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

Exhibit 99.2

ASPEN INSURANCE HOLDINGS LIMITED
EARNINGS RELEASE SUPPLEMENT
AS OF JUNE 30, 2007

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 fiscal year ended December 31, 2006. 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 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 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 (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 US 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 six months ended June 30, 2007 compared to the three and six months ended June 30, 2006

(in US$ millions)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
UNDERWRITING REVENUES
Gross written premiums					503.5						522.4						1,140.0						1,201.1
Premiums ceded					(85.0	)					(22.3	)					(166.4	)					(249.1	)
Net written premiums					418.5						500.1						973.6						952.0
Change in unearned premiums					32.7						(71.1	)					(83.4	)					(120.4	)
Net earned premiums					451.2						429.0						890.2						831.6
UNDERWRITING EXPENSES
Losses and loss expenses					(272.7	)					(223.8	)					(498.2	)					(456.2	)
Acquisition expenses					(81.7	)					(83.2	)					(159.4	)					(176.5	)
General and administrative expenses					(44.4	)					(43.0	)					(89.7	)					(81.2	)
Total underwriting expenses					(398.8	)					(350.0	)					(747.3	)					(713.9	)
Underwriting income					52.4						79.0						142.9						117.7
OTHER OPERATING REVENUE
Net investment income					78.8						49.9						146.3						94.4
Interest expense					(4.4	)					(4.0	)					(8.6	)					(7.9	)
Total other operating revenue					74.4						45.9						137.7						86.5
Other income (expense)					1.9						(0.6	)					(5.4	)					(2.5	)
OPERATING INCOME BEFORE TAX					128.7						124.3						275.2						201.7
OTHER
Net realized exchange gains					8.0						6.6						13.5						7.9
Net realized investment losses					(5.6	)					(3.7	)					(10.4	)					(5.1	)
INCOME BEFORE TAX					131.1						127.2						278.3						204.5
Income taxes expense					(16.4	)					(25.4	)					(41.7	)					(40.9	)
NET INCOME AFTER TAX					114.7						101.8						236.6						163.6
Dividends paid on ordinary shares					(13.2	)					(14.3	)					(26.4	)					(28.6	)
Dividend paid on preference shares					(7.0	)					(3.2	)					(13.9	)					(7.1	)
Retained income					94.5						84.3						196.3						127.9
Components of net income (after tax)
Operating income					110.8						98.3						231.4						160.0
Net realized exchange gains (after tax)					8.0						6.6						13.5						7.9
Net realized investment losses (after tax)					(4.1	)					(3.1	)					(8.3	)					(4.3	)
NET INCOME AFTER TAX					114.7						101.8						236.6						163.6

Page 3 of 22

CONSOLIDATED BALANCE SHEETS

(in US$ millions)			As at June 30, 2007						As at December 31, 2006
ASSETS
Investments
Fixed maturities					4,083.9						3,828.7
Other investments					481.6						156.9
Short-term investments					492.1						695.5
Total investments					5,057.6						4,681.1
Cash and cash equivalents					397.9						495.0
Reinsurance recoverables
Unpaid losses					324.4						468.3
Ceded unearned premiums					130.2						29.8
Receivables
Underwriting premiums					904.0						688.1
Other					48.8						62.2
Deferred policy acquisition costs					166.3						141.4
Derivatives at fair value					27.2						33.8
Office properties and equipment					24.9						24.6
Other assets					13.3						7.6
Intangible assets					8.2						8.2
Total assets					7,102.8						6,640.1
LIABILITIES
Insurance reserves
Losses and loss adjustment expenses					2,854.5						2,820.0
Unearned premiums					1,028.8						841.3
Total insurance reserves					3,883.3						3,661.3
Payables
Reinsurance premiums					132.2						62.4
Taxation					90.2						61.8
Accrued expenses and other payables					134.3						186.2
Liabilities under derivative contracts					22.4						29.7
Total payables					379.1						340.1
Long-term debt					249.4						249.4
Total liabilities					4,511.8						4,250.8
SHAREHOLDERS’ EQUITY
Ordinary shares					0.1						0.1
Preference shares					—						—
Additional paid-in capital					1,933.8						1,921.7
Retained earnings					646.8						450.5
Accumulated other comprehensive income, net of taxes					10.3						17.0
Total shareholders’ equity					2,591.0						2,389.3
Total liabilities and shareholders’ equity					7,102.8						6,640.1

