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): October 27, 2005

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.)

Victoria Hall
11 Victoria Street
Hamilton HM 11
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 October 27, 2005, Aspen Insurance Holdings Limited issued a press release announcing results for the nine months ended September 30, 2005, which has been attached as Exhibit 99.1. In addition, a copy of the Aspen Insurance Holdings Limited Earnings Release Supplement for the nine months ended September 30, 2005 is attached hereto as Exhibit 99.2.

Section 7. Regulation FD

Item 7.01 Regulation FD Disclosure

On October 27, 2005, Aspen Insurance Holdings Limited issued a press release announcing results for the nine months ended September 30, 2005, which has been attached as Exhibit 99.1. In addition, a copy of the Aspen Insurance Holdings Limited Earnings Release Supplement for the nine months ended September 30, 2005 is attached hereto as Exhibit 99.2.

Section 9. Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c) The following exhibits are furnished under Items 7.01 and 2.02 as part of this report:

99.1	Press Release of the Registrant, dated October 27, 2005.

99.2	Earnings Release Supplement for the nine months ended September 30, 2005.

The information furnished under Item 7.01 "Regulation FD Disclosure" and Item 2.02 "Results of Operations and Financial Condition" 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.

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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: October 27, 2005	By:/s/ Julian Cusack                     Name: Julian Cusack Title: Chief Financial Officer

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INDEX TO EXHIBITS

Exhibit No.				Description
99.1				Press Release of the Registrant dated October 27, 2005.
99.2				Earnings Release Supplement for the nine months ended September 30, 2005.

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EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Investor Contact:
Aspen Insurance Holdings Limited                 T 441-297-9382
Noah Fields, Head of Investor Relations
Julian Cusack, Chief Financial Officer

European Press Contact:
The Maitland Consultancy            T 44-207-7379-5151
Brian Hudspith

North American Press Contact:
Abernathy MacGregor            T 212-371-5999
Carina Davidson
Eliza Johnson

ASPEN INSURANCE HOLDINGS LIMITED REPORTS THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2005 FINANCIAL RESULTS

•	Net loss of $(362.0) million for third quarter 2005 and $(208.1) for the nine months ended September 30, 2005 including $453.7 million of losses from Hurricanes Katrina and Rita

•	Third quarter 2005 combined ratio of 207.1% and 121.0% for the nine months ended September 30, 2005

•	Subsequent to the end of third quarter 2005, we raised approximately $400 million through the sale of our shares

HAMILTON, BERMUDA, October 27, 2005 — Aspen Insurance Holdings Limited (NYSE: AHL;BSX:AHL BH) today reported a net loss of $(362.0) million, or $(5.22) per diluted share, for the three months ended September 30, 2005 and $(208.1) million, or $(3.00) per diluted share for the nine months ended September 30, 2005.

Gross written premiums were $494.0 million for the third quarter 2005 and $1,847.5 million for the nine months ended September 30, 2005.

Net investment income was $29.4 million for the third quarter 2005 and $82.0 million for the nine months ended September 30, 2005.

Chris O'Kane, chief executive officer, said, "Our third quarter results are clearly disappointing. This has been an exceptional year for natural catastrophes. Hurricanes Katrina, Rita and Wilma present major challenges to our industry and we will make the necessary revisions to our approach towards underwriting property reinsurance to take full advantage of the opportunities that will emerge. As we move towards the January renewal season, we expect to see dramatic increase in rates in loss impacted lines and significant improvements in policy wordings. I believe that Aspen is influential and has a leading position in areas such as offshore energy physical damage insurance and property catastrophe reinsurance which will see the most significant improvements. The Company is well positioned to benefit from these changes in market conditions and our diversified business model will continue to serve us well."

Shareholders' equity decreased from $1,481.5 million at December 31, 2004 to $1,223.9 million at September 30, 2005.

Subsequent to the end of our third quarter 2005, we raised approximately $400 million through the sale of our shares, of which $390 million was contributed to the capital of Aspen Insurance Limited, our Bermudian insurance subsidiary.

Earnings conference call

Aspen will hold a conference call tomorrow, October 28, 2005 at 8:30 a.m. (ET) to discuss third quarter 2005 financial results. Investors may participate in the live conference call by dialing 800-473-6123 (toll-free domestic U.S.) or 973-582-2706 (international); conference ID: 6542523 Please call to register at least 10 minutes before the conference call begins. A replay of the call will be available for 10 days via telephone starting approximately two hours following the live call on October 28, 2005, and can be accessed at 877-519-4471 (toll-free domestic U.S.) or 973-341-3080 (international); digital pin: 6542523. The live call and a replay can also be heard via Aspen's website at www.aspen.bm.

In addition, a financial supplement relating to the Company's financial results for the third quarter 2005 and nine months ended September 30, 2005 is available in the Investor Relations section of the Company's website at www.aspen.bm.

About Aspen Insurance Holdings Limited

Aspen Insurance Holdings Limited was established in June 2002. Aspen is a Bermudian holding company that provides property and casualty reinsurance in the global market, property and liability insurance principally in the United Kingdom and the United States and marine and aviation insurance and reinsurance worldwide through Aspen Insurance UK Limited. Aspen's operations are conducted through its wholly-owned subsidiaries located in London, Bermuda and the United States: Aspen Insurance UK Limited, Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen has four operating segments: property reinsurance, casualty reinsurance, specialty insurance and reinsurance and property and casualty insurance. Aspen's principal existing shareholders include The Blackstone Group, Candover Partners Limited, Wellington Underwriting plc and Credit Suisse First Boston Private Equity. For more information about Aspen, please visit the Company's website at www.aspen.bm.

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

This press release contains, and Aspen's earnings conference call may contain, 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," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature.

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All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company's control that could cause actual results to differ materially from such statements. Important events that could cause the actual results to differ include, but are not limited to: the impact of acts of terrorism and related legislations and acts of war; the possibility of greater frequency or severity of or unanticipated losses from natural or man-made catastrophes, including Hurricanes Katrina and Rita and the New Orleans Flood; evolving interpretive issues with respect to coverage as a result of Hurricanes Katrina and Rita and the New Orleans Flood; the level of inflation in repair costs due to limited availability of labor and materials after catastrophes; the effectiveness of the Company's loss limitation methods; changes in the availability, cost or quality of reinsurance or retrocessional coverage; the loss of key personnel; a decline in the operating subsidiaries' ratings with Standard & Poor's, A.M. Best or Moody's; changes in general economic conditions; increased competition on the basis of pricing, capacity, coverage terms or other factors; decrease in demand for the Company's insurance or reinsurance products and cyclical downturn of the industry; changes in governmental regulation or tax laws in the jurisdictions where the Company conducts business; the total industry losses resulting from Hurricanes Katrina and Rita and the New Orleans Flood; the actual number of the Company's insureds incurring losses from these storms; the limited actual loss reports received from the Company's insureds to date; the preliminary nature of possible loss information received by brokers to date on behalf of cedants; the Company's reliance on industry loss estimates and those generated by modeling techniques; the impact of these storms on the Company's reinsurers; the amount and timing of reinsurance recoverables and reimbursements actually received by the Company from its reinsurers; the overall level of competition, and the related demand and supply dynamics as contracts come up for renewal. 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 for the year ended December 31, 2004, filed with the U.S. Securities and Exchange Commission on March 14, 2005 and Aspen's Current Report on Form 8-K dated October 4, 2005. 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.

