Aspen Insurance Holdings Limited (AHL-PE) 8-K Aspen Insurance Holdings Limited Reports Third Quarter 2006 Earnings

Exhibit 99.2

ASPEN INSURANCE HOLDINGS LIMITED
EARNINGS RELEASE SUPPLEMENT
AS OF SEPTEMBER 30, 2006

INDEX TO SUPPLEMENT

			PAGE
BASIS OF PREPARATION					2
INCOME STATEMENTS					3
CONSOLIDATED BALANCE SHEETS					4
PER SHARE DATA					5
FINANCIAL RATIOS					6
UNDERWRITING RESULTS BY OPERATING SEGMENT					7
CONSOLIDATED CHANGE IN SHAREHOLDERS' EQUITY					13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME					14
SUMMARIZED CASH FLOWS					14
SUPPLEMENTAL FINANCIAL INFORMATION					15

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

BASIS OF PREPARATION

Definitions and presentation: All financial information contained herein is unaudited except for information for the 12 months ended December 31, 2005. Unless otherwise noted, all data is in US dollars millions, except for per share, percentage and ratio information.

In presenting the Company'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 the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company'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 the Company in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses.

The Company excludes after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses 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. The Company 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, the Company believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company's results of operations in a manner similar to how management analyzes the Company's underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see page 22 for a reconciliation of operating income to net income.

Annualized Operating Return on Average Equity (‘‘Operating ROAE ’’) (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. Unrealized appreciation (depreciation) on investments is primarily the result of interest rate movements 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 British pound. Such appreciation (depreciation) is not related to management actions or operational performance (nor is it likely to be realized). Therefore the Company 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. The Company presents Operating ROAE 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 for a reconciliation of operating income to net income and page 15 for a reconciliation of average equity.

Diluted book value per ordinary share ( a non-GAAP financial measure):    The Company has included diluted book value per ordinary share because it takes into account the effect of dilutive securities; therefore, the Company believes it is a better measure of calculating shareholder returns than book value per share. Please see page 22 for a reconciliation of diluted book value per share to basic book value per share.

Underwriting ratios ( are GAAP financial measures):    The Company, 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 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.

Page 2 of 22

INCOME STATEMENTS

The following table summarizes the company’s financial performance for the three and nine months ended September 30, 2006 compared to the three and nine months ended September 30, 2005

(in US$ millions)			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
UNDERWRITING REVENUES
Gross premiums written					457.5						494.0						1,658.6						1,847.5
Premiums ceded					(24.0	)					(149.5	)					(273.1	)					(384.0	)
Net premiums written					433.5						344.5						1,385.5						1,463.5
Change in unearned premiums					(4.2	)					34.9						(124.6	)					(310.4	)
Net premiums earned					429.3						379.4						1,260.9						1,153.1
UNDERWRITING EXPENSES
Losses and loss expenses					(232.0	)					(683.0	)					(688.2	)					(1,086.3	)
Acquisition expenses					(78.9	)					(71.1	)					(255.4	)					(218.4	)
General and administrative expenses					(36.8	)					(31.5	)					(118.0	)					(90.6	)
Total underwriting expenses					(347.7	)					(785.6	)					(1,061.6	)					(1,395.3	)
Underwriting income (loss)					81.6						(406.2	)					199.3						(242.2	)
OTHER OPERATING REVENUE
Net investment income					47.3						29.4						141.7						82.0
Interest expense					(4.6	)					(4.3	)					(12.5	)					(12.2	)
Total other operating revenue					42.7						25.1						129.2						69.8
Other expense					(7.1	)					(4.8	)					(9.6	)					(9.2	)
OPERATING INCOME (LOSS) BEFORE TAX					117.2						(385.9	)					318.9						(181.6	)
OTHER
Net realized exchange gains (losses)					2.5						(3.9	)					10.4						(8.7	)
Net realized investment losses					(1.0	)					(1.4	)					(6.1	)					(1.4	)
INCOME (LOSS) BEFORE INCOME TAX					118.7						(391.2	)					323.2						(191.7	)
Income taxes (expense) / benefit					(23.7	)					29.2						(64.6	)					(16.4	)
NET INCOME (LOSS) AFTER TAX					95.0						(362.0	)					258.6						(208.1	)
Dividends paid on ordinary shares					(14.4	)					(10.4	)					(42.9	)					(31.2	)
Dividend declared on preference shares					(3.2	)					0.0						(10.4	)					0.0
Retained income (loss)					77.4						(372.4	)					205.3						(239.3	)
Components of net income (loss) (after tax)
Operating income (loss)					93.5						(357.1	)					253.5						(198.4	)
Net realized exchange gains (losses) (after tax)					2.5						(3.9	)					10.4						(8.7	)
Net realized investment losses (after tax)					(1.0	)					(1.0	)					(5.3	)					(1.0	)
NET INCOME (LOSS) AFTER TAX					95.0						(362.0	)					258.6						(208.1	)

