Download ASPEN INSURANCE HOLDINGS LTD (Form: 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2016
ASPEN INSURANCE HOLDINGS LIMITED
(Exact name of registrant as specified in its charter)
Bermuda
001-31909
Not Applicable
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
141 Front Street
Hamilton HM 19
Bermuda
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (441) 295-8201
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 2 - Financial Information
Item 2.02 - Results of Operations and Financial Condition
On April 21, 2016, Aspen Insurance Holdings Limited (“Aspen” or the “Company”) issued a press release announcing results for the
quarter ended March 31, 2016, which is attached hereto as Exhibit 99.1. In addition, a copy of the Aspen Insurance Holdings Limited Earnings
Release Supplement for the quarter ended March 31, 2016 is attached hereto as Exhibit 99.2.
Section 7 - Regulation FD
Item 7.01 - Regulation FD Disclosure
On April 21, 2016, Aspen issued a press release announcing results for the quarter ended March 31, 2016, which is attached hereto as
Exhibit 99.1. A copy of the Aspen Insurance Holdings Limited Earnings Release Supplement for the quarter ended March 31, 2016 is attached
hereto as Exhibit 99.2.
In addition, the information about Aspen described in the slides attached hereto as Exhibit 99.3, to be used for reference during the
earnings call to be held on April 22, 2016, will be presented by the Chief Executive Officer, the Chief Financial Officer and other members of
senior management to various investors throughout the second quarter of 2016.
Safe Harbor for Forward-Looking Statements
Some of the statements in Exhibit 99.3 include forward-looking statements which reflect Aspen’s current views with respect to future
events and financial performance. Such statements may include forward-looking statements both with respect to Aspen in general and the
insurance and reinsurance sectors specifically. Statements that include the words “expect,” “assume,” “objective,” “intend,” “plan,” “believe,”
“do not believe,” “aim,” “project,” “anticipate,” “seek,” “will,” “likely,” “estimate,” “may,” “continue,” “guidance,” “outlook,” “trends,”
“future,” “could,” “would,” “should,” “target,” “on track” and similar statements of a future or forward-looking nature identify forward-looking
statements in Exhibit 99.3 for purposes of the U.S. federal securities laws or otherwise. We intend these forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995.
All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or may be important
factors that could cause actual results to differ from those indicated in the forward-looking statements. See slide 2 of the attached presentation
on Exhibit 99.3 for such factors as well as our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission.
Forward-looking statements speak only as of the date on which they are made or as otherwise indicated, and we undertake no
obligation publicly to update or revise any forward-looking statement, whether as a result of new information, future developments or
otherwise.
Section 9 - Financial Statements and Exhibits
Item 9.01- Financial Statements and Exhibits
(d) The following exhibits are furnished under Items 2.02 and 7.01 as part of this report:
99.1
99.2
99.3
Press Release of the Registrant, dated April 21, 2016.
Earnings Release Supplement for the quarter ended March 31, 2016.
First Quarter 2016 Slide Presentation.
The information furnished under Item 2.02 “Results of Operations and Financial Condition” and Item 7.01 “Regulation FD
Disclosure” shall not be deemed “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set
forth by specific reference in such a filing.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
ASPEN INSURANCE HOLDINGS LIMITED
(Registrant)
Dated: April 21, 2016
By:
Name:
Title:
3
/s/ Scott Kirk
Scott Kirk
Chief Financial Officer
Exhibit 99.1
PRESS
RELEASE
ASPEN REPORTS RESULTS FOR QUARTER ENDED
MARCH 31, 2016
Annualized Net Income Return on Equity of 14.4%
Annualized Operating Return on Equity of 11.2%
Diluted Book Value Per Share of $48.22 , up 4.8% from December 31, 2015
Hamilton, Bermuda, April 21, 2016 - Aspen Insurance Holdings Limited (“Aspen”) (NYSE: AHL) reported today net income after
tax of $114.4 million , or $1.68 per diluted share, and operating income after tax of $89.9 million , or $1.29 per diluted share, for the
first quarter of 2016 .
Chris O’Kane, Chief Executive Officer, commented, “Aspen has started the year well, with solid first quarter underwriting results
from our Insurance and Reinsurance businesses contributing to an annualized operating return on equity of 11.2% and 4.8%
growth in diluted book value per share. Our Insurance teams are successfully executing our global products line strategy and
delivered growth in targeted lines of business. At the same time, we continued to pull back from areas where we do not feel
returns are adequate or are historically more volatile. Within Aspen Re, our teams had successful January and April renewals,
again demonstrating our ability to maintain relevance with clients while navigating a challenging and changing market. We also
welcomed our colleagues from AgriLogic. In addition, we continue to move closer to our clients, recently announcing the opening
of our Dubai office to serve as our hub for the Middle East and Africa. As we move forward, we remain focused on consistently
delivering value for our shareholders.” (1)
_____________________
Non-GAAP financial measures are used throughout this release as defined at the end of this press release.
(1) Refer to "Forward-looking Statements Safe Harbor" at the end of this press release.
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Operating highlights for the quarter ended March 31, 2016
•
Gross written premiums increased by 6.1% to
$975.7 million in the first quarter of 2016
compared with $919.2 million in the first
quarter of 2015
•
Combined ratio of 91.6% for the first quarter of 2016 compared with 88.9% for
the first quarter of 2015 . Net favorable development on prior year loss
reserves of $21.6 million , or 3.3 combined ratio points, for the first quarter of
2016 compared with $27.5 million , or 4.6 combined ratio points, in the
comparable period
•
Pre-tax catastrophe losses, net of reinsurance recoveries, totaled $18.7 million , or 2.8 combined ratio points, in the first
quarter of 2016 compared with $13.5 million , or 2.3 combined ratio points, of pre-tax catastrophe losses, net of
reinsurance recoveries, in the first quarter of 2015
Financial highlights for the quarter ended March 31, 2016
•
Annualized net income return on average equity of 14.4% and
annualized operating return on average equity of 11.2% for the
quarter ended March 31, 2016 compared with 16.4% and 12.4% ,
respectively, for the first quarter of 2015
•
Net income per diluted share of $1.68 for the quarter ended
March 31, 2016 compared with net income per diluted
share of $1.87 for the quarter ended March 31, 2015
•
Operating income per diluted share of $1.29 for the quarter ended
March 31, 2016 compared with operating income per diluted share
of $1.39 for the quarter ended March 31, 2015
•
Diluted book value per share of $48.22
as at March 31, 2016 up 4.8% from
December 31, 2015
Segment Highlights
Insurance
Operating highlights for Insurance for the quarter ended March 31, 2016 include:
•
Gross written premiums of
$458.1 million , an increase of
5.5% compared with $434.4
million in the first quarter of 2015
•
Combined ratio of
92.0% compared with
93.5% for the first
quarter of 2015
•
Prior year favorable reserve development of $3.4 million , or 0.9 combined ratio points, compared with
prior year favorable reserve development of $14.3 million , or 4.2 combined ratio points, for the first
quarter of 2015
Growth in the Financial and Professional Lines, and Property and Casualty sub-segments was offset by a decline in the Marine,
Aviation and Energy sub-segment, which includes a number of lines that continue to be impacted by rate pressures.
The combined ratio of 92.0% for the first quarter of 2016 included $8.0 million , or 2.1 percentage points, of pre-tax catastrophe
losses, net of reinsurance recoveries, from weather-related events in the U.S. The combined ratio for the first quarter of 2015
included $5.8 million , or 1.7 percentage points, of pre-tax catastrophe losses net of reinsurance recoveries. For the quarter ended
March 31, 2016 , the Insurance accident year loss ratio excluding catastrophes was 57.0% compared with 60.8% a year ago.
Mario Vitale, CEO of Insurance, commented, “Aspen Insurance started the year with a solid quarter of profitable growth. The
growth in the quarter was largely driven from businesses in which we have selectively chosen to expand, including contributions
from Global Accident and Health, Management Liability, and our new European Property business. We continue to focus on
growing our business in those areas that are strongest and offer us the most consistent returns which, we believe, will further
improve our loss ratios over time. Our global insurance product line strategy is progressing well, most recently with the
appointment of Lorraine Seib as Global head of Excess Casualty.” (1)
2
Reinsurance
Operating highlights for Reinsurance for the quarter ended March 31, 2016 include:
•
Gross written premiums of $517.6 million , an increase of 6.8% from $484.8 million in the first quarter of 2015 . Adjusting for
$45.2 million of premiums from AG Logic Holdings, LLC (“AgriLogic”) in the first quarter of 2016 and the negative impact of
year-over-year foreign currency movements, gross written premiums in the first quarter of 2016 increased by 4.2% compared
to the first quarter of 2015
•
Combined ratio of
84.9% compared with
76.7% for the first
quarter of 2015
•
Prior year favorable reserve development of $18.2 million
, or 6.5 combined ratio points, compared with $13.2
million prior year favorable reserve development, or 5.3
combined ratio points, for the first quarter of 2015
•
General and administrative expense ratio in first quarter of 2016
increased by 2.7 percentage points compared to the first quarter of
2015 primarily due to expenses associated with AgriLogic
Growth in the Specialty and Casualty sub-segments was offset by a decline in the Property Catastrophe and Other Property
sub-segments. Growth in the Specialty sub-segment primarily reflects the first-time inclusion of AgriLogic in Aspen's financial
results.
The combined ratio of 84.9% for the first quarter of 2016 included $10.7 million , or 3.8 percentage points, of pre-tax catastrophe
losses, net of reinsurance recoveries, primarily as a result of weather-related events in the U.S. and an earthquake in Taiwan. The
combined ratio of 76.7% for the first quarter of 2015 included $7.7 million , or 3.1 percentage points, of pre-tax catastrophe losses,
net of reinsurance recoveries.
For the quarter ended March 31, 2016 , the Reinsurance accident year loss ratio excluding catastrophes was 50.7% compared
with 44.5% a year ago. Of the total increase in the accident year loss ratio excluding catastrophes, approximately half was due to
the inclusion of AgriLogic, with the balance due to unfavorable foreign currency movements and change in business mix. Allowing
for the impact of the above factors, the underlying performance of the Reinsurance segment is broadly in line with the first quarter
of last year.
Stephen Postlewhite, CEO of Reinsurance, commented, “Aspen Re started the year well. We had successful January and April
renewals as we continue to identify opportunities in a challenging market. We achieved premium growth in our Specialty and
Casualty sub-segments and continued to carefully manage down our Property Cat book given ongoing pressures in that market.
We also welcomed the AgriLogic team and are very pleased with the integration progress and prospects for this business.
Additionally, we continue to seek further opportunities for future profitable growth and develop our regional expansion strategy,
most recently announcing the opening of an office in Dubai to serve as a hub for the business in the Middle East and Africa.” (1)
Investment performance
Investment income of $49.5 million in the first quarter of 2016 increased by 4.4% compared to $47.4 million in the first quarter of
2015 , as a significant portion of dividend income on the equity portfolio is concentrated in the first quarter.
