Aspen Reports Results for the Quarter Ended March 31, 2013; Announces 5.9% Increase to Dividend on Ordinary Shares

  Aspen Reports Results for the Quarter Ended March 31, 2013; Announces 5.9%
  Increase to Dividend on Ordinary Shares

Business Wire

HAMILTON, Bermuda -- April 24, 2013

Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) today reported net
income after tax of $91.8 million, or $1.15 diluted net income per share, for
the first quarter of 2013.

Chris O’Kane, Chief Executive Officer commented, “We delivered good operating
results in the first quarter, with an improvement in the combined ratios in
both Reinsurance and Insurance, favorable prior-year reserve development and
continued traction in our U.S. Insurance operations.

“We also made significant progress on our three strategic pillars – business
portfolio optimization, efficient capital management and enhancing investment
return – with actions taken to reduce our catastrophe-exposed U.S. Property
insurance book, $210 million in share repurchases and a $200 million increase
in the equity component of our investment portfolio. We remain intensely
focused on executing our strategic plan and driving increased profitability.”

Operating highlights for the quarter ended March 31, 2013

  *Gross written premiums decreased overall by 1% to $773.4 million in the
    first quarter of 2013 from the first quarter of 2012. This reflects a
    decline in premiums in the reinsurance segment which was partially offset
    by an 8.4% increase in the insurance segment
  *Combined ratio of 90.1% for the first quarter of 2013 compared with a
    combined ratio of 93.8% or 90.1%^(1) excluding catastrophes for the first
    quarter of 2012
  *Net favorable development on prior year loss reserves of $26.2 million, or
    5.1 combined ratio points, for the first quarter of 2013 compared with
    $37.0 million, or 7.5 combined ratio points, for the first quarter of 2012

Financial highlights for the quarter ended March 31, 2013

  *Annualized net income return on average equity of 11.6% and annualized
    operating return on average equity of 10.8% for the first quarter of 2013
    compared with 10.4% and 9.2%, respectively in the first quarter of
    2012^(1)
  *Diluted net income per share of $1.15 for the quarter ended March 31, 2013
    compared with diluted net income per share of $0.99 for the first quarter
    of 2012
  *Diluted operating income per share of $1.06 for the quarter ended March
    31, 2013 an increase of 20.5% from diluted operating income per share of
    $0.88 for the first quarter of 2012^(1)
  *Diluted book value per share of $40.68 at March 31, 2013 up 5.4% from the
    first quarter of 2012 and relatively unchanged from December 31, 2012^(1)
  *As a direct result of the higher average share price in the first quarter
    of 2013, fully diluted ordinary shares increased by 1.2 million shares
    compared to the fourth quarter of 2012 attributed to Aspen’s 5.625%
    Perpetual Preferred Income Equity Replacement Securities (“PIERS”), and
    reduced diluted book value per share by $0.73 at March 31, 2013 (See
    additional detail in “Capital” section below).

Segment highlights

Reinsurance

Operating highlights for Reinsurance for the quarter ended March 31, 2013
include:

  *Gross written premiums of $439.6 million, down 7.3% compared with $474.2
    million for the first quarter of 2012 mainly due to a combination of lower
    reinstatement premiums and premium reduction on policies written in prior
    years
  *Combined ratio of 78.5% compared with 79.8% for the first quarter of 2012
  *Favorable prior year loss reserve development of $20.1 million, or 7.8
    combined ratio points, with favorable development in each of the four
    principal lines of business, compared with $28.1 million favorable prior
    year loss reserve development, or 10.4 combined ratio points, for the
    first quarter of 2012

The combined ratio of 78.5% for the first quarter of 2013 included no natural
catastrophe losses. In comparison, the combined ratio for the first quarter of
2012 was 73.3%^(1) excluding catastrophe losses. The acquisition ratio was
21.5% for the first quarter of 2013 compared to 19.1% for the first quarter of
2012 largely due to higher profit commissions on prior year contracts.

