Aspen Insurance Holdings Limited (AHL-PC) 8-K Results of Operations and Financial Condition

Exhibit 99.2

 FINANCIAL SUPPLEMENT
 As of December 31, 2011


Aspen Insurance Holdings Limited

This financial supplement is for information purposes only. It should be read in
conjunction with other documents filed or to be filed by Aspen Insurance
Holdings Limited with the United States Securities and Exchange Commission.

www.aspen.co


Investor Contact:
Aspen Insurance Holdings Limited
Kerry Calaiaro, Senior Vice President, Investor Relations
T: +1646-502-1076
email: kerry.calaiaro@aspen.co

 AHL: NYSE

ASPEN INSURANCE HOLDINGS LIMITED

Table Of Contents

	Page
Basis of Presentation		1
Financial Highlights		2
Consolidated Statements of Operations - Quarterly Results		3
Consolidated Statements of Operations - Year End Results		4
Consolidated Balance Sheets		5
Earnings Per Share and Book Value Per Share		6
Return on Average Equity		7
Consolidated Underwriting Results by Operating Segment		8-9
Operating Segment - Quarterly Results		10-11
Written and Earned Premiums by Segment and Line of Business		12
Accident Year Loss Ratios		13-14
Consolidated Statements of Changes in Shareholders’ Equity		15
Consolidated Statements of Comprehensive Income		16
Consolidated Statements of Cash Flows		17
Reserves for Losses and Loss Adjustment Expenses		18
Reserves by Operating Segment		19
Prior Year Reserve Releases		20
Ratings of Reinsurers		21
Consolidated Investment Portfolio		22-23
Investment Analysis		24
Book Value Per Ordinary Share		25
Diluted Share Analysis		26
Operating (Loss)/Income Reconciliation		27

ASPEN INSURANCE HOLDINGS LIMITED
Basis of Presentation

Definitions and presentation: All financial information contained herein is unaudited except for information for the fiscal year ended December 31, 2010. Unless otherwise noted, all data is in U.S. dollars millions, except for per share, percentage and ratio information.

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 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 this financial supplement.

Operating income(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 capital gains or losses, including net realized and unrealized gains on interest rate swaps, and after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses on foreign exchange contracts.

Aspen excludes after-tax net realized capital gains or losses, including net realized and unrealized gains on interest rate swaps, and after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses on foreign exchange contracts, 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 distorts 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 page 27 for a reconciliation of operating income to net income.

Annualized Operating Return on Average Equity (“Operating ROE”)(a non-GAAP financial measure): Annualized Operating Return on Average Equity 1) is calculated using operating income, as defined above and 2) excludes from average equity, the average after-tax unrealized appreciation or depreciation on investments and the average after-tax unrealized foreign exchange gains or losses and the aggregate value of the liquidation preferences of our preference shares. Unrealized appreciation (depreciation) on investments is primarily the result of interest rate movements and changes in credit spreads, and the resultant impact on fixed income securities, and unrealized appreciation (depreciation) on foreign exchange is the result of exchange rate movements between the U.S. dollar and the Group’s non-functional currencies. Such appreciation (depreciation) is not related to management actions or operational performance (nor is it likely to be realized). Therefore, Aspen believes that excluding these unrealized appreciations (depreciations) provides a more consistent and useful measurement of operating performance, which supplements GAAP information. Average equity is calculated as the arithmetic average on a monthly basis for the stated periods.

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 27 for a reconciliation of operating income to net income and page 7 for a reconciliation of average equity to closing shareholders’ equity.

Diluted Operating Earnings Per Share and Basic Operating Earnings Per Share(a non-GAAP financial measure): 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 is calculated by dividing operating income by the diluted or basic weighted average number of shares outstanding for the period. See page 27 for a reconciliation of diluted and basic operating earnings per share to basic earnings per share.

Diluted book value per ordinary share(a non-GAAP financial measure): Aspen has included diluted book value per ordinary share as it takes into account the effect of dilutive securities; therefore, Aspen believes it is a better measure of calculating shareholder returns than book value per share. Please see page 25 for a reconciliation of diluted book value per share to basic book value per share.

Underwriting ratios(GAAP financial measures):  Aspen, along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of net claims and claims adjustment expenses to net premiums earned. The acquisition expense ratio is the ratio of underwriting expenses (commissions, premium taxes, licenses and fees, as well as other underwriting expenses) to net premiums earned. The general and administrative expense ratio is the ratio of general and administrative expenses to net premiums earned. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned or written, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.

GAAP combined ratios differ from U.S. statutory combined ratios primarily due to the deferral of certain third-party acquisition expenses for GAAP reporting purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general and administrative expense ratios.

Accident Year Loss Ratios(a non-GAAP financial measure): In addition to the underwriting ratios described above, management also uses accident year loss ratios to evaluate current underwriting performance. The accident year loss ratio excludes the effect of prior years’ premium adjustments and reserve developments. This ratio focuses on the relationship between current premiums earned and losses incurred related to the current year. Please see pages   13 and 14 for a reconciliation of accident year loss ratios to underwriting ratios calculated in accordance with U.S. GAAP.

1

ASPEN INSURANCE HOLDINGS LIMITED
Financial Highlights

	Three Months Ended December 31,						Twelve Months Ended December 31,
(in US$ millions except for percentages, share and per share amounts)	2011		2010		Change		2011		2010		Change
Gross written premium	$	458.7	$	412.8		11.1%	$	2,207.8	$	2,076.8		6.3%
Net written premium	$	431.2	$	395.2		9.1%	$	1,929.1	$	1,891.1		2.0%
Net earned premium	$	489.4	$	499.7		(2.1%)	$	1,888.5	$	1,898.9		(0.5%)
Net (loss)/income after tax	$	13.5	$	92.7		(85.4%)	$	(105.8)	$	312.7		(133.8%)
Operating (loss)/income after tax	$	6.1	$	75.8		(92.0%)	$	(66.1)	$	258.9		(125.5%)
Net investment income	$	54.2	$	57.0		(4.9%)	$	225.6	$	232.0		(2.8%)
Underwriting (loss)/income	$	(68.8)	$	23.2		(396.6%)	$	(294.7)	$	63.1		(567.0%)
Earnings Per Share and Book Value Per Share
Basic earnings per ordinary share
Net (loss)/income adjusted for preference share dividend and cancellation of preference shares	$	0.11	$	1.18		(90.7%)	$	(1.82)	$	3.80		(147.9%)
Operating (loss)/income adjusted for preference share dividend	$	0.01	$	1.08		(99.1%)	$	(1.26)	$	3.09		(140.8%)
Diluted earnings per ordinary share
Net (loss)/income adjusted for preference share dividend and cancellation of preference shares	$	0.11	$	1.12		(90.2%)	$	(1.82)	$	3.62		(150.3%)
Operating (loss)/income adjusted for preference share dividend	$	0.01	$	1.02		(99.0%)	$	(1.26)	$	2.94		(142.9%)
Weighted average number of ordinary shares outstanding (in millions of shares)		70.615		73.996		(4.6%)		70.665		76.343		(7.4%)
Diluted weighted average number of ordinary shares outstanding (in millions of shares)		73.258		77.733		(5.8%)		70.665		80.016		(11.7%)
Book value per ordinary share	$	39.89	$	40.96		(2.6%)	$	39.89	$	40.96		(2.6%)
Diluted book value per ordinary share (treasury stock method)	$	38.43	$	38.90		(1.2%)	$	38.43	$	38.90		(1.2%)
Ordinary shares outstanding at December 31, 2011 and December 31, 2010 (in millions of shares)		70.656		70.508		0.2%
Diluted ordinary shares outstanding at December 31, 2011 and December 31, 2010 (in millions of shares)		73.339		74.253		(1.2%)
Underwriting Ratios
Loss ratio		80.6%		61.5%				82.4%		65.8%
Policy acquisition expense ratio		17.5%		18.1%				18.4%		17.3%
General, administrative and corporate expense ratio		16.0%		15.7%				14.8%		13.6%
Expense ratio		33.5%		33.8%				33.2%		30.9%
Combined ratio		114.1%		95.3%				115.6%		96.7%
Return On Equity
Average equity(1)	$	2,389.3	$	2,612.7			$	2,406.9	$	2,597.2
Return on average equity
Net (loss)/income adjusted for preference share dividend		0.3%		3.3%				(5.3%)		11.2%
Operating (loss)/income adjusted for preference share dividend		–		2.7%				(3.7%)		9.1%
Annualized return on average equity
Net (loss)/income		1.2%		13.2%				(5.3%)		11.2%
Operating (loss)/income		–		10.8%				(3.7%)		9.1%