Page 3 of 22

CONSOLIDATED BALANCE SHEETS

(in US$ millions)			As at September 30, 2006						As at December 31, 2005
ASSETS
Investments
Fixed maturities					3,766.7						3,046.1
Short-term investments					502.2						643.0
Other investments					150.0						0.0
Total investments					4,418.9						3,689.1
Cash and cash equivalents					411.5						748.3
Reinsurance recoverables
Unpaid losses					788.3						1,192.7
Ceded unearned premiums					93.8						72.7
Receivables
Underwriting premiums					814.3						541.4
Other					46.4						55.7
Deferred policy acquisition costs					166.6						156.2
Derivative at fair value					12.6						40.5
Office properties and equipment					23.0						22.8
Other assets					13.9						10.2
Intangible assets					8.2						8.2
Total assets					6,797.5						6,537.8
LIABILITIES
Insurance reserves
Losses and loss adjustment expenses					2,989.3						3,041.6
Unearned premiums					1,032.1						868.0
Total insurance reserves					4,021.4						3,909.6
Payables
Reinsurance premiums					51.6						155.0
Taxation					69.0						32.7
Accrued expenses and other payables					85.5						139.4
Liabilities under derivative contracts					5.9						12.0
Total payables					212.0						339.1
Long-term debt					249.4						249.3
Total liabilities					4,482.8						4,498.0
SHAREHOLDERS’ EQUITY
Ordinary shares					1,700.8						1,693.3
Preference shares					222.9						193.8
Retained earnings					349.5						144.2
Accumulated other comprehensive income, net of taxes					41.5						8.5
Total shareholders’ equity					2,314.7						2,039.8
Total liabilities and shareholders’ equity					6,797.5						6,537.8

Page 4 of 22

PER SHARE DATA

(in US$ except for number of shares)			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Basic earnings per ordinary share
Net income (loss) adjusted for preference share dividend					0.96						(5.22	)					2.61						(3.00	)
Operating income (loss) adjusted for preference dividend					0.95						(5.15	)					2.55						(2.86	)
Diluted earnings per ordinary share
Net income (loss) adjusted for preference share dividend					0.94						(5.22	)					2.55						(3.00	)
Operating income (loss) adjusted for preference dividend					0.93						(5.15	)					2.50						(2.86	)
Weighted average ordinary shares outstanding					95,253,714						69,343,435						95,249,041						69,339,484
Weighted average ordinary shares outstanding and dilutive potential ordinary shares					97,321,137						69,343,435						97,238,516						69,339,484
Book value per ordinary share																	21.87						17.53
Diluted book value (treasury stock method)																	21.41						17.53
Ordinary shares outstanding at end of the period																	95,260,798						69,342,486
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period																	97,338,272						69,342,486

     See pages 15, 21 and 22 for detailed calculation and reconciliation of non-GAAP measures to their respective most directly comparable GAAP financial measures.

