ASPEN INSURANCE HOLDINGS LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.1 - EXHIBIT 99.1 - ASPEN INSURANCE HOLDINGS LTD	a991-ahl4q13.htm
8-K - 8-K - ASPEN INSURANCE HOLDINGS LTD	form8-kahl4q2013.htm

Exhibit 99.2

FINANCIAL SUPPLEMENT

As of December 31, 2013

Aspen Insurance Holdings Limited

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

www.aspen.co

Investor Contact:

Aspen Insurance Holdings Limited

Kerry Calaiaro, Senior Vice President, Investor Relations

T: +1 646-502-1076

email: kerry.calaiaro@aspen.co



	ASPEN INSURANCE HOLDINGS LIMITED
	Table Of Contents

		Page

Basis of Presentation		1
Financial Highlights		2
Consolidated Statements of Operations - Quarterly Results		3
Consolidated Statements of Operations - Year to Date Results		4
Consolidated Balance Sheets		5
Earnings Per Share and Book Value Per Share		6
Return on Average Equity		7
Consolidated Underwriting Results by Operating Segment		8-9
Operating Segment - Quarterly Results		10-11
Written and Earned Premiums by Segment and Line of Business		12
Consolidated Statements of Changes in Shareholders' Equity		13
Consolidated Statements of Comprehensive Income		14
Condensed Consolidated Statements of Cash Flows		15
Reserves for Losses and Loss Adjustment Expenses		16
Reserves by Operating Segment		17
Prior Year Reserve Releases		18
Worldwide Natural Catastrophe Exposures: Major Peril Zones		19
Consolidated Investment Portfolio		20
Investment Analysis		21
Book Value Per Ordinary Share		22
Operating Income Reconciliation		23



		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, 2012 and December 31, 2011. 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 capital 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 on foreign exchange contracts and certain non-recurring items. In 2013, a non-recurring item occurred for the $9.3 million make-whole payment associated with the redemption of the $250.0 million 6.0% Senior Notes due August 15, 2014.

Aspen excludes these items from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Aspen believes these amounts are largely independent of its business and underwriting process and including them would distort the analysis of trends in its operations. In addition to presenting net income 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 23 for a reconciliation of operating income to net income.

Annualized operating return on average equity (“Operating ROE”) (a non-GAAP financial measure): Annualized operating return on average equity 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.

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 23 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 23 for a reconciliation of diluted and basic operating earnings per share to basic earnings per share.

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 as defined on page 22.

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.



	ASPEN INSURANCE HOLDINGS LIMITED
	Financial Highlights
		Three Months Ended December 31,								Twelve Months Ended December 31,
(in US$ millions except for percentages, share and per share amounts)		2013			2012			Change ⁽²⁾		2013			2012			Change
Gross written premium		$	604.4		$	576.2		4.9	%	$	2,646.7		$	2,583.3		2.5	%
Net written premium		$	548.0		$	524.4		4.5	%	$	2,299.7		$	2,246.9		2.3	%
Net earned premium		$	572.6		$	558.5		2.5	%	$	2,171.8		$	2,083.5		4.2	%
Net income after tax		$	90.0		$	2.0		4,400.0	%	$	329.3		$	280.4		17.4	%
Operating income/(loss) after tax		$	84.4		$	(2.9	)	NM		$	304.3		$	279.9		8.7	%
Net investment income		$	47.2		$	51.1		(7.6	)%	$	186.4		$	204.9		(9.0	)%
Underwriting income/(loss)		$	46.6		$	(45.0	)	NM		$	158.0		$	118.7		33.1	%
Earnings Per Share and Book Value Per Share
Basic earnings per ordinary share
Net income/(loss) adjusted for preference share dividend		$	1.23		$	(0.09	)	NM		$	4.29		$	3.51		22.9	%
Operating income/(loss) adjusted for preference share dividend		$	1.15		$	(0.15	)	NM		$	4.03		$	3.50		14.3	%
Diluted earnings per ordinary share
Net income/(loss) adjusted for preference share dividend		$	1.21		$	(0.09	)	NM		$	4.14		$	3.39		20.6	%
Operating income/(loss)adjusted for preference share dividend		$	1.13		$	(0.15	)	NM		$	3.88		$	3.38		14.7	%
Weighted average number of ordinary shares outstanding (in millions of shares)		65.594			71.007			(7.6	)%	66.872			71.096			(5.9	)%
Diluted weighted average number of ordinary shares outstanding (in millions of shares)		67.052			73.558			(8.8	)%	69.418			73.689			(5.8	)%
Book value per ordinary share		$	41.87		$	42.12		(0.6	)%	$	41.87		$	42.12		(0.6	)%
Diluted book value per ordinary share		$	40.90		$	40.65		0.6	%	$	40.90		$	40.65		0.6	%
Ordinary shares outstanding at December 31, 2013 and December 31, 2012 (in millions of shares)		65.547			70.754			(7.4	)%	65.547			70.754			(7.4	)%
Diluted ordinary shares outstanding at December 31, 2013 and December 31, 2012 (in millions of shares)		67.090			73.312			(8.5	)%	67.090			73.312			(8.5	)%
Underwriting Ratios
Loss ratio		57.9		%	78.3		%			56.3		%	59.4		%
Policy acquisition expense ratio		17.4		%	14.3		%			19.4		%	18.3		%
General, administrative and corporate expense ratio		16.6		%	15.4		%			16.9		%	16.6		%
Expense ratio		34.0		%	29.7		%			36.3		%	34.9		%
Combined ratio		91.9		%	108.0		%			92.6		%	94.3		%
Return On Equity
Average equity ⁽¹⁾		$	2,703.1		$	3,013.2				$	2,777.5		$	2,934.0
Return on average equity
Net income/(loss) adjusted for preference share dividend		3.0		%	(0.2		)%			10.6		%	8.5		%
Operating income/(loss) adjusted for preference share dividend		2.8		%	(0.4		)%			9.7		%	8.5		%
Annualized return on average equity
Net income/(loss)		12.0		%	(0.8		)%			10.6		%	8.5		%
Operating income/(loss)		11.2		%	(1.6		)%			9.7		%	8.5		%

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) Average equity excludes preference shares.
(2) NM = Not meaningful