See pages 7, 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(1) Average equity excludes the average after-tax unrealized appreciation or depreciation on investments, preference shares and average after-tax unrealized foreign exchange gains or losses.

2

ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Statements of Operations - Quarterly

(in US$ millions except for percentages and per share amounts)	Q4 2011			Q3 2011			Q2 2011			Q1 2011			Q4 2010			Q3 2010			Q2 2010			Q1 2010
UNDERWRITING REVENUES
Gross written premiums		$458.7			$495.6			$582.2			$671.3			$412.8			$415.8			$545.4			$702.8
Premiums ceded		(27.5	)		(33.0	)		(56.5	)		(161.7	)		(17.6	)		(38.8	)		(6.6	)		(122.7	)
Net written premiums		431.2			462.6			525.7			509.6			395.2			377.0			538.8			580.1
Change in unearned premiums		58.2			24.3			(65.9	)		(57.2	)		104.5			74.7			(58.9	)		(112.5	)
Net earned premiums		489.4			486.9			459.8			452.4			499.7			451.7			479.9			467.6
UNDERWRITING EXPENSES
Losses and loss adjustment expenses		394.5			306.2			326.4			528.9			307.4			285.8			276.7			378.8
Policy acquisition expenses		85.5			93.4			86.7			81.4			90.6			75.6			77.8			84.5
General, administrative and corporate expenses		78.2			71.0			69.6			61.4			78.5			65.0			62.6			52.5
Total underwriting expenses		558.2			470.6			482.7			671.7			476.5			426.4			417.1			515.8
Underwriting (loss)/income including corporate expenses		(68.8	)		16.3			(22.9	)		(219.3	)		23.2			25.3			62.8			(48.2	)
OTHER OPERATING REVENUE
Net investment income		54.2			57.3			58.6			55.5			57.0			58.1			57.5			59.4
Interest expense		(7.7	)		(7.7	)		(7.7	)		(7.7	)		(4.8	)		(3.9	)		(4.0	)		(3.8	)
Total other operating revenue		46.5			49.6			50.9			47.8			52.2			54.2			53.5			55.6
Other income/(expense)		3.6			(9.1	)		6.8			(8.1	)		0.9			0.4			1.7			(0.9	)
OPERATING (LOSS)/INCOME BEFORE TAX		(18.7	)		56.8			34.8			(179.6	)		76.3			79.9			118.0			6.5
OTHER
Net realized and unrealized exchange gains/(losses)(1)		2.3			0.3			(7.7	)		2.9			(0.1	)		3.4			(2.6	)		1.5
Net realized and unrealized investment gains/(losses)(2)		6.0			(32.9	)		(15.7	)		8.5			19.7			19.8			5.6			12.3
(LOSS)/INCOME BEFORE TAX		(10.4	)		24.2			11.4			(168.2	)		95.9			103.1			121.0			20.3
Income tax (expense)/recovery		23.9			(2.0	)		(1.2	)		16.5			(3.2	)		(10.3	)		(12.1	)		(2.0	)
NET INCOME/(LOSS) AFTER TAX		13.5			22.2			10.2			(151.7	)		92.7			92.8			108.9			18.3
Dividends paid on ordinary shares		(10.7	)		(10.6	)		(10.6	)		(10.6	)		(11.5	)		(11.5	)		(11.7	)		(11.8	)
Dividends paid on preference shares		(5.7	)		(5.7	)		(5.7	)		(5.7	)		(5.7	)		(5.7	)		(5.7	)		(5.7	)
Proportion of net loss due to non-controlling interest		(0.1	)		(0.3	)		0.2			0.2			0.2			0.1			-			-
Retained (loss)/income		$(3.0	)		$5.6			$(5.9	)		$(167.8	)		$75.7			$75.7			$91.5			$0.8
Components of net income/(loss) after tax
Operating (loss)/income		$6.1			$56.5			$31.9			$(160.6	)		$75.8			$72.0			$105.0			$6.1
Net realized and unrealized exchange gains/(losses) after tax(1)		3.7			(0.8	)		(4.8	)		1.8			0.2			3.0			(1.3	)		1.0
Net realized and unrealized investment gains/(losses) after tax(2)		3.7			(33.5	)		(16.9	)		7.1			16.7			17.8			5.2			11.2
NET INCOME/(LOSS) AFTER TAX		$13.5			$22.2			$10.2			$(151.7	)		$92.7			$92.8			$108.9			$18.3
Loss ratio		80.6%			62.9%			71.0%			116.9%			61.5%			63.3%			57.7%			81.0%
Policy acquisition expense ratio		17.5%			19.2%			18.9%			18.0%			18.1%			16.7%			16.2%			18.1%
General, administrative and corporate expense ratio		16.0%			14.6%			15.1%			13.6%			15.7%			14.4%			13.0%			11.2%
Expense ratio		33.5%			33.8%			34.0%			31.6%			33.8%			31.1%			29.2%			29.3%
Combined ratio		114.1%			96.7%			105.0%			148.5%			95.3%			94.4%			86.9%			110.3%
Basic earnings/(losses) per share(3)		$0.11			$0.23			$0.06			$(2.23	)		$1.18			$1.14			$1.34			$0.16
Diluted earnings(losses) per share		$0.11			$0.23			$0.06			$(2.23	)		$1.12			$1.08			$1.28			$0.16
Annualized return on average equity
Net income/(loss)		1.2%			2.8%			0.8%			(25.2%	)		13.2%			13.2%			16.4%			2.0%
Operating income/(loss)		–			8.4%			4.4%			(26.8%	)		10.8%			10.0%			15.6%			-

See pages  7, 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(1)	Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(2)	Includes the net realized and unrealized gains/(losses) from interest-rate swaps.
(3)	Adjusted for preference share dividend and cancellation of preference shares.