Page 5 of 22

FINANCIAL RATIOS

			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
(in US$ millions except for percentage figures)
Average equity					2,034						1,353						2,015						1,445
Return on average equity
Net income (loss) adjusted for preference share dividend					4.5	%					(26.8	%)					12.3	%					(14.4	%)
Operating income (loss) adjusted for preference share dividend					4.4	%					(26.4	%)					12.1	%					(13.7	%)
Loss ratio					54.0	%					180.0	%					54.6	%					94.2	%
Expense ratio					27.0	%					27.1	%					29.6	%					26.8	%
Combined ratio					81.0	%					207.1	%					84.2	%					121.0	%
Debt to total capital					9.7	%					16.9	%					9.7	%					16.9	%

See pages 15, 21 and 22 for detailed calculation and reconciliation of non-GAAP measures to their respective most directly comparable GAAP financial measures.

Average equity excludes the average after tax unrealized appreciation or depreciation on investments and the average after tax unrealized foreign exchange gains or losses.

Page 6 of 22

UNDERWRITING RESULTS BY OPERATING SEGMENT

The following tables summarize gross and net written and earned premium, losses and loss expenses, policy acquisition, operating and administrative expenses, underwriting results, reserves and combined ratios for each of our four business segments for the three and nine months ended September 30, 2006 and 2005.    

			Three Months Ended September 30, 2006																														Three Months Ended September 30, 2005
			Property Reinsurance						Casualty Reinsurance						Specialty Insurance and Reinsurance						Property and Casualty Insurance						Total						Property Reinsurance						Casualty Reinsurance						Specialty Insurance and Reinsurance						Property and Casualty Insurance						Total
(in US$ millions)
Gross premiums written					196.4						96.6						77.7						86.8						457.5						256.0						81.5						57.3						99.2						494.0
Net premiums written					189.3						96.2						70.7						77.3						433.5						144.6						81.2						43.5						75.2						344.5
Gross premiums earned					173.6						132.0						117.1						90.8						513.5						212.3						125.9						79.7						106.7						524.6
Net premiums earned					126.9						128.3						104.6						69.5						429.3						112.5						121.3						72.1						73.5						379.4
Losses and loss expenses					(58.3	)					(82.0	)					(44.1	)					(47.6	)					(232.0	)					(463.3	)					(83.1	)					(71.5	)					(65.1	)					(683.0	)
Policy acquisition, operating and administration expenses					(41.0	)					(27.6	)					(26.3	)					(20.8	)					(115.7	)					(33.1	)					(29.0	)					(21.5	)					(19.0	)					(102.6	)
Underwriting profit (loss)					27.6						18.7						34.2						1.1						81.6						(383.9	)					9.2						(20.9	)					(10.6	)					(406.2	)
Net reserves for loss and loss adjustment expenses					565.7						887.6						303.8						443.9						2,201.0						635.2						608.5						202.6						407.5						1,853.8
Ratios
Loss ratio					46.0	%					63.9	%					42.2	%					68.5	%					54.0	%					411.8	%					68.5	%					99.2	%					88.6	%					180.0	%
Expense ratio					32.3	%					21.5	%					25.1	%					29.9	%					27.0	%					29.4	%					23.9	%					29.8	%					25.8	%					27.1	%
Combined ratio					78.3	%					85.4	%					67.3	%					98.4	%					81.0	%					441.2	%					92.4	%					129.0	%					114.4	%					207.1	%