		ASPEN INSURANCE HOLDINGS LIMITED
		Consolidated Statements of Operations - Quarterly Results
(in US$ millions except for percentages and per share amounts)			Q4 2013			Q3 2013			Q2 2013			Q1 2013			Q4 2012
UNDERWRITING REVENUES
Gross written premiums			$	604.4		$	581.6		$	687.3		$	773.4		$	576.2
Premiums ceded			(56.4		)	(39.6		)	(74.6		)	(176.4		)	(51.8		)
Net written premiums			548.0			542.0			612.7			597.0			524.4
Change in unearned premiums			24.6			2.3			(68.7		)	(86.1		)	34.1
Net earned premiums			572.6			544.3			544.0			510.9			558.5
UNDERWRITING EXPENSES
Losses and loss adjustment expenses			331.4			290.2			333.4			268.7			437.4
Policy acquisition expenses			99.7			110.5			107.2			104.6			80.0
General, administrative and corporate expenses			94.9			98.9			87.7			86.6			86.1
Total underwriting expenses			526.0			499.6			528.3			459.9			603.5
Underwriting income/(loss) including corporate expenses			46.6			44.7			15.7			51.0			(45.0		)
OTHER OPERATING REVENUE AND EXPENSES
Net investment income			47.2			45.0			45.9			48.3			51.1
Interest expense			(9.5		)	(7.7		)	(7.8		)	(7.7		)	(7.7		)
Other income/(expense)			3.5			1.6			0.9			0.5			(6.2		)
Total other operating revenue			41.2			38.9			39.0			41.1			37.2
OPERATING INCOME/(LOSS) BEFORE TAX			87.8			83.6			54.7			92.1			(7.8		)
Net realized and unrealized exchange (losses)/gains ⁽¹⁾			(3.8		)	13.3			(13.8		)	(10.2		)	(0.4		)
Net realized and unrealized investment gains/(losses)⁽²⁾			9.6			13.4			0.2			15.8			5.6
INCOME/(LOSS) BEFORE TAX			93.6			110.3			41.1			97.7			(2.6		)
Income tax (expense)/recovery			(3.6		)	(2.9		)	(1.0		)	(5.9		)	4.6
NET INCOME AFTER TAX			90.0			107.4			40.1			91.8			2.0
Dividends paid on ordinary shares			(11.8		)	(12.2		)	(11.9		)	(11.9		)	(12.0		)
Dividends paid on preference shares			(9.4		)	(9.5		)	(8.0		)	(8.6		)	(8.5		)
Dividends paid to non-controlling interest			(0.1		)	—			—			—			—
Change in redemption value of the PIERS ⁽³⁾			—			—			(7.1		)	—			—
Proportion due to non-controlling interest			0.2			0.3			—			—			(0.1		)
Retained income/(loss)			$	68.9		$	86.0		$	13.1		$	71.3		$	(18.6	)
Components of net income/(loss) after tax
Operating income/(loss)			84.4			82.0			52.2			85.7			(2.9		)
Net realized and unrealized exchange (losses)/gains after tax ⁽¹⁾			(3.8		)	12.0			(12.0		)	(9.5		)	(0.4		)
Net realized and unrealized investment gains/(losses) after tax ⁽²⁾			9.4			13.4			(0.1		)	15.6			5.3
NET INCOME AFTER TAX			$	90.0		$	107.4		$	40.1		$	91.8		$	2.0
Loss ratio			57.9		%	53.3		%	61.3		%	52.6		%	78.3		%
Policy acquisition expense ratio			17.4		%	20.3		%	19.7		%	20.5		%	14.3		%
General, administrative and corporate expense ratio			16.6		%	18.2		%	16.1		%	17.0		%	15.4		%
Expense ratio			34.0		%	38.5		%	35.8		%	37.5		%	29.7		%
Combined ratio			91.9		%	91.8		%	97.1		%	90.1		%	108.0		%

Basic earnings/(losses) per share⁽⁴⁾			$	1.23		$	1.47		$	0.38		$	1.21		$	(0.09	)
Diluted earnings/(losses) per share ⁽⁴⁾			$	1.21		$	1.43		$	0.36		$	1.15		$	(0.09	)
Annualized return on average equity
	Net income/(loss)		12.0		%	14.8		%	4.4		%	11.6		%	(0.8		)%
	Operating income/(loss)		11.2		%	10.8		%	6.4		%	10.8		%	(1.6		)%
	See pages 7 and 23 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) Preferred Income Equity Redemption Securities ("PIERS").
	(4) Adjusted for preference share dividends.



		ASPEN INSURANCE HOLDINGS LIMITED
		Consolidated Statements of Operations - Year To Date Results
			Twelve Months Ended December 31,
(in US$ millions except for percentages)			2013			2012			2011 (1)
UNDERWRITING REVENUES
Gross written premiums			$	2,646.7		$	2,583.3		$	2,207.8
Premiums ceded			(347.0		)	(336.4		)	(278.7		)
Net written premiums			2,299.7			2,246.9			1,929.1
Change in unearned premiums			(127.9		)	(163.4		)	(40.6		)
Net earned premiums			2,171.8			2,083.5			1,888.5
UNDERWRITING EXPENSES
Losses and loss adjustment expenses			1,223.7			1,238.5			1,556.0
Policy acquisition expenses			422.0			381.2			347.0
General, administrative and corporate expenses ⁽¹⁾			368.1			345.1			284.5
Total underwriting expenses			2,013.8			1,964.8			2,187.5
Underwriting income/(loss) including corporate expenses			158.0			118.7			(299.0		)
OTHER OPERATING REVENUE AND EXPENSES
Net investment income			186.4			204.9			225.6
Interest expense			(32.7		)	(30.9		)	(30.8		)
Other income/(expense)			6.5			0.9			(6.8		)
Total other operating revenue			160.2			174.9			188.0
OPERATING INCOME/(LOSS) BEFORE TAX			318.2			293.6			(111.0		)
Net realized and unrealized exchange (losses) ⁽²⁾			(14.5		)	(2.0		)	(2.2		)
Net realized and unrealized investment gains/(losses) ⁽³⁾			39.0			3.8			(34.1		)
INCOME/(LOSS) BEFORE TAX			342.7			295.4			(147.3		)
Income tax (expense)/recovery			(13.4		)	(15.0		)	37.2
NET INCOME/(LOSS) AFTER TAX			329.3			280.4			(110.1		)
Dividends paid on ordinary shares			(47.8		)	(47.0		)	(42.5		)
Dividends paid on preference shares			(35.5		)	(31.1		)	(22.8		)
Dividends paid to non-controlling interest			(0.1		)	(0.1		)	(0.1		)
Change in redemption value of the PIERS ⁽⁴⁾			(7.1		)	—			—
Proportion due to non-controlling interest			0.5			0.2			0.1
Retained income/(loss)			$	239.3		$	202.4		$	(175.4	)
Components of net income/(loss) after tax
	Operating income/(loss)		304.3			$	279.9		$	(70.4	)
	Net realized and unrealized exchange (losses) after tax⁽²⁾		(13.3		)	(2.2		)	(0.1		)
	Net realized and unrealized investment gains/(losses) after tax ⁽³⁾		38.3			2.7			(39.6		)
NET INCOME/(LOSS) AFTER TAX			$	329.3		$	280.4		$	(110.1	)
Loss ratio			56.3		%	59.4		%	82.4		%
	Policy acquisition expense ratio		19.4		%	18.3		%	18.4		%
	General, administrative and corporate expense ratio ⁽¹⁾		16.9		%	16.6		%	15.1		%
Expense ratio			36.3		%	34.9		%	33.5		%
Combined ratio			92.6		%	94.3		%	115.9		%