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Summary of Results – Consolidated Income Statements

				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(in US$ millions)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
UNDERWRITING REVENUES
Gross premiums written					494.0				349.4				1,847.5				1,370.0
Premiums ceded					(149.5	)			(53.5	)			(384.0	)			(201.1	)
Net premiums written					344.5				295.9				1,463.5				1,168.9
Change in unearned premiums					34.9				(2.5	)			(310.4	)			(242.7	)
Net premiums earned					379.4				293.4				1,153.1				926.2
UNDERWRITING EXPENSES
Losses and loss expenses					(683.0	)			(303.2	)			(1,086.3	)			(566.7	)
Acquisition expenses					(71.1	)			(40.0	)			(218.4	)			(164.2	)
General and administrative expenses					(31.5	)			(26.5	)			(90.6	)			(70.7	)
Total Underwriting Expenses					(785.6	)			(369.7	)			(1,395.3	)			(801.6	)
Underwriting Income (Loss)					(406.2	)			(76.3	)			(242.2	)			124.6
OTHER OPERATING REVENUE
Net investment income					29.4				19.4				82.0				46.3
Interest expense					(4.3	)			(2.7	)			(12.2	)			(3.2	)
Total other operating revenue					25.1				16.7				69.8				43.1
Other expense					(4.8	)			(2.1	)			(9.2	)			(2.1	)
OPERATING INCOME (LOSS) BEFORE TAX					(385.9	)			(61.7	)			(181.6	)			165.6
OTHER
Net realized exchange gains (losses)					(3.9	)			1.4				(8.7	)			0.7
Net realized investment gains (losses)					(1.4	)			1.9				(1.4	)			(2.4	)
INCOME (LOSS) BEFORE INCOME TAX					(391.2	)			(58.4	)			(191.7	)			163.9
Income taxes					29.2				15.4				(16.4	)			(41.0	)
NET INCOME (LOSS) AFTER TAX					(362.0	)			(43.0	)			(208.1	)			122.9
Dividends Paid					(10.4	)			(2.0	)			(31.2	)			(6.2	)
Retained Income					(372.4	)			(45.0	)			(239.3	)			116.7
Components of Net Income (after tax)
Operating income					(357.1	)			(43.9	)			(198.4	)			125.5
Net realized investment gains (losses)					(1.0	)			(0.1	)			(1.0	)			(3.1	)
Net realized exchange gains (losses)					(3.9	)			1.0				(8.7	)			0.5
NET INCOME (LOSS) AFTER TAX					(362.0	)			(43.0	)			(208.1	)			122.9

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Per share data

				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(In US$ except for number of shares)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
Basic earnings per share
Net income					(5.22	)			(0.62	)			(3.00	)			1.78
Operating income					(5.15	)			(0.63	)			(2.86	)			1.81
Diluted earnings per share
Net income					(5.22	)			(0.62	)			(3.00	)			1.71
Operating income					(5.15	)			(0.63	)			(2.86	)			1.75
Weighted average ordinary shares outstanding					69,343,435				69,174,303				69,339,484				69,175,603
Weighted average ordinary shares outstanding and dilutive potential ordinary shares					69,343,435				69,174,303				69,339,484				71,751,883
Book value per share													17.53				20.40
Diluted book value (treasury stock method)													17.53				19.66
Ordinary shares outstanding at end of the period													69,342,486				69,174,303
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period													69,342,486				71,760,480

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Consolidated Balance Sheet

(in US$ millions)				As at September 30, 2005				As at December 31, 2004
ASSETS
Investments
Fixed Maturities					2,645.5				2,207.2
Short term investments					491.5				528.7
Total Investments					3,137.0				2,735.9
Cash and cash equivalents					369.4				284.9
Reinsurance Recoverables
Unpaid losses					894.8				197.7
Ceded unearned premiums					155.4				40.4
Receivables
Underwriting premiums					798.4				494.2
Other					31.6				39.2
Deferred policy acquisition costs					194.8				115.6
Derivative at fair value					16.5				23.6
Office properties and equipment					19.1				5.0
Other assets					6.2				—
Intangible assets					8.2				6.6
Total Assets					5,631.4				3,943.1
LIABILITIES
Insurance Reserves
Losses and loss adjustment expenses					2,748.6				1,277.9
Unearned premiums					1,129.8				714.0
Total insurance reserves					3,878.4				1,991.9
Payables
Reinsurance premiums					205.0				54.2
Taxation					11.1				57.7
Accrued expenses and other payables					46.7				84.3
Liabilities under derivative contracts					17.0				24.2
Total Payables					279.8				220.4
Long term debt					249.3				249.3
Total Liabilities					4,407.5				2,461.6
SHAREHOLDERS' EQUITY
Ordinary shares					1,100.2				1,096.1
Retained earnings					128.2				367.5
Accumulated other comprehensive income, net of taxes					(4.5	)			17.9
Total shareholders' equity					1,223.9				1,481.5
Total Liabilities and Shareholders' Equity					5,631.4				3,943.1

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Summarized Cash Flow

(in US$ millions)				Nine Months Ended September 30, 2005				Nine Months Ended September 30, 2004
Net cash from operating activities					605.9				656.6
Net cash from investing activities					(486.5	)			(860.1	)
Net cash from financing activities					(30.8	)			243.1
Effect of exchange rate movements on cash and cash equivalents					(4.1	)			7.1
Increase in cash and cash equivalents:					84.5				46.7
Cash at beginning of the period					284.9				230.8
Cash at end of the period					369.4				277.5

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Non-GAAP Financial Measures

In presenting the Company's results, management has included and discussed certain "non-GAAP financial measures", as such term is defined in Regulation G. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in the financial supplement, which can be obtained from Aspen's website at www.aspen.bm.

(1) Annualized Operating Return on Average Equity (ROAE) is a non-GAAP financial measure. Annualized Operating Return on Average Equity is calculated using 1) operating income, as defined below and 2) excludes from average equity, the average after tax unrealized appreciation or depreciation on investments and the average after tax unrealized foreign exchange gains or losses. Unrealized appreciation (depreciation) on investments is primarily the result of interest rate movements and the resultant impact on fixed income securities, and unrealized appreciation (depreciation) on foreign exchange is the result of exchange rate movements between the US dollar and the British pound. Such appreciation (depreciation) is not related to management actions or operational performance (nor is it likely to be realized). Therefore the Company believes that excluding these unrealized appreciations (depreciations) provides a more consistent and useful measurement of operating performance, which supplements GAAP information. Average equity is calculated as the arithmetic average on a monthly basis for the stated periods.

The Company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

See page 25 of the Company's financial supplement for a reconciliation of operating income to net income and page 19 for a reconciliation of average equity.

(2) Operating income is a non-GAAP financial measure. Operating income is an internal performance measure used by the Company in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses.