3

ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Year End

	Twelve Months Ended December 31,
(in US$ millions except for percentages)	2011			2010			2009
UNDERWRITING REVENUES
Gross written premiums		$2,207.8			$2,076.8			$2,067.1
Premiums ceded		(278.7	)		(185.7	)		(230.3	)
Net written premiums		1,929.1			1,891.1			1,836.8
Change in unearned premiums		(40.6	)		7.8			(13.8	)
Net earned premiums		1,888.5			1,898.9			1,823.0
UNDERWRITING EXPENSES
Losses and loss adjustment expenses		1,556.0			1,248.7			948.1
Policy acquisition expenses		347.0			328.5			334.1
General, administrative and corporate expenses		280.2			258.6			252.4
Total underwriting expenses		2,183.2			1,835.8			1,534.6
Underwriting (loss)/income including corporate expenses		(294.7	)		63.1			288.4
OTHER OPERATING REVENUE
Net investment income		225.6			232.0			248.5
Interest expense		(30.8	)		(16.5	)		(15.6	)
Total other operating revenue		194.8			215.5			232.9
Other (expense)/income		(6.8	)		2.1			-
OPERATING (LOSS)/INCOME BEFORE TAX		(106.7	)		280.7			521.3
OTHER
Net realized and unrealized exchange (losses)/gains (1)		(2.2	)		2.2			2.0
Net realized and unrealized investment (losses)/gains (2)		(34.1	)		57.4			11.4
(LOSS)/INCOME BEFORE TAX		(143.0	)		340.3			534.7
Income tax recovery/(expense)		37.2			(27.6	)		(60.8	)
NET (LOSS)/INCOME AFTER TAX		(105.8	)		312.7			473.9
Dividends paid on ordinary shares		(42.5	)		(46.5	)		(49.8	)
Dividends paid on preference shares		(22.8	)		(22.8	)		(23.8	)
Proportion of net loss due to non-controlling interest		-			0.3			-
Retained (loss)/income		$(171.1	)		$243.7			$400.3
Components of net income after tax
Operating (loss)/income		$(66.1	)		$258.9			$464.3
Net realized and unrealized exchange gains/(losses) after tax (1)		(0.1	)		2.9			2.0
Net realized and unrealized investment (losses)/gains after tax (2)		(39.6	)		50.9			7.6
NET (LOSS)/INCOME AFTER TAX		$(105.8	)		$312.7			$473.9
Loss ratio		82.4%			65.8%			52.0%
Policy acquisition expense ratio		18.4%			17.3%			18.3%
General, administrative and corporate expense ratio		14.8%			13.6%			13.8%
Expense ratio		33.2%			30.9%			32.1%
Combined ratio		115.6%			96.7%			84.1%

See pages 7, 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(1)	Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(2)	Includes the net realized and unrealized gains/(losses) from interest-rate swaps.

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ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Balance Sheets

	December 31,		September 30,		June 30,		March 31,		December 31,
(in US$ millions except for per share amounts)	2011		2011		2011		2011		2010
ASSETS
Investments
Fixed income maturities		$5,820.2		$5,992.8		$5,972.8		$5,896.1		$5,766.6
Equity securities		179.5		163.8		178.1		173.5		-
Other investments		33.1		32.3		30.0		30.1		30.0
Short-term investments		302.3		295.9		202.8		187.6		289.7
Total investments		6,335.1		6,484.8		6,383.7		6,287.3		6,086.3
Cash and cash equivalents		1,239.1		1,038.8		1,074.1		1,116.9		1,179.1
Reinsurance recoverables
Unpaid losses		426.6		357.7		359.3		334.0		279.9
Ceded unearned premiums		87.8		129.9		146.2		167.4		62.4
Receivables
Underwriting premiums		894.4		957.2		1,054.3		940.0		821.7
Other		69.7		69.3		70.0		62.8		67.9
Funds withheld		90.7		65.1		81.9		86.3		83.3
Deferred policy acquisition costs		200.5		207.1		204.9		191.0		166.8
Derivatives at fair value		1.3		5.8		5.7		7.4		6.8
Receivable for securities sold		1.1		0.5		21.2		10.6		0.2
Office properties and equipment		53.9		49.5		45.0		38.6		34.8
Income tax receivable		27.9		2.5		19.9		5.2		-
Other assets		36.8		31.2		30.2		29.4		21.9
Intangible assets		20.0		20.3		20.5		20.7		21.0
Total assets		$9,484.9		$9,419.7		$9,516.9		$9,297.6		$8,832.1
LIABILITIES
Insurance reserves
Losses and loss adjustment expenses		$4,525.2		$4,399.4		$4,391.7		$4,229.3		$3,820.5
Unearned premiums		916.1		1,014.5		1,086.2		1,028.3		859.0
Total insurance reserves		5,441.3		5,413.9		5,477.9		5,257.6		4,679.5
Payables
Reinsurance premiums		155.8		135.2		181.6		226.9		113.7
Taxation		26.9		35.2		49.1		45.3		60.2
Accrued expenses and other payables		187.8		186.0		204.8		214.5		238.0
Liabilities under derivative contracts		2.1		-		-		3.5		-
Total payables		372.6		356.4		435.5		490.2		411.9
Long-term debt		499.0		498.9		498.9		498.8		498.8
Total liabilities		6,312.9		6,269.2		6,412.3		6,246.6		5,590.2
SHAREHOLDERS’ EQUITY
Ordinary shares		0.1		0.1		0.1		0.1		0.1
Non-controlling interest		0.4		0.3		0.1		0.3		0.5
Preference shares		-		-		-		-		-
Additional paid-in capital		1,385.0		1,381.8		1,388.2		1,388.2		1,388.3
Retained earnings		1,357.6		1,360.6		1,355.0		1,360.9		1,528.7
Accumulated other comprehensive income, net of taxes		428.9		407.7		361.2		301.5		324.3
Total shareholders’ equity		3,172.0		3,150.5		3,104.6		3,051.0		3,241.9
Total liabilities and shareholders’ equity		$9,484.9		$9,419.7		$9,516.9		$9,297.6		$8,832.1
Book value per ordinary share		$39.89		$39.62		$38.84		$38.14		$40.96

See pages 7, 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

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ASPEN INSURANCE HOLDINGS LIMITED
Earnings Per Share and Book Value Per Share

	Three Months Ended				Twelve Months Ended
(in US$ except for number of shares)	December 31, 2011		December 31, 2010		December 31, 2011			December 31, 2010
Basic earnings per ordinary share
Net (loss)/income adjusted for preference share dividend and cancellation of preference shares		$  0.11		$  1.18		$  (1.82	)		$  3.80
Operating (loss)/income adjusted for preference share dividend		$  0.01		$  1.08		$  (1.26	)		$  3.09
Diluted earnings per ordinary share
Net (loss)/income adjusted for preference share dividend and cancellation of preference shares		$  0.11		$  1.12		$  (1.82	)		$  3.62
Operating (loss)/income adjusted for preference share dividend		$  0.01		$  1.02		$  (1.26	)		$  2.94
Weighted average number of ordinary shares outstanding (in millions)		70.615		73.996		70.665			76.343
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions)		73.258		77.733		70.665			80.016
Book value per ordinary share		$   39.89		$    40.96		$    39.89			$    40.96
Diluted book value per ordinary share (treasury stock method)		$   38.43		$    38.90		$    38.43			$    38.90
Ordinary shares outstanding at end of the period (in millions)		70.656		70.508		70.656			70.508
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (treasury stock method) (in millions)		73.339		74.253		73.339			74.253