Insurance

Operating highlights for Insurance for the quarter ended March 31, 2013
include:

  *Gross written premiums of $333.8 million, up 8.4% compared with $307.9
    million for the first quarter of 2012
  *Combined ratio of 96.8% compared with 104.2% for the first quarter of 2012
  *Favorable prior year loss reserve development of $6.1 million, or 2.4
    combined ratio points, compared with $8.9 million, or 4.0 combined ratio
    points, for the first quarter of 2012

The increase in gross written premiums was mainly attributable to growth in
the U.S.-based insurance operations specifically in the Professional and
Global Casualty lines. The combined ratio for the first quarter of 2013
included no natural catastrophe losses. In comparison, the combined ratio for
the first quarter of 2012 included no natural catastrophe losses but was
negatively impacted by $26.5 million, or 11.6 percentage points, of pre-tax
losses net of reinsurance recoveries and reinstatement premiums from the Costa
Concordia event.

Investment performance

Aspen’s investment portfolio continues to be comprised primarily of high
quality fixed income securities with an average credit quality of “AA”. The
average duration of the fixed income portfolio was 3.2 years at March 31,
2013, excluding the impact of interest rate swaps, or 2.7 years including
swaps. The total return on the Company’s investment portfolio was 0.5% for the
first quarter of 2013, compared to 0.6% for the first quarter of 2012. Aspen
increased the equity component of the portfolio by $200 million in the
quarter. The equity portfolio returned 8.7% for the quarter.

Net investment income for the first quarter of 2013 was $48.3 million. Book
yield as at March 31, 2013 on the fixed income portfolio was 2.80% compared to
3.31% at March 31, 2012. The decline in the yield primarily reflects the
effect of lower prevailing interest rates.

Net realized and unrealized investment gains included in net income for the
quarter were $15.8 million. Unrealized gains in the available for sale
investment portfolio, including equity securities, at March 31, 2013 were
$337.4 million, a decrease of $17.5 million from December 31, 2012.

Dividend Increase

The Board of Directors has declared a quarterly cash dividend on Aspen’s
ordinary shares of $0.18 per ordinary share. The amount payable has been
increased by 5.9% from Aspen’s previous quarterly dividend of $0.17 per
ordinary share. The dividend is payable on May 28, 2013 to the holders of
record as of the close of trading on May 10, 2013.

Capital

Primarily as a result of Aspen’s share repurchase program, total shareholders’
equity decreased by $148.8 million in the quarter to $3.3 billion at March 31,
2013.

In conjunction with a $150 million Accelerated Share Repurchase (“ASR”)
agreement announced on February 26, 2013, approximately 3.35 million ordinary
shares were delivered under the ASR in February 2013, and Aspen may receive
additional ordinary shares at the maturity of the ASR, or Aspen may be
obligated to make a delivery of shares, or a payment of cash, at Aspen’s
election. In addition, during the first quarter of 2013, Aspen repurchased
1.68 million ordinary shares in the open market at an average price of $34.63
per share for a total cost of $58.2 million. Between April 1, 2013 and April
23, 2013, Aspen repurchased 252,177 ordinary shares under its Rule 10b5-1 plan
at an average price of $38.37 per share for a total cost of $9.7 million.
Aspen had $314 million remaining under its current share repurchase
authorization at April 23, 2013.

During 2005 and 2006, Aspen issued 4.6 million PIERS. The PIERS are
convertible at Aspen’s option if, at any time on or after January 1, 2009, the
closing sale price of Aspen’s ordinary shares equals or exceeds 130% of the
then prevailing conversion price for 20 trading days during any consecutive
30-trading day trading period as well as the last day of such 30-day period.

The PIERS are dilutive when Aspen’s share price exceeds the prevailing
conversion price (currently $29.20) and therefore as the Aspen share price is
above the conversion price they are included in Aspen’s fully diluted share
count as at March 31, 2013. As the Aspen share price increases so does the
dilutive effect of the PIERS. In the first quarter of 2013 the dilutive effect
of the PIERS increased Aspen’s fully diluted average shares by 1.9 million
shares, an increase of 1.2 million from year end 2012.

