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Aspen Reports Results for Q4 2014 (Excerpt)

06 February 2015

Hamilton, Bermuda – 06 February, 2015 – Aspen Insurance Holdings Limited (“Aspen” or the “Company”; Ticker: NYSE:AHL; BSX: AHL.BH) has reported net income after tax of $67.2 million, or $0.90 diluted net income per share, for the fourth quarter of 2014.

Chris O’Kane, Chief Executive Officer, commented, “In 2014 Aspen achieved Book Value per Share growth of 10.3% and a strong Operating Return on Equity of 11.5%. Our performance - achieved despite a dynamic and competitive reinsurance market that has required constant strategic vigilance - reflects our deep client relationships and access to more attractively priced business in reinsurance, as well as the continued successful build out of our U.S. Insurance teams and the innovative insurance solutions we offer our clients around the world.”

§ Net Income Return on Equity of 11.1% for the year 2014

§ Operating Return on Equity of 11.5% for the year 2014

§ Diluted Book Value Per Share of $45.13, up 10.3% from December 31, 2013

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

Operating highlights for the quarter ended December 31, 2014

• Gross written premiums increased by 1.8% to $615.4 million in the fourth quarter of 2014 from the fourth quarter of 2013

• Combined ratio of 94.1% for the fourth quarter of 2014 compared with 91.9% for the fourth quarter of 2013. Net favorable development on prior year loss reserves of $11.5 million, or 1.9 combined ratio points, for the fourth quarter of 2014 compared with $20.5 million, or 3.6 combined ratio points, in the comparable period a year ago

• There were $15.7 million, or 2.6 combined ratio points, of pre-tax catastrophe losses in the fourth quarter of 2014 compared with $34.7 million, or 6.1 combined points, of pre-tax catastrophe losses net of reinsurance recoveries and reinstatement premiums in the fourth quarter of 2013

Operating highlights for the year ended December 31, 2014

• Gross written premiums increased by 9.7% to $2,902.7 million for the year ended December 31, 2014 compared with the year ended December 31, 2013. Gross written premiums increased by 3.4% in Reinsurance and 14.4% in Insurance compared to 2013

• Combined ratio of 91.7% (90.5% excluding bid defense costs) for 2014 compared with 92.6% for 2013. Net favorable development on prior year loss reserves of $104.1 million, or 4.3 combined ratio points, for 2014 compared with $107.7 million, or 5.0 combined ratio points, for 2013

• There were $65.5 million, or 2.7 combined ratio points, of pre-tax catastrophe losses in 2014 compared with $101.9 million, or 4.7 combined points, of pre-tax catastrophe losses net of reinsurance recoveries and reinstatement premiums in 2013

• Financial highlights for the year ended December 31, 2014

• Annualized net income return on average equity of 11.1% (12.1% excluding corporate expenses related to bid defense costs) and annualized operating return on average equity of 11.5% for the year ended December 31, 2014 compared with 10.6% and 9.7%, respectively, for 2013(1)

• Diluted net income per share of $4.82 ($5.25 excluding bid defense costs) for the year ended December 31, 2014 compared with diluted net income per share of $4.14 for the year ended December 31, 2013

• Diluted operating income per share of $5.01 for the year ended December 31, 2014 compared with diluted operating income per share of $3.88 for the year ended December 31, 2013(1)

• Diluted book value per share of $45.13 at December 31, 2014 up 10.3% from December 31, 2013;

• Diluted book value per share increased 11.4% from December 31, 2013, excluding bid defense costs

(1) See definition of non-GAAP financial measures at the end of this release.

Segment highlights

Reinsurance

Operating highlights for Reinsurance for the quarter ended December 31, 2014 include:

• Gross written premiums of $145.3 million, a decrease of 17.5% from $176.2 million in the fourth quarter of 2013

• Combined ratio of 82.7% compared with 58.6% for the fourth quarter of 2013

• Prior year favorable reserve development of $23.4 million, or 8.9 combined ratio points, compared with $46.1 million prior year favorable loss reserve development, or 16.2 combined ratio points, for the fourth quarter of 2013

The combined ratio of 82.7% for the fourth quarter of 2014 included $15.0 million, or 5.7 percentage points, of pre-tax catastrophe losses. The combined ratio of 58.6% for the fourth quarter of 2013 included $29.4 million, or 10.4 percentage points, of pre-tax catastrophe losses, net of reinsurance recoveries. For the quarter ended December 31, 2014 the Reinsurance accident year ex-catastrophe loss ratio was 52.8% compared with 36.3% a year ago.(1) There was a higher frequency of non-correlated mid-sized losses of $29.8 million in the quarter which accounted for 11.3 percentage points on the loss ratio.

