjustment                     437.4              394.5
expenses
Policy acquisition expenses                    80.0               85.5
General, administrative and                    86.1            79.3
corporate expenses
Total underwriting expenses                    603.5           559.3
Underwriting income (loss)                     (45.0)          (69.9)
including corporate expenses
OTHER OPERATING REVENUE
Net investment income                          51.1               54.2
Interest expense                               (7.7)              (7.7)
Other income (expense)                         (6.2)           3.6
Total other operating revenue                  37.2            50.1
                                                                  
OPERATING INCOME (LOSS) BEFORE TAX             (7.8)              (19.8)
                                                                  
Net realized and unrealized                    (0.4)              2.3
exchange gains (losses)
Net realized and unrealized                    5.6             6.0
investment gains
INCOME (LOSS) BEFORE TAX                       (2.6)              (11.5)
Income taxes benefit                           4.6             23.9
NET INCOME AFTER TAX                           2.0                12.4
Dividends paid on ordinary shares              (12.0)             (10.7)
Dividends paid on preference                   (8.5)              (5.7)
shares
Dividends paid to non-controlling              ─                  ─
interest
Proportion due to non-controlling              (0.1)           (0.2)
interest
Retained (loss)                                $(18.6)         $(4.2)
Components of net income (after
tax)
Operating income (loss)                        $(2.9)             $5.0
Net realized and unrealized                    (0.4)              3.7
exchange gains (losses) after tax
Net realized investment gains                  5.3             3.7
after tax
NET INCOME AFTER TAX                           $2.0            $12.4
                                                                  
Loss ratio                                     78.3%              80.6%
Policy acquisition expense ratio               14.3%              17.5%
General, administrative and                    15.4%              16.2%
corporate expense ratio
Expense ratio                                  29.7%              33.7%
Combined ratio                                 108.0%          114.3%

(1) See provision of ASU 2010-26 on page 14



Aspen Insurance Holdings Limited

Summary consolidated statement of income (unaudited)

$ in millions, except ratios

                                         Twelve Months Ended
                                               December 31,       December 31,
                                                              
                                               2012               2011^(1)
UNDERWRITING REVENUES                                         
Gross written premiums                         $2,583.3           $2,207.8
Premiums ceded                                 (336.4)         (278.7)
Net written premiums                           2,246.9            1,929.1
Change in unearned premiums                    (163.4)         (40.6)
Net earned premiums                            2,083.5         1,888.5
UNDERWRITING EXPENSES
Losses and loss adjustment                     1,238.5            1,556.0
expenses
Policy acquisition expenses                    381.2              347.0
General, administrative and                    345.1           284.5
corporate expenses
Total underwriting expenses                    1,964.8         2,187.5
Underwriting income (loss)                     118.7           (299.0)
including corporate expenses
OTHER OPERATING REVENUE
Net investment income                          204.9              225.6
Interest expense                               (30.9)             (30.8)
Other income (expense)                         0.9             (6.8)
Total other operating revenue                  174.9           188.0
                                                                  
OPERATING INCOME (LOSS) BEFORE TAX             293.6              (111.0)
                                                                  
Net realized and unrealized                    (2.0)              (2.2)
exchange (losses)
Net realized and unrealized                    3.8             (34.1)
investment gains (losses)
INCOME (LOSS) BEFORE TAX                       295.4              (147.3)
Income taxes (expense) benefit                 (15.0)          37.2
NET INCOME (LOSS) AFTER TAX                    280.4              (110.1)
Dividends paid on ordinary shares              (47.0)             (42.5)
Dividends paid on preference                   (31.1)             (22.8)
shares
Dividends paid to non-controlling              (0.1)              (0.1)
interest
Proportion due to non-controlling              0.2             0.1
interest
Retained income (loss)                         $202.4          $(175.4)
Components of net income (loss)
(after tax)
Operating income (loss)                        $279.9             $(70.4)
Net realized and unrealized                    (2.2)              (0.1)
exchange (losses) after tax
Net realized investment gains                  2.7             (39.6)
(losses) after tax
NET INCOME (LOSS) AFTER TAX                    $280.4          $(110.1)
                                                                  
Loss ratio                                     59.4%              82.4%
Policy acquisition expense ratio               18.3%              18.4%
General, administrative and                    16.6%              15.1%
corporate expense ratio
Expense ratio                                  34.9%              33.5%
Combined ratio                                 94.3%           115.9%

(1) See provision of ASU 2010-26 on page 14



Aspen Insurance Holdings Limited
Summary consolidated financial data (unaudited)
$ in millions, except number of shares

                            Three Months Ended      Twelve Months Ended
                               December   December     December   December
                               31,          31,          31,          31,
                               2012         2011^(1)     2012         2011^(1)
                                                                      