The PIERS are mandatorily convertible by Aspen, in whole and not in part, into
$50 in cash for each PIERS plus a number of ordinary shares based on the
conversion rate calculated based on the trading prices of Aspen ordinary
shares over a 20-trading day settlement period following Aspen’s issuance of a
press release announcing the mandatory conversion. Currently, it is Aspen’s
intention to mandatorily convert the PIERS if and when the conditions are met.
Additional information on the PIERS is provided in the Company’s Form 10-K
filed on February 26, 2013.

Guidance

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

See “Forward-looking Statements Safe Harbor” below.

(1) See definition of non-GAAP financial measures on pages 11 and 12

Earnings conference call and web cast

Aspen will host a conference call to discuss the results at 9:00 am (EDT) on
Thursday, April 25, 2013.

To participate in the April 25 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 26630870

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 26630870

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
                                                  March 31,       December 31,
                                                2013         2012
                                                                  
ASSETS
Total investments                                 $6,774.1        $6,692.4
Cash and cash equivalents                         1,212.7         1,463.6
Reinsurance recoverables                          696.6           621.6
Premiums receivable                               1,149.7         1,057.5
Other assets                                    503.2        475.5
Total assets                                    $10,336.3    $10,310.6
                                                                  
LIABILITIES
Losses and loss adjustment expenses               $4,683.8        $4,779.7
Unearned premiums                                 1,295.7         1,120.8
Other payables                                    518.0           422.6
Long-term debt                                  499.2        499.1
Total liabilities                                 6,996.7         6,822.2
                                                                  
SHAREHOLDERS’ EQUITY
Total shareholders’ equity                      3,339.6      3,488.4
Total liabilities and shareholders’ equity      $10,336.3    $10,310.6
                                                                  
Book value per share                              $43.14          $42.12
Diluted book value per share (treasury          $40.68       $40.65
stock method)


Aspen Insurance Holdings Limited
Summary consolidated statement of income (unaudited)
$ in millions, except ratios

                                                Three Months Ended
                                                   March 31,    March 31,
                                                   2013         2012
UNDERWRITING REVENUES
Gross written premiums                               $773.4          $782.1
Premiums ceded                                     (176.4)      (148.6)
Net written premiums                                 597.0           633.5
Change in unearned premiums                        (86.1)       (138.1)
Net earned premiums                                510.9        495.4
UNDERWRITING EXPENSES
Losses and loss adjustment expenses                  268.7           284.0
Policy acquisition expenses                          104.6           96.1
General, administrative and corporate expenses     86.6         84.8
Total underwriting expenses                        459.9        464.9
Underwriting income including corporate            51.0         30.5
expenses
OTHER OPERATING REVENUE
Net investment income                                48.3            52.4
Interest expense                                     (7.7)           (7.7)
Other income (expense)                             0.5          (0.3)
Total other operating revenue                      41.1         44.4
                                                                     
OPERATING INCOME BEFORE TAX                          92.1            74.9
                                                                     
Net realized and unrealized exchange gains           (10.2)          3.7
(losses)
Net realized and unrealized investment gains       15.8         5.5
INCOME BEFORE TAX                                    97.7            84.1
Income taxes                                       (5.9)        (5.4)
NET INCOME AFTER TAX                                 91.8            78.7
Dividends paid on ordinary shares                    (11.9)          (10.6)
Dividends paid on preference shares                  (8.6)           (5.7)
Proportion due to non-controlling interest         ─            0.1
Retained income                                    $71.3        $62.5
Components of net income (after tax)
Operating income                                     $85.7           70.5
Net realized and unrealized exchange gains           (9.5)           3.0
(losses) after tax
Net realized investment gains after tax            15.6         5.2
NET INCOME AFTER TAX                               $91.8        $78.7
                                                                     
Loss ratio                                           52.6%           57.3%
Policy acquisition expense ratio                     20.5%           19.4%
General, administrative and corporate expense        17.0%           17.1%
ratio
Expense ratio                                        37.5%           36.5%
Combined ratio                                     90.1%        93.8%


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

                                              Three Months Ended
                                               March 31, 2013  March 31, 2012
                                                                
Basic earnings per ordinary share
Net income adjusted for preference share       $1.21            $1.03
dividend
Operating income adjusted for preference       $1.12            $0.92
dividend
Diluted earnings per ordinary share
Net income adjusted for preference share       $1.15            $0.99
dividend
Operating income adjusted for preference       $1.06            $0.88
dividend
                                                                