Page 7 of 22

			Nine Months Ended September 30, 2006																														Nine Months Ended September 30, 2005
			Property Reinsurance						Casualty Reinsurance						Specialty Insurance and Reinsurance						Property and Casualty Insurance						Total						Property Reinsurance						Casualty Reinsurance						Specialty Insurance and Reinsurance						Property and Casualty Insurance						Total
(in US$ millions)
Gross premiums written					554.8						435.8						399.9						268.1						1,658.6						754.8						482.5						301.7						308.5						1,847.5
Net premiums written					417.0						419.3						345.9						203.3						1,385.5						492.0						464.7						266.4						240.4						1,463.5
Gross premiums earned					510.2						376.6						346.6						281.9						1,515.3						562.8						364.8						199.9						289.1						1,416.6
Net premiums earned					376.9						364.8						301.4						217.8						1,260.9						396.1						350.7						177.7						228.6						1,153.1
Losses and loss expenses					(153.5	)					(210.3	)					(172.7	)					(151.7	)					(688.2	)					(554.6	)					(248.7	)					(124.5	)					(158.5	)					(1,086.3	)
Policy acquisition, operating and administration expenses					(139.6	)					(91.4	)					(83.2	)					(59.2	)					(373.4	)					(123.0	)					(80.7	)					(46.6	)					(58.7	)					(309.0	)
Underwriting profit (loss)					83.8						63.1						45.5						6.9						199.3						(281.5	)					21.3						6.6						11.4						(242.2	)
Net reserves for loss and loss adjustment expenses					565.7						887.6						303.8						443.9						2,201.0						635.2						608.5						202.6						407.5						1,853.8
Ratios
Loss ratio					40.7	%					57.6	%					57.3	%					69.6	%					54.6	%					140.0	%					70.9	%					70.1	%					69.3	%					94.2	%
Expense ratio					37.1	%					25.1	%					27.6	%					27.2	%					29.6	%					31.1	%					23.0	%					26.2	%					25.7	%					26.8	%
Combined ratio					77.8	%					82.7	%					84.9	%					96.8	%					84.2	%					171.1	%					93.9	%					96.3	%					95.0	%					121.0	%

Page 8 of 22

SPECIALTY INSURANCE AND REINSURANCE

			Three Months Ended September 30, 2006																		Three Months Ended September 30, 2005
			Specialty Insurance						Specialty Reinsurance						Total						Specialty Insurance						Specialty Reinsurance						Total
(in US$ millions)
Gross premiums written					69.0						8.7						77.7						51.0						6.3						57.3
Net premiums written					62.4						8.3						70.7						42.5						1.0						43.5
Gross premiums earned					97.2						19.9						117.1						54.0						25.7						79.7
Net premiums earned					85.4						19.2						104.6						47.2						24.9						72.1
Losses and loss expenses					(47.9	)					3.8	(1)					(44.1	)					(45.5	)					(26.0	)					(71.5	)
Policy acquisition, operating and administration expenses					(22.2	)					(4.1	)					(26.3	)					(14.4	)					(7.1	)					(21.5	)
Underwriting profit (loss)					15.3						18.9						34.2						(12.7	)					(8.2	)					(20.9	)
Ratios
Loss ratio					56.1	%					(19.8	)%(1)					42.2	%					96.4	%					104.4	%					99.2	%
Expense ratio					26.0	%					21.5	%					25.1	%					30.5	%					28.5	%					29.8	%
Combined ratio					82.1	%					1.7	%					67.3	%					126.9	%					132.9	%					129.0	%

(1)	The positive losses and loss expenses and loss ratio are due to the release of prior year reserves.