Stephen Postlewhite, CEO of Reinsurance, commented on the year, “Reinsurance had a very strong performance in 2014. For the full year we grew premiums slightly while achieving an accident year ex cat loss ratio of 50.9%. At the important January 1, 2015 renewal season we continued our trajectory of modest growth while maintaining our underwriting discipline. As a result of our client relationships and access to risk, we were able to withdraw capital from areas where rates and terms and conditions did not meet our requirements and deploy it in areas where the business was better rated. While there was continued rate pressure in Property Cat we were able to renew the rest of our book, which accounts for approximately 70% of the total renewal, with rates down only 3%. Our strategic positioning, focused on product and regional diversification has resulted in an ability to access and select the better priced risks to retain. We were also able to write a meaningful amount of new, well rated business. As we navigate the marketplace, we anticipate capitalizing on our established regional strategy and continuing to grow in Asia and Latin America as well as expanding our Aspen Capital Markets offerings and leveraging our access to third party capital.”

Insurance

Operating highlights for Insurance for the quarter ended December 31, 2014 include:

• Gross written premiums of $470.1 million, an increase of 9.8% compared with $428.2 million in the fourth quarter of 2013

• Combined ratio of 97.1% compared with 121.6% for the fourth quarter of 2013

• Prior year reserve strengthening of $11.9 million, or an adverse impact of 3.4 combined ratio points, compared with prior year reserve strengthening of $25.6 million, or an adverse impact of 8.9 combined ratio points, for the fourth quarter of 2013. In the fourth quarter of 2014, there was adverse prior year development in the Marine, Aviation and Energy line of business.

Gross written premiums increased across all sub-segments, especially Property and Casualty and Marine, Aviation and Energy lines, primarily resulting from the continued growth from the U.S. teams. The U.S. Insurance teams produced profitable results for the second consecutive year and achieved a loss ratio of 58.4% for 2014.

The combined ratio of 97.1% for the fourth quarter of 2014 included $0.7 million, or 0.2 percentage points, of pre-tax catastrophe losses related to U.S. storms. The combined ratio for the fourth quarter of 2013 included $5.3 million, or 1.9 percentage points, of pre-tax catastrophe losses related to U.S. storms. For the quarter ended December 31, 2014 the Insurance accident year ex catastrophe loss ratio improved 17.9 percentage points to 56.3% compared with 74.2% a year ago.(1)

Mario Vitale, CEO of Insurance, commented, “2014 was a year of continued progress for the Insurance segment. We had top line growth of 14% while achieving flat rates across the book from a year ago and an 8 point improvement in combined ratio. Our Insurance business is reaping the benefits of prior investments. Our International business continues to service niche markets with close to $500 million of the business placed through our established Lloyd's platform. This quarter marks two years of profitability for our U.S. platform, which had a loss ratio of 56.7% for the fourth quarter and 58.4% for 2014. For the year, the U.S. platform delivered net earned premium of $529.0 million with a G&A ratio of 18.3%. We are now on track to achieve $600 million of net earned premium and surpass our previously stated goal of $550 million net earned premium by the end of 2015. At that time, we expect a corresponding G&A ratio of approximately 16%.”(2)

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 3.50 years at December 31, 2014 excluding the impact of interest rate swaps, or 3.29 years including the impact of interest rate swaps. The total return on Aspen’s investment portfolio was 0.77% for the fourth quarter of 2014, and 3.05% for the twelve months ended December 31, 2014.

Book yield as at December 31, 2014 on the fixed income portfolio was 2.65% compared to 2.74% at December 31, 2013.

Capital

Total shareholders’ equity was $3.4 billion at December 31, 2014.

During the fourth quarter of 2014, 1,398,727 ordinary shares were repurchased under a Rule 10b5-1 plan at an average price of $42.87 per share for a total cost of $60.0 million. For the twelve months ended December 31, 2014, a total of 4,289,857 ordinary shares were repurchased at an average price of $42.16 per ordinary share for a total cost of $180.9 million.

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 6, 2017, permits Aspen to effect repurchases from time to time through a combination of transactions, including open market repurchases, privately negotiated transactions and accelerated share repurchase transactions.

Outlook

Aspen expects to achieve an operating return on equity of 11% in 2015(2).

Commenting on Aspen’s outlook, Chris O’Kane, Chief Executive Officer, said: “In Insurance, where rate environments differ by line and geography, our International insurance business has been successful in targeting niche areas where business is well rated and our U.S. platform continues to gain scale with increased profitable growth. We maintained our disciplined underwriting approach during the January Reinsurance renewal season as we reduced our book where rates and terms did not meet our return requirements while achieving meaningful growth in areas where overall return remain attractive. In 2015, we will remain sharply focused on driving Operating Return on Equity and Book Value growth. We currently expect an operating return on equity of 11% in 2015. We expect to continue to utilize repurchases and dividends as appropriate to return to shareholders excess capital that cannot be deployed in the business at our required rates of return.”(2)

For further information, including the full text of this release, please visit www.aspen.co or contact:

Investors

Kerry Calaiaro, Senior Vice President, Investor Relations, Aspen

Kerry.Calaiaro@aspen.co

+1 (646) 502 1076

Kathleen de Guzman, Vice President, Investor Relations, Aspen

Kathleen.deGuzman@aspen.co

+1 (646) 289 4912

Media

Steve Colton, Head of Communications, Aspen

Steve.Colton@aspen.co

+44 20 7184 8337