Basic earnings per
ordinary share
Net income/(loss)
adjusted for preference        $(0.09)      $0.09        $3.51        $(1.88)
share dividend
Operating income/(loss)
adjusted for preference        $(0.15)      $(0.01)      $3.50        $(1.32)
dividend
Diluted earnings per
ordinary share
Net income/(loss)
adjusted for preference        $(0.09)      $0.09        $3.38        $(1.88)
share dividend
Operating income/(loss)
adjusted for preference        $(0.15)      $(0.01)      $3.37        $(1.32)
dividend
                                                                      
Weighted average number
of ordinary shares             71.007       70.615       71.096       70.665
outstanding (in
millions)^(2)
Weighted average number
of ordinary shares
outstanding and dilutive
potential ordinary             73.558       73.258       73.689       70.665
shares (in millions)^(2)
                                                                      
Book value per ordinary                                  $42.12       $39.66
share
Diluted book value                                       $40.65       $38.21
(treasury stock method)
                                                                      
Ordinary shares
outstanding at end of                                    70.754       70.656
the period (in millions)
Ordinary shares
outstanding and dilutive
potential ordinary
shares at end of the
period (treasury stock                                   73.312       73.339
method) (in millions)


^(1) See provision of ASU 2010-26 on page 14

^(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 shares in a
loss-making period would be anti-dilutive



Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios

                      Three Months Ended December 31, 2012      Three Months Ended December 31, 2011
                          Reinsurance   Insurance   Total           Reinsurance   Insurance   Total
                                                                                             
Gross written             $194.4          $381.8        $576.2          $186.3          $272.4        $458.7
premiums
Net written               193.7           330.7         524.4           182.3           248.9         431.2
premiums
Gross earned              317.2           328.2         645.4           311.9           245.7         557.6
premiums
Net earned                299.8           258.7         558.5           288.7           200.7         489.4
premiums
Losses and loss
adjustment                248.9           188.5         437.4           278.1           116.4         394.5
expenses
Policy
acquisition               41.0            39.0          80.0            47.4            38.1          85.5
expenses
General and
administrative            31.3          41.9        73.2            33.2          33.5        66.7
expenses^(1)
Underwriting              $(21.4)       $(10.7)       $(32.1)         $(70.0)       $12.7         $(57.3)
income/(loss)
                                                                                                      
Net investment                                          51.1                                          54.2
income
Net realized and
unrealized                                              5.6                                           6.0
investment gains
^(2)
Corporate                                               (12.9)                                        (12.6)
expenses
Other                                                   (6.2)                                         3.6
income/(expenses)
Interest expenses                                       (7.7)                                         (7.7)
Net realized and
unrealized
foreign exchange                                        (0.4)                                         2.3
gains/(losses)
^(3)
Income/(loss)                                           (2.6)                                         (11.5)
before tax
Income tax                                              4.6                                           23.9
benefit
Net income                                              $2.0                                          $12.4
                                                                                                      
Ratios
Loss ratio                83.0%           72.9%         78.3%           96.3%           58.0%         80.6%
Policy
acquisition               13.7%           15.1%         14.3%           16.4%           19.0%         17.5%
expense ratio
General and
administrative            10.4%           16.2%         15.4%           11.5%           16.7%         16.2%
expense ratio
^(4)
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%


^(1) See provision of ASU 2010-26 on page 14
^(2) Includes realized and unrealized capital gains and losses and realized
and unrealized gains and losses on interest rate swaps
^(3) Includes realized and unrealized foreign exchange gains and losses and
realized and unrealized gains and losses on foreign exchange contracts
^(4) The total group general and administrative expense ratio includes the
impact from corporate expenses



Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios

                      Twelve Months Ended December 31, 2012      Twelve Months Ended December 31, 2011
                          Reinsurance   Insurance   Total            Reinsurance   Insurance   Total
                                                                                              
Gross written             $1,227.9        $1,355.4      $2,583.3         $1,187.5        $1,020.3      $2,207.8
premiums
Net written               1,156.9         1,090.0       2,246.9          1,098.1         831.0         1,929.1
premiums
Gross earned              1,208.0         1,177.0       2,385.0          1,190.6         950.5         2,141.1
premiums
Net earned                1,132.4         951.1         2,083.5          1,108.3         780.2         1,888.5
premiums
Losses and loss
adjustment                635.3           603.2         1,238.5          1,083.3         472.7         1,556.0
expenses
Policy
acquisition               207.8           173.4         381.2            197.7           149.3         347.0
expenses
General and
administrative            123.9         168.2       292.1            111.8         128.0       239.8
expenses^(1)
Underwriting              $165.4        $6.3          $171.7           $(284.5)      $30.2         $(254.3)
income/(loss)
                                                                                                       