Page 9 of 22

SPECIALTY INSURANCE AND REINSURANCE

			Nine Months Ended September 30, 2006																		Nine Months Ended September 30, 2005
			Specialty Insurance						Specialty Reinsurance						Total						Specialty Insurance						Specialty Reinsurance						Total
(in US$ millions)
Gross premiums written					316.1						83.8						399.9						214.2						87.5						301.7
Net premiums written					264.4						81.5						345.9						184.9						81.5						266.4
Gross premiums earned					277.3						69.3						346.6						114.6						85.3						199.9
Net premiums earned					234.0						67.4						301.4						94.1						83.6						177.7
Losses and loss expenses					(157.4	)					(15.3	)					(172.7	)					(83.4	)					(41.1	)					(124.5	)
Policy acquisition, operating and administration expenses					(66.2	)					(17.0	)					(83.2	)					(27.7	)					(18.9	)					(46.6	)
Underwriting profit (loss)					10.4						35.1						45.5						(17.0	)					23.6						6.6
Ratios
Loss ratio					67.3	%					22.7	%					57.3	%					88.6	%					49.2	%					70.1	%
Expense ratio					28.3	%					25.2	%					27.6	%					29.5	%					22.6	%					26.2	%
Combined ratio					95.6	%					47.9	%					84.9	%					118.1	%					71.8	%					96.3	%

Page 10 of 22

PROPERTY AND CASUALTY INSURANCE

			Three Months Ended September 30, 2006																		Three Months Ended September 30, 2005
			Property Insurance						Casualty Insurance						Total						Property Insurance						Casualty Insurance						Total
(in US$ millions)
Gross premiums written					34.0						52.8						86.8						34.2						65.0						99.2
Net premiums written					31.2						46.1						77.3						16.3						58.9						75.2
Gross premiums earned					36.4						54.4						90.8						38.1						68.6						106.7
Net premiums earned					21.7						47.8						69.5						13.1						60.4						73.5
Losses and loss expenses					(17.1	)					(30.5	)					(47.6	)					(30.2	)					(34.9	)					(65.1	)
Policy acquisition, operating and administration expenses					(9.8	)					(11.0	)					(20.8	)					(6.5	)					(12.5	)					(19.0	)
Underwriting profit (loss)					(5.2	)					6.3						1.1						(23.6	)					13.0						(10.6	)
Ratios
Loss ratio					78.8	%					63.8	%					68.5	%					230.6	%					57.8	%					88.6	%
Expense ratio					45.2	%					23.0	%					29.9	%					49.6	%					20.7	%					25.8	%
Combined ratio					124.0	%					86.8	%					98.4	%					280.2	%					78.5	%					114.4	%

Page 11 of 22

PROPERTY AND CASUALTY INSURANCE

			Nine Months Ended September 30, 2006																		Nine Months Ended September 30, 2005
			Property Insurance						Casualty Insurance						Total						Property Insurance						Casualty Insurance						Total
(in US$ millions)
Gross premiums written					107.8						160.3						268.1						111.9						196.6						308.5
Net premiums written					61.2						142.1						203.3						65.1						175.3						240.4
Gross premiums earned					108.4						173.5						281.9						89.9						199.2						289.1
Net premiums earned					65.4						152.4						217.8						51.5						177.1						228.6
Losses and loss expenses					(56.4	)					(95.3	)					(151.7	)					(49.9	)					(108.6	)					(158.5	)
Policy acquisition, operating and administration expenses					(24.7	)					(34.5	)					(59.2	)					(18.8	)					(39.9	)					(58.7	)
Underwriting profit (loss)					(15.7	)					22.6						6.9						(17.2	)					28.6						11.4
Ratios
Loss ratio					86.2	%					62.5	%					69.6	%					96.9	%					61.3	%					69.3	%
Expense ratio					37.8	%					22.7	%					27.2	%					36.5	%					22.6	%					25.7	%
Combined ratio					124.0	%					85.2	%					96.8	%					133.4	%					83.9	%					95.0	%