Aspen’s investment portfolio continues to be comprised primarily of high quality fixed income securities with an average credit
quality of “AA-”. The average duration of the fixed income portfolio was 3.63 years as at March 31, 2016 excluding the impact of
interest rate swaps, or 3.56 years including the impact of interest rate swaps. The total return on Aspen’s aggregate investment
portfolio was 2.08% for the three months ended March 31, 2016 and reflected gains in the fixed income and equity portfolios.
Book yield as at March 31, 2016 on the fixed income portfolio was 2.56% compared to 2.59% as at December 31, 2015.
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Capital
Total shareholders’ equity was $3.6 billion as at March 31, 2016 .
During the first quarter of 2016 , Aspen repurchased 568,239 ordinary shares at an average price of $44.00 per ordinary share for
a total cost of $25.0 million . Aspen had $391.3 million remaining under its current share repurchase authorization as at April 20,
2016.
Earnings conference call and webcast
Aspen will host a conference call to discuss the results at 8:00 am (ET) on Friday, April 22, 2016.
To participate in the April 22 conference call by phone
Please call to register at least 10 minutes before the conference call begins by dialing:
+1 (844) 378 6481 (US toll free) or
+1 (412) 542 4176 (international)
Conference ID 10082504
To listen live online
Aspen will provide a live webcast on Aspen’s website at www.aspen.co.
To download the materials
The earnings press release and a detailed financial supplement will also be published on Aspen’s website at www.aspen.co .
To listen later
A replay of the call will be available approximately two hours after the end of the live call for 14 days via phone and internet. To
listen to the replay by phone please dial:
+1 (877) 344 7529 (US toll free) or
+1 (412) 317 0088 (international)
Replay ID 10082504
The recording will be also available at www.aspen.co on the Event Calendar page within the Investor Relations section.
For further information please contact
Investors
Mark Jones, Senior Vice President, Investor Relations, Aspen
[email protected]
+1 (646) 289 4945
Media
Karen Green, Office of the CEO
[email protected]
+44 20 7184 8110
International - Citigate Dewe Rogerson
Caroline Merrell or Jos Bieneman
[email protected]
[email protected]
+44 20 7638 9571
North America - Sard Verbinnen & Co
Paul Scarpetta or Jamie Tully
+1 (212) 687 8080
4
Aspen Insurance Holdings Limited
Summary consolidated balance sheet (unaudited)
$ in millions, except per share data
As at
March 31,
2016
ASSETS
Total investments
Cash and cash equivalents
Reinsurance recoverables
Premiums receivable
Other assets
Total assets
7,916.3
903.1
609.6
1,339.1
737.3
11,505.4
$
$
$
5,011.5
1,804.0
479.0
104.5
549.3
7,948.3
SHAREHOLDERS’ EQUITY
Total shareholders’ equity
Total liabilities and shareholders’ equity
Book value per share
Diluted book value per share (treasury stock method)
LIABILITIES
Losses and loss adjustment expenses
Unearned premiums
Other payables
Silverton loan notes
Long-term debt
Total liabilities
$
As at
December 31,
2015
$
$
$
7,712.2
1,099.5
523.7
1,115.6
597.8
11,048.8
$
4,938.2
1,587.2
451.3
103.0
549.2
7,628.9
$
3,557.1
11,505.4
$
3,419.9
11,048.8
$
$
49.45
48.22
$
$
46.99
46.00
5
Aspen Insurance Holdings Limited
Summary consolidated statement of income (unaudited)
$ in millions, except ratios
Three Months Ended
March 31, 2016
UNDERWRITING REVENUES
Gross written premiums
Premiums ceded
$
March 31, 2015
975.7
(176.0 )
$
919.2
(156.0 )
799.7
(136.6 )
763.2
(169.6 )
Net earned premiums
663.1
593.6
UNDERWRITING EXPENSES
Losses and loss adjustment expenses
357.4
306.1
Amortization of deferred policy acquisition costs
130.2
119.3
General, administrative and corporate expenses
119.8
102.2
Total underwriting expenses
Net written premiums
Change in unearned premiums
607.4
527.6
Underwriting income including corporate expenses
55.7
66.0
OTHER OPERATING REVENUE
Net investment income
Interest expense
Other (expense)
49.5
(7.4 )
(3.0 )
47.4
(7.4 )
(1.6 )
Total other operating revenue
39.1
38.4
OPERATING INCOME BEFORE TAX
94.8
104.4
Net realized and unrealized exchange (losses)
Net realized and unrealized investment gains
(20.1 )
42.2
(11.0 )
39.7
INCOME BEFORE TAX
Income tax expense
116.9
(2.5 )
133.1
(5.1 )
NET INCOME AFTER TAX
Dividends paid on ordinary shares
Dividends paid on preference shares
Proportion due to non-controlling interest
114.4
(12.8 )
(9.5 )
0.2
128.0
(12.4 )
(9.5 )
—
Retained income
Components of net income (after tax)
Operating income
Net realized and unrealized exchange (losses) after tax
Net realized investment gains after tax
NET INCOME AFTER TAX
Loss ratio
Policy acquisition expense ratio
General, administrative and corporate expense ratio
Expense ratio
Combined ratio
$
92.3
$
$
89.9
(16.9 )
41.4
$
$
114.4
$
53.9
19.6
18.1
37.7
91.6
%
%
%
%
%
106.1
98.0
(9.8 )
39.8
128.0
51.6
20.1
17.2
37.3
88.9
%
%
%
%
%
6
Aspen Insurance Holdings Limited
Summary consolidated financial data (unaudited)
$ in millions, except number of shares
Three Months Ended
March 31,
March 31,
2016
2015
Basic earnings per ordinary share
Net income adjusted for preference share dividend and non-controlling interest
$1.73
$1.91
$1.33
$1.43
$1.68
$1.87
$1.29
$1.39
Weighted average number of ordinary shares outstanding (in millions)
60.868
62.159
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in
millions)
62.484
63.533
Book value per ordinary share
$49.45
$47.14
Diluted book value per ordinary share (treasury stock method)
$48.22
$46.02
Ordinary shares outstanding at end of the period (in millions)
60.675
61.723
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (treasury stock
method) (in millions)
62.213
63.227
Operating income adjusted for preference share dividend and non-controlling interest
Diluted earnings per ordinary share
Net income adjusted for preference share dividend and non-controlling interest
Operating income adjusted for preference share dividend and non-controlling interest
7
Aspen Insurance Holdings Limited
Summary consolidated segment information (unaudited)
$ in millions, except ratios
Three Months Ended March 31, 2016
Reinsurance
Gross written premiums
$
517.6
Insurance
$
458.1
Three Months Ended March 31, 2015
Total
$
975.7
Reinsurance
$
484.8
Insurance
$
434.4
Total
$
919.2
Net written premiums
449.5
350.2
799.7
442.1
321.1
763.2
Gross earned premiums
306.8
445.6
752.4
265.8
415.1
680.9
Net earned premiums
Losses and loss adjustment
expenses
Policy acquisition expenses
General and administrative
expenses
Underwriting income
280.3
382.8
663.1
249.4
344.2
593.6
134.5
222.9
357.4
105.5
200.6
306.1
59.4
70.8
130.2
53.4
65.9
119.3
44.1
58.6
102.7
32.4
55.3
87.7
$
42.3
$
30.5
$
Net investment income
Net realized and unrealized investment gains (1)
Corporate expenses
Other (expense) (2)
Interest expense
Net realized and unrealized foreign exchange (losses) (3)
Income before tax
Income tax expense
Net income
Ratios
Loss ratio
Policy acquisition expense ratio
General and administrative
expense ratio (4)
Expense ratio
Combined ratio
72.8
$
58.1
$
22.4
$
80.5
49.5
47.4
42.2
(17.1 )
(3.0 )
(7.4 )
(20.1 )
39.7
(14.5 )
(1.6 )
(7.4 )
(11.0 )
$
116.9
(2.5 )
$
133.1
(5.1 )
$
114.4
$
128.0
48.0%
21.2%
58.2%
18.5%
53.9 %
19.6 %
42.3%
21.4%
58.3%
19.1%
51.6 %
20.1 %
15.7%
36.9%
84.9%
15.3%
33.8%
92.0%
18.1 %
37.7 %
91.6 %
13.0%
34.4%
76.7%
16.1%
35.2%
93.5%
17.2 %
37.3 %
88.9 %
Includes realized and unrealized capital gains and losses and realized and unrealized gains and losses on interest rate swaps
Other (expense) in the first quarter of 2016 and first quarter of 2015 included $4.4 million and $2.9 million , respectively, related to a change
in the fair value of loan notes issued by Silverton Re
(3) Includes realized and unrealized foreign exchange gains and losses and realized and unrealized gains and losses on foreign exchange
contracts
(4) The total group general and administrative expense ratio includes the impact from corporate expenses
(1)
(2)
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About Aspen Insurance Holdings Limited
Aspen provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned
subsidiaries and offices in Australia, Bermuda, Canada, France, Germany, Ireland, Singapore, Switzerland, the United Arab
Emirates, the United Kingdom and the United States. For the year ended December 31, 2015, Aspen reported $11.0 billion in total
assets, $4.9 billion in gross reserves, $3.4 billion in total shareholders’ equity and $3.0 billion in gross written premiums. Its
operating subsidiaries have been assigned a rating of “A” by Standard & Poor’s Financial Services LLC (“S&P”), an “A”
(“Excellent”) by A.M. Best Company Inc. (“A.M. Best”) and an “A2” by Moody’s Investor Service, Inc. (“Moody’s”).
For more information about Aspen, please visit www.aspen.co .
(1) Forward-looking Statements Safe Harbor
This press release contains, and Aspen’s earnings conference call will contain, written or oral “forward-looking statements” within
the meaning of the US 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,” “do not believe,” “aim,”
“project,” “anticipate,” “seek,” “will,” “likely,” “assume,” “estimate,” “may,” “continue,” “guidance,” “objective,” “outlook,” “trends,”
“future,” “could,” “would,” “should,” “target,” “on track” and similar expressions of a future or forward-looking nature.
All forward-looking statements rely on a number of assumptions, estimates and data concerning future results and events and are
subject to a number of uncertainties and other factors, many of which are outside Aspen’s control that could cause actual results
to differ materially from such statements.