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(1) In 2012, the Company adopted the provision of ASU 2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.” Under the standard, the Company is required to expense the proportion of its general and administrative deferred acquisition costs not directly related to successful business acquisition. The application of this standard has resulted in a net $16.0 million write down of deferred acquisition costs through retained earnings brought forward and the restatement of our quarterly balance sheets from December 31, 2010 to December 31, 2011.
(2) Includes the net realized and unrealized gains/(losses) from foreign exchange contracts.
(3) Includes the net realized and unrealized gains/(losses) from interest rate swaps.
(4) Preferred Income Equity Redemption Securities ("PIERS")



	ASPEN INSURANCE HOLDINGS LIMITED
	Consolidated Balance Sheets
(in US$ millions except for per share amounts)		December 31,		September 30,			June 30,		March 31,		December 31,
		2013		2013			2013		2013		2012
ASSETS
Investments
Fixed income maturities		$	6,285.3	$	6,263.5		$	6,046.4	$	5,961.9	$	6,013.4
Equity securities		460.4		441.5			413.1		414.1		200.1
Other investments		48.0		46.1			44.9		45.0		45.0
Catastrophe bonds		5.8		—			—		—		—
Short-term investments		160.3		148.5			242.3		353.1		433.9
Total investments		6,959.8		6,899.6			6,746.7		6,774.1		6,692.4
Cash and cash equivalents		1,293.6		1,198.3			1,188.9		1,212.7		1,463.6
Reinsurance recoverables
Unpaid losses		332.7		442.2			472.3		479.2		499.0
Ceded unearned premiums		151.9		179.6			226.0		217.4		122.6
Receivables
Underwriting premiums		999.0		1,089.1			1,197.6		1,149.7		1,057.5
Other		90.3		76.3			71.8		66.0		68.5
Funds withheld		46.5		47.7			81.5		85.0		84.3
Deferred policy acquisition costs		262.2		262.1			264.4		238.5		223.0
Derivatives at fair value		7.0		5.6			2.0		2.0		2.0
Receivable for securities sold		5.2		5.9			5.8		20.7		0.2
Office properties and equipment		60.1		60.5			57.2		55.2		57.9
Income tax receivable		1.6		3.1			—		—		2.4
Other assets		2.2		13.1			20.9		17.0		18.2
Intangible assets		18.4		18.6			18.7		18.8		19.0
Total assets		$	10,230.5	$	10,301.7		$	10,353.8	$	10,336.3	$	10,310.6
LIABILITIES
Insurance reserves
Losses and loss adjustment expenses		$	4,678.9	$	4,715.6		$	4,734.9	$	4,683.8	$	4,779.7
Unearned premiums		1,280.6		1,334.6			1,375.3		1,295.7		1,120.8
Total insurance reserves		5,959.5		6,050.2			6,110.2		5,979.5		5,900.5
Payables
Reinsurance premiums		88.2		178.4			224.8		209.7		154.1
Taxation		15.7		17.7			16.4		14.7		11.8
Accrued expenses and other payables		265.6		282.8			258.7		285.6		249.3
Liabilities under derivative contracts		2.9		2.3			9.6		8.0		7.4
Total payables		372.4		481.2			509.5		518.0		422.6
Long-term debt		549.0		499.2			499.2		499.2		499.1
Total liabilities		6,880.9		7,030.6			7,118.9		6,996.7		6,822.2
SHAREHOLDERS’ EQUITY
Ordinary shares		0.1		0.1			0.1		0.1		0.1
Non-controlling interest		49.7		(0.1		)	0.2		0.2		0.2
Preference shares		—		—			—		—		—
Additional paid-in capital		1,297.4		1,297.6			1,346.7		1,318.2		1,516.7
Retained earnings		1,783.3		1,714.4			1,628.4		1,615.3		1,544.0
Accumulated other comprehensive income, net of taxes		219.1		259.1			259.5		405.8		427.4
Total shareholders’ equity		3,349.6		3,271.1			3,234.9		3,339.6		3,488.4
Total liabilities and shareholders’ equity		$	10,230.5	$	10,301.7		$	10,353.8	$	10,336.3	$	10,310.6

Book value per ordinary share		$	41.87	$	41.33		$	39.98	$	43.14	$	42.12
Book value per diluted ordinary share		$	40.90	$	40.43		$	38.86	$	40.67	$	40.65
See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.



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

			Three Months Ended					Twelve Months Ended
(in US$ except for number of shares)			December 31, 2013		December 31, 2012			December 31, 2013		December 31, 2012

Basic earnings/(loss) per ordinary share
	Net income/(loss) adjusted for preference share dividend		$	1.23	$	(0.09	)	$	4.29	$	3.51
	Operating income/(loss) adjusted for preference share dividend		$	1.15	$	(0.15	)	$	4.03	$	3.50
Diluted earnings/(loss) per ordinary share
	Net income/(loss) adjusted for preference share dividend		$	1.21	$	(0.09	)	$	4.14	$	3.39
	Operating income/(loss) adjusted for preference share dividend		$	1.13	$	(0.15	)	$	3.88	$	3.38
Weighted average number of ordinary shares outstanding (in millions)			65.594		71.007			66.872		71.096
Weighted average number of ordinary shares outstanding and dilutive potential ordinary shares (in millions)			67.052		73.558			69.418		73.689
Book value per ordinary share			$	41.87	$	42.12		$	41.87	$	42.12
Diluted book value per ordinary share			$	40.90	$	40.65		$	40.90	$	40.65
Ordinary shares outstanding at end of the period (in millions)			65.547		70.754			65.547		70.754
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period (in millions)			67.090		73.312			67.090		73.312

See pages 7 and 23 for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.