The basic and diluted number of ordinary shares for the twelve months ended December 31, 2011 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

See pages 7, 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

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ASPEN INSURANCE HOLDINGS LIMITED
Return On Average Equity

	Three Months Ended						Twelve Months Ended
(in US$ millions except for percentages)	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Average shareholders’ equity		$3,161.3			$3,341.3			$3,134.3			$3,288.4
Average preference shares		(353.6	)		(353.6	)		(353.6	)		(353.6	)
Average cumulative foreign currency translation adjustments, net of taxes		(119.0	)		(111.8	)		(116.5	)		(109.5	)
Average unrealized (appreciation)/depreciation on investments, net of taxes		(299.4	)		(263.2	)		(257.3	)		(228.1	)
Average equity		$2,389.3			$2,612.7			$2,406.9			$2,597.2
Return on average equity:
Net (loss)/income adjusted for preference share dividend		0.3%			3.3%			(5.3%	)		11.2%
Operating (loss)/income adjusted for preference share dividend		–			2.7%			(3.7%	)		9.1%
Annualized return on average equity:
Net (loss)/income		1.2%			13.2%			(5.3%	)		11.2%
Operating (loss)/income		–			10.8%			(3.7%	)		9.1%
Components of return on average equity:
Return on average equity from underwriting activity (1)		(2.9%	)		0.9%			(12.2%	)		2.4%
Return on average equity from investment and other activity (2)		1.9%			2.2%			6.9%			7.8%
Pre-tax operating (loss)/income return on average equity		(1.0%	)		3.1%			(5.4%	)		10.2%
Post-tax operating (loss)/income return on average equity (3)		–			3.0%			(3.7%	)		9.1%

See pages 25 and 27 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(1)	Calculated by using underwriting income.
(2)	Calculated by using total other operating revenue and other income/(expense) adjusted for preference share dividend.
(3)	Calculated by using operating income after-tax adjusted for preference share dividend.

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ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Underwriting Results by Operating Segment

	Three Months Ended December 31, 2011			Three Months Ended December 31, 2010
(in US$ millions except for percentages)	Reinsurance	Insurance	Total	Reinsurance	Insurance	Total
Gross written premiums	$186.3	$272.4	$458.7	$152.8	$260.0	$412.8
Net written premiums	182.3	248.9	431.2	148.5	246.7	395.2
Gross earned premiums	311.9	245.7	557.6	303.9	246.5	550.4
Net earned premiums	288.7	200.7	489.4	292.1	207.6	499.7
Losses and loss adjustment expenses	278.1	116.4	394.5	146.8	160.6	307.4
Policy acquisition expenses	47.4	38.1	85.5	58.8	31.8	90.6
General and administrative expenses	32.6	33.0	65.6	32.8	33.5	66.3
Underwriting (loss)/income	$(69.4)	$13.2	$(56.2)	$53.7	$(18.3)	$35.4
Net investment income			54.2			57.0
Net realized and unrealized investment gains(1)			6.0			19.7
Corporate (expenses)			(12.6)			(12.2)
Other income			3.6			0.9
Interest (expenses)			(7.7)			(4.8)
Net realized and unrealized foreign exchange gains/(losses)(2)			2.3			(0.1)
Income before income taxes			$(10.4)			$95.9
Income tax recovery/(expense)			23.9			(3.2)
Net income			$13.5			$92.7
Ratios
Loss ratio	96.3%	58.0%	80.6%	50.3%	77.4%	61.5%
Policy acquisition expense ratio	16.4%	19.0%	17.5%	20.1%	15.3%	18.1%
General and administrative expense ratio(3)	11.3%	16.4%	16.0%	11.2%	16.1%	15.7%
Expense ratio	27.7%	35.4%	33.5%	31.3%	31.4%	33.8%
Combined ratio	124.0%	93.4%	114.1%	81.6%	108.8%	95.3%

(1)	Includes the net realized and unrealized gains/(losses) from interest-rate swaps.
(2)	Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(3)	The total group general and administrative expense ratio includes the impact from corporate expenses.

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ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Underwriting Results by Operating Segment

	Twelve Months Ended December 31, 2011			Twelve Months Ended December 31, 2010
(in US$ millions except for percentages)	Reinsurance	Insurance	Total	Reinsurance	Insurance	Total
Gross written premiums	$1,187.5	$1,020.3	$2,207.8	$1,162.2	$914.6	$2,076.8
Net written premiums	1,098.1	831.0	1,929.1	1,118.5	772.6	1,891.1
Gross earned premiums	1,190.6	950.5	2,141.1	1,186.4	907.9	2,094.3
Net earned premiums	1,108.3	780.2	1,888.5	1,141.8	757.1	1,898.9
Losses and loss adjustment expenses	1,083.3	472.7	1,556.0	693.5	555.2	1,248.7
Policy acquisition expenses	197.7	149.3	347.0	202.4	126.1	328.5
General and administrative expenses	109.8	125.7	235.5	112.3	99.4	211.7
Underwriting (loss)/income	$(282.5)	$32.5	$(250.0)	$133.6	$(23.6)	$110.0
Net investment income			225.6			232.0
Net realized and unrealized investment (losses)/gains(1)			(34.1)			50.6
Corporate (expenses)			(44.7)			(46.9)
Other (expenses)/income			(6.8)			8.9
Interest (expenses)			(30.8)			(16.5)
Net realized and unrealized foreign exchange (losses)/income(2)			(2.2)			2.2
(Loss)/income before income tax			$(143.0)			$340.3
Income tax recovery/(expense)			37.2			(27.6)
Net (loss)/income			$(105.8)			$312.7
Ratios
Loss ratio	97.7%	60.6%	82.4%	60.7%	73.3%	65.8%
Policy acquisition expense ratio	17.8%	19.1%	18.4%	17.7%	16.7%	17.3%
General and administrative expense ratio(3)	9.9%	16.1%	14.8%	9.8%	13.1%	13.6%
Expense ratio	27.7%	35.2%	33.2%	27.5%	29.8%	30.9%
Combined ratio	125.4%	95.8%	115.6%	88.2%	103.1%	96.7%

(1)	Includes the net realized and unrealized gains/(losses) from interest-rate swaps.
(2)	Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(3)	The total group general and administrative expense ratio includes the impact from corporate expenses.