Page 4 of 22

PER SHARE DATA

(in US$ except for number of shares)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Basic earnings per ordinary share
Net income adjusted for preference share dividend					1.22						1.04						2.53						1.64
Operating income adjusted for preference dividend					1.18						1.00						2.47						1.61
Diluted earnings per ordinary share
Net income adjusted for preference share dividend					1.19						1.01						2.46						1.61
Operating income adjusted for preference dividend					1.14						0.98						2.40						1.57
Weighted average ordinary shares outstanding					88,204,654						95,250,409						88,013,841						95,246,684
Weighted average ordinary shares outstanding and dilutive potential ordinary shares					90,826,560						97,332,916						90,633,531						97,243,409
Book value per ordinary share																	24.44						20.19
Diluted book value (treasury stock method)																	23.63						19.76
Ordinary shares outstanding at end of the period																	88,544,590						95,250,451
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period																	91,553,439						97,334,195

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 June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
(in US$ millions except for percentage figures)
Average equity					2,109						1,921						2,057						2,001
Return on average equity
Net income adjusted for preference share dividend					5.1	%					5.1	%					10.8	%					7.8	%
Operating income adjusted for preference share dividend					4.9	%					4.9	%					10.6	%					7.6	%
Annualized Return on Average Equity (1)
Net income					20.4	%					20.4	%					21.7	%					15.6	%
Operating income					19.7	%					19.6	%					21.1	%					15.2	%
Loss ratio					60.5	%					52.2	%					55.9	%					54.8	%
Policy acquisition expense ratio					18.1	%					19.4	%					17.9	%					21.2	%
Operating and administration expense ratio					9.8	%					10.0	%					10.1	%					9.8	%
Expense ratio					27.9	%					29.4	%					28.0	%					31.0	%
Combined ratio					88.4	%					81.6	%					83.9	%					85.8	%
Debt to total capital					8.8	%					10.4	%					8.8	%					10.4	%

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.

(1) Annualized return on average equity for the quarter is calculated as four times the return on average equity for the quarter; and for the period to date calculated as twice the return on average equity for the six months to date.

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 six months ended June 30, 2007 and 2006.    

			Three Months Ended June 30, 2007																														Three Months Ended June 30, 2006
			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 written premiums					184.8						79.4						155.4						83.9						503.5						195.5						63.8						168.0						95.1						522.4
Net written premiums					110.1						78.1						152.1						78.2						418.5						191.5						57.5						169.6						81.5						500.1
Gross earned premiums					147.1						127.8						128.4						78.8						482.1						182.4						112.6						116.6						96.7						508.3
Net earned premiums					141.1						125.7						118.5						65.9						451.2						142.8						107.9						101.0						77.3						429.0
Losses and loss expenses					(62.6	)					(91.7	)					(76.7	)					(41.7	)					(272.7	)					(47.5	)					(40.9	)					(84.1	)					(51.3	)					(223.8	)
Policy acquisition expenses					(30.8	)					(17.2	)					(23.4	)					(10.3	)					(81.7	)					(36.8	)					(17.3	)					(18.7	)					(10.4	)					(83.2	)
Operating and administration expenses					(15.5	)					(10.2	)					(9.9	)					(8.8	)					(44.4	)					(12.4	)					(10.5	)					(9.8	)					(10.3	)					(43.0	)
Underwriting profit (loss)					32.2						6.6						8.5						5.1						52.4						46.1						39.2						(11.6	)					5.3						79.0
Net reserves for loss and loss adjustment expenses					550.7						1,107.1						381.8						490.5						2,530.1						383.4						805.9						291.0						364.6						1,844.9
Ratios
Loss ratio					44.4	%					72.9	%					64.7	%					63.3	%					60.5	%					33.3	%					37.9	%					83.2	%					66.3	%					52.2	%
Policy acquisition expense ratio					21.8	%					13.7	%					19.7	%					15.6	%					18.1	%					25.7	%					16.1	%					18.5	%					13.5	%					19.4	%
Operating and administration expense ratio					11.0	%					8.1	%					8.4	%					13.4	%					9.8	%					8.7	%					9.7	%					9.7	%					13.3	%					10.0	%
Expense ratio					32.8	%					21.8	%					28.1	%					29.0	%					27.9	%					34.4	%					25.8	%					28.2	%					26.8	%					29.4	%
Combined ratio					77.2	%					94.7	%					92.8	%					92.3	%					88.4	%					67.7	%					63.7	%					111.4	%					93.1	%					81.6	%