Net investment                                          204.9                                          225.6
income
Net realized and
unrealized
investment                                              3.8                                            (34.1)
gains/(losses)
^(2)
Corporate                                               (53.0)                                         (44.7)
expenses
Other                                                   0.9                                            (6.8)
income/(expenses)
Interest expenses                                       (30.9)                                         (30.8)
Net realized and
unrealized                                              (2.0)                                          (2.2)
foreign exchange
(losses) ^(3)
Income/(loss)                                           295.4                                          (147.3)
before tax
Income tax                                              (15.0)                                         37.2
(expense)/benefit
Net income/(loss)                                       $280.4                                         $(110.1)
                                                                                                       
Ratios
Loss ratio                56.1%           63.4%         59.4%            97.7%           60.6%         82.4%
Policy
acquisition               18.4%           18.2%         18.3%            17.8%           19.1%         18.4%
expense ratio
General and
administrative            10.9%           17.7%         16.6%            10.1%           16.4%         15.1%
expense ratio
^(4)
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%


^(1) See provision of ASU 2010-26 on page 14
^(2) Includes realized and unrealized capital gains and losses and realized
and unrealized gains and losses on interest rate swaps
^(3) Includes realized and unrealized foreign exchange gains and losses and
realized and unrealized gains and losses on foreign exchange contracts
^(4) The total group general and administrative expense ratio includes the
impact from corporate expenses


About Aspen Insurance Holdings Limited

Aspen provides reinsurance and insurance coverage to clients in various
domestic and global markets through wholly-owned subsidiaries and offices in
Bermuda, France, Germany, Ireland, Singapore, Switzerland, the United Kingdom
and the United States. For the year ended December 31, 2012, Aspen reported
$10.3 billion in total assets, $4.8 billion in gross reserves, $3.5 billion in
total shareholders’ equity and $2.6 billion in gross written premiums. Its
operating subsidiaries have been assigned a rating of “A” (“Strong”) by
Standard & Poor’s, an “A” (“Excellent”) by A.M. Best and an “A2” (“Good”) by
Moody’s Investors Service.

For more information about Aspen, please visit www.aspen.co.

Forward-looking Statements Safe Harbor

This press release contains, and Aspen's earnings conference call will
contain, written or oral "forward-looking statements" within the meaning of
the US federal securities laws. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of words such as
"expect," "intend," "plan," "believe," "do not believe," "aim," "project,"
"anticipate," "seek," "will," "estimate," "may," "continue," “guidance,” and
similar expressions of a future or forward-looking nature.

All forward-looking statements address matters that involve risks and
uncertainties. Accordingly, there are or will be important factors that could
cause actual results to differ materially from those indicated in these
statements. Aspen believes these factors include, but are not limited to: the
possibility of greater frequency or severity of claims and loss activity,
including as a result of natural or man-made (including economic and political
risks) catastrophic or material loss events, than our underwriting, reserving,
reinsurance purchasing or investment practices have anticipated; the
reliability of, and changes in assumptions to, natural and man-made
catastrophe pricing, accumulation and estimated loss models; evolving issues
with respect to interpretation of coverage after major loss events and any
intervening legislative or governmental action; the effectiveness of our loss
limitation methods; changes in the total industry losses, or our share of
total industry losses, resulting from past events and, with respect to such
events, our reliance on loss reports received from cedants and loss adjustors,
our reliance on industry loss estimates and those generated by modeling
techniques, changes in rulings on flood damage or other exclusions as a result
of prevailing lawsuits and case law; the impact of acts of terrorism and
related legislation and acts of war; decreased demand for our insurance or
reinsurance products and cyclical changes in the insurance and reinsurance
sectors; any changes in our reinsurers’ credit quality and the amount and
timing of reinsurance recoverables; changes in the availability, cost or
quality of reinsurance or retrocessional coverage; the continuing and
uncertain impact of the current depressed economic environment in many of the
countries in which we operate; the level of inflation in repair costs due to
limited availability of labor and materials after catastrophes; changes in
insurance and reinsurance market conditions; increased competition on the
basis of pricing, capacity, coverage terms or other factors and the related
demand and supply dynamics as contracts come up for renewal; a decline in our
operating subsidiaries’ ratings with S&P, A.M. Best or Moody’s; our ability to
execute our business plan to enter new markets, introduce new products and
develop new distribution channels, including their integration into our
existing operations; the persistence of the global financial crisis and the
Eurozone debt crisis, changes in general economic conditions, including
inflation, foreign currency exchange rates, interest rates and other factors
that could affect our investment portfolio; the risk of a material decline in
the value or liquidity of all or parts of our investment portfolio; changes in
our ability to exercise capital management initiatives or to arrange banking
facilities as a result of prevailing market changes or changes in our
financial position; changes in government regulations or tax laws in
jurisdictions where we conduct business; Aspen Holdings or Aspen Bermuda
becoming subject to income taxes in the United States or the United Kingdom;
loss of key personnel; and increased counterparty risk due to the credit
impairment of financial institutions. For a more detailed description of these
uncertainties and other factors, please see the "Risk Factors" section in
Aspen's Annual Report on Form 10-K as filed with the US Securities and
Exchange Commission on February 28, 2012. Aspen undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the dates on which they are made.