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ASPEN INSURANCE HOLDINGS LIMITED

Reinsurance Segment - Quarterly Results

(in US$ millions except for percentages)	Q4 2011	Q3 2011	Q2 2011	Q1 2011	Q4 2010	Q3 2010	Q2 2010	Q1 2010
Gross written premiums	$186.3	$276.1	$288.0	$437.1	$152.8	$236.0	$283.3		$490.1
Net written premiums	182.3	270.5	256.9	388.4	148.5	229.6	279.1		461.3
Gross earned premiums	311.9	303.2	290.7	284.8	303.9	277.9	302.7		301.9
Net earned premiums	288.7	279.6	268.0	272.0	292.1	267.5	291.2		291.0
Net losses and loss adjustment expenses	278.1	188.8	206.3	410.1	146.8	143.5	146.4		256.8
Policy acquisition expenses	47.4	51.8	49.1	49.4	58.8	43.9	47.3		52.4
General and administrative expenses	32.6	26.3	26.4	24.5	32.8	27.1	30.1		22.3
Underwriting (loss)/income	$(69.4)	$12.7	$(13.8)	$(212.0)	$53.7	$53.0	$67.4		$(40.5)
Ratios
Loss ratio	96.3%	67.5%	77.0%	150.8%	50.3%	53.6%	50.3%		88.2%
Policy acquisition expense ratio	16.4%	18.5%	18.3%	18.2%	20.1%	16.4%	16.2%		18.0%
General and administrative expense ratio	11.3%	9.4%	9.9%	9.0%	11.2%	10.1%	10.3%		7.7%
Expense ratio	27.7%	27.9%	28.2%	27.2%	31.3%	26.5%	26.5%		25.7%
Combined ratio	124.0%	95.4%	105.2%	178.0%	81.6%	80.1%	76.8%		113.9%

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ASPEN INSURANCE HOLDINGS LIMITED

Insurance Segment - Quarterly Results

(in US$ millions except for percentages)	Q4 2011		Q3 2011		Q2 2011		Q1 2011		Q4 2010			Q3 2010			Q2 2010		Q1 2010
Gross written premiums		$272.4		$219.5		$294.2		$234.2		$260.0			$179.8			$262.1		$212.7
Net written premiums		248.9		192.1		268.8		121.2		246.7			147.4			259.7		118.8
Gross earned premiums		245.7		246.7		234.1		224.0		246.5			225.4			220.8		215.2
Net earned premiums		200.7		207.3		191.8		180.4		207.6			184.2			188.7		176.6
Net losses and loss adjustment expenses		116.4		117.4		120.1		118.8		160.6			142.3			130.3		122.0
Policy acquisition expenses		38.1		41.6		37.6		32.0		31.8			31.7			30.5		32.1
General and administrative expenses		33.0		34.3		29.2		29.2		33.5			23.6			21.9		20.4
Underwriting income/(loss)		$13.2		$14.0		$4.9		$0.4		$(18.3	)		$(13.4	)		$6.0		$2.1
Ratios
Loss ratio		58.0%		56.6%		62.6%		65.9%		77.4%			77.3%			69.1%		69.1%
Policy acquisition expense ratio		19.0%		20.1%		19.6%		17.7%		15.3%			17.2%			16.2%		18.2%
General and administrative expense ratio		16.4%		16.5%		15.2%		16.2%		16.1%			12.8%			11.6%		11.6%
Expense ratio		35.4%		36.6%		34.8%		33.9%		31.4%			30.0%			27.8%		29.8%
Combined ratio		93.4%		93.2%		97.4%		99.8%		108.8%			107.3%			96.9%		98.9%

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ASPEN INSURANCE HOLDINGS LIMITED
Written and Earned Premiums by Segment and Line of Business

(in US$ millions)
Gross Written Premium	Q4 2011		Q3 2011		Q2 2011		Q1 2011		Q4 2010		Q3 2010		Q2 2010		Q1 2010
Reinsurance
Property Catastrophe Reinsurance		$9.4		$53.5		$93.0		$151.0		$4.2		$51.3		$91.2		$146.2
Other Property Reinsurance		64.8		78.6		70.9		64.8		48.2		66.3		80.7		73.7
Casualty Reinsurance		42.5		83.4		44.6		138.6		44.5		70.0		51.5		174.5
Specialty Reinsurance		69.6		60.6		79.5		82.7		55.9		48.4		59.9		95.7
Total Reinsurance		$186.3		$276.1		$288.0		$437.1		$152.8		$236.0		$283.3		$490.1
Insurance
Property Insurance		$65.7		$42.5		$73.6		$38.6		$28.7		$37.0		$69.3		$36.7
Casualty Insurance		46.6		38.1		32.9		19.6		42.7		33.1		39.8		32.6
Marine, Energy and Transportation Insurance		107.6		70.5		130.3		123.8		136.3		70.1		118.1		110.6
Financial and Professional Lines Insurance		52.5		68.4		57.4		52.2		52.3		39.6		34.9		32.8
Total Insurance		$272.4		$219.5		$294.2		$234.2		$260.0		$179.8		$262.1		$212.7
Total Gross Written Premiums		$458.7		$495.6		$582.2		$671.3		$412.8		$415.8		$545.4		$702.8
Net Written Premium
Reinsurance
Property Catastrophe Reinsurance		$9.2		$53.5		$69.6		$116.1		$3.9		$45.4		$88.1		$130.9
Other Property Reinsurance		61.0		73.8		63.5		53.3		46.1		65.3		79.6		65.5
Casualty Reinsurance		42.5		82.6		44.3		136.4		44.5		70.0		51.3		169.6
Specialty Reinsurance		69.6		60.6		79.5		82.6		54.0		48.9		60.1		95.3
Total Reinsurance		$182.3		$270.5		$256.9		$388.4		$148.5		$229.6		$279.1		$461.3
Insurance
Property Insurance		$58.7		$31.2		$65.2		$1.6		$25.3		$30.7		$62.4		$14.9
Casualty Insurance		34.7		31.2		24.9		10.5		36.4		20.6		41.7		27.4
Marine, Energy and Transportation Insurance		107.5		59.8		121.5		98.8		136.0		57.5		130.8		70.3
Financial and Professional Lines Insurance		48.0		69.9		57.2		10.3		49.0		38.6		24.8		6.2
Total Insurance		$248.9		$192.1		$268.8		$121.2		$246.7		$147.4		$259.7		$118.8
Total Net Written Premiums		$431.2		$462.6		$525.7		$509.6		$395.2		$377.0		$538.8		$580.1
Net Earned Premium
Reinsurance
Property Catastrophe Reinsurance		$60.4		$52.1		$58.5		$71.6		$63.1		$66.5		$66.2		$70.6
Other Property Reinsurance		70.0		64.4		57.0		60.1		63.0		61.0		67.8		63.5
Casualty Reinsurance		75.7		95.3		75.7		82.4		90.0		84.8		90.3		89.0
Specialty Reinsurance		82.6		67.8		76.8		57.9		76.0		55.2		66.9		67.9
Total Reinsurance		$288.7		$279.6		$268.0		$272.0		$292.1		$267.5		$291.2		$291.0
Insurance
Property Insurance		$38.8		$28.0		$29.1		$28.2		$31.0		$33.2		$30.1		$25.8
Casualty Insurance		24.6		25.4		26.5		25.4		26.7		24.9		39.8		38.9
Marine, Energy and Transportation Insurance		100.4		96.6		99.2		93.3		124.3		94.6		97.4		94.3
Financial and Professional Lines Insurance		36.9		57.3		37.0		33.5		25.6		31.5		21.4		17.6
Total Insurance		$200.7		$207.3		$191.8		$180.4		$207.6		$184.2		$188.7		$176.6
Total Net Earned Premiums		$489.4		$486.9		$459.8		$452.4		$499.7		$451.7		$479.9		$467.6

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ASPEN INSURANCE HOLDINGS LIMITED