		ASPEN INSURANCE HOLDINGS LIMITED
		Return On Average Equity

			Three Months Ended						Twelve Months Ended
(in US$ millions except for percentages)			December 31, 2013			December 31, 2012			December 31, 2013			December 31, 2012

Average shareholders' equity			$	3,271.1		$	3,521.3		$	3,322.5		$	3,394.4
Average non-controlling interest			(12.4		)	—			(4.0		)	0.2
Average preference shares			(555.6		)	(508.1		)	(541.0		)	(460.6		)
Average ordinary shareholders' equity			$	2,703.1		$	3,013.2		$	2,777.5		$	2,934.0
Return on average equity:
	Net income adjusted for preference share dividend		3.0		%	(0.2		)%	10.6		%	8.5		%
	Operating income adjusted for preference share dividend		2.8		%	(0.4		)%	9.7		%	8.5		%
Annualized return on average equity:
	Net income		12.0		%	(0.8		)%	10.6		%	8.5		%
	Operating income		11.2		%	(1.6		)%	9.7		%	8.5		%
Components of return on average equity:
	Return on average equity from underwriting activity⁽¹⁾		1.7		%	(1.5		)%	5.7		%	4.0		%
	Return on average equity from investment and other activity ⁽²⁾		1.2		%	1.0		%	4.5		%	4.9		%
	Pre-tax operating income return on average equity		2.9		%	(0.5		)%	10.2		%	8.9		%
	Post-tax operating income return on average equity ⁽³⁾		2.8		%	(0.4		)%	9.7		%	8.5		%

See page 23 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.
(3) Calculated by using operating income after-tax adjusted for preference share dividends.



	ASPEN INSURANCE HOLDINGS LIMITED
	Consolidated Underwriting Results by Operating Segment

		Three Months Ended December 31, 2013									Three Months Ended December 31, 2012
(in US$ millions except for percentages)		Reinsurance			Insurance			Total			Reinsurance			Insurance			Total

Gross written premiums		$	176.2		$	428.2		$	604.4		$	194.4		$	381.8		$	576.2
Net written premiums		174.5			373.5			548.0			193.7			330.7			524.4
Gross earned premiums		297.7			366.1			663.8			317.2			328.2			645.4
Net earned premiums		284.8			287.8			572.6			299.8			258.7			558.5
Losses and loss adjustment expenses		86.8			244.6			331.4			248.9			188.5			437.4
Policy acquisition expenses		46.2			53.5			99.7			41.0			39.0			80.0
General and administrative expenses		33.8			51.9			85.7			31.3			41.9			73.2
Underwriting income/(loss)		$	118.0		$	(62.2	)	$	55.8		$	(21.4	)	$	(10.7	)	$	(32.1	)
Net investment income								47.2									51.1
Net realized and unrealized investment gains ⁽¹⁾								9.6									5.6
Corporate expenses								(9.2		)							(12.9		)
Other income/(expense)								3.5									(6.2		)
Interest expense								(9.5		)							(7.7		)
Net realized and unrealized foreign exchange (losses) ⁽²⁾								(3.8		)							(0.4		)
Income/(loss) before income taxes								$	93.6								$	(2.6	)
Income tax (expense)/benefit								(3.6		)							4.6
Net income								$	90.0								$	2.0
Ratios
Loss ratio		30.5		%	85.0		%	57.9		%	83.0		%	72.9		%	78.3		%
Policy acquisition expense ratio		16.2		%	18.6		%	17.4		%	13.7		%	15.1		%	14.3		%
General and administrative expense ratio ⁽³⁾		11.9		%	18.0		%	16.6		%	10.4		%	16.2		%	15.4		%
Expense ratio		28.1		%	36.6		%	34.0		%	24.1		%	31.3		%	29.7		%
Combined ratio		58.6		%	121.6		%	91.9		%	107.1		%	104.2		%	108.0		%

(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.



	ASPEN INSURANCE HOLDINGS LIMITED
	Consolidated Underwriting Results by Operating Segment

		Twelve Months Ended December 31, 2013									Twelve Months Ended December 31, 2012
(in US$ millions except for percentages)		Reinsurance			Insurance			Total			Reinsurance			Insurance			Total

Gross written premiums		$	1,133.9		$	1,512.8		$	2,646.7		$	1,227.9		$	1,355.4		$	2,583.3
Net written premiums		1,082.0			1,217.7			2,299.7			1,156.9			1,090.0			2,246.9
Gross earned premiums		1,126.6			1,366.8			2,493.4			1,208.0			1,177.0			2,385.0
Net earned premiums		1,073.0			1,098.8			2,171.8			1,132.4			951.1			2,083.5
Losses and loss adjustment expenses		481.7			742.0			1,223.7			635.3			603.2			1,238.5
Policy acquisition expenses		207.2			214.8			422.0			207.8			173.4			381.2
General and administrative expenses		131.0			185.9			316.9			123.9			168.2			292.1
Underwriting income/(loss)		$	253.1		$	(43.9	)	$	209.2		$	165.4		$	6.3		$	171.7
Net investment income								186.4									204.9
Net realized and unrealized investment gains ⁽¹⁾								39.0									3.8
Corporate expenses								(51.2		)							(53.0		)
Other income								6.5									0.9
Interest expense								(32.7		)							(30.9		)
Net realized and unrealized foreign exchange (losses) ⁽²⁾								(14.5		)							(2.0		)
Income before income tax								$	342.7								$	295.4
Income tax expense								(13.4		)							(15.0		)
Net income								$	329.3								$	280.4
Ratios
Loss ratio		44.9		%	67.5		%	56.3		%	56.1		%	63.4		%	59.4		%
Policy acquisition expense ratio		19.3		%	19.5		%	19.4		%	18.4		%	18.2		%	18.3		%
General and administrative expense ratio ⁽³⁾		12.2		%	16.9		%	16.9		%	10.9		%	17.7		%	16.6		%
Expense ratio		31.5		%	36.4		%	36.3		%	29.3		%	35.9		%	34.9		%
Combined ratio		76.4		%	103.9		%	92.6		%	85.4		%	99.3		%	94.3		%