Page 7 of 22

UNDERWRITING RESULTS BY OPERATING SEGMENT

			Six Months Ended June 30, 2007																														Six Months Ended June 30, 2006
			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 written premiums					371.8						302.7						311.3						154.2						1,140.0						358.4						339.2						322.2						181.3						1,201.1
Net written premiums					286.4						294.7						279.4						113.1						973.6						227.7						323.1						275.2						126.0						952.0
Gross earned premiums					304.5						238.8						250.1						162.7						956.1						336.6						244.6						229.5						191.1						1,001.8
Net earned premiums					291.4						232.1						229.3						137.4						890.2						250.0						236.5						196.8						148.3						831.6
Losses and loss expenses					(127.8	)					(152.5	)					(136.3	)					(81.6	)					(498.2	)					(95.2	)					(128.3	)					(128.6	)					(104.1	)					(456.2	)
Policy acquisition expenses					(57.9	)					(36.5	)					(43.8	)					(21.2	)					(159.4	)					(72.0	)					(43.2	)					(39.1	)					(22.2	)					(176.5	)
Operating and administration expenses					(30.0	)					(20.1	)					(20.3	)					(19.3	)					(89.7	)					(26.6	)					(20.6	)					(17.8	)					(16.2	)					(81.2	)
Underwriting profit					75.7						23.0						28.9						15.3						142.9						56.2						44.4						11.3						5.8						117.7
Net reserves for loss and loss adjustment expenses					550.7						1,107.1						381.8						490.5						2,530.1						383.4						805.9						291.0						364.6						1,844.9
Ratios
Loss ratio					43.8	%					65.7	%					59.4	%					59.4	%					55.9	%					38.1	%					54.2	%					65.3	%					70.2	%					54.8	%
Policy acquisition expense ratio					19.9	%					15.7	%					19.1	%					15.4	%					17.9	%					28.8	%					18.3	%					19.9	%					15.0	%					21.2	%
Operating and administration expense ratio					10.3	%					8.7	%					8.9	%					14.1	%					10.1	%					10.6	%					8.7	%					9.0	%					10.9	%					9.8	%
Expense ratio					30.2	%					24.4	%					28.0	%					29.5	%					28.0	%					39.4	%					27.0	%					28.9	%					25.9	%					31.0	%
Combined ratio					74.0	%					90.1	%					87.4	%					88.9	%					83.9	%					77.5	%					81.2	%					94.2	%					96.1	%					85.8	%