The Company excludes after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. The Company believes these amounts are largely independent of its business and underwriting process and including them distorts the analysis of trends in its operations. In addition to presenting net income determined in accordance with GAAP, the Company believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company's results of operations in a manner similar to how management analyzes the Company's underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see above and page 25 of the Company's financial supplement for a reconciliation of operating income to net income. The Company's financial supplement can be obtained from Aspen's website at www.aspen.bm.

(3) Diluted book value per share is a non-GAAP financial measure. The Company has included diluted book value per share because it takes into account the effect of dilutive securities; therefore, the Company believes it is a better measure of calculating shareholder returns than book value per share. Please see page 25 of the Company's financial supplement for a reconciliation of diluted book value per share to basic book value per share. The Company's financial supplement can be obtained from Aspen's website at www.aspen.bm.

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(4) Underwriting ratios excluding impact of Hurricanes and Windstorms (are non-GAAP financial measures): In these ratios, the Company excludes the impact of Hurricanes Katrina and Rita (in relation to the 2005 financial year figures) and Hurricanes Charley, Frances, Ivan and Jeanne and Typhoon Songda (in relation to the 2004 comparative figures) from net premiums earned and losses and loss expenses in order to calculate loss ratio and expense ratios excluding the impact of these events. The underwriting ratios excluding the impact of the hurricanes and windstorms are derived by adjusting the net premiums earned and the losses and loss expenses for the period by the impact of the hurricanes and windstorms in the period as shown and calculating loss ratio and expense ratio using these derived balances. In addition to presenting underwriting ratios determined in accordance with GAAP, the Company believes that showing non-GAAP underwriting ratios enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company's results of operations in a manner similar to how management analyzes the Company's underlying business performance without these events. In addition, the Company believes that such users wish to have such non-GAAP ratios, as well as the GAAP-based ratios, to compare the performance of the Company's underlying business lines without regard to the impact of these major catastrophes.

# # #

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EX-99.2

EXHIBIT 99.2

ASPEN INSURANCE HOLDINGS LIMITED
EARNINGS RELEASE SUPPLEMENT
AS OF SEPTEMBER 30, 2005

INDEX TO SUPPLEMENT

				Page
BASIS OF PREPARATION					2
INCOME STATEMENT					3
CONSOLIDATED BALANCE SHEET					4
PROFORMA SHARHOLDERS’ EQUITY					5
PER SHARE DATA					6
FINANCIAL RATIOS					7
UNDERWRITING RESULTS BY OPERATING SEGMENT					8
CONSOLIDATED CHANGE IN SHAREHOLDERS’ EQUITY					17
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME					18
SUMMARIZED CASH FLOW					18
SUPPLEMENTAL FINANCIAL INFORMATION					19

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

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

This financial supplement may contain, and Aspen may from time-to-time make, 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," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company's control that could cause actual results to differ materially from such statements. Important events that could cause the actual results to differ include, but are not limited to: the impact of acts of terrorism and related legislations and acts of war; the possibility of greater frequency or severity of or unanticipated losses from natural or man-made catastrophes, including Hurricanes Katrina and Rita and the New Orleans Flood; evolving interpretive issues with respect to coverage as a result of Hurricanes Katrina and Rita and the New Orleans Flood; the level of inflation in repair costs due to limited availability of labor and materials after catastrophes; the effectiveness of the Company's loss limitation methods; changes in the availability, cost or quality of reinsurance or retrocessional coverage; the loss of key personnel; a decline in the operating subsidiaries' ratings with Standard & Poor's, A.M. Best or Moody's; changes in general economic conditions; increased competition on the basis of pricing, capacity, coverage terms or other factors; decrease in demand for the Company's insurance or reinsurance products and cyclical downturn of the industry; changes in governmental regulation or tax laws in the jurisdictions where the Company conducts business; the total industry losses resulting from Hurricanes Katrina and Rita and the New Orleans Flood; the actual number of the Company's insureds incurring losses from these storms; the limited actual loss reports received from the Company's insureds to date; the preliminary nature of possible loss information received by brokers to date on behalf of cedants; the Company's reliance on industry loss estimates and those generated by modeling techniques; the impact of these storms on the Company's reinsurers; the amount and timing of reinsurance recoverables and reimbursements actually received by the Company from its reinsurers; the overall level of competition, and the related demand and supply dynamics as contracts come up for renewal. 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 for the year ended December 31, 2004, filed with the U.S. Securities and Exchange Commission on March 14, 2005 and Aspen's Current Report on Form 8-K dated October 4, 2005. 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.

BASIS OF PREPARATION

Definitions and presentation All financial information contained herein is unaudited except for information for the 12 months ended December 31, 2004. Unless otherwise noted, all data is in US dollars millions, except for per share, percentage and ratio information.

In presenting the Company's results, management has included and discussed certain "non-GAAP financial measures", as such term is defined in Regulation G. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in this financial supplement.

Operating income (a non-GAAP financial measure): Operating income is an internal performance measure used by the Company in the management of its operations and represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses.

The Company excludes after tax net realized capital gains or losses and after-tax net foreign exchange gains or losses from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. The Company believes these amounts are largely independent of its business and underwriting process and including them distorts the analysis of trends in its operations. In addition to presenting net income determined in accordance with GAAP, the Company believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company's results of operations in a manner similar to how management analyzes the Company's underlying business performance. Operating income should not be viewed as a substitute for GAAP net income. Please see page 25 for a reconciliation of operating income to net income.

Annualized Operating Return on Average Equity (ROAE) (a non-GAAP financial measure): Annualized Operating Return on Average Equity is calculated using 1) operating income, as defined above and 2) excludes from average equity, the average after tax unrealized appreciation or depreciation on investments and the average after tax unrealized foreign exchange gains or losses. Unrealized appreciation (depreciation) on investments is primarily the result of interest rate movements and the resultant impact on fixed income securities, and unrealized appreciation (depreciation) on foreign exchange is the result of exchange rate movements between the US dollar and the British pound. Such appreciation (depreciation) is not related to management actions or operational performance (nor is it likely to be realized). Therefore the Company believes that excluding these unrealized appreciations (depreciations) provides a more consistent and useful measurement of operating performance, which supplements GAAP information. Average equity is calculated as the arithmetic average on a monthly basis for the stated periods.

The Company presents ROAE as a measure that it is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

See page 25 for a reconciliation of operating income to net income and page 19 for a reconciliation of average equity.

Diluted book value per share (a non-GAAP financial measure): The Company has included diluted book value per share because it takes into account the effect of dilutive securities; therefore, the Company believes it is a better measure of calculating shareholder returns than book value per share. Please see page 25 for a reconciliation of diluted book value per share to basic book value per share.

Underwriting ratios (are GAAP financial measures): Aspen Insurance Holdings Limited, 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 expense to net premiums earned. The acquisition expense ratio is the ratio of underwriting expenses (commissions; premium taxes, licenses and fees; as well as other underwriting expenses) to net premiums earned. The general and administrative expense ratio is the ratio of general and administrative expenses to net premiums earned. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned or written, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.