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: our ability to successfully implement steps to further optimize the business portfolio, ensure capital
efficiency and enhance investment returns; the possibility of greater frequency or severity of claims and loss activity, including as
a result of natural or man-made (including economic and political risks) catastrophic or material loss events, than our underwriting,
reserving, reinsurance purchasing or investment practices have anticipated; the assumptions and uncertainties underlying reserve
levels that may be impacted by future payments for settlements of claims and expenses or by other factors causing adverse or
favorable development, including our assumptions on inflation costs associated with long-tail casualty business which could differ
materially from actual experience; a vote by the U.K. electorate in favor of a U.K. exit from the European Union in a forthcoming
in-or-out referendum; the reliability of, and changes in assumptions to, natural and man-made catastrophe pricing, accumulation
and estimated loss models; decreased demand for our insurance or reinsurance products and cyclical changes in the insurance
and reinsurance industry; the models we use to assess our exposure to losses from future natural catastrophes contain inherent
uncertainties and our actual losses may differ significantly from expectations; our capital models may provide materially different
indications than actual results; increased competition from existing insurers and reinsurers and from alternative capital providers
and insurance-linked funds and collateralized special purpose insurers on the basis of pricing, capacity, coverage terms, new
capital, binding authorities to brokers or other factors and the related demand and supply dynamics as contracts come up for
renewal; our ability to execute our business plan to enter new markets, introduce new products and develop new distribution
channels, including their integration into our existing operations; our acquisition strategy; changes in market conditions in the
agriculture industry, which may vary depending upon demand for agricultural products, weather, commodity prices, natural
disasters, and changes in legislation and policies related to agricultural products and producers; termination of, or changes in, the
terms of the U.S. Federal Multiple Peril Crop Insurance Program or the U.S. Farm Bill, including modifications to the Standard
Reinsurance Agreement put in place by the Risk Management Agency of the U.S. Department of Agriculture; the recent
consolidation in the (re)insurance industry; loss of one or more of our senior underwriters or key personnel; changes in our ability
to exercise capital management initiatives (including our share repurchase program) or to arrange banking facilities as a result of
prevailing market conditions or changes in our financial position; changes in the availability, cost or quality of reinsurance or
retrocessional coverage; changes in general economic conditions, including inflation, deflation, foreign currency exchange rates,
interest rates and other factors that could affect our financial results; the risk of a material decline in the value or liquidity of all or
parts of our investment portfolio; the risks associated with the management of capital on behalf of investors; evolving issues with
respect to interpretation of coverage after major loss events; our ability to adequately model
9
and price the effects of climate cycles and climate change; any intervening legislative or governmental action and changing
judicial interpretation and judgments on insurers’ liability to various risks; the risks related to litigation; the effectiveness of our risk
management loss limitation methods, including our reinsurance purchasing; changes in the total industry losses, or our share of
total industry losses, resulting from past events and, with respect to such events, our reliance on loss reports received from
cedants and loss adjustors, our reliance on industry loss estimates and those generated by modeling techniques, changes in
rulings on flood damage or other exclusions as a result of prevailing lawsuits and case law; the impact of one or more large losses
from events other than natural catastrophes or by an unexpected accumulation of attritional losses and deterioration with loss
estimates; the impact of acts of terrorism, acts of war and related legislation; any changes in our reinsurers’ credit quality and the
amount and timing of reinsurance recoverables; the continuing and uncertain impact of the current depressed lower growth
economic environment in many of the countries in which we operate; our reliance on information and technology and third-party
service providers for our operations and systems; the level of inflation in repair costs due to limited availability of labor and
materials after catastrophes; a decline in our operating subsidiaries’ ratings with S&P, A.M. Best or Moody’s; the failure of our
reinsurers, policyholders, brokers or other intermediaries to honor their payment obligations; our reliance on the assessment and
pricing of individual risks by third parties; our dependence on a few brokers for a large portion of our revenues; the persistence of
heightened financial risks, including excess sovereign debt, the banking system and the Eurozone crisis; changes in government
regulations or tax laws in jurisdictions where we conduct business; changes in accounting principles or policies or in the
application of such accounting principles or policies; increased counterparty risk due to the credit impairment of financial
institutions; and Aspen or Aspen Bermuda Limited becoming subject to income taxes in the United States or the United Kingdom.
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 19, 2016. 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.
In addition, any estimates relating to loss events involve the exercise of considerable judgment and reflect a combination of
ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports
and other sources. The actuarial range of reserves and management’s best estimate represents a distribution from our internal
capital model for reserving risk based on our then current state of knowledge and explicit and implicit assumptions relating to the
incurred pattern of claims, the expected ultimate settlement amount, inflation and dependencies between lines of business. Due to
the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates,
there can be no assurance that Aspen’s ultimate losses will remain within the stated amount.
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 financial 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 the financial supplement, which can be obtained from
the Investor Relations section of Aspen’s website at www.aspen.co .
Annualized Operating Return on Average Equity (“Operating ROE”) is a non-GAAP financial measure. Operating ROE is
calculated using operating income, as defined below, and average equity is calculated as the arithmetic average on a monthly
basis for the stated periods of shareholders’ equity excluding the aggregate value of the liquidation preferences of our preference
shares net of issuance costs and the total amount of non-controlling interest. 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 21 of Aspen’s financial supplement for a reconciliation of operating income to net income and page 7 for a reconciliation
of average ordinary shareholders’ equity to average shareholders’ equity. Aspen’s financial supplement can be obtained from the
Investor Relations section of Aspen’s website at www.aspen.co.
10
Operating Income is 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 and
unrealized gains or losses, including net realized and unrealized gains and losses on interest rate swaps, after-tax net foreign
exchange gains or losses, including net realized and unrealized gains and losses from foreign exchange contracts and certain
non-recurring items.
Aspen excludes the items above from its calculation of operating income because they are either not expected to recur and
therefore are not reflective of underlying performance or 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 would distort 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 21 of Aspen’s financial supplement for a reconciliation of operating income
to net income. Aspen’s financial supplement can be obtained from the Investor Relations section of Aspen’s website at
www.aspen.co .
Diluted Book Value per Ordinary Share is not a non-GAAP financial measure. Aspen has included diluted book value per
ordinary share as it illustrates the effect on basic book value per share of dilutive securities thereby providing a better benchmark
for comparison with other companies. Diluted book value per share is calculated using the treasury stock method, defined on page
20 of Aspen’s financial supplement, which can be obtained from the Investor Relations section of Aspen’s website at
www.aspen.co .
Diluted Operating Earnings per Share and Basic Operating Earnings per Share are non-GAAP financial measures. 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 are calculated by dividing operating income by the diluted or basic weighted average number of
shares outstanding for the period. See page 21 of Aspen’s financial supplement for a reconciliation of diluted and basic operating
earnings per share to basic earnings per share. Aspen’s financial supplement can be obtained from the Investor Relations section
of Aspen’s website at www.aspen.co .
Accident Year Loss Ratio Excluding Catastrophes is a non-GAAP financial measure. Aspen believes that the presentation of
loss ratios excluding catastrophes and prior year reserve movements supports meaningful comparison from period to period of the
underlying performance of the business. Accident year loss ratios excluding catastrophes are calculated by dividing net losses
excluding catastrophe losses, net expenses and prior year reserve movements by net earned premiums excluding
catastrophe-related reinstatement premiums. Aspen has defined catastrophe losses in the first quarter of 2016 as losses
associated with weather-related events in the U.S. and an earthquake in Taiwan. Catastrophe losses in the comparable period of
2015 were defined as losses associated with storms in Europe, Australia and the U.S. See pages 9 and 10 of Aspen’s financial
supplement for a reconciliation of loss ratios to accident year loss ratios excluding catastrophes.
11
xhibit 99.2
FINANCIAL
SUPPLEMENT
As of March 31, 2016
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
Mark Jones, Senior Vice President, Investor Relations
T: +1 646 289 4945
email: [email protected]
1
ASPEN INSURANCE HOLDINGS
LIMITED
Table Of Contents
Page
Basis of Presentation
Financial Highlights
Consolidated Statements of Operations - Quarterly Results
Consolidated Statements of Operations - Year to Date Results
Consolidated Balance Sheets
Earnings Per Share and Book Value Per Share
Return on Average Equity
Consolidated Underwriting Results by Operating Segment
Operating Segment - Quarterly Results
Written and Earned Premiums by Segment and Lines of Business
Consolidated Statements of Changes in Shareholders' Equity
Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Cash Flows
Reserves for Losses and Loss Adjustment Expenses
Reserves by Operating Segment
Prior Year Reserve Releases
Consolidated Investment Portfolio
Investment Analysis
Book Value Per Ordinary Share
Operating Income Reconciliation
1
2
3
4
5
6
7
8
9 - 10
11
12
13
14
15
16
17
18
19
20
21
ASPEN INSURANCE HOLDINGS LIMITED
Basis of Presentation
Definitions and presentations : All financial information contained herein is unaudited except for information for the fiscal year ended December 31, 2015.
Unless otherwise noted, all data is in U.S. dollar millions, except for per share amounts, percentages 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 and unrealized gains or losses, including net realized and unrealized
gains and losses on interest rate swaps, after-tax net foreign exchange gains or losses, including net realized and unrealized gains and losses from foreign
exchange contracts and certain non-recurring items.
Aspen excludes these items above from its calculation of operating income because they are either not expected to recur and therefore are not reflective of
underlying performance or 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 would distort 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
21 for a reconciliation of operating income to net income.
Annualized operating return on average equity (“Operating ROE”) (a non-GAAP financial measure): Operating ROE is calculated using operating income,
as defined above, and average equity is calculated as the arithmetic average on a monthly basis for the stated periods of shareholders' equity excluding the
aggregate value of the liquidation preferences of our preference shares net of issuance costs and the total amount of non-controlling interest.
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 21 for a reconciliation of operating income to net income and page 7 for a reconciliation of average ordinary shareholders'
equity to average shareholders' equity.
Diluted operating earnings per share and basic operating earnings per share (non-GAAP financial measures): 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 are calculated by dividing operating income by the diluted or
basic weighted average number of shares outstanding for the period. See page 21 for a reconciliation of diluted and basic operating earnings per share to basic
earnings per share.
Diluted book value per ordinary share (not a non-GAAP financial measure): Aspen has included diluted book value per ordinary share as it illustrates the
effect on basic book value per share of dilutive securities thereby providing a better benchmark for comparison with other companies. Diluted book value per
share is calculated using the treasury stock method as defined on page 20.
Accident year loss ratio excluding catastrophes (a non-GAAP financial measure): Aspen believes that the presentation of loss ratios excluding
catastrophes and prior year reserve movements supports meaningful comparison from period to period of the underlying performance of the business. Accident
year loss ratios excluding catastrophes are calculated by dividing net losses excluding catastrophe losses, net expenses and prior year reserve movements by
net earned premiums excluding catastrophe-related reinstatement premiums. Aspen has defined catastrophe losses in the first quarter of 2016 as losses
associated with weather-related events in the U.S. and an earthquake in Taiwan and in the first quarter of 2015 as losses predominantly associated with
storms in Europe, Australia and the U.S. See pages 9 and 10 for a reconciliation of loss ratios to accident year loss ratios excluding catastrophes.
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, the cost of losses and
expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit;
a combined ratio above 100% demonstrates underwriting loss.
GAAP combined ratios differ from U.S. statutory combined ratios primarily due to the deferral of certain third-party acquisition expenses for GAAP reporting
purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general and
administrative expense ratios.