Page 8 of 22

SPECIALTY INSURANCE AND REINSURANCE

			Three Months Ended June 30, 2007																		Three Months Ended June 30, 2006
			Specialty Insurance						Specialty Reinsurance						Total						Specialty Insurance						Specialty Reinsurance						Total
(in US$ millions)
Gross written premiums					130.1						25.3						155.4						135.1						32.9						168.0
Net written premiums					126.7						25.4						152.1						132.2						37.4						169.6
Gross earned premiums					101.1						27.3						128.4						90.3						26.3						116.6
Net earned premiums					91.2						27.3						118.5						74.2						26.8						101.0
Losses and loss expenses					(68.0	)					(8.7	)					(76.7	)					(70.5	)					(13.6	)					(84.1	)
Policy acquisition expenses					(19.1	)					(4.3	)					(23.4	)					(13.7	)					(5.0	)					(18.7	)
Operating and administration expenses					(7.4	)					(2.5	)					(9.9	)					(8.0	)					(1.8	)					(9.8	)
Underwriting profit (loss)					(3.3	)					11.8						8.5						(18.0	)					6.4						(11.6	)
Ratios
Loss ratio					74.6	%					31.9	%					64.7	%					95.0	%					50.8	%					83.2	%
Policy acquisition expense ratio					20.9	%					15.8	%					19.7	%					18.5	%					18.6	%					18.5	%
Operating and administration expense ratio					8.1	%					9.1	%					8.4	%					10.8	%					6.6	%					9.7	%
Expense ratio					29.0	%					24.9	%					28.1	%					29.3	%					25.2	%					28.2	%
Combined ratio					103.6	%					56.8	%					92.8	%					124.3	%					76.0	%					111.4	%

Page 9 of 22

SPECIALTY INSURANCE AND REINSURANCE

			Six Months Ended June 30, 2007																		Six Months Ended June 30, 2006
			Specialty Insurance						Specialty Reinsurance						Total						Specialty Insurance						Specialty Reinsurance						Total
(in US$ millions)
Gross written premiums					240.0						71.3						311.3						247.1						75.1						322.2
Net written premiums					208.6						70.8						279.4						202.0						73.2						275.2
Gross earned premiums					196.9						53.2						250.1						180.1						49.4						229.5
Net earned premiums					176.4						52.9						229.3						148.6						48.2						196.8
Losses and loss expenses					(118.1	)					(18.2	)					(136.3	)					(109.5	)					(19.1	)					(128.6	)
Policy acquisition expenses					(34.7	)					(9.1	)					(43.8	)					(30.4	)					(8.7	)					(39.1	)
Operating and administration expenses					(15.9	)					(4.4	)					(20.3	)					(13.6	)					(4.2	)					(17.8	)
Underwriting profit (loss)					7.7						21.2						28.9						(4.9	)					16.2						11.3
Ratios
Loss ratio					66.9	%					34.4	%					59.4	%					73.7	%					39.6	%					65.3	%
Policy acquisition expense ratio					19.7	%					17.2	%					19.1	%					20.4	%					18.0	%					19.9	%
Operating and administration expense ratio					9.0	%					8.3	%					8.9	%					9.2	%					8.7	%					9.0	%
Expense ratio					28.7	%					25.5	%					28.0	%					29.6	%					26.7	%					28.9	%
Combined ratio					95.6	%					59.9	%					87.4	%					103.3	%					66.3	%					94.2	%

Page 10 of 22

PROPERTY AND CASUALTY INSURANCE

			Three Months Ended June 30, 2007																		Three Months Ended June 30, 2006
			Property Insurance						Casualty Insurance						Total						Property Insurance						Casualty Insurance						Total
(in US$ millions)
Gross written premiums					38.3						45.6						83.9						45.2						49.9						95.1
Net written premiums					35.0						43.2						78.2						35.1						46.4						81.5
Gross earned premiums					31.2						47.6						78.8						36.6						60.1						96.7
Net earned premiums					21.8						44.1						65.9						24.6						52.7						77.3
Losses and loss expenses					(18.7	)					(23.0	)					(41.7	)					(15.8	)					(35.5	)					(51.3	)
Policy acquisition expenses					(4.5	)					(5.8	)					(10.3	)					(4.3	)					(6.1	)					(10.4	)
Operating and administration expenses					(5.1	)					(3.7	)					(8.8	)					(4.2	)					(6.1	)					(10.3	)
Underwriting profit (loss)					(6.5	)					11.6						5.1						0.3						5.0						5.3
Ratios
Loss ratio					85.8	%					52.2	%					63.3	%					64.2	%					67.4	%					66.3	%
Policy acquisition expense ratio					20.6	%					13.1	%					15.6	%					17.5	%					11.6	%					13.5	%
Operating and administration expense ratio					23.4	%					8.4	%					13.4	%					17.1	%					11.5	%					13.3	%
Expense ratio					44.0	%					21.5	%					29.0	%					34.6	%					23.1	%					26.8	%
Combined ratio					129.8	%					73.7	%					92.3	%					98.8	%					90.5	%					93.1	%