Underwriting ratios excluding impact of Hurricanes and Windstorms (are non-GAAP financial measures): In these ratios, the Company excludes the impact of Hurricanes Katrina and Rita (in relation to the 2005 financial year figures) and Hurricanes Charley, Frances, Ivan and Jeanne and Typhoon Songda (in relation to the 2004 comparative figures) from net premiums earned and losses and loss expenses in order to calculate loss ratio and expense ratios excluding the impact of these events. The underwriting ratios excluding the impact of the hurricanes and windstorms are derived by adjusting the net premiums earned and the losses and loss expenses for the period by the impact of the hurricanes and windstorms in the period as shown and calculating loss ratio and expense ratio using these derived balances. In addition to presenting underwriting ratios determined in accordance with GAAP, the Company believes that showing non-GAAP underwriting ratios enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company's results of operations in a manner similar to how management analyzes the Company's underlying business performance without these events. In addition, the Company believes that such users wish to have such non-GAAP ratios, as well as the GAAP-based ratios, to compare the performance of the Company's underlying business lines without regard to the impact of these major catastrophes.

GAAP combined ratios differ from 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 & administrative expense ratios.

Page 2 of 25

INCOME STATEMENT

The following table summarizes the Company's financial performance for the three and nine months ended September 30, 2005 compared to the three and nine months ended September 30, 2004.

								Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(in US$ millions)								September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
UNDERWRITING REVENUES
Gross premiums written									494.0				349.4				1,847.5				1,370.0
Premiums ceded									(149.5	)			(53.5	)			(384.0	)			(201.1	)
Net premiums written									344.5				295.9				1,463.5				1,168.9
Change in unearned premiums									34.9				(2.5	)			(310.4	)			(242.7	)
Net premiums earned									379.4				293.4				1,153.1				926.2
UNDERWRITING EXPENSES
Losses and loss expenses									(683.0	)			(303.2	)			(1,086.3	)			(566.7	)
Acquisition expenses									(71.1	)			(40.0	)			(218.4	)			(164.2	)
General and administrative expenses									(31.5	)			(26.5	)			(90.6	)			(70.7	)
Total Underwriting Expenses									(785.6	)			(369.7	)			(1,395.3	)			(801.6	)
Underwriting Income (Loss)									(406.2	)			(76.3	)			(242.2	)			124.6
OTHER OPERATING REVENUE
Net investment income									29.4				19.4				82.0				46.3
Interest expense									(4.3	)			(2.7	)			(12.2	)			(3.2	)
Total other operating revenue									25.1				16.7				69.8				43.1
Other expense									(4.8	)			(2.1	)			(9.2	)			(2.1	)
OPERATING INCOME (LOSS) BEFORE TAX									(385.9	)			(61.7	)			(181.6	)			165.6
OTHER
Net realized exchange gains (losses)									(3.9	)			1.4				(8.7	)			0.7
Net realized investment gains (losses)									(1.4	)			1.9				(1.4	)			(2.4	)
INCOME (LOSS) BEFORE INCOME TAX									(391.2	)			(58.4	)			(191.7	)			163.9
Income taxes									29.2				15.4				(16.4	)			(41.0	)
NET INCOME (LOSS) AFTER TAX									(362.0	)			(43.0	)			(208.1	)			122.9
Dividends Paid									(10.4	)			(2.0	)			(31.2	)			(6.2	)
Retained Income									(372.4	)			(45.0	)			(239.3	)			116.7
Components of Net Income (after tax)
Operating income									(357.1	)			(43.9	)			(198.4	)			125.5
Net realized investment gains (losses)									(1.0	)			(0.1	)			(1.0	)			(3.1	)
Net realized exchange gains (losses)									(3.9	)			1.0				(8.7	)			0.5
NET INCOME (LOSS) AFTER TAX									(362.0	)			(43.0	)			(208.1	)			122.9

Page 3 of 25

CONSOLIDATED BALANCE SHEET

(in US$ millions)				As at September 30, 2005				As at December 31, 2004
ASSETS
Investments
Fixed Maturities					2,645.5				2,207.2
Short term investments					491.5				528.7
Total Investments					3,137.0				2,735.9
Cash and cash equivalents					369.4				284.9
Reinsurance Recoverables
Unpaid losses					894.8				197.7
Ceded unearned premiums					155.4				40.4
Receivables
Underwriting premiums					798.4				494.2
Other					31.6				39.2
Deferred policy acquisition costs					194.8				115.6
Derivative at fair value					16.5				23.6
Office properties and equipment					19.1				5.0
Other assets					6.2
Intangible assets					8.2				6.6
Total Assets					5,631.4				3,943.1
LIABILITIES
Insurance Reserves
Losses and loss adjustment expenses					2,748.6				1,277.9
Unearned premiums					1,129.8				714.0
Total insurance reserves					3,878.4				1,991.9
Payables
Reinsurance premiums					205.0				54.2
Taxation					11.1				57.7
Accrued expenses and other payables					46.7				84.3
Liabilities under derivative contracts					17.0				24.2
Total Payables					279.8				220.4
Long term debt					249.3				249.3
Total Liabilities					4,407.5				2,461.6
SHAREHOLDERS’ EQUITY
Ordinary shares					1,100.2				1,096.1
Retained earnings					128.2				367.5
Accumulated other comprehensive income, net of taxes					(4.5	)			17.9
Total shareholders’ equity					1,223.9				1,481.5
Total Liabilities and Shareholders’ Equity					5,631.4				3,943.1

Page 4 of 25

PROFORMA SHAREHOLDERS’ EQUITY

				As at September 30, 2005				Proceeds from issue of shares on October 11, 2005				Proforma shareholders' equity after the issue of shares
SHAREHOLDERS’ EQUITY
Ordinary shares					1,100.2				399.5				1,499.7
Retained earnings					128.2								128.2
Accumulated other comprehensive income, net of taxes					(4.5	)							(4.5	)
Total shareholders’ equity					1,223.9				399.5				1,623.4
Ordinary shares					69,342,486				17,551,558				86,894,044
Book value per share					17.53								18.59
Diluted book value (treasury stock method)					17.53								18.59
Debt to total capital					16.9	%							13.3	%

Page 5 of 25

PER SHARE DATA

				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(In US$ except for number of shares)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
Basic earnings per share
Net income					(5.22	)			(0.62	)			(3.00	)			1.78
Operating income					(5.15	)			(0.63	)			(2.86	)			1.81
Diluted earnings per share
Net income					(5.22	)			(0.62	)			(3.00	)			1.71
Operating income					(5.15	)			(0.63	)			(2.86	)			1.75
Weighted average ordinary shares outstanding					69,343,435				69,174,303				69,339,484				69,175,603
Weighted average ordinary shares outstanding and dilutive potential ordinary shares					69,343,435				69,174,303				69,339,484				71,751,883
Book value per share													17.53				20.40
Diluted book value (treasury stock method)													17.53				19.66
Ordinary shares outstanding at end of the period													69,342,486				69,174,303
Ordinary shares outstanding and dilutive potential ordinary shares at end of the period													69,342,486				71,760,480

Page 6 of 25

FINANCIAL RATIOS

				Three Months Ended September 30, 2005				Three Months Ended September 30, 2004				Nine Months Ended September 30, 2005				Nine Months Ended September 30, 2004
(In US$ millions except for percentage figures)
Average Equity					1,353				1,424				1,445				1,381
Return on average equity
Net income					(26.8	%)			(3.0	%)			(14.4	%)			8.9	%
Operating income					(26.4	%)			(3.1	%)			(13.7	%)			9.1	%
Loss Ratio					180.0	%			103.3	%			94.2	%			61.2	%
Expense ratio					27.1	%			22.7	%			26.8	%			25.3	%
Combined ratio					207.1	%			126.0	%			121.0	%			86.5	%
Debt to total capital					16.9	%			17.0	%			16.9	%			17.0	%

See pages 19, 24 and 25 for detailed calculation and reconciliation of non-GAAP measures to their respective most directly comparable GAAP financial measures.