Weighted average number of ordinary shares     68.854           70.944
outstanding (in millions)
Weighted average number of ordinary shares
outstanding and dilutive potential ordinary    72.453           73.832
shares (in millions)
                                                                
Book value per ordinary share                  $43.14           $39.96
Diluted book value (treasury stock method)     $40.68           $38.58
                                                                
Ordinary shares outstanding at end of the      65.634           71.496
period (in millions)
Ordinary shares outstanding and dilutive
potential ordinary shares at end of the        69.611           74.064
period (treasury stock method) (in millions)


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

                   Three Months Ended March 31,      Three Months Ended March 31,
                    2013                               2012
                    Reinsurance  Insurance  Total    Reinsurance  Insurance  Total
                                                                            
Gross written       $439.6        $333.8      $773.4   $474.2        $307.9      $782.1
premiums
Net written         400.5         196.5       597.0    429.5         204.0       633.5
premiums
Gross earned        271.9         312.9       584.8    290.2         266.9       557.1
premiums
Net earned          256.7         254.2       510.9    271.0         224.4       495.4
premiums
Losses and loss
adjustment          114.3         154.4       268.7    135.6         148.4       284.0
expenses
Policy
acquisition         55.3          49.3        104.6    51.8          44.3        96.1
expenses
General and
administrative      32.2         42.4       74.6     29.0         41.4       70.4
expenses
Underwriting        $54.9        $8.1        $63.0    $54.6        $(9.7)      $44.9
income/(loss)
                                                                                 
Net investment                                48.3                               52.4
income
Net realized and
unrealized                                    15.8                               5.5
investment gains
^(1)
Corporate                                     (12.0)                             (14.4)
expenses
Other                                         0.5                                (0.3)
income/(expenses)
Interest expenses                             (7.7)                              (7.7)
Net realized and
unrealized
foreign exchange                              (10.2)                             3.7
gains/(losses)
^(2)
Income before tax                             97.7                               84.1
Income tax                                    (5.9)                              (5.4)
expense
Net income                                    $91.8                              $78.7
                                                                                 
Ratios
Loss ratio          44.5%         60.7%       52.6%    50.0%         66.1%       57.3%
Policy
acquisition         21.5%         19.4%       20.5%    19.1%         19.7%       19.4%
expense ratio
General and
administrative      12.5%         16.7%       17.0%    10.7%         18.4%       17.1%
expense ratio
^(3)
Expense ratio       34.0%         36.1%       37.5%    29.8%         38.1%       36.5%
Combined ratio      78.5%        96.8%      90.1%   79.8%        104.2%     93.8%

^(1)  Includes realized and unrealized capital gains and losses and realized
       and unrealized gains and losses on interest rate swaps
^(2)   Includes realized and unrealized foreign exchange gains and losses and
       realized and unrealized gains and losses on foreign exchange contracts
^(3)   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," “likely,” "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 one or more large losses
from events other than natural catastrophes or by an unexpected accumulation
of attritional losses; 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; the failure of our reinsurers, policyholders,
brokers or other intermediaries to honor their payment obligations; 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; our reliance on the assessment and pricing of
individual risks by third parties; our dependence on a few brokers for a large
portion of our revenues; the persistence of heightened financial risks,
including excess sovereign debt, the banking system 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 financial results; 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 one or more of our
senior underwriters or key personnel; our reliance on information technology
and third party service providers for our operations and systems; 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
26, 2013. 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 22 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 22 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 21 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 22 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 catastrophe losses in the comparative period as
losses associated with the severe weather in the US in February and March
2012.

Other

(1) 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
Aspen
Steve Colton, +44-20-7184-8337
Head of Communications
Steve.Colton@aspen.co
or
International
Citigate Dewe Rogerson
Caroline Merrell, +44-20-7638-9571
caroline.merrell@citigatedr.co.uk
or
Jos Bieneman, +44-20-7638-9571
jos.bieneman@citigatedr.co.uk
or
North America
Abernathy MacGregor
Allyson Vento, +1-212-371-5999
amv@abmac.com