Page 11 of 22

PROPERTY AND CASUALTY INSURANCE

			Six Months Ended June 30, 2007																		Six Months Ended June 30, 2006
			Property Insurance						Casualty Insurance						Total						Property Insurance						Casualty Insurance						Total
(in US$ millions)
Gross written premiums					63.3						90.9						154.2						73.8						107.5						181.3
Net written premiums					30.7						82.4						113.1						30.0						96.0						126.0
Gross earned premiums					63.0						99.7						162.7						72.0						119.1						191.1
Net earned premiums					45.6						91.8						137.4						43.7						104.6						148.3
Losses and loss expenses					(32.2	)					(49.4	)					(81.6	)					(39.3	)					(64.8	)					(104.1	)
Policy acquisition expenses					(9.2	)					(12.0	)					(21.2	)					(8.6	)					(13.6	)					(22.2	)
Operating and administration expenses					(9.1	)					(10.2	)					(19.3	)					(6.3	)					(9.9	)					(16.2	)
Underwriting profit (loss)					(4.9	)					20.2						15.3						(10.5	)					16.3						5.8
Ratios
Loss ratio					70.6	%					53.8	%					59.4	%					89.9	%					61.9	%					70.2	%
Policy acquisition expense ratio					20.2	%					13.1	%					15.4	%					19.7	%					13.0	%					15.0	%
Operating and administration expense ratio					19.9	%					11.1	%					14.1	%					14.4	%					9.5	%					10.9	%
Expense ratio					40.1	%					24.2	%					29.5	%					34.1	%					22.5	%					25.9	%
Combined ratio					110.7	%					78.0	%					88.9	%					124.0	%					84.4	%					96.1	%

Page 12 of 22

CONSOLIDATED CHANGE IN SHAREHOLDERS’ EQUITY    

(in US$ millions)			Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Ordinary shares
Beginning of period					0.1						0.1
End of period					0.1						0.1
Preference shares
Beginning of period					—						—
End of period					—						—
Additional paid-in capital
Beginning of period					1,921.7						1,887.0
New shares issued					7.1						—
Shares repurchased					(0.1	)					—
New preference shares issued					—						29.2
New preference shares issue costs					—						(0.1	)
Share-based compensation					5.1						4.7
End of period					1,933.8						1,920.8
Retained earnings
Beginning of period					450.5						144.2
Net income for the period					236.6						163.6
Dividends paid on ordinary and preference shares					(40.3	)					(35.7	)
End of period					646.8						272.1
Accumulated Other Comprehensive Income:
Cumulative foreign currency translation adjustments, net of taxes:
Beginning of period					59.1						42.8
Change for the period					26.7						9.2
End of period					85.8						52.0
Loss on derivatives
Beginning of period					(1.8	)					(2.0	)
Reclassification to interest payable					0.1						0.1
End of period					(1.7	)					(1.9	)
Unrealized appreciation (depreciation) on investments, net of taxes:
Beginning of period					(40.3	)					(32.3	)
Change for the period					(36.5	)					(57.7	)
Reclassification to net realized gains					3.0						1.3
End of period					(73.8	)					(88.7	)
Total accumulated other comprehensive income					10.3						(38.6	)
Total shareholders’ equity					2,591.0						2,154.4

Page 13 of 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in US$ millions)			Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Net income					236.6						163.6
Other comprehensive income, net of taxes:
Reclassification adjustment for net realized gains included in net income					3.0						1.3
Change in unrealized losses on investments					(36.5	)					(57.7	)
Loss on derivatives reclassified to interest expense					0.1						0.1
Change in unrealized gains on foreign currency translation					26.7						9.2
Other comprehensive loss					(6.7	)					(47.1	)
Comprehensive income					229.9						116.5