Page 12 of 22

CONSOLIDATED CHANGE IN SHAREHOLDERS' EQUITY    

(in US$ millions)			Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Ordinary shares
Beginning of period					1,693.3						1,096.1
Shares issued
New share issues					0.1						0.3
Share-based compensation					7.4						3.8
End of period					1,700.8						1,100.2
Preference shares
Beginning of period					193.8						0.0
New share issues					29.2						0.0
New share issue costs					(0.1	)					0.0
End of period					222.9						0.0
Retained earnings
Beginning of period					144.2						367.5
Net income (loss) for the period					258.6						(208.1	)
Dividends paid on ordinary shares					(42.9	)					(31.2	)
Dividend declared on preference shares					(10.4	)					0.0
End of period					349.5						128.2
Cumulative foreign currency translation adjustments
Beginning of period					42.8						27.9
Change for the period					30.0						0.1
End of period					72.8						28.0
Gain (loss) on derivatives
Beginning of period					(2.0	)					(2.2	)
Reclassification to interest payable					0.1						0.1
End of period					(1.9	)					(2.1	)
Unrealized (losses) on investments, net of taxes
Beginning of period					(32.3	)					(7.8	)
Change for the period					1.5						(22.6	)
Reclassification to net realized gains (losses)					1.4						0.0
End of period					(29.4	)					(30.4	)
Total accumulated other comprehensive income (loss)					41.5						(4.5	)
Total shareholders' equity					2,314.7						1,223.9

Page 13 of 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in US$ millions)			Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Net income (loss)					258.6						(208.1	)
Other comprehensive income (loss), net of taxes
Reclassification adjustment for net realized gains included in net income (loss)					1.4						(1.7	)
Change in unrealized gains (losses) on investments					1.5						(20.9	)
Loss on derivatives reclassified to interest expense					0.1						0.1
Change in unrealized gains (losses) on foreign currency translation					30.0						0.1
Other comprehensive income (loss)					33.0						(22.4	)
Comprehensive income (loss)					291.6						(230.5	)

SUMMARIZED CASH FLOWS

(in US$ millions)			Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Net cash from operating activities					371.8						605.9
Net cash from investing activities					(697.7	)					(486.5	)
Net cash from financing activities					(24.1	)					(30.8	)
Effect of exchange rate movements on cash and cash equivalents					13.2						(4.1	)
Increase (decrease) in cash and cash equivalents					(336.8	)					84.5
Cash at beginning of the period					748.3						284.9
Cash at end of the period					411.5						369.4

Page 14 of 22

SUPPLEMENTAL FINANCIAL INFORMATION

Return on Average Equity Analysis

The following table presents the return on average equity for the three and nine months ended September 30, 2006 and 2005:

(in US$ millions except for percentages)			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Closing shareholders' equity					2,315						1,224						2,315						1,224
Average adjustment					(281	)					129						(300	)					221
Average equity (1)					2,034						1,353						2,015						1,445
Return on average equity from underwriting activity (2)					4.0	%					(30.0	%)					9.9	%					(16.8	%)
Return on average equity from investment and other activity (3)					1.6	%					1.5	%					5.4	%					4.2	%
Pre-tax operating income (loss) return on average equity, for period					5.6	%					(28.5	%)					15.3	%					(12.6	%)
Post-tax return on average equity (4)					4.4	%					(26.4	%)					12.1	%					(13.7	%)
Ratios
Combined ratio					81.0	%					207.1	%					84.2	%					121.0	%

See page 22 for detailed calculation and reconciliation of non-GAAP measures to their respective most directly comparable GAAP finance measures.

1)	Average equity is calculated by taking the simple average at latest month end and each previous month end in the period of the closing shareholders' equity excluding (i) preference shares, (ii) after tax unrealized appreciation or depreciation on investments and (iii) the average after tax unrealized foreign exchange gains and losses.

2)	Calculated by using underwriting income.

3)	Calculated by using total other operating revenue and other expense adjusted for preference share dividend.

4)	Calculated by using operating income after tax adjusted for preference share dividend.