Page 7 of 25

UNDERWRITING RESULTS BY OPERATING SEGMENT

As reported in the first quarter of 2005, management has revised the presentation of underwriting results into four segments to more accurately reflect the organizational structure of the business. A chart explaining the movement between segments is shown on page 14.

The following tables summarize gross and net written and earned premium, losses and loss expenses, policy acquisition, operating and administrative expenses, underwriting results, and combined ratios for each of our four business segments for the three and nine months ended September 30, 2005 and 2004.

				Three Months Ended September 30, 2005																				Three Months Ended September 30, 2004
				Property Reinsurance				Casualty Reinsurance				Specialty Insurance and Reinsurance				Property and Casualty Insurance				Total				Property Reinsurance				Casualty Reinsurance				Specialty Insurance and Reinsurance				Property and Casualty Insurance				Total
(in US$ millions)
Gross premiums written					256.0				81.5				57.3				99.2				494.0				139.5				83.4				19.9				106.6				349.4
Net premiums written					144.6				81.2				43.5				75.2				344.5				100.6				82.5				17.1				95.7				295.9
Gross premiums earned					212.3				125.9				79.7				106.7				524.6				155.2				91.9				29.1				84.9				361.1
Net premiums earned					112.5				121.3				72.1				73.5				379.4				105.9				88.1				27.2				72.2				293.4
Losses and loss expenses					(463.3	)			(83.1	)			(71.5	)			(65.1	)			(683.0	)			(172.6	)			(63.9	)			(20.0	)			(46.7	)			(303.2	)
Policy acquisition, operating and administration expenses					(33.1	)			(29.0	)			(21.5	)			(19.0	)			(102.6	)			(30.1	)			(15.5	)			(5.4	)			(15.5	)			(66.5	)
Underwriting profit (loss)					(383.9	)			9.2				(20.9	)			(10.6	)			(406.2	)			(96.8	)			8.7				1.8				10.0				(76.3	)
Net reserves for loss and loss adjustment expenses					635.2				608.5				202.6				407.5				1,853.8				273.5				300.5				130.5				269.4				973.9
Ratios
Loss ratio					411.8	%			68.5	%			99.2	%			88.6	%			180.0	%			163.0	%			72.5	%			73.5	%			64.7	%			103.3	%
Expense ratio					29.4	%			23.9	%			29.8	%			25.8	%			27.1	%			28.4	%			17.6	%			19.9	%			21.4	%			22.7	%
Combined ratio					441.2	%			92.4	%			129.0	%			114.4	%			207.1	%			191.4	%			90.1	%			93.4	%			86.1	%			126.0	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(14.6	)			0.0				0.0				(7.4	)			(22.0	)			(9.2	)			0.0				0.0				0.0				(9.2	)
On losses and loss expenses					(380.7	)			0.0				(24.0	)			(27.0	)			(431.7	)			(152.7	)			(0.9	)			(12.1	)			(6.4	)			(172.1	)
Total impact of hurricanes					(395.3	)			0.0				(24.0	)			(34.4	)			(453.7	)			(161.9	)			(0.9	)			(12.1	)			(6.4	)			(181.3	)
Loss ratio excluding hurricanes					65.0	%			68.5	%			65.9	%			47.1	%			62.6	%			17.3	%			71.5	%			29.0	%			55.8	%			43.3	%
Expense ratio excluding hurricanes					26.0	%			23.9	%			29.8	%			23.5	%			25.6	%			26.1	%			17.6	%			19.9	%			21.5	%			22.0	%
Combined ratio excluding impact of hurricanes					91.0	%			92.4	%			95.7	%			70.6	%			88.2	%			43.4	%			89.1	%			48.9	%			77.3	%			65.3	%

Page 8 of 25

				Nine Months Ended September 30, 2005																				Nine Months Ended September 30, 2004
				Property Reinsurance				Casualty Reinsurance				Specialty Insurance and Reinsurance				Property and Casualty Insurance				Total				Property Reinsurance				Casualty Reinsurance				Specialty Insurance and Reinsurance				Property and Casualty Insurance				Total
(in US$ millions)
Gross premiums written					754.8				482.5				301.7				308.5				1,847.5				618.8				393.0				82.4				275.8				1,370.0
Net premiums written					492.0				464.7				266.4				240.4				1,463.5				474.5				383.8				78.6				232.0				1,168.9
Gross premiums earned					562.8				364.8				199.9				289.1				1,416.6				479.6				255.2				95.5				262.9				1,093.2
Net premiums earned					396.1				350.7				177.7				228.6				1,153.1				361.2				248.5				91.1				225.4				926.2
Losses and loss expenses					(554.6	)			(248.7	)			(124.5	)			(158.5	)			(1,086.3	)			(215.9	)			(173.6	)			(46.0	)			(131.2	)			(566.7	)
Policy acquisition, operating and administration expenses					(123.0	)			(80.7	)			(46.6	)			(58.7	)			(309.0	)			(113.0	)			(50.6	)			(17.5	)			(53.8	)			(234.9	)
Underwriting profit (loss)					(281.5	)			21.3				6.6				11.4				(242.2	)			32.3				24.3				27.6				40.4				124.6
Net reserves for loss and loss adjustment expenses					635.2				608.5				202.6				407.5				1,853.8				273.5				300.5				130.5				269.4				973.9
Ratios
Loss ratio					140.0	%			70.9	%			70.1	%			69.3	%			94.2	%			59.8	%			69.9	%			50.5	%			58.2	%			61.2	%
Expense ratio					31.1	%			23.0	%			26.2	%			25.7	%			26.8	%			31.3	%			20.3	%			19.2	%			23.9	%			25.3	%
Combined ratio					171.1	%			93.9	%			96.3	%			95.0	%			121.0	%			91.1	%			90.2	%			69.7	%			82.1	%			86.5	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(14.6	)			0.0				0.0				(7.4	)			(22.0	)			(9.2	)			0.0				0.0				0.0				(9.2	)
On losses and loss expenses					(380.7	)			0.0				(24.0	)			(27.0	)			(431.7	)			(152.7	)			(0.9	)			(12.1	)			(6.4	)			(172.1	)
Total impact of hurricanes					(395.3	)			0.0				(24.0	)			(34.4	)			(453.7	)			(161.9	)			(0.9	)			(12.1	)			(6.4	)			(181.3	)
Loss ratio excluding hurricanes					42.3	%			70.9	%			56.6	%			55.7	%			55.7	%			17.0	%			69.5	%			37.2	%			55.3	%			42.2	%
Expense ratio excluding hurricanes					30.0	%			23.0	%			26.2	%			24.9	%			26.3	%			30.6	%			20.4	%			19.2	%			23.9	%			25.1	%
Combined ratio excluding impact of hurricanes					72.3	%			93.9	%			82.8	%			80.6	%			82.0	%			47.6	%			89.9	%			56.4	%			79.2	%			67.3	%