1
ASPEN INSURANCE HOLDINGS LIMITED
Financial Highlights
Three Months Ended March 31,
(in US$ millions except for percentages, share and per share amounts)
2016
2015
Change
Gross written premium
$
975.7
$
919.2
6.1 %
Net written premium
$
799.7
$
763.2
4.8 %
Net earned premium
$
663.1
$
593.6
11.7 %
Net income after tax
$
114.4
$
128.0
(10.6)%
Operating income after tax
$
89.9
$
98.0
(8.3)%
Net investment income
$
49.5
$
47.4
4.4 %
Underwriting income
$
55.7
$
66.0
(15.6)%
$
1.73
$
1.91
(9.4)%
$
1.33
$
1.43
(7.0)%
Net income adjusted for preference share dividend and non-controlling interest
$
1.68
$
1.87
(10.2)%
Operating income adjusted for preference share dividend and non-controlling interest
$
1.29
$
Earnings Per Share and Book Value Per Share
Basic earnings per ordinary share
Net income adjusted for preference share dividend and non-controlling interest
Operating income adjusted for preference share dividend and non-controlling interest
Diluted earnings per ordinary share
Weighted average number of ordinary shares outstanding (in millions of shares)
60.868
Diluted weighted average number of ordinary shares outstanding (in millions of shares)
62.484
Book value per ordinary share
$
Diluted book value per ordinary share
$
49.45
$
48.22
$
1.39
(7.2)%
62.159
(2.1)%
63.533
(1.7)%
47.14
4.9 %
46.02
4.8 %
Ordinary shares outstanding at March 31, 2016 and March 31, 2015 (in millions of shares)
60.675
61.723
(1.7)%
Diluted ordinary shares outstanding at March 31, 2016 and March 31, 2015 (in millions of shares)
62.213
63.227
(1.6)%
Underwriting Ratios
Loss ratio
Policy acquisition expense ratio
General, administrative and corporate expense ratio
Expense ratio
Combined ratio
Return On Equity
53.9 %
19.6 %
18.1 %
37.7 %
91.6 %
Average equity (1)
Return on average equity
Net income adjusted for preference share dividend and non-controlling interest
Operating income adjusted for preference share dividend and non-controlling interest
Annualized return on average equity
Net income
Operating income
See pages 7 and 21 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) Average equity excludes preference shares.
2
$ 2,931.5
51.6 %
20.1 %
17.2 %
37.3 %
88.9 %
$ 2,886.3
3.6%
2.8%
4.1 %
3.1 %
14.4 %
11.2 %
16.4 %
12.4 %
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Quarterly Results
(in US$ millions except for percentages and per share
amounts)
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
UNDERWRITING REVENUES
Gross written premiums
$
975.7
$
(176.0 )
Premiums ceded
634.8
$
720.5
$
722.8
(48.0 )
(68.7 )
(78.4 )
651.8
644.4
(11.2 )
(35.0 )
$
919.2
(156.0 )
799.7
586.8
(136.6 )
42.9
663.1
629.7
640.6
609.4
593.6
Losses and loss adjustment expenses
357.4
334.0
365.6
360.5
306.1
Amortization of deferred policy acquisition costs
130.2
118.2
132.0
114.1
119.3
General, administrative and corporate expenses
119.8
125.9
100.5
95.4
102.2
Total underwriting expenses
607.4
578.1
598.1
570.0
527.6
55.7
51.6
42.5
39.4
66.0
Net investment income
49.5
46.4
45.0
46.7
47.4
Interest expense
(7.4 )
(7.4 )
(7.4 )
(7.3 )
(7.4 )
Other (expense)
(3.0 )
(5.4 )
(10.6 )
(2.7 )
(1.6 )
Total other operating revenue
39.1
33.6
27.0
36.7
38.4
OPERATING INCOME BEFORE TAX
94.8
85.2
69.5
76.1
104.4
(20.1 )
6.1
4.5
(9.4 )
(11.0 )
42.2
31.9
(44.0 )
(15.5 )
39.7
116.9
123.2
30.0
51.2
133.1
(1.8 )
(2.2 )
Net written premiums
Change in unearned premiums
Net earned premiums
763.2
(169.6 )
UNDERWRITING EXPENSES
Underwriting income including corporate expenses
OTHER OPERATING REVENUE AND EXPENSES
Net realized and unrealized exchange (losses)/gains (1)
Net realized and unrealized investment gains/(losses) (2)
INCOME BEFORE TAX
(2.5 )
Income tax expense
(5.3 )
(5.1 )
NET INCOME AFTER TAX
114.4
117.9
28.2
49.0
Dividends paid on ordinary shares
(12.8 )
(12.8 )
(12.7 )
(13.0 )
(12.4 )
(9.5 )
(9.4 )
(9.5 )
(9.4 )
(9.5 )
Dividends paid to non-controlling interest
—
(0.1 )
—
—
—
Proportion due to non-controlling interest
0.2
—
(0.3 )
(0.5 )
—
Dividends paid on preference shares
Retained income
$
92.3
$
95.6
$
5.7
$
26.1
128.0
$
106.1
Components of net income after tax
Operating income
Net realized and unrealized exchange (losses)/gains after tax (1)
84.0
67.2
72.2
98.0
5.7
1.4
(7.5 )
(9.8 )
41.4
Net realized and unrealized investment gains/(losses) after tax (2)
NET INCOME AFTER TAX
89.9
(16.9 )
$
114.4
28.2
$
117.9
(40.4 )
$
28.2
(15.7 )
$
49.0
39.8
$
128.0
53.9 %
53.0 %
57.1 %
59.2 %
51.6 %
Policy acquisition expense ratio
19.6 %
18.8 %
20.6 %
18.7 %
20.1 %
General, administrative and corporate expense ratio
18.1 %
20.0 %
15.7 %
15.7 %
17.2 %
Expense ratio
37.7 %
38.8 %
36.3 %
34.4 %
37.3 %
Combined ratio
91.6 %
91.8 %
93.4 %
93.6 %
88.9 %
Loss ratio
Basic earnings per share (3)
$
1.73
$
1.78
$
0.30
$
0.64
$
1.91
Diluted earnings per share (3)
$
1.68
$
1.75
$
0.30
$
0.62
$
1.87
Annualized return on average equity
Net income
14.4 %
15.2 %
2.8 %
5.6 %
16.4 %
Operating income
11.2 %
10.4 %
8.4 %
8.8 %
12.4 %
See pages 7 and 21 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 dividends and non-controlling interest.
3
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Operations - Year To Date Results
Three Months Ended March 31,
2016
2015
UNDERWRITING REVENUES
$
Gross written premiums
975.7
$
(176.0 )
Premiums ceded
919.2
(156.0 )
799.7
763.2
(136.6 )
(169.6 )
663.1
593.6
Losses and loss adjustment expenses
357.4
306.1
Amortization of deferred policy acquisition costs
130.2
119.3
General, administrative and corporate expenses
119.8
102.2
Total underwriting expenses
607.4
527.6
55.7
66.0
Net investment income
49.5
47.4
Interest expense
(7.4 )
(7.4 )
Other (expense)
(3.0 )
(1.6 )
Total other operating revenue
39.1
38.4
OPERATING INCOME BEFORE TAX
94.8
104.4
Net written premiums
Change in unearned premiums
Net earned premiums
UNDERWRITING EXPENSES
Underwriting income including corporate expenses
OTHER OPERATING REVENUE AND EXPENSES
(20.1 )
Net realized and unrealized exchange (losses) (1)
Net realized and unrealized investment gains (2)
INCOME BEFORE TAX
(11.0 )
42.2
39.7
116.9
133.1
(2.5 )
Income tax expense
(5.1 )
NET INCOME AFTER TAX
114.4
128.0
Dividends paid on ordinary shares
(12.8 )
(12.4 )
(9.5 )
(9.5 )
Dividends paid on preference shares
—
0.2
Proportion due to non-controlling interest
$
Retained income
92.3
$
106.1
Components of net income after tax
89.9
Operating income
98.0
(16.9 )
Net realized and unrealized exchange (losses) after tax (1)
(9.8 )
41.4
Net realized and unrealized investment gains after tax (2)
$
NET INCOME AFTER TAX
114.4
39.8
$
128.0
53.9 %
51.6 %
Policy acquisition expense ratio
19.6 %
20.1 %
General, administrative and corporate expense ratio
18.1 %
17.2 %
Expense ratio
37.7 %
37.3 %
Combined ratio
91.6 %
88.9 %
Loss ratio
See pages 7 and 21 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.
4
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Balance Sheets
March 31,
2016
(in US$ millions except for per share amounts)
December 31,
2015
September 30,
2015
$
$
June 30,
2015
March 31,
2015
Investments
Fixed income securities
$
6,960.5
757.8
Equity securities
6,739.1
736.4
6,496.4
$
696.3
6,407.4
$
729.3
6,339.2
719.0
Other investments
8.9
8.9
9.5
9.5
9.5
Catastrophe bonds
46.1
55.4
36.7
32.3
32.8
143.0
172.4
183.2
185.2
180.9
7,916.3
7,712.2
7,422.1
7,363.7
7,281.4
903.1
1,099.5
1,196.7
1,148.4
1,225.9
Unpaid losses
366.0
354.8
348.7
337.3
360.1
Ceded unearned premiums
243.6
168.9
224.6
257.1
276.4
1,339.1
1,115.6
1,208.4
1,249.9
1,264.8
Other
117.9
94.3
108.7
108.1
92.1
Funds withheld
39.6
36.0
39.0
44.5
46.1
407.7
361.1
346.8
349.0
333.8
10.9
9.2
9.2
4.1
2.1
Short-term investments
Total investments
Cash and cash equivalents
Reinsurance recoverables
Receivables
Underwriting premiums
Deferred policy acquisition costs
Derivatives at fair value
Receivable for securities sold
Office properties and equipment
Taxation
Other assets
Intangible assets and goodwill
Total assets
1.9
0.6
6.7
5.5
0.3
83.2
70.6
68.7
65.6
61.9
—
3.7
—
0.9
—
1.8
4.1
5.9
1.9
18.2
74.3
18.2
18.2
18.2
18.2
$
11,505.4
$
11,048.8
$
11,003.7
$
10,954.2
$
10,981.3
$
5,011.5
$
4,938.2
$
4,913.9
$
4,815.9
$
4,698.9
LIABILITIES
Insurance reserves
Losses and loss adjustment expenses
Unearned premiums
1,804.0
1,587.2
1,686.9
1,702.8
1,665.1
Total insurance reserves
6,815.5
6,525.4
6,600.8
6,518.7
6,364.0
148.9
92.7
135.6
164.5
171.5
19.2
10.8
22.7
32.1
34.8
293.3
343.8
237.7
242.7
308.6
17.6
4.0
1.9
7.2
11.5
479.0
451.3
397.9
446.5
526.4
Loan notes issued by variable interest entities, at fair value
104.5
103.0
84.5
76.2
76.0
Long-term debt
549.3
549.2
549.2
549.2
549.1
7,948.3
7,628.9
7,632.4
7,590.6
7,515.5
Ordinary shares
0.1
0.1
0.1
0.1
0.1
Non-controlling interest
1.1
1.3
1.3
1.0
0.5
—
—
—
—
—
Additional paid-in capital
1,055.9
1,075.3
1,068.3
1,061.7
1,106.0
Retained earnings
2,375.9
2,283.6
2,188.0
2,182.3
2,156.2
124.1
59.6
113.6
118.5
203.0
Payables
Reinsurance premiums
Taxation
Accrued expenses and other payables
Liabilities under derivative contracts
Total payables
Total liabilities
SHAREHOLDERS’ EQUITY
Preference shares
Accumulated other comprehensive income, net of taxes
3,557.1
Total shareholders’ equity
3,419.9
3,371.3
3,363.6
3,465.8
$
11,505.4
$
11,048.8
$
11,003.7
$
10,954.2
$
10,981.3
Book value per ordinary share
$
49.45
$
46.99
$
46.30
$
46.18
$
47.14
Book value per diluted ordinary share
$
48.22
$
46.00
$
45.28
$
45.16
$
46.02
Total liabilities and shareholders’ equity
See pages 7 and 21 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
5
ASPEN INSURANCE HOLDINGS LIMITED
Earnings Per Share and Book Value Per Share
Three Months Ended
(in US$ except for number of shares)
March 31, 2016
March 31, 2015
Basic earnings per ordinary share
Net income adjusted for preference share dividend and non-controlling interest
$
1.73
$
1.91
Operating income adjusted for preference share dividend and non-controlling interest
$
1.33
$
1.43
$
1.68
$
1.87
$
1.29
$
1.39
Diluted earnings per ordinary share
Net income adjusted for preference share dividend and non-controlling interest
Operating income adjusted for preference share dividend and non-controlling interest
Weighted average number of ordinary shares outstanding (in millions)
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions)
Book value per ordinary share
Diluted book value per ordinary share
60.868
62.159
62.484
63.533
$
49.45
$
47.14
$
48.22
$
46.02
Ordinary shares outstanding at end of the period (in millions)
60.675
61.723
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions)
62.213
63.227
See pages 7 and 21 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
6
ASPEN INSURANCE HOLDINGS LIMITED
Return On Average Equity
Three Months Ended
(in US$ millions except for percentages)
March 31, 2016
March 31, 2015
Average shareholders' equity
Average non-controlling interest
Average preference shares
$
3,488.5
(1.2 )
(555.8 )
$
3,442.6
(0.5 )
(555.8 )
Average ordinary shareholders' equity
$
2,931.5
$
2,886.3
Return on average equity:
Net income adjusted for preference share dividend and non-controlling interest
Operating income adjusted for preference share dividend and non-controlling interest
Annualized return on average equity:
Net income
Operating income
Components of return on average equity:
Return on average equity from underwriting activity (1)
Return on average equity from investment and other activity (2)
Pre-tax operating income return on average equity (3)
Post-tax operating income return on average equity (4)
See page 21 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 dividends and non-controlling interest.