Accident Year Loss Ratios

	Three Months Ended December 31, 2011											Three Months Ended December 31, 2010
	Reinsurance				Insurance			Total				Reinsurance				Insurance				Total
Before Accident Year Adjustment
Loss ratio		96.3		%		58.0	%		80.6		%		50.3		%		77.4		%		61.5		%
Policy acquisition expense ratio		16.4				19.0			17.5				20.1				15.3				18.1
General and administrative expense ratio (1)		11.3				16.4			16.0				11.2				16.1				15.7
Expense ratio		27.7				35.4			33.5				31.3				31.4				33.8
Combined ratio		124.0		%		93.4	%		114.1		%		81.6		%		108.8		%		95.3		%
Accident Year Adjustment
Loss ratio		4.9		%		4.5	%		4.8		%		13.1		%		(7.7	)	%		4.5		%
Policy acquisition expense ratio		(1.0	)			0.4			(0.5	)			(3.6	)			0.4				(1.9	)
General and administrative expense ratio (1)		-				0.1			-				0.2				1.1				0.5
Expense ratio		(1.0	)			0.5			(0.5	)			(3.4	)			1.5				(1.4	)
Combined ratio		3.9		%		5.0	%		4.3		%		9.7		%		(6.2	)	%		3.1		%
Accident Year Ratios
Current accident year loss ratio		101.2		%		62.5	%		85.4		%		63.4		%		69.7		%		66.0		%
Policy acquisition expense ratio		15.4				19.4			17.0				16.5				15.7				16.2
General and administrative expense ratio (1)		11.3				16.5			16.0				11.4				17.2				16.2
Expense ratio		26.7				35.9			33.0				27.9				32.9				32.4
Combined ratio		127.9		%		98.4	%		118.4		%		91.3		%		102.6		%		98.4		%

(1) The total group general and administrative expense ratio includes the impact from corporate expenses.

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ASPEN INSURANCE HOLDINGS LIMITED

Accident Year Loss Ratios

	Twelve Months Ended December 31, 2011												Twelve Months Ended December 31, 2010
	Reinsurance				Insurance				Total				Reinsurance				Insurance				Total
Before Accident Year Adjustment
Loss ratio		97	.7	%		60	.6	%		82	.4	%		60	.7	%		73	.3	%		65	.8	%
Policy acquisition expense ratio		17	.8			19	.1			18	.4			17	.7			16	.7			17	.3
General and administrative expense ratio (1)		9	.9			16	.1			14	.8			9	.8			13	.1			13	.6
Expense ratio		27	.7			35	.2			33	.2			27	.5			29	.8			30	.9
Combined ratio		125	.4	%		95	.8	%		115	.6	%		88	.2	%		103	.1	%		96	.7	%
Accident Year Adjustment
Loss ratio		8	.5	%		3	.0	%		6	.1	%		7	.0	%		(4	.3)	%		2	.5	%
Policy acquisition expense ratio		(0	.6)			-				(0	.4)			(1	.0)			-				(0	.6)
General and administrative expense ratio (1)		0	.2			0	.1			0	.2			0	.2			0	.4			0	.3
Expense ratio		(0	.4)			0	.1			(0	.2)			(0	.8)			0	.4			(0	.3)
Combined ratio		8	.1	%		3	.1	%		5	.9	%		6	.2	%		(3	.9)	%		2	.2	%
Accident Year Ratios
Current accident year loss ratio		106	.2	%		63	.6	%		88	.5	%		67	.7	%		69	.0	%		68	.3	%
Policy acquisition expense ratio		17	.2			19	.1			18	.0			16	.7			16	.7			16	.7
General and administrative expense ratio (1)		10	.1			16	.2			15	.0			10	.0			13	.5			13	.9
Expense ratio		27	.3			35	.3			33	.0			26	.7			30	.2			30	.6
Combined ratio		133	.5	%		98	.9	%		121	.5	%		94	.4	%		99	.2	%		98	.9	%

(1) The total group general and administrative expense ratio includes the impact from corporate expenses.

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ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Statements of Changes in Shareholders’ Equity

	Twelve Months Ended December 31,
(in US$ millions)	2011			2010
Ordinary shares
Beginning and end of period		$0.1			$0.1
Preference shares
Beginning and end of period		-			-
Non-Controlling Interest
Beginning of period		0.5			-
Introductory capital		-			0.8
Change in non-controlling interest for the period		(0.1	)		(0.3	)
End of period		0.4			0.5
Additional paid-in capital
Beginning of period		1,388.3			1,763.0
New shares issued		0.8			20.3
Ordinary shares repurchased		(8.1	)		(407.8	)
Share-based compensation		4.0			12.8
End of period		1,385.0			1,388.3
Retained earnings
Beginning of period		1,528.7			1,285.0
Net (loss)/income for the period		(105.8	)		312.7
Dividends paid on ordinary and preference shares		(65.3	)		(69.3	)
Proportion of net loss due to non-controlling interest		-			0.3
End of period		1,357.6			1,528.7
Accumulated other comprehensive income:
Cumulative foreign currency translation adjustments, net of taxes:
Beginning of period		113.4			103.4
Change for the period		10.8			10.0
End of period		124.2			113.4
Loss on derivatives:
Beginning of period		(1.0	)		(1.2	)
Reclassification to interest payable		0.3			0.2
End of period		(0.7	)		(1.0	)
Unrealized appreciation/(depreciation) on investments, net of taxes:
Beginning of period		211.9			155.1
Change for the period		93.5			56.8
End of period		305.4			211.9
Total accumulated other comprehensive income		428.9			324.3
Total shareholders’ equity		$3,172.0			$3,241.9

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ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Statements of Comprehensive Income

	Three Months Ended December 31,						Twelve Months Ended December 31,
(in US$ millions)	2011			2010			2011			2010
Net (loss)/income		$13.5			$92.7			$(105.8	)		$312.7
Other comprehensive (loss)/income, net of taxes:
Available for sale investments:
Reclassification adjustment for net realized (gains)/losses included in net income		(3.0	)		(10.3	)		(16.6	)		(21.0	)
Change in net unrealized gains and losses on available for sale securities held		13.6			(94.3	)		110.1			77.8
Loss on derivatives reclassified to interest expense		0.1			-			0.3			0.2
Change in foreign currency translation adjustment		10.5			3.3			10.8			10.0
Other comprehensive income		21.2			(101.3	)		104.6			67.0
Comprehensive (loss)/income		$34.7			$(8.6	)		$(1.2	)		$379.7

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ASPEN INSURANCE HOLDINGS LIMITED

Condensed Consolidated Statements of Cash Flows

	Three Months Ended December 31,						Twelve Months Ended December 31,
(in US$ millions)	2011			2010			2011			2010
Net cash from/(used in) operating activities		$65.1			$122.3			$343.5			$624.6
Net cash from/(used in) investing activities		157.9			98.7			(210.5	)		17.6
Net cash from/(used in) financing activities		(16.2	)		52.4			(72.7	)		(207.1	)
Effect of exchange rate movements on cash and cash equivalents		(6.5	)		(8.6	)		(0.3	)		(4.4	)
Increase in cash and cash equivalents		200.3			264.8			60.0			430.7
Cash at beginning of period		1,038.8			914.3			1,179.1			748.4
Cash at end of period		$1,239.1			$1,179.1			$1,239.1			$1,179.1

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ASPEN INSURANCE HOLDINGS LIMITED