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



	ASPEN INSURANCE HOLDINGS LIMITED
	Reinsurance Segment - Quarterly Results


(in US$ millions except for percentages)		Q4 2013			Q3 2013			Q2 2013			Q1 2013			Q4 2012			Q3 2012			Q2 2012			Q1 2012

Gross written premiums		$	176.2		$	219.5		$	298.6		$	439.6		$	194.4		$	259.5		$	299.8		$	474.2
Net written premiums		174.5			218.4			288.6			400.5			193.7			256.9			276.8			429.5
Gross earned premiums		297.7			268.6			288.4			271.9			317.2			299.8			300.8			290.2
Net earned premiums		284.8			255.7			275.8			256.7			299.8			279.6			282.0			271.0
Net losses and loss adjustment expenses		86.8			122.2			158.4			114.3			248.9			117.1			133.7			135.6
Policy acquisition expenses		46.2			49.1			56.6			55.3			41.0			55.7			59.3			51.8
General and administrative expenses		33.8			34.6			30.4			32.2			31.3			33.6			30.0			29.0
Underwriting income/(loss)		$	118.0		$	49.8		$	30.4		$	54.9		$	(21.4	)	$	73.2		$	59.0		$	54.6
Ratios
Loss ratio		30.5		%	47.8		%	57.4		%	44.5		%	83.0		%	41.9		%	47.4		%	50.0		%
Policy acquisition expense ratio		16.2		%	19.2		%	20.5		%	21.5		%	13.7		%	19.9		%	21.0		%	19.1		%
General and administrative expense ratio		11.9		%	13.5		%	11.0		%	12.5		%	10.4		%	12.0		%	10.6		%	10.7		%
Expense ratio		28.1		%	32.7		%	31.5		%	34.0		%	24.1		%	31.9		%	31.6		%	29.8		%
Combined ratio		58.6		%	80.5		%	88.9		%	78.5		%	107.1		%	73.8		%	79.0		%	79.8		%



	ASPEN INSURANCE HOLDINGS LIMITED
	Insurance Segment - Quarterly Results


(in US$ millions except for percentages)		Q4 2013			Q3 2013			Q2 2013			Q1 2013			Q4 2012			Q3 2012			Q2 2012			Q1 2012

Gross written premiums		$	428.2		$	362.1		$	388.7		$	333.8		$	381.8		$	298.9		$	366.8		$	307.9
Net written premiums		373.5			323.6			324.1			196.5			330.7			250.2			305.1			204.0
Gross earned premiums		366.1			356.5			331.3			312.9			328.2			302.0			279.9			266.9
Net earned premiums		287.8			288.6			268.2			254.2			258.7			236.6			231.4			224.4
Net losses and loss adjustment expenses		244.6			168.0			175.0			154.4			188.5			137.9			128.4			148.4
Policy acquisition expenses		53.5			61.4			50.6			49.3			39.0			47.4			42.7			44.3
General and administrative expenses		51.9			49.5			42.1			42.4			41.9			42.8			42.1			41.4
Underwriting (loss)/income		$	(62.2	)	$	9.7		$	0.5		$	8.1		$	(10.7	)	$	8.5		$	18.2		$	(9.7	)
Ratios
Loss ratio		85.0		%	58.2		%	65.2		%	60.7		%	72.9		%	58.3		%	55.5		%	66.1		%
Policy acquisition expense ratio		18.6		%	21.3		%	18.9		%	19.4		%	15.1		%	20.0		%	18.5		%	19.7		%
General and administrative expense ratio		18.0		%	17.2		%	15.7		%	16.7		%	16.2		%	18.1		%	18.2		%	18.4		%
Expense ratio		36.6		%	38.5		%	34.6		%	36.1		%	31.3		%	38.1		%	36.7		%	38.1		%
Combined ratio		121.6		%	96.7		%	99.8		%	96.8		%	104.2		%	96.4		%	92.2		%	104.2		%



		ASPEN INSURANCE HOLDINGS LIMITED
		Written and Earned Premiums by Segment and Line of Business
(in US$ millions)
Gross Written Premiums			Q4 2013		Q3 2013		Q2 2013		Q1 2013		Q4 2012		Q3 2012		Q2 2012		Q1 2012
	Reinsurance
	Property Catastrophe Reinsurance		$	6.8	$	37.8	$	83.2	$	145.5	$	23.8	$	42.7	$	91.9	$	152.9
	Other Property Reinsurance		61.5		70.8		91.0		79.5		61.3		92.6		81.0		78.5
	Casualty Reinsurance		55.0		68.6		63.4		125.3		55.7		76.3		66.6		138.9
	Specialty Reinsurance		52.9		42.3		61.0		89.3		53.6		47.9		60.3		103.9
	Total Reinsurance		$	176.2	$	219.5	$	298.6	$	439.6	$	194.4	$	259.5	$	299.8	$	474.2
	Insurance
	Property Insurance		$	54.6	$	52.8	$	74.0	$	54.6	$	53.7	$	51.5	$	82.1	$	52.4
	Casualty Insurance		83.1		74.7		63.9		43.7		61.3		49.9		53.0		28.6
	Marine, Energy and Transportation Insurance		129.9		112.9		143.8		136.8		145.4		102.2		133.7		149.6
	Financial and Professional Lines Insurance		116.8		84.6		68.1		65.8		89.8		63.8		68.3		49.7
	Programs		43.8		37.1		38.9		32.9		31.6		31.5		29.7		27.6
	Total Insurance		$	428.2	$	362.1	$	388.7	$	333.8	$	381.8	$	298.9	$	366.8	$	307.9