(3) Calculated by using operating income before tax adjusted for preference share dividends and non-controlling interest.
(4) Calculated by using operating income after-tax adjusted for preference share dividends and non-controlling interest.
7
3.6 %
2.8 %
4.1 %
3.1 %
14.4 %
11.2 %
16.4 %
12.4 %
1.9 %
1.0 %
2.9 %
2.8 %
2.3 %
1.0 %
3.3 %
3.1 %
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Underwriting Results by Operating Segment
Three Months Ended March 31, 2016
(in US$ millions except for percentages)
Gross written premiums
Reinsurance
$
517.6
Insurance
$
458.1
Three Months Ended March 31, 2015
Total
$
975.7
Reinsurance
$
484.8
Insurance
$
434.4
Total
$
919.2
Net written premiums
449.5
350.2
799.7
442.1
321.1
763.2
Gross earned premiums
306.8
445.6
752.4
265.8
415.1
680.9
Net earned premiums
280.3
382.8
663.1
249.4
344.2
593.6
Losses and loss adjustment expenses
134.5
222.9
357.4
105.5
200.6
306.1
59.4
70.8
130.2
53.4
65.9
119.3
Amortization of deferred policy acquisition costs
General and administrative expenses
Underwriting income
44.1
$
42.3
58.6
$
30.5
102.7
$
Net investment income
Net realized and unrealized investment gains (1)
Corporate expenses
Other (expense)
Interest expense
Net realized and unrealized foreign exchange
(losses) (2)
72.8
32.4
$
58.1
55.3
$
22.4
87.7
$
80.5
49.5
47.4
42.2
(17.1)
(3.0)
(7.4)
39.7
(14.5)
(1.6)
(7.4)
(20.1)
(11.0)
Income before tax
Income tax expense
$
116.9
(2.5)
$
133.1
(5.1)
Net income
$
114.4
$
128.0
Ratios
Loss ratio
Policy acquisition expense ratio
General and administrative expense ratio (3)
Expense ratio
Combined ratio
48.0%
21.2%
15.7%
36.9%
84.9%
58.2 %
18.5 %
15.3 %
33.8 %
92.0 %
(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.
8
53.9%
19.6%
18.1%
37.7%
91.6%
42.3%
21.4%
13.0%
34.4%
76.7%
58.3 %
19.1 %
16.1 %
35.2 %
93.5 %
51.6%
20.1%
17.2%
37.3%
88.9%
ASPEN INSURANCE HOLDINGS LIMITED
Reinsurance Segment - Quarterly Results
(in US$ millions except for percentages)
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
$ 517.6
$ 186.8
$ 316.6
$ 260.7
$ 484.8
Net written premiums
449.5
178.5
294.7
238.2
442.1
Gross earned premiums
306.8
295.9
304.6
287.2
265.8
Net earned premiums
280.3
270.3
284.6
268.3
249.4
Net losses and loss adjustment expenses
134.5
99.9
169.9
116.3
105.5
Amortization of deferred policy acquisition costs
59.4
56.1
64.8
50.4
53.4
General and administrative expenses
44.1
44.0
34.7
35.4
32.4
Gross written premiums
$
Underwriting income
Ratios
Loss ratio
Policy acquisition expense ratio
General and administrative expense ratio
Expense ratio
Combined ratio
Accident Year Ex-cat Loss Ratio
Loss ratio
Prior year loss development
Catastrophe losses
Accident year ex-cat loss ratio
42.3
48.0
21.2
15.7
36.9
84.9
$
%
%
%
%
%
48.0 %
6.5 %
(3.8 )%
50.7 %
9
70.3
37.0
20.8
16.3
37.1
74.1
$
%
%
%
%
%
37.0 %
13.8 %
(8.4)%
42.4 %
15.2
59.7
22.8
12.2
35.0
94.7
$
%
%
%
%
%
59.7 %
5.7 %
(5.9 )%
59.5 %
66.2
43.3
18.8
13.2
32.0
75.3
$
%
%
%
%
%
43.3 %
9.0 %
(0.9)%
51.4 %
58.1
42.3
21.4
13.0
34.4
76.7
%
%
%
%
%
42.3 %
5.3 %
(3.1 )%
44.5 %
ASPEN INSURANCE HOLDINGS LIMITED
Insurance Segment - Quarterly Results
(in US$ millions except for percentages)
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
$ 458.1
$ 448.0
$ 403.9
$ 462.1
$ 434.4
Net written premiums
350.2
408.3
357.1
406.2
321.1
Gross earned premiums
445.6
436.0
429.0
423.2
415.1
Net earned premiums
382.8
359.4
356.0
341.1
344.2
Net losses and loss adjustment expenses
222.9
234.1
195.7
244.2
200.6
Amortization of deferred policy acquisition costs
70.8
62.1
67.2
63.7
65.9
General and administrative expenses
58.6
61.8
51.3
45.2
55.3
Gross written premiums
$
Underwriting income/(loss)
Ratios
Loss ratio
Policy acquisition expense ratio
General and administrative expense ratio
Expense ratio
Combined ratio
Accident Year Ex-cat Loss Ratio
Loss ratio
Prior year loss development
Catastrophe losses
Accident year ex-cat loss ratio
30.5
58.2
18.5
15.3
33.8
92.0
$
%
%
%
%
%
58.2 %
0.9 %
(2.1)%
57.0 %
10
1.4
65.1
17.3
17.2
34.5
99.6
$
%
%
%
%
%
65.1 %
6.0 %
(6.5 )%
64.6 %
41.8
55.0
18.9
14.4
33.3
88.3
$ (12.0 )
%
%
%
%
%
55.0 %
6.4 %
(0.6)%
60.8 %
71.6
18.7
13.3
32.0
103.6
%
%
%
%
%
71.6 %
2.1 %
(2.8)%
70.9 %
$
22.4
58.3
19.1
16.1
35.2
93.5
%
%
%
%
%
58.3 %
4.2 %
(1.7 )%
60.8 %
ASPEN INSURANCE HOLDINGS LIMITED
Written and Earned Premiums by Segment and Lines of Business
(in US$ millions)
Gross Written Premiums
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Reinsurance
Property Catastrophe Reinsurance
$ 127.6
67.3
$ 153.8
Other Property Reinsurance
103.0
$
61.2
4.1
$
105.2
49.1
$
84.0
109.9
Casualty Reinsurance
127.1
45.9
77.9
49.0
114.7
Specialty Reinsurance
Total Reinsurance
159.9
75.6
84.4
60.4
106.4
$ 517.6
$ 186.8
$ 316.6
$ 260.7
$ 484.8
Insurance
$ 226.3
$ 213.9
$ 208.5
$ 254.8
$ 213.4
Marine, Aviation and Energy Insurance
117.7
107.1
85.3
103.2
131.7
Financial and Professional Lines Insurance
114.1
127.0
110.1
104.1
89.3
$ 458.1
$ 448.0
$ 403.9
$ 462.1
$ 434.4
$ 975.7
$ 634.8
$ 720.5
$ 722.8
$ 919.2
$
$
$
$
Property and Casualty Insurance
Total Insurance
Total Gross Written Premiums
Net Written Premiums
Reinsurance
Property Catastrophe Reinsurance
92.1
53.5
$ 126.1
92.9
59.9
100.1
80.6
98.8
Casualty Reinsurance
125.6
41.5
76.8
46.7
113.8
Specialty Reinsurance
138.9
72.3
84.0
57.4
103.4
$ 449.5
$ 178.5
$ 294.7
$ 238.2
$ 442.1
$ 180.5
$ 185.2
$ 172.9
$ 222.1
$ 156.7
Other Property Reinsurance
Total Reinsurance
4.8
33.8
Insurance
Property and Casualty Insurance
106.6
99.7
76.1
82.5
120.5
63.1
123.4
108.1
101.6
43.9
$ 350.2
$ 408.3
$ 357.1
$ 406.2
$ 321.1
$ 799.7
$ 586.8
$ 651.8
$ 644.4
$ 763.2
$
$
$
$
$
Marine, Aviation and Energy Insurance
Financial and Professional Lines Insurance
Total Insurance
Total Net Written Premiums
Net Earned Premiums
Reinsurance
Property Catastrophe Reinsurance
47.3
58.1
54.0
53.8
57.1
Other Property Reinsurance
87.3
79.4
91.5
78.9
77.5
Casualty Reinsurance
67.0
63.7
68.6
71.2
57.8
Specialty Reinsurance
78.7
69.1
70.5
64.4
57.0
$ 280.3
$ 270.3
$ 284.6
$ 268.3
$ 249.4
$ 189.7
$ 172.0
$ 171.8
$ 162.9
$ 159.8
93.9
94.9
94.1
97.3
99.4
Total Reinsurance
Insurance
Property and Casualty Insurance
Marine, Aviation and Energy Insurance
99.2
92.5
90.1
80.9
85.0
Total Insurance
$ 382.8
$ 359.4
$ 356.0
$ 341.1
$ 344.2
Total Net Earned Premiums
$ 663.1
$ 629.7
$ 640.6
$ 609.4
$ 593.6
Financial and Professional Lines Insurance
11
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Changes in Shareholders' Equity
Three Months Ended March 31,
(in US$ millions)
2016
2015
Ordinary shares
$
Beginning and end of period
0.1
$
0.1
Preference shares
Beginning and end of period
—
—
1.3
0.5
Non-controlling interest
Beginning of period
(0.2 )
—
1.1
0.5
Beginning of period
1,075.3
1,134.3
New shares issued
1.5
3.5
(25.0 )
(36.5 )
4.1
4.7
1,055.9
1,106.0
2,283.6
2,050.1
Net income for the period
114.4
128.0
Dividends paid on ordinary and preference shares
(22.3 )
(21.9 )
Net change for the period
End of period
Additional paid-in capital
Ordinary shares repurchased
Share-based compensation
End of period
Retained earnings
Beginning of period
Proportion due to non-controlling interest
End of period
0.2
—
2,375.9
2,156.2
Accumulated other comprehensive income:
Cumulative foreign currency translation adjustments, net of taxes:
0.6
72.7
Change for the period
(11.0 )
(26.1 )
End of period
(10.4 )
46.6
Beginning of period