Reserves for Losses and Loss Adjustment Expenses

	For the			For the
	Twelve Months Ended			Twelve Months Ended
	December 31, 2011			December 31, 2010
(in US$ millions)
Provision for losses and loss adjustment expenses at the start of the period		$3,820.5			$3,331.1
Reinsurance recoverables		(279.9	)		(321.5	)
Net loss and loss adjustment expenses at the start of the period		3,540.6			3,009.6
Net loss and loss adjustment expenses disposed		(20.6	)		(35.5	)
Provision for losses and loss adjustment expenses for claims incurred
Current period		1,648.3			1,270.1
Prior period release		(92.3	)		(21.4	)
Total incurred		1,556.0			1,248.7
Losses and loss adjustment expenses payments for claims incurred		(982.2	)		(666.8	)
Foreign exchange losses/(gains)		4.8			(15.4	)
Net loss and loss adjustment expenses reserves at the end of the period		4,098.6			3,540.6
Reinsurance recoverables on unpaid losses at the end of the period		426.6			279.9
Gross loss and loss adjustment expenses reserves at the end of the period		$4,525.2			$3,820.5

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ASPEN INSURANCE HOLDINGS LIMITED

Reserves by Operating Segment

	As At December 31, 2011							As At December 31, 2010
			Reinsurance							Reinsurance
(in US$ millions)	Gross		Recoverables			Net		Gross		Recoverables			Net
Reinsurance		$2,953.5		$(183.5	)		$2,770.0		$2,304.6		$(60.7	)		$2,243.9
Insurance		1,571.7		(243.1	)		1,328.6		1,515.9		(219.2	)		1,296.7
Total losses and loss adjustment expense reserves		$4,525.2		$(426.6	)		$4,098.6		$3,820.5		$(279.9	)		$3,540.6

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ASPEN INSURANCE HOLDINGS LIMITED


Prior Year Reserve Releases

(in US$ millions)	Three Months Ended December 31, 2011							Three Months Ended December 31, 2010
				Reinsurance							Reinsurance
	Gross			Recoverables		Net		Gross			Recoverables		Net
Reinsurance		$13.5			$1.1		$14.6		$34.1			$2.0		$36.1
Insurance		(1.1	)		8.5		7.4		(48.6	)		25.1		(23.5	)
Release/(strengthening) in reserves for prior years during the period		$12.4			$9.6		$22.0		$(14.5	)		$27.1		$12.6

	Twelve Months Ended December 31, 2011							Twelve Months Ended December 31, 2010
				Reinsurance							Reinsurance
	Gross			Recoverables		Net		Gross			Recoverables			Net
Reinsurance		$69.6			$2.7		$72.3		$66.4			$(0.8	)		$65.6
Insurance		(22.7	)		42.7		20.0		(73.6	)		29.4			(44.2	)
Release/(strengthening) in reserves for prior years during the period		$46.9			$45.4		$92.3		$(7.2	)		$28.6			$21.4

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ASPEN INSURANCE HOLDINGS LIMITED
Ratings of Reinsurers

(in US$ millions except for percentages)
	As at December 31, 2011			As at December 31, 2010
S&P
AA+		$6.6	1.5%		$7.5	2.7%
AA		0.1	-		-	-
AA-		110.4	25.9%		73.4	26.2%
A+		159.4	37.4%		133.0	47.5%
A		14.8	3.5%		12.9	4.6%
A-		17.5	4.1%		11.3	4.1%
BBB+		0.1	-		2.5	0.9%
BBB		0.3	0.1%		0.6	0.2%
F(1)		0.6	0.1%		-	-
Fully collateralized		95.1	22.3%		-	-
Not rated		21.7	5.1%		38.7	13.8%
		$426.6	100.0%		$279.9	100.0%
A.M. Best
A++		$6.6	1.5%		$7.5	2.7%
A+		99.7	23.4%		74.0	26.4%
A		209.0	49.0%		173.5	62.0%
A-		10.5	2.5%		15.7	5.6%
F (1)		0.6	0.1%		0.7	0.3%
Fully collateralized		95.1	22.3%		-	-
Not rated		5.1	1.2%		8.5	3.0%
		$426.6	100.0%		$279.9	100.0%

(1) The A.M. Best rating of “F” denotes liquidation. We have not reduced the carrying value of the recoverable from this particular reinsurer as a trust account exists to replace the potentially insufficient reserves.

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ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Investment Portfolio

(in US$ millions except for percentages)
	As At December 31, 2011
			Gross		Gross					As At			As At			As At			As At			As At
	Amortized		Unrealized		Unrealized			Fair Market		December 31,			September 30,			June 30,			March 31,			December 31,
Marketable Securities - Available For Sale	Cost		Gains		Losses			Value		2011			2011			2011			2011			2010
U.S. government securities		$873.9		$58.5		-			$932.4		12.1	%		11.8	%		10.3	%		10.6	%		9.9	%
U.S. agency securities		271.7		23.8		-			295.5		3.9			3.7			3.8			3.9			4.1
Municipal securities		33.6		2.0		-			35.6		0.5			0.5			0.4			0.3			0.4
Corporate securities		1,722.6		127.7		(3.8	)		1,846.5		24.1			26.0			26.6			26.4			27.0
Foreign government securities		632.1		28.4		(0.1	)		660.4		8.7			9.0			9.9			9.7			8.4
Asset-backed securities		56.4		4.6		-			61.0		0.8			0.8			0.8			0.8			0.8
FDIC Guaranteed		72.5		0.4		-			72.9		1.0			1.2			1.5			1.6			1.7
Bonds backed by foreign government		163.9		3.9		-			167.8		2.2			2.5			2.6			3.0			3.1
Mortgage-backed securities		1,273.0		80.8		(0.1	)		1,353.7		17.8			18.6			18.6			17.9			17.8
Total fixed income maturities		5,099.7		330.1		(4.0	)		5,425.8		71.1	%		74.1	%		74.5	%		74.2	%		73.2	%
Short-term investments		298.2		-		-			298.2		3.9			3.8			2.7			2.4			3.9
Equity securities		169.8		15.1		(5.4	)		179.5		2.4			2.2			2.4			2.3			-
Total Available For Sale		$5,567.7		$345.2		$(9.4	)		$5,903.5		77.4	%		80.1	%		79.6	%		78.9	%		77.1	%
Marketable Securities — Trading
U.S. government securities		$30.3		$2.0		-			$32.3		0.4	%		0.2	%		0.1	%		0.1	%		0.7	%
U.S. agency securities		1.6		0.2		-			1.8		-			-			-			-			-
Municipal securities		2.8		0.1		-			2.9		-			-			-			-			0.1
Corporate securities		337.9		15.6		(4.2	)		349.3		4.6			4.6			4.8			4.6			4.6
Foreign government securities		7.1		0.3		-			7.4		0.1			0.1			0.1			0.1			0.1
Asset-backed securities		0.7		-		-			0.7		-			0.1			0.1			0.1			0.1
Total fixed income maturities		380.4		18.2		(4.2	)		394.4		5.1			5.0			5.1			4.9			5.6
Short-term investments		4.1		-		-			4.1		0.1			0.1			-			0.1			0.1
Total Trading		$384.5		$18.2		$(4.2	)		$398.5		5.2	%		5.1	%		5.1	%		5.0	%		5.7	%
Other investments									$33.1		0.4	%		0.4	%		0.4	%		0.4	%		0.4	%
Cash									1,239.1		16.3			13.7			14.2			15.0			16.1
Accrued interest									49.6		0.7			0.7			0.7			0.7			0.7
Total Cash and Accrued Interest									$1,288.7		17.0	%		14.4	%		14.9	%		15.7	%		16.8	%
Total Cash and Investments									$7,623.8		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