Page 9 of 25

SPECIALTY INSURANCE AND REINSURANCE

				Three Months Ended September 30, 2005												Three Months Ended September 30, 2004
				Specialty Insurance				Specialty Reinsurance				Total				Specialty Insurance				Specialty Reinsurance				Total
(in US$ millions)
Gross premiums written					51.0				6.3				57.3				11.6				8.3				19.9
Net premiums written					42.5				1.0				43.5				11.1				6.0				17.1
Gross premiums earned					54.0				25.7				79.7				2.5				26.6				29.1
Net premiums earned					47.2				24.9				72.1				2.3				24.9				27.2
Losses and loss expenses					(45.5	)			(26.0	)			(71.5	)			(2.1	)			(17.9	)			(20.0	)
Policy acquisition, operating and administration expenses					(14.4	)			(7.1	)			(21.5	)			(0.6	)			(4.8	)			(5.4	)
Underwriting profit (loss)					(12.7	)			(8.2	)			(20.9	)			(0.4	)			2.2				1.8
Ratios
Loss ratio					96.4	%			104.4	%			99.2	%			91.3	%			71.9	%			73.5	%
Expense ratio					30.5	%			28.5	%			29.8	%			26.1	%			19.3	%			19.9	%
Combined ratio					126.9	%			132.9	%			129.0	%			117.4	%			91.2	%			93.4	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(2.1	)			2.1				0.0				0.0				0.0				0.0
On losses and loss expenses					(7.2	)			(16.8	)			(24.0	)			0.0				(12.1	)			(12.1	)
Total impact of hurricanes					(9.3	)			(14.7	)			(24.0	)			0.0				(12.1	)			(12.1	)
Loss ratio excluding hurricanes					77.7	%			40.4	%			65.9	%			91.3	%			23.3	%			29.0	%
Expenses ratio excluding hurricanes					29.2	%			31.1	%			29.8	%			26.1	%			19.3	%			19.9	%
Combined ratio excluding impact of hurricanes					106.9	%			71.5	%			95.7	%			117.4	%			42.6	%			48.9	%

Page 10 of 25

SPECIALTY INSURANCE AND REINSURANCE

				Nine Months Ended September 30, 2005												Nine Months Ended September 30, 2004
				Specialty Insurance				Specialty Reinsurance				Total				Specialty Insurance				Specialty Reinsurance				Total
(in US$ millions)
Gross premiums written					214.2				87.5				301.7				11.6				70.8				82.4
Net premiums written					184.9				81.5				266.4				11.1				67.5				78.6
Gross premiums earned					114.6				85.3				199.9				2.5				93.0				95.5
Net premiums earned					94.1				83.6				177.7				2.3				88.8				91.1
Losses and loss expenses					(83.4	)			(41.1	)			(124.5	)			(2.1	)			(43.9	)			(46.0	)
Policy acquisition, operating and administration expenses					(27.7	)			(18.9	)			(46.6	)			(0.6	)			(16.9	)			(17.5	)
Underwriting profit (loss)					(17.0	)			23.6				6.6				(0.4	)			28.0				27.6
Ratios
Loss ratio					88.6	%			49.2	%			70.1	%			91.3	%			49.4	%			50.5	%
Expense ratio					29.5	%			22.6	%			26.2	%			26.1	%			19.0	%			19.2	%
Combined ratio					118.1	%			71.8	%			96.3	%			117.4	%			68.4	%			69.7	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(2.1	)			2.1				0.0				0.0				0.0				0.0
On losses and loss expenses					(7.2	)			(16.8	)			(24.0	)			0.0				(12.1	)			(12.1	)
Total impact of hurricanes					(9.3	)			(14.7	)			(24.0	)			0.0				(12.1	)			(12.1	)
Loss ratio excluding hurricanes					79.2	%			29.8	%			56.6	%			91.3	%			35.8	%			37.2	%
Expenses ratio excluding hurricanes					28.8	%			23.2	%			26.2	%			26.1	%			19.0	%			19.2	%
Combined ratio excluding impact of hurricanes					108.0	%			53.0	%			82.8	%			117.4	%			54.8	%			56.4	%

Page 11 of 25

PROPERTY AND CASUALTY INSURANCE

				Three Months Ended September 30, 2005												Three Months Ended September 30, 2004
				Property Insurance				Casualty Insurance				Total				Property Insurance				Casualty Insurance				Total
(in US$ millions)
Gross premiums written					34.2				65.0				99.2				37.1				69.5				106.6
Net premiums written					16.3				58.9				75.2				33.2				62.5				95.7
Gross premiums earned					38.1				68.6				106.7				26.7				58.2				84.9
Net premiums earned					13.1				60.4				73.5				21.3				50.9				72.2
Losses and loss expenses					(30.2	)			(34.9	)			(65.1	)			(9.9	)			(36.8	)			(46.7	)
Policy acquisition, operating and administration expenses					(6.5	)			(12.5	)			(19.0	)			(6.4	)			(9.1	)			(15.5	)
Underwriting profit (loss)					(23.6	)			13.0				(10.6	)			5.0				5.0				10.0
Ratios
Loss ratio					230.6	%			57.8	%			88.6	%			46.5	%			72.3	%			64.7	%
Expense ratio					49.6	%			20.7	%			25.8	%			30.0	%			17.9	%			21.4	%
Combined ratio					280.2	%			78.5	%			114.4	%			76.5	%			90.2	%			86.1	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(7.4	)			0.0				(7.4	)			0.0				0.0				0.0
On losses and loss expenses					(27.0	)			0.0				(27.0	)			(6.4	)			0.0				(6.4	)
Total impact of hurricanes					(34.4	)			0.0				(34.4	)			(6.4	)			0.0				(6.4	)
Loss ratio excluding hurricanes					15.7	%			57.8	%			47.1	%			16.4	%			72.3	%			55.8	%
Expense ratio excluding hurricanes					31.7	%			20.7	%			23.5	%			30.1	%			17.9	%			21.5	%
Combined ratio excluding impact of hurricanes					47.4	%			78.5	%			70.6	%			46.5	%			90.2	%			77.3	%