Page 15 of 22

INVESTMENT PORTFOLIO

(in US$ millions)			As at September 30, 2006
Fixed maturities			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
U.S. government and agencies					1,519.9						2.0						(26.3	)					1,495.6
Corporate securities					995.1						2.7						(11.8	)					986.0
Foreign government					413.6						0.3						(4.4	)					409.5
Municipals					1.6						0.0						0.0						1.6
Asset-backed securities					268.1						0.3						(2.5	)					265.9
Mortgage-backed securities					611.5						3.8						(7.2	)					608.1
Total fixed maturities					3,809.8						9.1						(52.2	)					3,766.7
Short-term investments					502.5						1.1						(1.4	)					502.2
Other investments					150.0						0.0						0.0						150.0
Total Investments					4,462.3						10.2						(53.6	)					4,418.9

Page 16 of 22

RESERVES FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table represents a reconciliation of beginning and ending consolidated loss and loss expense reserves:

(in US$ millions)			Nine Months Ended September 30, 2006						Twelve Months Ended December 31, 2005
Provision for losses and loss expenses at period start January 1, 2006 and 2005 respectively					3,041.6						1,277.9
Less reinsurance recoverable					(1,192.7	)					(197.7	)
Net loss and loss expenses at period start January 1, 2006 and 2005					1,848.9						1,080.2
Loss reserve portfolio transfer					0.7						26.2
Provision for losses and loss expenses for claims incurred
Current year					746.3						1,409.1
Prior year (release)					(58.1	)					(50.6	)
Total incurred					688.2						1,358.5
Losses and loss expense payments for claims incurred					(399.6	)					(551.9	)
Foreign exchange (gains) losses					62.8						(64.1	)
Net loss and loss expense reserves at September 30, 2006 and December 31, 2005					2,201.0						1,848.9
Plus reinsurance recoverables on unpaid loss at end of period					788.3						1,192.7
Gross loss and loss expense reserves at September 30, 2006 and December 31, 2005					2,989.3						3,041.6

Page 17 of 22

RESERVES BY BUSINESS SEGMENT

The following table presents our reserves as at September 30, 2006 and December 31, 2005:

(in US$ millions)			As at September 30, 2006																		As at December 31, 2005
			Gross						Reinsurance Recoverable						Net						Gross						Reinsurance Recoverable						Net
Property reinsurance					892.9						(327.2	)					565.7						1,266.7						(666.9	)					599.8
Casualty reinsurance					897.4						(9.8	)					887.6						683.4						(8.6	)					674.8
Specialty insurance and reinsurance					590.2						(286.4	)					303.8						526.5						(319.3	)					207.2
Property and casualty insurance					608.8						(164.9	)					443.9						565.0						(197.9	)					367.1
Total losses and loss expense reserves					2,989.3						(788.3	)					2,201.0						3,041.6						(1,192.7	)					1,848.9

Page 18 of 22

MOVEMENTS IN PRIOR YEAR RESERVES

The following table presents the movements in the net reserves for loss and loss adjustment expenses in prior years that have been made during the three and nine months ended September 30, 2006:

(in US$ millions)			Three Months Ended September 30, 2006																		Nine Months Ended September 30, 2006
			Total						2005 Hurricanes						Other Events						Total						2005 Hurricanes						Other Events
Property reinsurance					(14.8	)					(12.1	)					(2.7	)					(33.5	)					(34.2	)					0.7
Casualty reinsurance					7.2						0.0						7.2						54.2						0.0						54.2
Specialty insurance and reinsurance					2.9						(3.2	)					6.1						4.1						(15.8	)					19.9
Property and casualty insurance					17.1						0.9						16.2						33.3						(1.3	)					34.6
Prior year (increase) / release in reserves for the three and nine months ended September 30, 2006 (1)					12.4						(14.4	)					26.8						58.1						(51.3	)					109.4

(1)	Amounts shown as negatives in parentheses represent a strengthening of reserves.

