Exhibit 99.1
Aspen Insurance Holdings Limited
May 3, 2007
Q1 2007 Earnings Conference Call
Safe Harbor Disclosure
This presentation is given in the context of the quarterly earnings conference call and contains non-GAAP measures. This slide presentation is for information purposes only. It should be read in
conjunction with our financial supplement posted on our website on the Investor Relations page and with other documents filed or to be filed shortly by Aspen Insurance Holdings Limited (the
“Company” or “Aspen”) with the U.S. Securities and Exchange Commission.
Non-GAAP Financial Measures
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 herein or in the financial supplement, as applicable,
which can be obtained from the Investor Relations section of Aspen's website at www.aspen.bm.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
This presentation contains, and Aspen's earnings conference call may contain, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws. These statements are
made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current
facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or
forward-looking nature.
All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those
indicated in these statements. Aspen believes these factors include, but are not limited to: the impact that our future operating results, capital position and rating agency and other considerations have
on the execution of any capital management initiatives; the impact of any capital management activities on our financial condition; the impact of acts of terrorism and related legislation and acts of war;
the possibility of greater frequency or severity of claims and loss activity, including as a result of natural or man-made catastrophic events such as Hurricanes Katrina, Rita and Wilma, than our
underwriting, reserving or investment practices have anticipated; evolving interpretive issues with respect to coverage as a result of Hurricanes Katrina, Rita and Wilma; the level of inflation in repair
costs due to limited availability of labor and materials after catastrophes; the effectiveness of Aspen's loss limitation methods; changes in the availability, cost or quality of reinsurance or retrocessional
coverage, which may affect our decision to purchase such coverage; the reliability of, and changes in assumptions to, catastrophe pricing, accumulation and estimated loss models; loss of key
personnel; a decline in our operating subsidiaries' ratings with Standard & Poor's, A.M. Best Company or Moody's Investors Service; changes in general economic conditions including inflation, foreign
currency exchange rates, interest rates and other factors that could affect our investment portfolio; the number and type of insurance and reinsurance contracts that we wrote at the January 1st and
other renewal periods in 2007 and the premium rates available at the time of such renewals within our targeted business lines; increased competition on the basis of pricing, capacity, coverage terms or
other factors; decreased demand for Aspen’s insurance or reinsurance products and cyclical downturn of the industry; changes in governmental regulations, interpretations or tax laws in jurisdictions
where Aspen conducts business; proposed and future changes to insurance laws and regulations, including with respect to U.S. state- and other government-sponsored reinsurance funds and primary
insurers; Aspen or its Bermudian subsidiary becoming subject to income taxes in the United States or the United Kingdom; the effect on insurance markets, business practices and relationships of
ongoing litigation, investigations and regulatory activity by the New York State Attorney General's office and other authorities concerning contingent commission arrangements with brokers and bid
solicitation activities; the total industry losses resulting from Hurricanes Katrina, Rita and Wilma and the actual number of Aspen's insureds incurring losses from these storms; and with respect to
Hurricanes Katrina, Rita and Wilma, Aspen’s continued reliance on loss reports received from cedants and loss adjustors, Aspen's reliance on industry loss estimates and those generated by modeling
techniques, the impact of these storms on Aspen's reinsurers, any changes in Aspen's reinsurers' credit quality, the amount and timing of reinsurance recoverables and reimbursements actually
received by Aspen from its reinsurers and the overall level of competition and the related demand and supply dynamics as contracts come up for renewal. For a more detailed description of these
uncertainties and other factors, please see the "Risk Factors" section in Aspen's Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on February 22, 2007. Aspen
undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the dates on which they are made.
2
Financial Highlights – First Quarter
(US$ in millions, except per share data)
Period Ended March 31
3
* Annualised
Diluted Operating
Earnings Per Ordinary Share $1.26 $0.59
Gross Written Premiums
2007
2006
$636.5
$678.7
Net Written Premiums
555.1
451.9
Net Earned Premiums
439.0
402.6
Underwriting Income
90.5
38.7
Net Investment Income
67.5
44.5
Net Income after tax
121.9
61.8
GAAP Ratios:
Loss Ratio
51.4%
57.7%
Expense Ratio
28.0%
32.7%
Combined Ratio
79.4%
90.4%
Full Year ROAE
22.9%*
13.3%*
Financial Highlights – Group Summary
Underwriting Revenues
679
227
452
403
637
81
555
439
0
200
400
600
800
GWP
Premiums
Ceded
NWP
NEP
$ms
2006 Q1
2007 Q1
Income
77
77
62
44
147
147
122
102
0
40
80
120
160
200
Operating
Income
Before Tax
Income
Before Tax
Income After
Tax
Retained
Income
$ms
2006 Q1
2007 Q1
Underwriting Income
39
91
0
40
80
120
Underwriting Income
$ms
2006 Q1
2007 Q1
134%
Underwriting Expenses
232
93
38
363
78
45
349
226
0
200
400
600
Losses &
Loss
Expenses
Acquisition
Exp
General &
Admin
Expenses
Total
Underwriting
Expenses
$ms
2006 Q1
2007 Q1
4
Results by Business Segment – Q1 2007
GWP
187
223
156
70
$ms
0
40
80
120
160
200
240
Property Re
Casualty Re
Specialty
Lines
P&C
Insurance
NWP
176
217
127
35
$ms
0
40
80
120
160
200
240
Property Re
Casualty Re
Specialty
Lines
P&C
Insurance
Underwriting Profit
44
16
20
10
10
$ms
20
0
40
Property Re
Casualty Re
Specialty
Lines
P&C
Insurance
Income Contribution
68
90
0
40
$ms
80
Net Investment Income
Underwriting Profit
5
Improvement in Investment Yield
(*) including cash and cash equivalents but excluding FoHF - Initial investments in Fund of Hedge Funds were made on April 1, 2006 with
subsequent investment on February 1, 2007.
3.0%
3.2%
3.4%
3.6%
3.8%
4.0%
4.2%
4.4%
4.6%
4.8%
5.0%
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Fixed Income portfolio book yield
Aggregate portfolio book yield
*
6
19%
18%
37%
7%
11%
2%
6%
Govt
Agency
AAA
AA+/AA/AA-
A+/A/A-
BBB+/BBB/BBB-
NR
Investment Portfolio
Asset Class Allocation
Portfolio Credit Ratings
(as at March 31, 2007)
AAA
AA+
Overall Fixed Income Rating
AAA
3%
Actual as at
December 31, 2006
AAA
Overall Portfolio Rating
6%
Fund of Hedge Funds
Actual as at
March 31, 2007
Indicator (S&P Ratings)
26%
4%
16%
5%
6%
18%
29%
6%
9%
4%
21%
6%
3%
22%
21%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Govt
Agency
MBS
CMBS
Corp
ABS
FOHF
Cash/ST
Mar 07
Dec 06
7
2007 Guidance
* Assumes no major losses or prior year reserve movements
Full 2007 Year Outlook
May 3, 2007
February 9, 2007
$135 million
16% to 19%
$230 – $250 million
83% – 88%*
6% – 8% of GWP
$1.9 billion+ 5%
$115 million
(remainder of year)
16% to 19%
$250 – $270 million
83% – 88%*
6% – 8% of GWP
$1.8 billion+ 5%
Tax Rate
Assumed Average Cat-Load
Investment Income
Combined Ratio
% Premium Ceded
GWP
Implied ROE of 16% – 20%
8