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Aspen Insurance Holdings Announces Initial Loss Estimate for April and May Weathera"Related Events in the US

^{Published on 2011-06-22 13:20:56 - Market Wire}
 

HAMILTON, Bermuda--([ BUSINESS WIRE ])--Aspen Insurance Holdings Limited (aAspena or the aCompanya) (NYSE:AHL) today announced an initial estimate of losses of approximately $60 million, net of applicable reinsurance, reinstatement premiums and tax, related to the series of severe weather events that occurred in the US in April and May 2011.

The thunderstorm outbreaks were extensive and highly destructive causing both loss of life and severe damage mainly in the Midwest and Southeast regions of the US; these storms comprised hail, tornadoes, wind and flood. The majority of the Companya™s net loss estimate emanates from its reinsurance segment. Aspen believes that its loss estimate is consistent with an industry loss for these events of $15 billion. The industry estimate excludes flood losses covered by the National Flood Insurance Program (NFIP). The Companya™s estimate is primarily based on its review of the individual treaties and policies expected to be impacted, discussions with clients and brokers and considerable judgment by management and, as such, there is still some uncertainty associated with this estimate and ultimate losses may differ materially from initial estimated losses.

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, 2010, the Company reported gross written premiums of $2,076.8 million, net income of $312.7 million and total assets of $8.8 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 its initial estimate of losses from the severe weather events that occurred in the US in April and May 2011. 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, developing information available from brokers, clients and loss adjusters, the receipt of actual loss reports, forecasts of losses relating to these events 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 any 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 25, 2011. 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.