SUMMARIZED CASH FLOWS

(in US$ millions)			Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Net cash from operating activities					319.5						148.5
Net cash used in investing activities					(381.7	)					(544.4	)
Net cash used in financing activities					(33.2	)					(6.5	)
Effect of exchange rate movements on cash and cash equivalents					(1.7	)					7.2
Decrease in cash and cash equivalents					(97.1	)					(395.2	)
Cash at beginning of the period					495.0						748.3
Cash at end of the period					397.9						353.1

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 six months ended June 30, 2007 and 2006:

(in US$ millions except for percentages)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Closing shareholders’ equity					2,591						2,154						2,591						2,154
Average adjustment					(482	)					(233	)					(534	)					(153	)
Average equity (1)					2,109						1,921						2,057						2,001
Return on average equity from underwriting activity (2)					2.5	%					4.1	%					6.9	%					5.9	%
Return on average equity from investment and other activity (3)					3.3	%					2.2	%					5.8	%					3.8	%
Pre-tax operating income return on average equity, for period					5.8	%					6.3	%					12.7	%					9.7	%
Post-tax return on average equity (4)					4.9	%					4.9	%					10.6	%					7.6	%
Ratios
Combined ratio					88.4	%					81.6	%					83.9	%					85.8	%

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 quarter end and the previous quarter end 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 June 30, 2007
Fixed maturities			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
U.S. government and agencies					1,398.2						0.9						(32.6	)					1,366.5
Corporate securities					1,274.8						0.3						(27.0	)					1,248.1
Foreign government					437.4						—						(13.6	)					423.8
Municipals					4.0						—						(0.2	)					3.8
Asset-backed securities					233.2						—						(2.0	)					231.2
Mortgage-backed securities					827.2						0.4						(17.1	)					810.5
Total fixed maturities					4,174.8						1.6						(92.5	)					4,083.9
Other investments					481.6						—						—						481.6
Short-term investments					492.6						0.2						(0.7	)					492.1
Total investments					5,149.0						1.8						(93.2	)					5,057.6

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)			Six Months Ended June 30, 2007						Twelve Months Ended December 31, 2006
Provision for losses and loss expenses at start of period					2,820.0						3,041.6
Less reinsurance recoverable					(468.3	)					(1,192.7	)
Net loss and loss expenses at start of period					2,351.7						1,848.9
Loss reserve portfolio transfer					11.0						0.7
Provision for losses and loss expenses for claims incurred
Current period					542.6						941.2
Prior period release					(44.4	)					(51.3	)
Total incurred					498.2						889.9
Losses and loss expense payments for claims incurred					(359.8	)					(469.7	)
Foreign exchange losses					29.0						81.9
Net loss and loss expense reserves at end of period					2,530.1						2,351.7
Plus reinsurance recoverables on unpaid losses at end of period					324.4						468.3
Gross loss and loss expense reserves at end of period					2,854.5						2,820.0

Page 17 of 22

RESERVES BY BUSINESS SEGMENT

The following table presents our reserves as at June 30, 2007 and December 31, 2006:

(in US$ millions)			As at June 30, 2007																		As at December 31, 2006
			Gross						Reinsurance Recoverable						Net						Gross						Reinsurance Recoverable						Net
Property reinsurance					607.2						(56.5	)					550.7						709.2						(159.7	)					549.5
Casualty reinsurance					1,120.7						(13.6	)					1,107.1						970.9						(9.1	)					961.8
Specialty insurance and reinsurance					572.3						(190.5	)					381.8						570.1						(216.3	)					353.8
Property and casualty insurance					554.3						(63.8	)					490.5						569.8						(83.2	)					486.6
Total losses and loss expense reserves					2,854.5						(324.4	)					2,530.1						2,820.0						(468.3	)					2,351.7

Page 18 of 22

MOVEMENT IN RESERVES FOR PRIOR YEARS

The following table presents the movement in reserves for prior years for the three and six months ended June 30, 2007 and 2006:

