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Aspen Insurance Holdings Updates Loss Estimate for New Zealand Earthquake

^{Published on 2010-12-16 13:15:47 - Market Wire}
 

HAMILTON, Bermuda--([ BUSINESS WIRE ])--Aspen Insurance Holdings Limited (the aCompanya) (NYSE:AHL) today announced that it has updated its pre-tax loss estimate for the New Zealand earthquake, which occurred in September 2010, from US$20 million to US$53 million, net of reinstatement premiums. This equates to US$47 million post tax. Aspena™s current loss estimate is consistent with an industry loss of NZ$5.5 billion (US$4.1 billion) from the New Zealand earthquake.

The upward revision reflects new information and is mainly due to one large domestic New Zealand cedant, which comprises approximately 81% of Aspena™s total loss estimate for this event. Aspena™s initial estimate of a NZ$2.2 billion loss for this cedant included a margin for conservatism above the top end of the clienta™s original estimated range of NZ$1-2 billion. The latest information from this client indicates a substantial increase with a wide range of possible outcomes. Given the continuing uncertainty associated with this loss, Aspen has now concluded that it is prudent to reserve at a total loss for Aspena™s shares on this program, which assumes a loss of at least NZ$3.5 billion for this client. Aspen has also reserved at a total loss for all other domestic New Zealand placements. The balance of Aspena™s loss is $5 million and comprises shares on programs for clients domiciled outside of New Zealand which include some New Zealand exposure.

About Aspen Insurance Holdings Limited

The Company provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Germany, Ireland, Singapore, Switzerland, the United Kingdom and the United States. For the twelve months ended December 31, 2009, The Company reported gross written premiums of $2,067.1 million, net income of $473.9 million and total assets of $8.3 billion. Its operating subsidiaries have been assigned a financial strength rating of aAa (aStronga) by Standard & Poor's, an aAa (aExcellenta) by A.M. Best and an aA2a (aGooda) by Moody's Investors Service.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:

This press release contains written, and Aspen's officers may make related oral, "forward-looking statements" within the meaning of the U.S. federal securities laws regarding. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements. Aspen believes these factors include, but are not limited to, in respect of the losses from the New Zealand earthquake, developing information available from brokers, clients and loss adjusters, the receipt of actual loss reports, forecasts of losses relating to the New Zealand earthquake for the industry as a whole and for individual companies, changes in the total industry losses or the Company's share of such losses, the actual number of the Companya™s insureds incurring losses from these events, limitations in current modeling techniques and their application, the impact of any demand surge on claims, coverage issues, the impact of foreign exchange fluctuations and the effectiveness of the Companya™s loss limitation methods. For a more detailed description of these uncertainties and other factors which could cause results to differ materially, 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 26, 2010. 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.