	Total Gross Written Premiums		$	604.4	$	581.6	$	687.3	$	773.4	$	576.2	$	558.4	$	666.6	$	782.1
Net Written Premiums
	Reinsurance
	Property Catastrophe Reinsurance		$	6.3	$	37.6	$	75.2	$	124.0	$	23.9	$	43.7	$	76.0	$	123.5
	Other Property Reinsurance		61.1		70.8		89.8		65.6		62.3		89.2		76.8		64.8
	Casualty Reinsurance		54.2		67.7		62.6		123.1		53.9		76.1		66.5		137.3
	Specialty Reinsurance		52.9		42.3		61.0		87.8		53.6		47.9		57.5		103.9
	Total Reinsurance		$	174.5	$	218.4	$	288.6	$	400.5	$	193.7	$	256.9	$	276.8	$	429.5
	Insurance
	Property Insurance		$	48.2	$	50.9	$	67.1	$	16.3	$	41.4	$	37.9	$	72.1	$	21.0
	Casualty Insurance		63.2		61.6		56.2		24.6		43.6		35.5		42.1		20.0
	Marine, Energy and Transportation Insurance		118.5		107.1		102.7		126.4		142.2		93.1		103.4		140.7
	Financial and Professional Lines Insurance		113.6		69.3		64.3		2.9		82.0		57.9		59.0		(3.1		)
	Programs		30.0		34.7		33.8		26.3		21.5		25.8		28.5		25.4
	Total Insurance		$	373.5	$	323.6	$	324.1	$	196.5	$	330.7	$	250.2	$	305.1	$	204.0

	Total Net Written Premiums		$	548.0	$	542.0	$	612.7	$	597.0	$	524.4	$	507.1	$	581.9	$	633.5
Net Earned Premiums
	Reinsurance
	Property Catastrophe Reinsurance		$	64.0	$	60.4	$	65.1	$	58.7	$	83.3	$	62.3	$	60.8	$	62.9
	Other Property Reinsurance		73.0		62.5		79.1		71.0		68.0		72.7		68.2		68.2
	Casualty Reinsurance		84.8		78.9		75.2		66.6		88.1		82.3		88.1		66.9
	Specialty Reinsurance		63.0		53.9		56.4		60.4		60.4		62.3		64.9		73.0
	Total Reinsurance		$	284.8	$	255.7	$	275.8	$	256.7	$	299.8	$	279.6	$	282.0	$	271.0
	Insurance
	Property Insurance		$	42.4	$	46.2	$	44.1	$	45.7	$	42.8	$	36.9	$	38.4	$	38.4
	Casualty Insurance		40.7		44.5		40.7		34.6		32.5		29.6		29.9		26.3
	Marine, Energy and Transportation Insurance		117.7		123.3		116.8		101.6		126.3		108.2		110.9		102.6
	Financial and Professional Lines Insurance		56.9		52.5		45.9		51.0		47.0		45.4		39.9		51.5
	Programs		30.1		22.1		20.7		21.3		10.1		16.5		12.3		5.6
	Total Insurance		$	287.8	$	288.6	$	268.2	$	254.2	$	258.7	$	236.6	$	231.4	$	224.4

	Total Net Earned Premiums		$	572.6	$	544.3	$	544.0	$	510.9	$	558.5	$	516.2	$	513.4	$	495.4



		ASPEN INSURANCE HOLDINGS LIMITED
		Consolidated Statements of Changes in Shareholders' Equity
			Twelve Months Ended December 31,
(in US$ millions)			2013			2012
Ordinary shares
	Beginning and end of period		$	0.1		$	0.1
Preference shares
	Beginning and end of period		—			—
Non-controlling interest
	Beginning of period		0.2			0.4
	Introductory capital		50.0			—
	Net (loss) for the period		(0.5		)	(0.2		)
	End of period		49.7			0.2
Additional paid-in capital
	Beginning of period		1,516.7			1,385.0
	New shares issued		21.2			22.1
	Ordinary shares repurchased		(309.6		)	(62.7		)
	Preference shares issued		270.6			154.5
	PIERS repurchased and cancelled ⁽¹⁾		(230.0		)	—
	Changes in redemption value of PIERS ⁽¹⁾		7.1			—
	Share-based compensation		21.4			17.8
	End of period		1,297.4			1,516.7
Retained earnings
	Beginning of period		1,544.0			1,341.6
	Net income for the period		329.3			280.4
	Dividends paid on ordinary and preference shares		(83.3		)	(78.2		)
	Changes in redemption value of PIERS⁽¹⁾		(7.1		)	—
	Dividends paid on non-controlling interest		(0.1		)	—
	Proportion due to non-controlling interest		0.5			0.2
	End of period		1,783.3			1,544.0
Accumulated other comprehensive income:
Cumulative foreign currency translation adjustments, net of taxes:
	Beginning of period		112.7			124.2
	Change for the period		(24.1		)	(11.5		)
	End of period		88.6			112.7
Loss on derivatives:
	Beginning of period		(0.5		)	(0.7		)
	Reclassification to interest payable		0.5			0.2
	End of period		—			(0.5		)
Unrealized (depreciation)/appreciation on investments, net of taxes:
	Beginning of period		315.2			305.4
	Change for the period		(184.7		)	9.8
	End of period		130.5			315.2
Total accumulated other comprehensive income			219.1			427.4

Total shareholders' equity			$	3,349.6		$	3,488.4

(1) Preferred Income Equity Redemption Securities ("PIERS")



		ASPEN INSURANCE HOLDINGS LIMITED
		Consolidated Statements of Comprehensive Income

			Three Months Ended December 31,						Twelve Months Ended December 31,
(in US$ millions)			2013			2012			2013			2012

Net income			$	90.0		$	2.0		$	329.3		$	280.4
Other comprehensive income/(loss), net of taxes:
	Available for sale investments:
	Reclassification adjustment for net realized (gains)/losses included in net income		(5.5		)	(3.1		)	(24.1		)	2.0
	Change in net unrealized gains and losses on available for sale securities held		(31.7		)	(43.4		)	(160.6		)	7.8
	Loss/(gain) on derivatives reclassified to interest expense		0.3			(0.1		)	0.5			0.2
	Change in foreign currency translation adjustment		(3.1		)	4.3			(24.1		)	(11.5		)
	Other comprehensive (loss)		(40.0		)	(42.3		)	(208.3		)	(1.5		)
Comprehensive income/(loss)			$	50.0		$	(40.3	)	$	121.0		$	278.9



	ASPEN INSURANCE HOLDINGS LIMITED
	Condensed Consolidated Statements of Cash Flows

		Three Months Ended December 31,						Twelve Months Ended December 31,
(in US$ millions)		2013			2012			2013			2012