(in US$ millions)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Property reinsurance					(1.3	)					(10.2	)					(11.5	)					(18.7	)
Casualty reinsurance					(4.6	)					39.4						17.4						47.0
Specialty insurance and reinsurance					6.6						(7.5	)					11.1						1.2
Property and casualty insurance					17.4						6.5						27.4						16.2
Release in reserves for prior years during the period					18.1						28.2						44.4						45.7

Page 19 of 22

REINSURER SECURITY RATING

     The following tables show our reinsurance recoverables and our reinsurers’ ratings as at June 30, 2007:

(in US$ millions except for percentages)			As at June 30, 2007
S&P
AAA					39.3						12.1	%
AA+					1.8						0.6	%
AA					20.0						6.2	%
AA−					66.9						20.6	%
A+					120.8						37.2	%
A					3.3						1.0	%
A−					38.2						11.8	%
Fully collateralised					3.8						1.2	%
Not rated					30.3						9.3	%
					324.4						100.0	%
A.M. Best
A++					39.3						12.1	%
A+					42.2						13.0	%
A					180.4						55.5	%
A−					38.2						11.8	%
B++					20.0						6.2	%
Fully collateralised					3.8						1.2	%
Not rated					0.5						0.2	%
					324.4						100.0	%

Page 20 of 22

DILUTED SHARE ANALYSIS USED FOR EPS CALCULATION

(shares in millions)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Basic weighted average ordinary shares outstanding					88.205						95.250						88.014						95.247
Add: weighted average of employee options					1.578						1.157						1.535						1.156
Add: weighted average of performance shares					0.598						0.343						0.471						0.259
Add: weighted average of restricted share units					0.245						0.102						0.227						0.101
Add: weighted average of options issued to Wellington Investment Holding (Jersey) Limited					—						0.351						0.204						0.351
Add: weighted average of options issued to Appleby Trust (Bermuda) Limited (Names Trust)					0.201						0.130						0.183						0.129
Diluted weighted average ordinary shares outstanding					90.827						97.333						90.634						97.243

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.

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 six months ended June 30, 2007 and 2006:

(in US$ millions except where stated)			Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						Six Months Ended June 30, 2007						Six Months Ended June 30, 2006
Net income adjusted for preference share dividend					107.7						98.6						222.7						156.5
Add (deduct) after tax income:
Net exchange gains					(8.0	)					(6.6	)					(13.5	)					(7.9	)
Net realized losses on investments					4.1						3.1						8.3						4.3
Operating income adjusted for preference share dividend					103.8						95.1						217.5						152.9
Tax on operating income					(17.9	)					(26.0	)					(43.8	)					(41.7	)
Operating income before tax adjusted for preference share dividend					121.7						121.1						261.3						194.6
Weighted average ordinary shares outstanding (millions)
Basic					88.20						95.25						88.01						95.25
Diluted					90.83						97.33						90.63						97.24
Basic per ordinary share data			$						$						$						$
Net income adjusted for preference share dividend					1.22						1.04						2.53						1.64
Add (deduct) after tax income
Net exchange gains					(0.09	)					(0.07	)					(0.15	)					(0.08	)
Net realized losses on investments					0.05						0.03						0.09						0.05
Operating income adjusted for preference shares dividend					1.18						1.00						2.47						1.61
Diluted per ordinary share data
Net income adjusted for preference share dividend					1.19						1.01						2.46						1.61
Add (deduct) after tax income
Net exchange gains					(0.10	)					(0.06	)					(0.15	)					(0.08	)
Net realized losses on investments					0.05						0.03						0.09						0.04
Operating income adjusted for preference share dividend					1.14						0.98						2.40						1.57
Book value per ordinary share
Net assets (excluding intangible assets and preference shares)																	2,163.6						1,923.3
Number of ordinary shares in issue at the end of the period																	88,544,590						95,250,451
Diluted number of ordinary shares in issue at the end of the period																	91,553,439						97,334,195
															$						$
Book value per ordinary share																	24.44						20.19
Diluted book value per ordinary share																	23.63						19.76

Page 22 of 22