(1.2 )
(3.8 )
Net change from current period hedged transactions
(1.4 )
(2.4 )
End of period
(2.6 )
(6.2 )
Beginning of period
Loss on derivatives:
Unrealized appreciation/(depreciation) on available for sale investments, net of taxes:
Beginning of period
60.2
Change for the period
76.9
End of period
Total accumulated other comprehensive income
$
Total shareholders' equity
12
165.4
(2.8 )
137.1
162.6
124.1
203.0
3,557.1
$
3,465.8
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Statements of Comprehensive Income
Three Months Ended March
31,
(in US$ millions)
2016
Net income adjusted for non-controlling interest
$
114.4
2015
$
128.0
Other comprehensive income, net of taxes:
Available for sale investments:
Reclassification adjustment for net realized (gains) included in net income
(3.7)
(31.9)
Change in net unrealized gains on available for sale securities held
Net change from current period hedged transactions
Change in foreign currency translation adjustment
80.6
(1.4)
(11.0)
29.1
(2.4)
(26.1)
64.5
(31.3)
Other comprehensive income/(loss)
Comprehensive income
$
13
178.9
$
96.7
ASPEN INSURANCE HOLDINGS LIMITED
Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31,
(in US$ millions)
2016
Net cash from operating activities
$
Net cash (used in)/from investing activities
Net cash (used in) financing activities
Effect of exchange rate movements on cash and cash equivalents
47.3
2015
$
(106.2 )
(133.2 )
(4.3 )
Decrease in cash and cash equivalents
(196.4 )
Cash at beginning of period
47.4
1,099.5
Cash at end of period
$
14
903.1
66.2
120.9
(119.8 )
(19.9)
1,178.5
$
1,225.9
ASPEN INSURANCE HOLDINGS LIMITED
Reserves for Losses and Loss Adjustment Expenses
For the Twelve Months
Ended
December 31, 2015
For the Three Months
Ended March 31, 2016
(in US$ millions)
Provision for losses and loss adjustment expenses at the start of the period
Reinsurance recoverables
$
Net loss and loss adjustment expenses at the start of the period
Net loss and loss adjustment expenses assumed
Provision for losses and loss adjustment expenses for claims incurred
4,938.2
(354.8 )
$
4,750.8
(350.0 )
4,583.4
4,400.8
5.7
—
Current period
Prior period release
379.0
(21.6)
1,522.7
(156.5 )
Total incurred
357.4
1,366.2
(294.5 )
(1,108.5 )
(6.4)
(75.1 )
Losses and loss adjustment expenses payments for claims incurred
Foreign exchange (gains)
Net loss and loss adjustment expenses reserves at the end of the period
Reinsurance recoverables on unpaid losses at the end of the period
Gross loss and loss adjustment expenses reserves at the end of the period
$
15
4,645.5
4,583.4
366.0
354.8
5,011.5
$
4,938.2
ASPEN INSURANCE HOLDINGS LIMITED
Reserves by Operating Segment
(in US$ millions)
Reinsurance
Insurance
Total losses and loss adjustment expense
reserves
Gross
$
2,472.5
As at March 31, 2016
Reinsurance
Recoverables
$
2,539.0
$
5,011.5
(39.5 )
Net
$
(326.5 )
$
(366.0 )
16
As at December 31, 2015
Reinsurance
Gross
Recoverables
2,433.0
$
2,212.5
$
4,645.5
2,441.9
$
2,496.3
$
4,938.2
(32.4 )
$
(322.4 )
$
(354.8 )
Net
2,409.5
2,173.9
$
4,583.4
ASPEN INSURANCE HOLDINGS LIMITED
Prior Year Reserve Releases
(in US$ millions)
Reinsurance
Three Months Ended March 31, 2016
Reinsurance
Gross
Recoverables
Net
$
Insurance
Release in reserves for prior years during the period
20.3
$
(2.1 )
2.8
$
23.1
$
0.6
$
(1.5 )
17
18.2
Three Months Ended March 31, 2015
Reinsurance
Gross
Recoverables
Net
$
3.4
$
21.6
14.5
$
21.2
$
35.7
(1.3 )
$
(6.9 )
$
(8.2 )
13.2
14.3
$
27.5
ASPEN INSURANCE HOLDINGS LIMITED
Consolidated Investment Portfolio
Fair Market Value
(in US$ millions)
March 31,
2016
December
31, 2015
September
30,
2015
June 30,
2015
March 31,
2015
1,138.1
$ 1,074.6
$ 1,041.8
Marketable Securities - Available For Sale
U.S. government securities
$ 1,111.7
U.S. agency securities
$
1,123.1
$
149.9
158.7
162.0
182.0
182.9
Municipal securities
32.9
26.6
28.5
29.5
30.7
Corporate securities
2,680.9
2,660.6
2,496.7
2,420.8
2,333.6
674.5
644.2
628.4
661.7
637.7
Asset-backed securities
76.3
76.0
132.5
138.7
140.9
Bonds backed by foreign government
72.5
82.1
77.0
78.3
68.2
1,265.0
1,179.8
1,041.3
1,044.1
1,104.0
6,063.7
5,951.1
5,704.5
5,629.7
5,539.8
135.3
162.9
176.3
184.1
180.2
$ 5,813.8
$ 5,720.0
$
$
Foreign government securities
Mortgage-backed securities
Total fixed income securities
Short-term investments
Total Available For Sale
$ 6,199.0
$
6,114.0
$
5,880.8
$
$
27.3
$
13.5
Marketable Securities - Trading
U.S. government securities
42.1
3.4
9.0
—
—
—
—
0.2
Municipal securities
4.0
0.5
0.5
0.5
0.5
Corporate securities
615.2
558.2
547.2
540.1
554.1
Foreign government securities
198.5
179.5
128.9
133.8
133.7
Asset-backed securities
19.6
20.5
18.7
19.7
16.0
Mortgage-backed securities
17.4
—
—
—
—
U.S. agency securities
Bank loans
Total fixed income securities
Short-term investments
Equity securities
Catastrophe bonds
—
2.0
83.1
80.2
85.9
896.8
788.0
791.9
777.7
799.4
7.7
9.5
6.9
1.1
0.7
757.8
736.4
696.3
729.3
719.0
36.7
32.3
32.8
Total Trading
$ 1,708.4
$
1,589.3
$
1,531.8
$ 1,540.4
$ 1,551.9
Other Investments
$
$
8.9
$
9.5
$
$
Cash
46.1
8.9
903.1
55.4
1,099.5
1,196.7
9.5
1,148.4
9.5
1,225.9
ASPEN INSURANCE HOLDINGS
LIMITED
Investment Analysis
(in US$ millions except for percentages)
Q1 2016
Net investment income from fixed income investments and cash
$
42.6
Q4 2015
Q3 2015
$ 42.8
$ 40.5
Q2 2015
$
40.9
Q1 2015
$ 41.2
Net investment income from equity securities
Net investment income
6.9
3.6
4.5
5.8
6.2
49.5
46.4
45.0
46.7
47.4
Net realized and unrealized investment gains/(losses) excluding the interest rate swaps
45.0
30.5
(41.2)
(15.3 )
42.9
Net realized investment (losses)/gains from the interest rate swaps
(2.8 )
1.4
(2.8)
(0.2 )
(3.2)
—
—
—
—
—
Net realized and unrealized investment gains/(losses)
42.2
31.9
(44.0)
(15.5 )
39.7
Change in unrealized (losses)/gains on available for sale investments (gross of tax)
85.0
(33.4)
17.3
(77.5 )
—
$ 18.3
$ (46.3 )
$ 87.1
Other-than-temporary impairment charges
Total return/(loss) on investments (1)
$ 176.7
Portfolio Characteristics
Fixed income portfolio book yield (excluding the impact of the interest rate swaps)
Fixed income portfolio duration (excluding the impact of the interest rate swaps)
19
2.56 %
3.6 years
$ 44.9
2.59 %
3.7
years
2.50 %
3.4
years
2.57 %
3.5 years
2.56 %
3.5
years
ASPEN INSURANCE HOLDINGS LIMITED
Book Value Per Ordinary Share
(in US$ millions except for number of shares and per share
amounts)
March 31,
2016
December
31, 2015
September
30, 2015
June 30,
2015
March 31,
2015
Net assets
Less: Preference shares
Less: Non-controlling interest
$ 3,557.1
(555.8 )
(1.1 )
$ 3,419.9
(555.8 )
(1.3)
$
3,371.3
(555.8 )
(1.3)
$ 3,363.6
(555.8 )
(1.0 )
$ 3,465.8
(555.8 )
(0.5)
Total
$ 3,000.2
$ 2,862.8
$
2,814.2
$ 2,806.8
$ 2,909.5
Ordinary shares outstanding (in millions)
60.675
60.918
60.782
60.778
61.723
Ordinary shares and dilutive potential ordinary shares (in millions)
62.213
62.240
62.147
62.149
63.227
Book value per ordinary share
$
49.45
$
46.99
$
46.30
$
46.18
$
47.14
Diluted book value per ordinary share
$
48.22
$
46.00
$
45.28
$
45.16
$
46.02
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.
20
ASPEN INSURANCE HOLDINGS LIMITED
Operating Income Reconciliation
Net income is adjusted to exclude after-tax change in net foreign exchange gains and losses, realized gains and losses in investments and non-recurring
items.
