Aspen Announces 2Q10 Earnings Results

Hamilton, Bermuda – 02 August, 2010 — Aspen Insurance Holdings Limited ("Aspen"; Tickers: NYSE- AHL & BSX - AHL.BH) has reported net income after tax for the second quarter of 2010 of $108.9 million and operating earnings of $1.23 per diluted ordinary share. This compares to net income after tax of $110.4 million and operating earnings of $1.14 per diluted share for the second quarter last year.

Book value per share on a diluted basis of $36.96 increased by 21.3% when compared to June 30, 2009 and by 6.8% since the end of March 2010 as a result of $91.5 million of retained income and a $77.9 million increase in unrealized gains, net of tax, from the fixed income investment portfolio in the quarter.

Chris O’Kane, Chief Executive Officer said: "I am pleased to report that our diversified portfolio of insurance and reinsurance business generated an annualized operating return on equity of 15.6% for the second quarter notwithstanding challenging market conditions. We do not expect rating pressure to abate and underwriting discipline remains our watchword."

Second Quarter and First Half 2010 Operating Highlights

•       Chilean earthquake losses, net of reinstatement premiums and tax, remained unchanged from the first quarter of 2010 at $100.3 million.

•       Reserves attributable to the Deepwater Horizon loss at $18.6 million, net of tax and reinstatement premiums, across reinsurance and insurance.

•       Cash flows from operating activities were $147.5 million for the quarter and $247.9 million for the six months in 2010 compared with $99.1 million and $302.3 million respectively in 2009.

•       Reserve releases were $2.1 million for the quarter and $15.0 million for the six months in 2010, compared with $16.9 million and $26.8 million respectively in 2009.

•       Unrealized gains in the available-for-sale fixed income portfolio increased by $77.9 million this quarter to $255.0 million, net of tax, compared with unrealized gains of $37.4 million in the second quarter of 2009.

•       Completed $200.0 million accelerated share repurchase entered into in the first quarter of 2010 resulting in the repurchase and cancellation of a total of 7.2 million ordinary shares during the first half of 2010.

Earnings conference call

Aspen will hold a conference call to discuss its financial results on Thursday, July 29, 2010 at 8:30 a.m. (Eastern Time).

CONFERENCE CALL PARTICIPATION DETAILS – July 29, 2010 at 8:30 a.m. (ET)

Participant Dial-In Numbers: +1 (888) 459-5609 (US Toll Free)

+1 (404) 665-9920 (International)

Conference ID: 82798733

Please call to register at least 10 minutes before the conference call begins.

The conference call will be webcast live in the ‘presentations’ section of the Investor Relations page of Aspen's website, which is located at www.aspen.bm. The earnings press release and a detailed financial supplement will be posted to the website, as well as a brief slide presentation which may be used for reference during the earnings call.

REPLAY DETAILS

A replay of the call will be available for 14 days via telephone and internet starting two hours following the end of the live call.

Replay Access: +1 (800) 642-1687 (US Toll Free)

+1 (706) 645-9291 (International)

www.aspen.bm  

Replay ID: 82798733

For more information about Aspen, and this release, please visit www.aspen.bm

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, the United States, the United Kingdom, and Switzerland. For the twelve months ended December 31, 2009, Aspen reported gross written premiums of $2,067.1 million, net income of $473.9 million and total assets of $8.3 billion. 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.bm.

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