In addition, any estimates relating to loss events involve the exercise of
considerable judgment and reflect a combination of ground-up evaluations,
information available to date from brokers and cedants, market intelligence,
initial tentative loss reports and other sources. Due to the complexity of
factors contributing to the losses and the preliminary nature of the
information used to prepare these estimates, there can be no assurance that
Aspen's ultimate losses will remain within the stated amount.

Non-GAAP Financial Measures

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 financial 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 the financial supplement, which can be obtained from the Investor
Relations section of Aspen's website at www.aspen.co.

(1) Annualized Operating Return on Average Equity (“Operating ROE”) is a
non-GAAP financial measure. Annualized Operating Return on Average Equity is
calculated using operating income, as defined below, 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 of Aspen's financial
supplement for a reconciliation of operating income to net income and page 7
for a reconciliation of average ordinary shareholders’ equity to average
shareholders’ equity.

(2) Operating Income is 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 or losses on interest rate swaps, and after-tax
net foreign exchange gains or losses, includingnet realized and unrealized
gains and losses from 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 determined 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 above and page 23 of Aspen's
financial supplement for a reconciliation of operating income to net income.
Aspen’s financial supplement can be obtained from the Investor Relations
section of Aspen's website at www.aspen.co.

(3) 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, defined on page 22 of
Aspen’s financial supplement, which can be obtained from the Investor
Relations section of Aspen’s website at www.aspen.co.

(4) Diluted Operating Earnings per Share and Basic Operating Earnings per
Share are 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. Aspen’s financial supplement
can be obtained from the Investor Relations section of Aspen’s website at
www.aspen.co.

(5) Combined Ratio Excluding Catastrophes is a non-GAAP financial measure.
Aspen believes that the presentation of combined ratio excluding catastrophes
supports meaningful comparison from period to period of the underlying
performance of the business. Combined ratio excluding catastrophes is
calculated by dividing net losses excluding catastrophe losses and net
expenses by net earned premiums excluding catastrophe related reinstatement
premiums. We have defined 2012 catastrophe losses as losses associated with
the severe weather in the US in February and March 2012, Hurricane Isaac in
August 2012 and Hurricane Sandy in October 2012 and movements in losses
associated with the 2011 catastrophe events. We have defined catastrophe
losses in the comparative period as losses associated with the US storms
(specifically related to Hurricane Irene which occurred in the third quarter
of 2011, and related to the tornadoes which occurred in the second quarter of
2011), the Australian floods and the New Zealand and Japanese earthquakes
which occurred in the first quarter of 2011, and movement in losses associated
with the 2010 catastrophe events (Chilean and New Zealand earthquakes) which
were recognized in 2011.

Other

(1) Provision of ASU 2010-26. In 2012, Aspen adopted the provision of ASU
2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance
Contracts.” Under the standard, Aspen 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) Catastrophe Load included in our guidance is an estimate of the average
annual aggregate loss before reinsurance and tax from natural catastrophe
events based on 50,000 simulations of our internal capital model which, in
relation to its catastrophe modeling components, is based on a combination of
catastrophe models selected by Aspen to best fit its current understanding of
the world wide natural catastrophe perils to which Aspen has known exposures.
It does not include losses from non-natural catastrophe events such as
terrorism or industrial accidents.

This load is attributed and then released quarter by quarter based on historic
claims patterns. For example, there is a higher proportion allocated to the
third quarter due to the historical frequency of US Wind events in this
period. As an organization, Aspen monitors its current catastrophe losses to
date against expected losses and updates the projected numbers accordingly
based on this experience.

Actual catastrophe loss experience may materially differ from the catastrophe
load in any one year for reasons which include natural variability in the
frequency and severity of catastrophe events, and limitations in one or more
of the models or uncertainties in the application of policy terms and limits.

Contact:

Investors:
Aspen
Kerry Calaiaro, +1-646-502-1076
Senior Vice President, Investor Relations
Kerry.Calaiaro@aspen.co
or
Media:
International – Citigate Dewe Rogerson
Caroline Merrell or Jos Bieneman, +44 20 7638 9571
caroline.merrell@citigatedr.co.uk
jos.bieneman@citigatedr.co.uk
or
North America – Abernathy MacGregor
Allyson Vento, +1-212-371-5999
amv@abmac.com
 
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