Three Months Ended
(in US$ millions except where stated)
March 31, 2016
March 31, 2015
Net income as reported
$
$
Net change attributable to non-controlling interest
Preference share dividends
114.4
—
(9.5)
0.2
(9.5 )
Net income available to ordinary shareholders
Add (deduct) after tax income:
Net foreign exchange losses
Net realized (gains) on investments
Operating income after tax available to ordinary shareholders
Tax expense on operating income
Operating income before tax available to ordinary shareholders
128.0
105.1
118.5
16.9
(41.4 )
9.8
(39.8)
80.6
88.5
4.9
6.4
$
85.5
$
94.9
$
1.73
$
1.91
Basic earnings per ordinary share
Net income adjusted for preference share dividends and non-controlling interest
Add (deduct) after tax income:
Net foreign exchange losses
Net realized (gains) on investments
0.28
(0.68 )
Operating income adjusted for preference shares dividends and non-controlling interest
0.16
(0.64)
$
1.33
$
1.43
$
1.68
$
1.87
Diluted earnings per ordinary share
Net income adjusted for preference share dividends and non-controlling interest
Add (deduct) after tax income:
Net foreign exchange losses
Net realized (gains) on investments
0.27
(0.66 )
Operating income adjusted for preference shares dividends and non-controlling interest
21
$
1.29
0.15
(0.63)
$
1.39
Aspen Insurance Holdings Limited INVESTOR PRESENTATION FIRST QUARTER 2016 Exhibit 99.3
AHL: NYSE 2 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 financial 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.co. Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This presentation contains 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,” “assume,” “objective,” “intend,” “plan,” “believe,” “do not believe,” “aim,” “project,” “anticipate,” “seek,” “will,” “likely,” “estimate,” “may,” “continue,” “guidance,” “outlook,” “trends,” “future,” “could,”
“would,” “should,” “target,” "on track" 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: our ability to successfully implement steps to further optimize the business portfolio, ensure capital efficiency and enhance investment returns; the possibility of greater
frequency or severity of claims and loss activity, including as a result of natural or man-made (including economic and political risks) catastrophic or material loss events, than our underwriting, reserving, reinsurance purchasing or investment practices have anticipated; the
assumptions and uncertainties underlying reserve levels that may be impacted by future payments for settlements of claims and expenses or by other factors causing adverse or favorable development, including our assumptions on inflation costs associated with long-tail casualty
business which could differ materially from actual experience; a vote by the U.K. electorate in favor of a U.K. exit from the European Union in a forthcoming in-or-out referendum; the reliability of, and changes in assumptions to, natural and man-made catastrophe pricing,
accumulation and estimated loss models; decreased demand for our insurance or reinsurance products and cyclical changes in the insurance and reinsurance industry; the models we use to assess our exposure to losses from future natural catastrophes contain inherent uncertainties
and our actual losses may differ significantly from expectations; our capital models may provide materially different indications than actual results; increased competition from existing insurers and reinsurers and from alternative capital providers and insurance linked funds and
collateralized special purpose insurers on the basis of pricing, capacity, coverage terms, new capital, binding authorities to brokers or other factors and the related demand and supply dynamics as contracts come up for renewal; our ability to execute our business plan to enter new
markets, introduce new products and develop new distribution channels, including their integration into our existing operations; our acquisition strategy; changes in market conditions in the agriculture industry, which may vary depending upon demand for agricultural products,
weather, commodity prices, natural disasters, and changes in legislation and policies related to agricultural products and producers; termination of, or changes in, the terms of the U.S. Federal Multiple Peril Crop Insurance Program or the U.S. Farm Bill, including modifications to
the Standard Reinsurance Agreement put in place by the Risk Management Agency of the U.S. Department of Agriculture; the recent consolidation in the (re)insurance industry; loss of one or more of our senior underwriters or key personnel; changes in our ability to exercise capital
management initiatives (including our share repurchase program) or to arrange banking facilities as a result of prevailing market conditions or changes in our financial position; changes in the availability, cost or quality of reinsurance or retrocessional coverage; changes in general
economic conditions, including inflation, deflation, foreign currency exchange rates, interest rates and other factors that could affect our financial results; the risk of a material decline in the value or liquidity of all or parts of our investment portfolio; the risks associated with the
management of capital on behalf of investors; evolving issues with respect to interpretation of coverage after major loss events; our ability to adequately model and price the effects of climate cycles and climate change; any intervening legislative or governmental action and
changing judicial interpretation and judgments on insurers’ liability to various risks; the risks related to litigation; the effectiveness of our risk management loss limitation methods, including our reinsurance purchasing; changes in the total industry losses, or our share of total
industry losses, resulting from past events and, with respect to such events, our reliance on loss reports received from cedants and loss adjustors, our reliance on industry loss estimates and those generated by modeling techniques, changes in rulings on flood damage or other
exclusions as a result of prevailing lawsuits and case law; the impact of one or more large losses from events other than natural catastrophes or by an unexpected accumulation of attritional losses and deterioration with loss estimates; the impact of acts of terrorism, acts of war and
related legislation; any changes in our reinsurers’ credit quality and the amount and timing of reinsurance recoverables; the continuing and uncertain impact of the current depressed lower growth economic environment in many of the countries in which we operate; our reliance on
information and technology and third- party service providers for our operations and systems; the level of inflation in repair costs due to limited availability of labor and materials after catastrophes; a decline in our operating subsidiaries’ ratings with S&P, A.M. Best or Moody’s; the
failure of our reinsurers, policyholders, brokers or other intermediaries to honor their payment obligations; our reliance on the assessment and pricing of individual risks by third parties; our dependence on a few brokers for a large portion of our revenues; the persistence of
heightened financial risks, including excess sovereign debt, the banking system and the Eurozone crisis; changes in government regulations or tax laws in jurisdictions where we conduct business; changes in accounting principles or policies or in the application of such accounting
principles or policies; increased counterparty risk due to the credit impairment of financial institutions; and Aspen or Aspen Bermuda Limited becoming subject to income taxes in the United States or the United Kingdom. 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 19, 2016. 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. In addition, any estimates relating to loss events involve the exercise of
considerable judgment and reflect a combination of ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports and other sources. The actuarial range of reserves and management's best estimate represents a
distribution from our internal capital model for reserving risk based on our then current state of knowledge and explicit and implicit assumptions relating to the incurred pattern of claims, the expected ultimate settlement amount, inflation and dependencies between lines of business.
Due to the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates, there can be no assurance that Aspen's ultimate losses will remain within the stated amount. SAFE HARBOR DISCLOSURE
heightened financial risks, including excess sovereign debt, the banking system and the Eurozone crisis; changes in government regulations or tax laws in jurisdictions where we conduct business; changes in accounting principles or policies or in the application of such accounting
principles or policies; increased counterparty risk due to the credit impairment of financial institutions; and Aspen or Aspen Bermuda Limited becoming subject to income taxes in the United States or the United Kingdom. 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 19, 2016. 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. In addition, any estimates relating to loss events involve the exercise of
considerable judgment and reflect a combination of ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports and other sources. The actuarial range of reserves and management's best estimate represents a
distribution from our internal capital model for reserving risk based on our then current state of knowledge and explicit and implicit assumptions relating to the incurred pattern of claims, the expected ultimate settlement amount, inflation and dependencies between lines of business.
Due to the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates, there can be no assurance that Aspen's ultimate losses will remain within the stated amount. SAFE HARBOR DISCLOSURE
AHL: NYSE 3 Specialty Other Property Casualty Property Cat 30% 28% 23% 19% Property and Casualty Financial and Professional Lines Marine, Aviation and Energy 51% 26% 23% Reinsurance Insurance 42% 58% ASPEN OVERVIEW • Global specialty insurer and reinsurer
with long-term track record of shareholder value creation • $3.1bn gross written premiums for the last twelve months ended March 31, 2016 • Underwriting focused company with industry-leading underwriting expertise and collaborative culture with team-based decision making •
Well-run, risk aware business building value in a controlled way • Clear strategy to create superior value through well- balanced business portfolio, enhancing investment returns and capital efficiency • Proven management team, disciplined risk management and balance sheet
strength • Ratings/Outlook of A / Stable (S&P), A2 / Stable (Moody’s) and A Excellent/ Stable (A.M. Best) for Aspen’s operating subsidiaries Q1 2016 LTM (1) INSURANCE BUSINESS LINES Q1 2016 LTM (1) REINSURANCE BUSINESS LINES Q1 2016 LTM (1)
COMPANY BUSINESS MIX (1) LTM: Last Twelve Months through March 31, 2016
AHL: NYSE 4Reinsurance Insurance Lloyd's 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $375 $1,307 $1,587 $2,093 $1,946 $1,819 $2,002 $2,067 $2,077 $2,208 $2,583 $2,647 $2,903 $2,997 HAVE STEADILY DIVERSIFIED THE BUSINESS
MIX (GWP in $m) Note: Included in Lloyd's is our Lloyd's insurance and reinsurance business as well as business written on the Lloyd's platform that is included in U.S. Insurance. 23% 77% 23% 77% 26% 74% 69% 38% 31% 37% 62% 63% 7% 37% 54% 30% 16% 47% 37%
16% 43% 41% 16% 40% 43% 17% 41% 42% 17% 11% 57% 56% 30% 14% 32% 56%
AHL: NYSE 5 Diluted Book Value Per Share Accumulated Dividends per Ordinary Share Q1 2006 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 $18.95 $21.83 $27.08 $28.19 $34.14 $38.90 $38.21 $40.65 $40.90 $45.13 $46.00 $48.22 $0.87 $1.32 $1.92 $2.52
$3.12 $3.72 $4.32 $4.98 $5.70 $6.50 $7.34 $7.56 A STRONG TRACK RECORD OF CAPITAL RETURNED TO SHAREHOLDERS CAGR 10.9 %(2 ) • Built a diversified specialty insurer and reinsurer with strong track record • Average 10 year Operating ROE of 11.0%(1) •
Investment in growing the business profitably is a key priority • However, will return capital to shareholders when that is financially more attractive than deploying elsewhere • Returned over $2bn to shareholders through ordinary dividends and share repurchases from inception
through Q1 2016 (1) Average of annualized quarterly ROE from 04/01/06 through 03/31/06. (2) Compound Annual Growth Rate calculated to reflect total equity and accumulated dividends per ordinary share from 03/31/06 through 03/31/16.