Page 19 of 22

REINSURER SECURITY RATING

     The following tables show our reinsurance recoverables and our reinsurers’ ratings as at September 30, 2006:

(in US$ millions except for percentages)			As at September 30, 2006
S&P
AAA					81.4						10.3	%
AA+					1.8						0.2	%
AA					16.5						2.1	%
AA−					83.0						10.5	%
A+					38.5						4.9	%
A					305.0						38.7	%
A−					148.9						18.9	%
BBB+					0.0						0.0	%
Fully collaterised					76.6						9.7	%
Not rated					36.6						4.7	%
					788.3						100.0	%
A.M. Best
A++					81.4						10.3	%
A+					62.2						7.9	%
A					390.0						49.5	%
A−					148.9						18.9	%
B+					0.0						0.0	%
Fully collaterised					76.6						9.7	%
Not rated					29.2						3.7	%
					788.3						100.0	%

Page 20 of 22

DILUTED SHARE ANALYSIS USED FOR EPS CALCULATION

(shares in millions)			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Basic weighted average ordinary shares outstanding					95.254						69.343						95.249						69.339
Add: weighted average of employee options					1.490						0.000						1.433						0.000
Add: weighted average of options issued to Wellington Investment Holding (Jersey) Limited					0.330						0.000						0.330						0.000
Add: weighted average of options issued to Appleby Trust (Bermuda) Limited					0.122						0.000						0.121						0.000
Add: weighted average of restricted share units					0.125						0.000						0.106						0.000
Diluted weighted average ordinary shares outstanding					97.321						69.343						97.239						69.339

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 repurchase the Company's ordinary shares at the average market price during the period of calculation. In a loss making period the number of potentially dilutive ordinary shares is considered to be zero.

Page 21 of 22

OPERATING INCOME RECONCILIATION

The reconciliation of operating income to net income is set out in the following table for the three and nine months ended September 30, 2006 and 2005:

(in US$ millions except where stated)			Three Months Ended September 30, 2006						Three Months Ended September 30, 2005						Nine Months Ended September 30, 2006						Nine Months Ended September 30, 2005
Net income (loss) adjusted for preference share dividend					91.8						(362.0	)					248.2						(208.1	)
Add (deduct) after tax income (loss):
Net exchange (gains) losses					(2.5	)					3.9						(10.4	)					8.7
Net realized (gains) losses on investments					1.0						1.0						5.3						1.0
Operating income (loss) adjusted for preference share dividend					90.3						(357.1	)					243.1						(198.4	)
Tax on operating income (loss)					(23.7	)					28.8						(65.4	)					(16.8	)
Operating income (loss) before tax adjusted for preference share dividend					114.0						(385.9	)					308.5						(181.6	)
Weighted average ordinary shares outstanding (millions)
Basic					95.3						69.3						95.2						69.3
Diluted					97.3						69.3						97.2						69.3
Basic per ordinary share data			$						$						$						$
Net income (loss) adjusted for preference share dividend					0.96						(5.22	)					2.61						(3.00	)
Add (deduct) after tax income (loss)
Net exchange (gains) losses					(0.02	)					0.01						(0.11	)					0.01
Net realized (gains) losses on investments					0.01						0.06						0.05						0.13
Operating income (loss) adjusted for preference shares dividend					0.95						(5.15	)					2.55						(2.86	)
Diluted per ordinary share data
Net income (loss) adjusted for preference share dividend					0.94						(5.22	)					2.55						(3.00	)
Add (deduct) after tax income (loss)
Net exchange (gains) losses					(0.02	)					0.01						(0.11	)					0.01
Net realized (gains) losses on investments					0.01						0.06						0.06						0.13
Operating income (loss) adjusted for preference share dividend					0.93						(5.15	)					2.50						(2.86	)
Book value per ordinary share
Net assets (excluding intangible assets and preference shares)																	2,083.6						1,215.7
Number of ordinary shares in issue at the end of the period																	95,260,798						69,342,486
Diluted number of ordinary shares in issue at the end of the period																	97,338,272						69,342,486
															$						$
Book value per ordinary share																	21.87						17.53
Diluted book value per ordinary share																	21.41						17.53

Page 22 of 22