Net cash from operating activities		$	132.1		$	151.3		$	565.1		$	496.4
Net cash (used in) investing activities		(104.7		)	(30.0		)	(497.9		)	(317.2		)
Net cash from/(used in) financing activities		59.1			(30.7		)	(240.8		)	35.7
Effect of exchange rate movements on cash and cash equivalents		8.8			(1.2		)	3.6			9.6
Increase/(decrease) in cash and cash equivalents		95.3			89.4			(170.0		)	224.5
Cash at beginning of period		1,198.3			1,374.2			1,463.6			1,239.1
Cash at end of period		$	1,293.6		$	1,463.6		$	1,293.6		$	1,463.6



	ASPEN INSURANCE HOLDINGS LIMITED
	Reserves for Losses and Loss Adjustment Expenses

(in US$ millions)		For the Twelve Months Ended December 31, 2013			For the Twelve Months Ended December 31, 2012

Provision for losses and loss adjustment expenses at the start of the period		$	4,779.7		$	4,525.2
Reinsurance recoverables		(499.0		)	(426.6		)
Net loss and loss adjustment expenses at the start of the period		4,280.7			4,098.6

Net loss and loss adjustment expenses disposed		(34.6		)	(9.0		)
Provision for losses and loss adjustment expenses for claims incurred
Current period		1,331.4			1,375.9
Prior period release		(107.7		)	(137.4		)
Total incurred		1,223.7			1,238.5

Losses and loss adjustment expenses payments for claims incurred		(1,085.1		)	(1,080.0		)

Foreign exchange (gains)/losses		(38.5		)	32.6

Net loss and loss adjustment expenses reserves at the end of the period		4,346.2			4,280.7
Reinsurance recoverables on unpaid losses at the end of the period		332.7			499.0
Gross loss and loss adjustment expenses reserves at the end of the period		$	4,678.9		$	4,779.7



	ASPEN INSURANCE HOLDINGS LIMITED
	Reserves by Operating Segment

		As at December 31, 2013							As at December 31, 2012
(in US$ millions)		Gross		Reinsurance Recoverables			Net		Gross		Reinsurance Recoverables			Net

Reinsurance		$	2,707.0	$	(60.2	)	$	2,646.8	$	2,983.7	$	(172.4	)	$	2,811.3
Insurance		1,971.9		(272.5		)	1,699.4		1,796.0		(326.6		)	1,469.4
Total losses and loss adjustment expense reserves		$	4,678.9	$	(332.7	)	$	4,346.2	$	4,779.7	$	(499.0	)	$	4,280.7



	ASPEN INSURANCE HOLDINGS LIMITED
	Prior Year Reserve Releases

(in US$ millions)		Three Months Ended December 31, 2013									Three Months Ended December 31, 2012
		Gross			Reinsurance Recoverables			Net			Gross		Reinsurance Recoverables			Net
Reinsurance		$	55.6		$	(9.5	)	$	46.1		$	38.6	$	(0.8	)	$	37.8
Insurance		(5.4		)	(20.2		)	(25.6		)	7.6		(3.4		)	4.2
Release in reserves for prior years during the period		$	50.2		$	(29.7	)	$	20.5		$	46.2	$	(4.2	)	$	42.0

		Twelve Months Ended December 31, 2013									Twelve Months Ended December 31, 2012
		Gross			Reinsurance Recoverables			Net			Gross		Reinsurance Recoverables			Net
Reinsurance		$	146.3		$	(23.7	)	$	122.6		$	97.9	$	4.3		$	102.2
Insurance		(3.4		)	(11.5		)	(14.9		)	30.9		4.3			35.2
Release in reserves for prior years during the period		$	142.9		$	(35.2	)	$	107.7		$	128.8	$	8.6		$	137.4





	ASPEN INSURANCE HOLDINGS LIMITED
	Worldwide Natural Catastrophe Exposures: Major Peril Zones as at January 1, 2014


	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 $3,299.9 million (excluding non-controlling interest) as at December 31, 2013. The estimates reflect Aspen's own view of the modelled maximum losses ("PML's") at the return periods shown which include input from various third party vendor models and our own proprietary adjustments to these models. Catastrophe loss experience may materially differ from the modelled PML’s due to limitations in one or more of the models or uncertainties in the application of policy terms and limits.



		ASPEN INSURANCE HOLDINGS LIMITED
		Consolidated Investment Portfolio
(in US$ millions)			Fair Market Value
Marketable Securities - Available For Sale			As At December 31, 2013		As At September 30, 2013		As At June 30, 2013		As At March 31, 2013		As At December 31, 2012
U.S. government securities			$	1,020.4	$	1,021.1	$	1,118.4	$	1,175.3	$	1,126.3
U.S. agency securities			269.1		281.5		308.7		314.0		308.6
Municipal securities			32.8		29.9		33.1		38.0		39.7
Corporate securities			2,069.4		2,018.1		2,027.3		2,006.0		2,038.5
Foreign government securities			778.9		822.2		755.7		644.6		641.0
Asset-backed securities			122.3		116.5		86.8		74.5		53.8
Bonds backed by foreign government			84.6		78.9		87.0		85.3		101.1
Mortgage-backed securities			1,191.6		1,176.7		1,125.6		1,155.4		1,248.3
Total fixed income maturities			5,569.1		5,544.9		5,542.6		5,493.1		5,557.3
Short-term investments			160.3		148.3		231.7		352.3		431.5
Equity securities			149.5		163.2		183.2		209.1		200.1
Total Available For Sale			$	5,878.9	$	5,856.4	$	5,957.5	$	6,054.5	$	6,188.9
Marketable Securities - Trading
U.S. government securities			$	22.0	$	31.1	$	39.0	$	27.7	$	9.4
U.S. agency securities			0.2		0.2		0.2		0.2		0.2
Municipal securities			1.1		0.6		0.6		2.8		2.9
Corporate securities			474.8		471.0		365.6		395.9		414.4
Foreign government securities			136.2		136.3		27.5		27.3		26.3
Asset-backed securities			12.8		6.6		5.7		5.8		2.9
Bank loans			69.1		72.8		65.2		9.1		—
Total fixed income maturities			716.2		718.6		503.8		468.8		456.1
Short-term investments			—		0.2		10.6		0.8		2.4
Equity securities			310.9		278.3		229.9		205.0		—
Catastrophe bonds			5.8		—		—		—		—
Total Trading			$	1,032.9	$	997.1	$	744.3	$	674.6	$	458.5