AHL: NYSE 6 ASPEN RE – AN ESTABLISHED INDUSTRY LEADER (1) LTM: Last Twelve Months through March 31, 2016 (2) 2015 premiums from APAC, LatAM and MENA (3) See "Safe Harbor Disclosure", slide 2 Q1 2016 LTM (1) GWP $1.28 billion BY BUSINESS
LINE • Deep and enduring relationships with well-chosen clients, significant industry expertise and excellent track record of performance • Innovative and thoughtful solutions; utilizing multi- line capabilities and Aspen Capital Markets to leverage third-party capital • Increasingly
diversified portfolio across four sub- segments • Regional structure to meet increasing demand for local market solutions • Significant long-term growth prospects in emerging markets, which accounted for 19% of total Reinsurance premiums in 2015(2) (3) • Continued focus on
research and development of new products, bringing innovation, deep expertise and fresh thinking to our markets and operations • Successful 1/1 and 4/1 renewals and new business opportunities reaffirm Aspen’s relevance, strategy and broad reach in a difficult market • Acquired
AgriLogic, a diversifying, growing U.S. crop insurance business and agricultural consultancy(3) Specialty Other Property Casualty Property Cat 30% 28% 23% 19% Aspen Re is a powerful contributor to ROE and has strong future prospects (3) SPECIALTY OTHER PROPERTY •
Credit & Surety • Treaty Risk Excess • Agriculture • Treaty Pro Rata • Other Specialty including Aviation, Energy and Marine • Global Property Facultative CASUALTY PROPERTY CATASTROPHE • U.S. Casualty Treaty • Treaty Catastrophe • International Casualty Treaty •
Global Casualty Facultative
AHL: NYSE 7 ASPEN RE GROWTH & DIVERSIFICATION - AGRILOGIC ACQUISITION • U.S. crop insurance business and agricultural consultancy within the Specialty Re sub-segment • High quality, diversifying business for Aspen, excellent long-term growth
opportunity(1) • Significant intellectual capital, strong analytical tools and capabilities • Enhanced marketing, combined with larger Aspen balance sheet, offers excellent growth opportunity(1) • Limited integration risk - Aspen Re has a long relationship with AgriLogic and
integration progressing well • AgriLogic should be a double digit ROE business(1) • Transaction expected to be broadly neutral to operating ROE in 2016; and accretive to operating ROE in 2017(1) (1) See " Safe Harbor Disclosure" slide 2
AHL: NYSE 8 Property and Casualty Financial and Professional Lines Marine, Aviation and Energy 51% 26% 23% ASPEN INSURANCE – LEADING SPECIALTY INSURER PROPERTY & CASUALTY FINANCIAL & PROFESSIONAL LINES MARINE, AVIATION AND
ENERGY • U.K. Property & Construction • Accident & Health • Aviation • U.S. Property • Crisis Management • Energy • U.K. Regional Property & Liability • Credit and Political Risk • Marine & Energy Liability • Global Excess Casualty • Professional Liability (Indemnity) •
Marine Hull • U.K. Casualty • Management Liability / Directors & Officers • Specie & Fine Art • U.S. Casualty • Technology Liability & Data Protection Indemnity • U.S. Marine Energy & Construction • Environmental Liability • U.S. Surety • U.S. Programs • Financial
Institutions • Railroad (1) LTM: Last Twelve Months through March 31, 2016 (2) See "Safe Harbor Disclosure", slide 2 Q1 2016 LTM (1) GWP $1.77 billion BY BUSINESS LINE • A growing force in global specialty insurance offering creative, customized solutions to complex
risks, deep local knowledge and expertise, integrated claims and underwriting teams and select distribution. Built on two main specialty insurance platforms: • U.S. - Growing specialty insurance business; diversified portfolio with broadening range of product offerings; expanding
network of offices throughout the U.S. • International - Highly respected lead expertise in many niche lines; portfolio comprises impressive variety of specialty products with business predominantly originating in Lloyd's and the London market; hubs in Bermuda, Zurich and Dublin
Aspen Insurance continues to diversify and expand its global product offering(2)
AHL: NYSE 9 ASPEN INSURANCE: ENHANCING A LEADING GLOBAL SPECIALTY INSURANCE FRANCHISE • Track record of investing for profitable organic growth: U.S. Insurance platform • Two strategies to accelerate the growth and profitability of Aspen
Insurance business: (1) organize business globally for risks that are traded globally and (2) enrich targeted areas of underwriting expertise HOW: Hired David Cohen, a best in class specialty underwriting leader with a successful history of running a global specialty business ▪
Identified 13 global product lines, of which 9 global product heads appointed to date ▪ Promoted from within Aspen and hired seasoned global underwriting leaders to manage the global lines; hired a select few underwriting experts for specialties not covered and upgraded
underwriting talent in key lines EXPENSE: Aspen Insurance infrastructure was built to be leveraged for greater scale ▪ Majority of costs are personnel related (along with some reorganization costs); invested $5 million in 2015; further investment of approximately $15 million
anticipated in 2016(1) EXPECTED RESULTS: ▪ Short term: Decrease volatility in Insurance business by evaluating line size, exposure profile, reinsurance arrangements, and business mix under new global leadership, modest incremental GWP impact in 2016, more significant in
2017 and beyond(1) ▪ Medium term: Lower loss ratio driven by less volatility(1) (1) See " Safe Harbor Disclosure" slide 2 Anticipate larger, more profitable business, more stable outcomes and better loss ratios(1)
AHL: NYSE 10 BUILT A DIVERSIFIED INTERNATIONAL INSURANCE PORTFOLIO Lloyd's UK Bermuda 55% 44% 1% Energy Physical Damage Aviation Credit and Political Risks Marine and Energy Liability Global Excess Casualty Financial and Corporate Risks
Professional and Management Liability Marine Hull Specie & Fine Art Crisis Management 12% 15% 3% 21% 3% 14% 15% 8% 3% 6% Q1 2016 LTM (1) LLOYD'S GWP: $477.1m Q1 2016 LTM (1) INTERNATIONAL INSURANCE TEAM GWP: $879.5m • International
Insurance teams diversified by platform and line • With a more volatile rate environment than the U.S.: ▪ Teams remain disciplined and focused on better rated opportunities ▪ We downsized some international lines in response to changing market conditions (1) LTM: Last Twelve
Months through March 31, 2016
AHL: NYSE 11 2008 2009 2010 2011 2012 2013 2014 2015 $138 $230 $287 $361 $421 $439 $489 $507 LLOYD'S IS A KEY COMPONENT OF INTERNATIONAL INSURANCE BUSINESS CAGR 20% (1) See "Safe Harbor disclosure", slide 2 Note: Included above is our
Lloyd's insurance and reinsurance business as well as business written on the Lloyd's platform that is included in U.S. Insurance. Premiums reported in British pounds converted to U.S. dollars at average exchange rate during the applicable year. Source: Syndicate reports ($m) •
International Insurance teams generated close to $860m of premiums in 2015, with pre-eminent positions in targeted markets and offerings across a diverse range of risks and geographies • Lloyd’s of London platform increasingly fundamental for first-tier commercial insurers •
Clients want access to Lloyd’s global footprint • Significant barrier to entry for new applicants; any new Syndicate business plan must be differentiated and accretive to Lloyd’s franchise to gain entry Aspen’s Lloyd’s Premium Well-established International Insurance platform,
achieving strong contribution to ROE since inception(1)
AHL: NYSE 12 Property Casualty Professional Lines 60%25% 15% Programs Property Professional Liability Marine Energy Casualty Environmental Liability Management Liability Surety 24% 17% 16% 4% 7% 16% 8% 4%4% BUILT A DIVERSIFIED U.S. SPECIALTY
INSURANCE PORTFOLIO 2010 U.S. INSURANCE TEAMS GWP: $167m Q1 2016 LTM (1) U.S. INSURANCE TEAMS GWP: $905m • Diversified portfolio with broadening range of product offerings focused on delivering strong premium growth and solid underwriting
margins • Over $250m of net operating losses carried forward; can be applied against future U.S. Insurance profits(2) (1) LTM: Last Twelve Months through March 31, 2016
AHL: NYSE 13 CAPITAL EFFICIENCY: SUSTAINED RECORD OF PROACTIVE MANAGEMENT OF CAPITAL • Continued focus on responsible capital stewardship: hold more than regulatory and risk capital models suggest; return capital to shareholders when it is
financially more attractive to do so than deploying elsewhere • Aspen's franchise has generated approximately $4bn of capital since inception • Returned to shareholders over $2bn of cumulative repurchases and ordinary dividends through March 31, 2016, including all ordinary
shareholder funds raised at our Initial Public and Secondary Offerings • Steadily increased dividend growth over recent years; 5% quarterly dividend increase in April 2016 • Returned a cumulative 70% of operating income to shareholders since inception through Q1 2016 ($ in mm)
Cumulative Repurchases Cumulative Dividends 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 $8 $56 $313 $467 $617 $667 $1,122 $1,172 $1,282 $1,639 $1,870 $2,005 $2,043 >$2bn of Total Capital Returned through Q1 2016
AHL: NYSE 14 CAREFUL INVESTMENT MANAGEMENT AND CONSISTENT INVESTMENT RETURNS 38% IG Credit 13% US Treasury 10% Cash & Short-Term 15% Agency MBS 9% Equities 6% Sovereign 4% Non US Agency 2% US Agency 1% ABS 1% Non US
Govt Guaranteed 0.3% CMBS 1% Munis PORTFOLIO ALLOCATIONS March 31, 2016 100% = $8.6 billion(1) • Stable investment income and total return through all market cycles • Since 2011 have tactically built the risk asset portfolio and dynamically managed the positions •
12.8% of the portfolio invested in risk assets (including equities 8.8%, and BBB emerging market debt 3.6%) • Fixed income portfolio duration: 3.56 years (including swaps) (1) Excludes amounts attributable to variable interest entities; may not add to 100% due to rounding
AHL: NYSE 15 CONCLUSION: FOCUSED ON SHAREHOLDER VALUE • Deep underwriting expertise and understanding of client needs and risks • Pursuing selective, profitable growth in exposures we understand, subject to market conditions • Diversified platform allows us
to focus on better rated opportunities as they arise, including: • Reinsurance ▪ Agriculture, Bond, Financial, Terrorism, Marine • Insurance ▪ Enhance our global product offering in areas such as Accident and Health, Environmental, Professional Liability, Technology Liability &
Data Protection Indemity, Marine, and Crisis Management (1) See “Safe Harbor Disclosure” slide 2 Deliver growth in Operating ROE and Diluted Book Value Per Share over time(1)
APPENDIX
AHL: NYSE 17 UNDERWRITING EXPERTISE: ASPEN’S NATURAL CATASTROPHE EXPOSURES IN MAJOR PERIL ZONES AS AT APRIL 1, 2016 100 YEAR RETURN PERIOD AS % OF TOTAL SHAREHOLDERS’ EQUITY AND IN $ MILLIONS 1 in 100 year
tolerance: 17.5% of total shareholders’ equity 1 in 250 year tolerance: 25.0% of total shareholders’ equity Based on Shareholders' equity of $3,556.0 million (excluding non-controlling interest) at March 31, 2016. The estimates reflect Aspen's own view of the modelled maximum
losses (“PMLs”) at the return periods shown which include input from various third party vendor models, our own proprietary adjustments to these models, and planned reinsurance purchases. The U.S. regional WS PMLs reflect the outward reinsurance structures in place.
Catastrophe loss experience may materially differ from the modelled PMLs due to limitations in one or more of the models or uncertainties in the application of policy terms and limits. $0 $100 $200 $300 $400 $500 $600 250 year return period as $m of Total Shareholder Equity
U.S. Eastern Quake Cascadia EQ Japan All Perils European Wind Northeast and MidAtlantic WS Texas and Gulf WS Florida and Southeast WS California EQ $304 $246 $160 $274 $405 $446 $524 $485 • PMLs are net of reinsurance and Aspen Capital Markets' third-party capital
• Enhanced disclosure of regional WS exposures $0 $100 $200 $300 $400 100 year return period as $m of Total Shareholder Equity U.S. Eastern Quake Cascadia EQ Japan All Perils European Wind Northeast and MidAtlantic WS Texas and Gulf WS Florida and Southeast WS
California EQ $59 $117 $133 $192 $245 $264 $359 $382 1.7% 8.5% 3.3% 3.7% 6.9% 5.4% 4.5% 6.9% 7.7% 7.4% 11.4% 10.1% 10.7% 13.6% 12.5% 14.7% 250 YEAR RETURN PERIOD AS % OF TOTAL SHAREHOLDERS’ EQUITY AND IN $ MILLIONS
Aspen Insurance Holdings Limited INVESTOR PRESENTATION FIRST QUARTER 2016