Page 12 of 25

PROPERTY AND CASUALTY INSURANCE

				Nine Months Ended September 30, 2005												Nine Months Ended September 30, 2004
				Property Insurance				Casualty Insurance				Total				Property Insurance				Casualty Insurance				Total
(in US$ millions)
Gross premiums written					111.9				196.6				308.5				92.8				183.0				275.8
Net premiums written					65.1				175.3				240.4				70.2				161.8				232.0
Gross premiums earned					89.9				199.2				289.1				72.3				190.6				262.9
Net premiums earned					51.5				177.1				228.6				56.2				169.2				225.4
Losses and loss expenses					(49.9	)			(108.6	)			(158.5	)			(27.3	)			(103.9	)			(131.2	)
Policy acquisition, operating and administration expenses					(18.8	)			(39.9	)			(58.7	)			(16.7	)			(37.1	)			(53.8	)
Underwriting profit (loss)					(17.2	)			28.6				11.4				12.2				28.2				40.4
Ratios
Loss ratio					96.9	%			61.3	%			69.3	%			48.6	%			61.4	%			58.2	%
Expense ratio					36.5	%			22.6	%			25.7	%			29.7	%			21.9	%			23.9	%
Combined ratio					133.4	%			83.9	%			95.0	%			78.3	%			83.3	%			82.1	%
Impact of hurricanes and windstorms (in US$ millions)
On net premiums earned					(7.4	)			0.0				(7.4	)			0.0				0.0				0.0
On losses and loss expenses					(27.0	)			0.0				(27.0	)			(6.4	)			0.0				(6.4	)
Total impact of hurricanes					(34.4	)			0.0				(34.4	)			(6.4	)			0.0				(6.4	)
Loss ratio excluding hurricanes					38.9	%			61.3	%			55.7	%			37.2	%			61.4	%			55.3	%
Expense ratio excluding hurricanes					31.9	%			22.6	%			24.9	%			29.7	%			21.9	%			23.9	%
Combined ratio excluding impact of hurricanes					70.8	%			83.9	%			80.6	%			66.9	%			83.3	%			79.2	%

Page 13 of 25

Page 14 of 25

PREVIOUS SEGMENTAL SPLIT

				Three Months Ended September 30, 2005												Three Months Ended September 30, 2004
(in US$ millions)				Reinsurance				Insurance				Total				Reinsurance				Insurance				Total
Gross premiums written					343.8				150.2				494.0				231.2				118.2				349.4
Net premiums written					226.8				117.7				344.5				189.1				106.8				295.9
Gross premiums earned					363.9				160.7				524.6				273.7				87.4				361.1
Net premiums earned					258.7				120.7				379.4				218.9				74.5				293.4
Expenses:
Losses and loss expenses					(572.4	)			(110.6	)			(683.0	)			(254.4	)			(48.8	)			(303.2	)
Policy acquisition, operating and administrative expenses					(69.2	)			(33.4	)			(102.6	)			(50.4	)			(16.1	)			(66.5	)
Underwriting profit (loss)					(382.9	)			(23.3	)			(406.2	)			(85.9	)			9.6				(76.3	)
Net reserves for loss and loss adjustment expenses					1,358.6				495.2				1,853.8				702.4				271.5				973.9
Ratios
Loss ratio					221.3	%			91.6	%			180.0	%			116.2	%			65.5	%			103.3	%
Expense ratio					26.7	%			27.7	%			27.1	%			23.0	%			21.6	%			22.7	%
Combined ratio					248.0	%			119.3	%			207.1	%			139.2	%			87.1	%			126.0	%

Page 15 of 25

				Nine Months Ended September 30, 2005												Nine Months Ended September 30, 2004
(in US$ millions)				Reinsurance				Insurance				Total				Reinsurance				Insurance				Total
Gross premiums written					1,324.8				522.7				1,847.5				1,082.6				287.4				1,370.0
Net premiums written					1,038.2				425.3				1,463.5				925.8				243.1				1,168.9
Gross premiums earned					1,012.9				403.7				1,416.6				827.8				265.4				1,093.2
Net premiums earned					830.4				322.7				1,153.1				698.5				227.7				926.2
Expenses:
Losses and loss expenses					(844.4	)			(241.9	)			(1,086.3	)			(433.4	)			(133.3	)			(566.7	)
Policy acquisition, operating and administrative expenses					(222.6	)			(86.4	)			(309.0	)			(180.5	)			(54.4	)			(234.9	)
Underwriting profit (loss)					(236.6	)			(5.6	)			(242.2	)			84.6				40.0				124.6
Net reserves for loss and loss adjustment expenses					1,358.6				495.2				1,853.8				702.4				271.5				973.9
Ratios
Loss ratio					101.7	%			75.0	%			94.2	%			62.1	%			58.5	%			61.1	%
Expense ratio					26.8	%			26.7	%			26.8	%			25.8	%			23.9	%			25.4	%
Combined ratio					128.5	%			101.7	%			121.0	%			87.9	%			82.4	%			86.5	%

Page 16 of 25

CONSOLIDATED CHANGE IN SHAREHOLDERS’ EQUITY

(in US$ millions)				Nine Months Ended September 30, 2005				Nine Months Ended September 30, 2004
Shareholders’ Equity
Ordinary shares
Beginning of period					1,096.1				1,090.8
Shares issued:
New share issues					0.3				0.0
Share-based compensation					3.8				3.2
End of period					1,100.2				1,094.0
Retained earnings
Beginning of period					367.5				180.7
Net income for the period					(208.1	)			122.9
Dividends paid					(31.2	)			(6.2	)
End of period					128.2				297.4
Cumulative foreign currency translation adjustments
Beginning of period					27.9				27.8
Change for the period					0.1				2.1
End of period					28.0				29.9
Gain / loss on derivatives:
Beginning of period					(2.2	)			0.0
Change for the period					0.1				(1.9	)
End of period					(2.1	)			(1.9	)
Unrealized gains (losses) on investments, net of taxes
Beginning of period					(7.8	)			(0.6	)
Change for the period					(22.6	)			(1.1	)
End of period					(30.4	)			(1.7	)
Total accumulated other comprehensive income					(4.5	)			26.3
Total Shareholders' Equity					1,223.9				1,417.7

Page 17 of 25

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in US$ millions)				Nine Months Ended September 30, 2005				Nine Months Ended September 30, 2004
Net income					(208.1	)			122.9
Other comprehensive income, net of taxes
Change in unrealized losses on investments					(22.6	)			(1.1	)
Change in unrealized losses on derivatives					0.1				(1.9	)
Change in unrealized gains on foreign currency translation					0.1				2.1
Other comprehensive income					(22.4	)			(0.9	)
Comprehensive income					(230.5	)			122.0

SUMMARIZED CASH FLOW

($ in millions)				Nine Months Ended September 30, 2005				Nine Months Ended September 30, 2004
Net cash from operating activities					605.9				656.6
Net cash from investing activities					(486.5	)			(860.1	)
Net cash from financing activities					(30.8	)			243.1
Effect of exchange rate movements on cash and cash equivalents					(4.1	)			7.1
Increase in cash and cash equivalents:					84.5				46.7
Cash at beginning of the period					284.9				230.8
Cash at end of the period					369.4				277.5

Page 18 of 25

SUPPLEMENTAL FINANCIAL INFORMATION

Return on Average Equity Analysis

The return on average equity for the three and nine months ended September 30, 2005 and 2004 was:

				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(US$ millions except for percentages)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
Closing shareholders' equity					1,224				1,418				1,224				1,418
Average adjustment					129				6				221				(37	)
Average equity (1)					1,353				1,424				1,445				1,381
Return on average equity from underwriting activity (2)					(30.0	%)			(5.4	%)			(16.8	%)			9.0	%
Return on average equity from investment and other activity (3)					1.5	%			1.2	%			4.2	%			3.1	%
Pre-tax operating income return on average equity, for period					(28.5	%)			(4.2	%)			(12.6	%)			12.1	%
Post tax return on average equity (4)					(26.4	%)			(3.1	%)			(13.7	%)			9.1	%
Ratios:
Combined ratio					207.1	%			126.0	%			121.0	%			86.5	%

See page 25 for detailed calculation and reconciliation of non-GAAP measures to their respective most directly comparable GAAP finance measures.