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ASPEN INSURANCE HOLDINGS LIMITED

Consolidated Investment Portfolio

(in US$ millions)
Maturity of Available For Sale Portfolio
	As At December 31, 2011				As At December 31, 2010
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
Due in one year or less		$726.0		$732.9		$337.7		$343.8
Due after one year through five years		1,955.0		2,057.8		2,236.3		2,330.9
Due after five years through ten years		997.9		1,112.3		1,146.6		1,222.2
Due after ten years		91.4		108.0		100.1		104.1
Subtotal		3,770.3		4,011.0		3,820.7		4,001.0
Non-agency commercial mortgage-backed securities		77.1		85.4		119.7		128.1
Agency mortgage-backed securities		1,195.9		1,268.4		1,126.4		1,172.5
Other asset-backed securities		56.4		61.0		54.0		58.8
Total		$5,099.7		$5,425.8		$5,120.8		$5,360.4

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ASPEN INSURANCE HOLDINGS LIMITED

Investment Analysis

(in US$ millions except for percentages)
	Q4 2011			Q3 2011			Q2 2011			Q1 2011				Q4 2010				Q3 2010			Q2 2010
Net investment income from fixed income investments and cash		$52.9			$55.6			$55.6			$55.3				$57.0				$58.1			$57.5
Net investment income from equity securities		1.3			1.7			3.0			0.2				–				–			–
Net investment income		54.2			57.3			58.6			55.5				57.0				58.1			57.5
Net realized and unrealized investment gains(1)		8.9			3.2			9.8			8.4				10.5				22.1			5.7
Other-than-temporary impairment charges		-			-			-			-				-				-			-
Change in unrealized gains/(losses) on available for sale investments (gross of tax)		6.1			71.6			52.1			(33.6	)			(122.1	)			68.3			82.4
Total return on investments		$69.2			$132.1			$120.5			$30.3				$(54.6	)			$148.5			$145.6
Portfolio Characteristics
Fixed income portfolio book yield		3.37	%		3.54	%		3.64	%		3.65		%		3.70		%		3.91	%		4.05	%
Fixed income portfolio duration		2.9 years			3.1 years			3.1 years			3.2 years				3.3 years				3.1 years			3.0 years

(1) Excludes the net realized and unrealized gains/(losses) from the interest-rate swaps and includes the net realized and unrealized gains/(losses) on the trading portfolio.

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ASPEN INSURANCE HOLDINGS LIMITED

Book Value Per Ordinary Share

	December 31,			September 30,			June 30,			March 31,			December 31,
(in US$ millions except for number of shares and per share amounts)	2011			2011			2011			2011			2010
Net assets		$3,172.0			$3,150.5			$3,104.6			$3,051.0			$3,241.9
Less: Preference shares		(353.6	)		(353.6	)		(353.6	)		(353.6	)		(353.6	)
Total		$2,818.4			$2,796.9			$2,751.0			$2,697.4			$2,888.3
Ordinary shares outstanding (in millions)		70.656			70.595			70.833			70.731			70.508
Ordinary shares and dilutive potential ordinary shares (in millions)		73.339			73.079			73.492			73.599			74.253
Book value per ordinary share		$39.89			$39.62			$38.84			$38.14			$40.96
Diluted book value per ordinary share (treasury stock method)		$38.43			$38.27			$37.43			$36.65			$38.90

The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to purchase the Company’s ordinary shares at the average market price during the period of calculation.

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ASPEN INSURANCE HOLDINGS LIMITED

Diluted Share Analysis

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2011		2010		2011		2010
Weighted average ordinary shares outstanding (millions)
Basic		70.615		73.996		70.665		76.343
Dilutive share equivalents:
Employee options		0.585		0.870		-		0.874
Options issued to Appleby Trust (Bermuda) Limited (Names’ Trust)		0.097		0.451		-		0.430
Performance shares		1.622		2.061		-		2.071
Restricted share units		0.339		0.285		-		0.261
PIERS*		-		0.070		-		0.037
Weighted average diluted shares outstanding		73.258		77.733		70.665		80.016

The basic and diluted number of ordinary shares for the twelve months ended December 31, 2011 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to purchase the Company’s ordinary shares at the average market price during the period of calculation.

* Preferred Income Equity Replacement Securities (PIERS)

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ASPEN INSURANCE HOLDINGS LIMITED

Operating Income/(Loss) Reconciliation

Net (loss)/income is adjusted to exclude after-tax change in net foreign exchange gains and losses and realized gains and losses in investments.

	Three Months Ended						Twelve Months Ended
	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
(in US$ millions except where stated)
Net (loss)/income as reported		$13.5			$92.7			($105.8	)		$312.7
Preference share dividends		(5.7	)		(5.7	)		(22.8	)		(22.8	)
Net (loss)/income available to ordinary shareholders		7.8			87.0			(128.6	)		289.9
Add (deduct) after tax income:
Net foreign exchange losses/(gains)		(3.7	)		(0.2	)		0.1			(2.9	)
Net realized losses/(gains) on investments		(3.7	)		(16.7	)		39.6			(50.9	)
Operating (loss)/income after tax available to ordinary shareholders		0.4			70.1			(88.9	)		236.1
Tax on operating (loss)/income		(24.8	)		9.7			(40.6	)		28.6
Operating (loss)/income before tax available to ordinary shareholders		($24.4	)		$79.8			($129.5	)		$264.7
Weighted average ordinary shares outstanding(millions)
Basic		70.615			73.996			70.665			76.343
Dilutive share equivalents:
Employee options		0.585			0.870			-			0.874
Options issued to Appleby Trust (Bermuda) Limited (Names Trust)		0.097			0.451			-			0.430
Performance shares		1.622			2.061			-			2.071
Restricted share units		0.339			0.285			-			0.261
PIERS*		-			0.070			-			0.037
Weighted average diluted shares outstanding		73.258			77.733			70.665			80.016
Basic earnings per ordinary share
Net (loss)/income adjusted for preference share dividend		$0.11			$1.18			($1.82	)		$3.80
Add (deduct) after tax income:
Net foreign exchange losses/(gains)		(0.05	)		-			-			(0.04	)
Net realized losses/(gains) on investments		(0.05	)		(0.10	)		0.56			(0.67	)
Operating (loss)/income adjusted for preference shares dividend		$0.01			$1.08			($1.26	)		$3.09
Diluted earnings per ordinary share
Net (loss)/income adjusted for preference share dividend		$0.11			$1.12			($1.82	)		$3.62
Add (deduct) after tax income:
Net foreign exchange losses/(gains)		(0.05	)		-			-			(0.04	)
Net realized losses/(gains) on investments		(0.05	)		(0.10	)		0.56			(0.64	)
Operating (loss)/income adjusted for preference shares dividend		$0.01			$1.02			($1.26	)		$2.94

The basic and diluted number of ordinary shares for the twelve months ended December 31, 2011 is the same, as the inclusion of dilutive securities in a loss-making period would be anti-dilutive.

* Preferred Income Equity Replacement Securities (PIERS)

27