Other Investments			$	48.0	$	46.1	$	44.9	$	45.0	$	45.0

Cash			1,293.6		1,198.3		1,188.9		1,212.7		1,463.6
Accrued interest			47.9		48.5		48.3		45.0		47.7
	Total Cash and Accrued Interest		$	1,341.5	$	1,246.8	$	1,237.2	$	1,257.7	$	1,511.3

	Total Cash and Investments		$	8,301.3	$	8,146.4	$	7,983.9	$	8,031.8	$	8,203.7



	ASPEN INSURANCE HOLDINGS LIMITED
	Investment Analysis

(in US$ millions except for percentages)		Q4 2013			Q3 2013			Q2 2013			Q1 2013			Q4 2012			Q3 2012			Q2 2012			Q1 2012

Net investment income from fixed income investments and cash		$	44.8		$	42.0		$	42.0		$	45.0		$	49.8		$	46.9		$	51.0		$	51.0
Net investment income from equity securities		2.4			3.0			3.9			3.3			1.3			1.7			1.8			1.4
Net investment income		47.2			45.0			45.9			48.3			51.1			48.6			52.8			52.4

Net realized and unrealized investment gains/(losses) excluding the interest rate swaps		19.4			17.7			(6.6		)	15.2			5.7			12.9			2.2			9.0
Net realized investment (losses)/gains from the interest rate swaps		(0.5		)	(4.3		)	6.8			0.6			(0.1		)	(8.1		)	(11.3		)	(3.5		)
Realized loss on the debt extinguishment		(9.3		)	—			—			—			—			—			—			—
Other-than-temporary impairment charges		—			—			—			—			—			(2.1		)	(0.9		)	—
Net realized and unrealized investment gains/(losses)		9.6			13.4			0.2			15.8			5.6			2.7			(10.0		)	5.5

Change in unrealized (losses)/gains on available for sale investments (gross of tax)		(41.1		)	(9.7		)	(138.4		)	(17.5		)	(37.9		)	32.2			36.6			(11.7		)

Total return/(loss) on investments		$	15.7		$	48.7		$	(92.3	)	$	46.6		$	18.8		$	83.5		$	79.4		$	46.2

Portfolio Characteristics
Fixed income portfolio book yield (excluding the impact of the interest rate swaps)		2.74		%	2.82		%	2.71		%	2.80		%	2.88		%	3.04		%	3.19		%	3.31		%
Fixed income portfolio duration (excluding the impact of the interest rate swaps)		3.5 years			3.5 years			3.4 years			3.2 years			3.0 years			2.8 years			2.9 years			3.0 years



	ASPEN INSURANCE HOLDINGS LIMITED
	Book Value Per Ordinary Share

(in US$ millions except for number of shares and per share amounts)		December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012

Net assets		$	3,349.6		$	3,271.1		$	3,234.9		$	3,339.6		$	3,488.4
Less: Preference shares		(555.6		)	(555.6		)	(555.6		)	(508.1		)	(508.1		)
Less: Non-controlling interest		(49.7		)	0.1			(0.2		)	(0.2		)	(0.2		)
Total		$	2,744.3		$	2,715.6		$	2,679.1		$	2,831.3		$	2,980.1

Ordinary shares outstanding (in millions)		65.547			65.701			67.003			65.634			70.754
Ordinary shares and dilutive potential ordinary shares (in millions)		67.090			67.171			68.934			69.611			73.312

Book value per ordinary share		$	41.87		$	41.33		$	39.98		$	43.14		$	42.12
Diluted book value per ordinary share		$	40.90		$	40.43		$	38.86		$	40.67		$	40.65

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.



		ASPEN INSURANCE HOLDINGS LIMITED
		Operating Income Reconciliation

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

			Three Months Ended						Twelve Months Ended
(in US$ millions except where stated)			December 31, 2013			December 31, 2012			December 31, 2013			December 31, 2012

Net income as reported			$	90.0		$	2.0		$	329.3		$	280.4
Changes in redemption value of PIERS ⁽¹⁾			—			—			(7.1		)	—
Net loss/(income) attributable to non-controlling interest			0.2			(0.1		)	0.5			0.2
Preference share dividends			(9.4		)	(8.5		)	(35.5		)	(31.1		)
Net income/(loss) available to ordinary shareholders			80.8			(6.6		)	287.2			249.5
Add (deduct) after tax income:
	Net foreign exchange losses		3.8			0.4			13.3			2.2
	Net realized (gains) on investments ⁽²⁾		(9.4		)	(5.3		)	(38.3		)	(2.7		)
	Changes in redemption value of PIERS ⁽¹⁾		—			—			7.1			—
Operating income/(loss) after tax available to ordinary shareholders			75.2			(11.5		)	269.3			249.0
Tax/(benefit)on operating income			3.2			(4.8		)	13.4			13.5
Operating income/(loss) before tax available to ordinary shareholders			$	78.4		$	(16.3	)	$	282.7		$	262.5
Basic earnings per ordinary share
Net income/(loss) adjusted for preference share dividend			$	1.23		$	(0.09	)	$	4.29		$	3.51
Add (deduct) after tax income:
	Net foreign exchange losses		0.06			0.01			0.20			0.03
	Net realized (gains) on investments		(0.14		)	(0.07		)	(0.57		)	(0.04		)
	Changes in redemption value of PIERS ⁽¹⁾		—			—			0.11			—
Operating income/(loss) adjusted for preference shares dividend			$	1.15		$	(0.15	)	$	4.03		$	3.50
Diluted earnings per ordinary share
Net income/(loss) adjusted for preference share dividend			$	1.21		$	(0.09	)	$	4.14		$	3.39
Add (deduct) after tax income:
	Net foreign exchange losses		0.06			0.01			0.19			0.03
	Net realized (gains) on investments		(0.14		)	(0.07		)	(0.55		)	(0.04		)
	Changes in redemption value of PIERS ⁽¹⁾		—			—			0.10			—
Operating income/(loss) adjusted for preference shares dividend			$	1.13		$	(0.15	)	$	3.88		$	3.38

(1) Preferred Income Equity Redemption Securities ("PIERS")
(2) Includes the $9.3 million make-whole payment on the redemption of the $250.0 million Senior notes due August 15, 2014.

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ASPEN INSURANCE HOLDINGS LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - February 6, 2014

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