1)	Average equity is calculated by taking the simple average of the closing shareholders’ equity at latest month end and each previous month end in the period.

2)	Calculated by using underwriting income.

3)	Calculated by using total other operating revenue and other expense.

4)	Calculated by using operating income after tax.

Page 19 of 25

INVESTMENT PORTFOLIO

Type of investment

				As at September 30, 2005
(in US$ millions)				Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
Fixed maturities
US government and agencies					1,151.6				0.2				(20.5	)			1,131.3
Corporate securities					731.8				1.0				(8.2	)			724.6
Foreign government					274.0				1.3				(0.4	)			274.9
Municipals					3.6				0.0				0.0				3.6
Asset backed securities					227.9				0.0				(3.7	)			224.2
Mortgage backed securities					290.7				0.0				(3.8	)			286.9
Total fixed maturities					2,679.6				2.5				(36.6	)			2,645.5
Short — term investments					493.0				0.0				(1.5	)			491.5
Total Investments					3,172.6				2.5				(38.1	)			3,137.0

Page 20 of 25

RESERVES FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table represents a reconciliation of beginning and ending consolidated loss and loss expense reserves:

(in US$ millions)				Nine Months Ended September 30, 2005				Twelve Months Ended December 31, 2004
Provision for losses and loss expenses at period start January 1, 2005 and 2004 respectively					1,277.9				525.8
Less reinsurance recoverable					(197.7	)			(43.6	)
Net loss and loss expenses at period start January 1, 2005 and 2004					1,080.2				482.2
Loss reserve portfolio transfer					23.6				0.0
Provision for losses and loss expenses for claims incurred:
Current year					1,121.7				785.6
Prior year					(35.4	)			(62.0	)
Total incurred					1,086.3				723.6
Losses and loss expense payments for claims incurred:					(287.0	)			(164.6	)
Foreign exchange					(49.3	)			39.0
Net loss and loss expense reserves at September 30 / December 31					1,853.8				1,080.2
Plus reinsurance recoverables on unpaid loss at end of period					894.8				197.7
Gross loss and loss expense reserves at September 30 / December 31					2,748.6				1,277.9

Page 21 of 25

RESERVES BY BUSINESS SEGMENT

The following table presents our reserves as at September 30, 2005 and December 31, 2004

				As at September 30, 2005												As at December 31, 2004
(in US$ millions)				Gross				Reinsurance Recoverable				Net				Gross				Reinsurance Recoverable				Net
Property Reinsurance					1,178.0				(542.8	)			635.2				341.2				(118.3	)			222.9
Casualty Reinsurance					616.6				(8.1	)			608.5				377.8				(4.6	)			373.2
Specialty Insurance					200.5				(112.8	)			87.7				18.3				(1.8	)			16.5
Specialty Reinsurance					209.3				(94.4	)			114.9				168.8				(27.4	)			141.4
Property Insurance					173.7				(98.8	)			74.9				77.3				(13.7	)			63.6
Casualty Insurance					370.5				(37.9	)			332.6				294.5				(31.9	)			262.6
Total losses and loss expense reserve					2,748.6				(894.8	)			1,853.8				1,277.9				(197.7	)			1,080.2

Page 22 of 25

REINSURER SECURITY RATING

(In US$ millions except for percentages)				As at September 30, 2005
S&P
AAA					99.8				11.1	%
AA+					3.5				0.4	%
AA					4.8				0.5	%
AA−					82.9				9.3	%
A+					103.1				11.5	%
A					281.4				31.5	%
A−					199.6				22.3	%
BBB+					16.1				1.8	%
Fully collaterised					88.5				9.9	%
Not rated					15.1				1.7	%
Reinsurance recoverable — unpaid losses					894.8				100.0	%
AM Best
A++					99.8				11.2	%
A+					147.9				16.4	%
A					342.7				38.3	%
A−					215.3				24.1	%
Fully collaterised					88.5				9.9	%
Not rated					0.6				0.1	%
Reinsurance recoverable — unpaid losses					894.8				100.0	%

Page 23 of 25

DILUTED SHARE ANALYSIS USED FOR EPS CALCULATION

				Three Months Ended				Three Months Ended				Nine months Ended				Nine months Ended
(shares in millions)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
Basic weighted average shares outstanding					69.343				69.174				69.339				69.176
Add: weighted average of employee options					0.000				0.000				0.000				1.342
Add: weighted average of options issued to Wellington Underwriting Plc					0.000				0.000				0.000				0.719
Add: weighted average of options issued to Appleby Trust (Bermuda) Limited					0.000				0.000				0.000				0.488
Add: weighted average of Restricted Share Units					0.000				0.000				0.000				0.028
Diluted weighted average shares outstanding					69.343				69.174				69.339				71.751

The dilutive effect of options has been calculated using the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of options will be used to repurchase the Company’s ordinary shares at the average market price during the period of calculation. In a loss making period the number of potentially dilutive ordinary shares is considered to be zero.

Page 24 of 25

OPERATING INCOME RECONCILIATION

The reconciliation of operating income to net income is set out in the following table:

				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
(In US$ millions except where stated)				September 30, 2005				September 30, 2004				September 30, 2005				September 30, 2004
Net income after tax					(362.0	)			(43.0	)			(208.1	)			122.9
Add (deduct) after tax income:
Net realized (gains) losses on investments					1.0				0.1				1.0				3.1
Net exchange (gains) losses					3.9				(1.0	)			8.7				(0.5	)
Operating income					(357.1	)			(43.9	)			(198.4	)			125.5
Tax on operating income					28.8				17.8				(16.8	)			(40.1	)
Operating income before tax					(385.9	)			(61.7	)			(181.6	)			165.6
Weighted average common shares outstanding: (millions)
Basic					69.3				69.2				69.3				69.2
Diluted					69.3				69.2				69.3				71.8
Basic per share data:				$				$				$				$
Net income					(5.22	)			(0.62	)			(3.00	)			1.78
Add (deduct) after tax income:
Net realized (gains) losses on investments					0.01				0.00				0.01				0.04
Net exchange (gains) losses					0.06				(0.01	)			0.13				(0.01	)
Operating income					(5.15	)			(0.63	)			(2.86	)			1.81
Diluted per share data
Net income					(5.22	)			(0.62	)			(3.00	)			1.71
Add (deduct) after tax income:
Net realized (gains) losses on investments					0.01				0.00				0.01				0.04
Net exchange (gains) losses					0.06				(0.01	)			0.13				0.00
Operating income					(5.15	)			(0.63	)			(2.86	)			1.75
Book value per share
Net Assets (excluding intangible assets)					1,215.7								1,215.7				1,411.1
Number of share in issue at the end of the period													69,342,486				69,174,303
Diluted number of share in issue at the end of the period													69,342,486				71,760,480
												$				$
Book value per share													17.53				20.40
Diluted book value per share													17.53				19.66

Page 25 of 25