ASPEN INSURANCE HOLDINGS REPORTS RESULTS FOR THIRD QUARTER AND NINE MONTHS OF 2010

Hamilton, Bermuda – 28 October, 2010 — Aspen Insurance Holdings Limited (NYSE:AHL) reported net income after tax for the third quarter of 2010 of $92.8 million and operating earnings of $0.79 per diluted ordinary share. This compares to a net income after tax of $145.8 million, and operating earnings of $1.40 per diluted share for the third quarter last year.

Book value per share on a diluted basis of $38.22 increased by 15.3% when compared to September 30, 2009 and by 3.4% since the end of June 2010 as a result of $75.6 million of retained income and a $61.5 million increase in unrealized gains, net of tax, from the fixed income investment portfolio in the quarter.

·         Diluted book value per share of $38.22, up 15.3% over the end of the third quarter of 2009 and up 12.0% from the end of 2009.

·         Third quarter net income after tax of $92.8 million, down from $145.8 million in the same quarter last year.

·         Operating income after tax of $69.7 million for the third quarter impacted by $20.4 million of pre-tax losses from the New Zealand Earthquake.

·         Diluted operating earnings per share of $0.79 for the quarter, down from $1.40 for the third quarter of 2009.

·         Annualized net income return on equity of 13.2% for the third quarter and 10.4% for the nine month period.

·         Annualized operating return on equity of 9.6% for the quarter and 8.4% for the nine month period.

Chris O’Kane, Chief Executive Officer said: "I am pleased to announce our 8^th successive quarter of increasing book value per share, a 15% increase year on year. Third quarter net income amounted to $92.8 million and we reported an annualized return on equity of 13.2%. Market conditions remain highly challenging; in these circumstances our underwriters are hard at work in identifying those few segments where good profits are available and increasing our exposure to them. Elsewhere, it is a question of cutting back top line volume, rigorous risk selection and maintaining a very defensive underwriting posture."

Overview of Operations for the Third Quarter and Nine Months in 2010

            • Gross written premiums of $415.8 million in the quarter, down 15% on last year, with the decrease coming mainly from the reinsurance segment.

            • Underwriting income for the quarter of $25.3 million against $92.5 million in the previous year included $20.4 million of losses from the New Zealand earthquake and three large insurance losses totalling $40.0 million from oil and gas pipelines.

            • Reserves were strengthened in the quarter by $6.2 million compared with $44.2 million of reserve releases in the equivalent period in 2009. For the nine months in 2010, reserve releases were $8.8 million compared with $71.0 million in 2009.

            • Unrealized gains in the available-for-sale fixed income portfolio increased by $68.3 million in the quarter to $361.6 million compared with unrealized gains of $106.3 million in the third quarter of 2009.

            • Cash flows from operating activities were $255.9 million for the quarter and $503.8 million for the nine months in 2010 compared with $186.8 million and $489.1 million, respectively in 2009.

            • Continued investment in the Company’s U.S. insurance capability and the establishment of a U.K. regional platform and Swiss market presence increased the expense ratio in the quarter by 1 percentage point when compared to the same period in 2009.

Capital Position

During the quarter, the Company repurchased 0.3 million common shares in the open market at an average price of $28.97 per share, for a total cost of $7.7 million. As of September 30, 2010, the Company has approximately $392 million of remaining authorization for common share repurchases through March 2012.

Outlook for 2010

In light of the catastrophe losses associated with the earthquakes in Chile and New Zealand, and general market conditions, the Company anticipates the combined ratio for the full year to be in the range of 94%-99% including a catastrophe load of $40 million for the remainder of the year, assuming normal loss experience. The Company anticipates gross written premium for the full year of $2.0 billion +/- 5%, down from $2.1 billion, with ceded premium between 8% and 10% of gross earned premium. The tax rate is expected to be in the range of 9% to 11%.

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, Ireland, Singapore, the United States, the United Kingdom, Switzerland and Germany. For the three months ended September 30, 2010, Aspen reported gross written premiums of $415.8 million, net income of $92.8 million and total assets of $8.8 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 .

More details regarding this release can be found at http://www.aspen.bm/index.asp

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