8-K

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 30, 2006
    

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. Aspen Insurance U.S. Services, Inc. Identification No.)

Maxwell Roberts Building
1 Church 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))

Item 1.01    Entry into a Material Definitive Agreement

Item 5.02     Election of Directors; Compensatory Arrangements of Certain Officers

At a meeting of the Board of Directors (the ‘‘Board’’) of Aspen Insurance Holdings Limited (‘‘Aspen’’) on October 30, 2006, each of Stuart Sinclair, Aspen's President and Chief Operating Officer, John Cavoores and Glyn Jones were appointed to the Board. The attached press release, furnished as Exhibit 99.1 to this Current Report on Form 8-K, provides additional information. Including these appointments, Aspen now has 13 Directors on its Board. The Board has determined that Mr. Cavoores and Mr. Jones are independent directors pursuant to the NYSE Corporate Governance Standards applicable to U.S. domestic issuers.

Under Aspen's Bye-Laws, the appointments of Messrs. Sinclair, Cavoores and Jones will be subject to shareholder vote at Aspen's 2007 Annual General Meeting, at which Mr. Sinclair will be standing for election as a Class III Director for a three-year term, Mr. Cavoores will be standing for election as a Class I Director for the remaining year of the Class I Directors' three-year term, and Mr. Jones will be standing for election as a Class II Director for the remaining two years of the Class II Directors' three-year term. Mr. Cavoores will be a member of the Board’s Investment Committee and Risk Committee and Mr. Jones will be a member of the Board’s Compensation Committee and Investment Committee. As non-executive Directors, Messrs. Cavoores and Jones are entitled to receive the same fees and benefits as other Aspen non-executive Directors. As an executive Director, Mr. Sinclair will not receive any additional compensation for his services as an Aspen Director. For additional information, please see our Annual Report on Form 10-K for the year ended December 31, 2005 and our Current Report on Form 8-K filed August 10, 2006.

The Board also appointed Julian Cusack, Aspen's Chief Financial Officer and Chief Executive Officer of its Bermuda-based operating company, Aspen Insurance Limited (‘‘Aspen Bermuda’’), to the expanded role of Chairman of Aspen Bermuda. Mr. Cusack will remain the Chief Executive Officer of Aspen Bermuda and will continue to chair Aspen's Reserving Committee. Mr. Cusack will assume this new responsibility once his successor as Chief Financial Officer of Aspen is appointed and after a suitable hand-over period. A search is already under way. Until that time, Mr. Cusack will continue to serve as Aspen's Chief Financial Officer.

Once a successor for Mr. Cusack is in place, an amended and restated service agreement with Aspen will become effective, under which he will serve as Chairman and Chief Executive Officer of Aspen Bermuda, terminable upon 12 months’ notice by either party. The summary below is qualified by the actual terms of such agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K. The agreement provides that Mr. Cusack shall be paid an annual salary of $300,000, reviewed annually, and shall be eligible for a cash bonus of up to 60% of his salary. Mr. Cusack is also entitled to reimbursement of housing costs in Bermuda, up to a maximum of $144,000 per annum.

Mr. Cusack's new employment agreement also provides that if his employment is terminated without cause, or if Mr. Cusack resigns with good reason, he is entitled to (a) salary at his salary rate through the date in which his termination occurs; (b) the lesser of (x) the target annual incentive award for the year in which his termination occurs, and (y) the average of the annual incentive awards received by him in the prior three years (or, number of years employed if fewer), multiplied by a fraction, the numerator of which is the number of days that he was employed during the applicable year and the denominator of which is 365; (c) a severance payment of the sum of (x) his highest salary rate during the term of the agreement and (y) the average bonus under Aspen's annual incentive plan actually earned by him during the three years (or number of complete years employed, if fewer) immediately prior to the year of termination, and (d) the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed, but which have not yet been paid, all of which amounts shall be payable in a lump sum in cash within 30 days after termination. In the event that Mr. Cusack is paid in lieu of notice under the agreement (including if Aspen exercises its right to enforce garden leave under the agreement) the severance payment will be inclusive of that payment. In the event Mr. Cusack terminates his employment for good reason or Aspen terminates his agreement without cause (other than by reason of death) within 12 months of Mr. Cusack becoming Chairman of Aspen Bermuda, then the entitlements described above will be multiplied by two. The remaining material terms of Mr. Cusacks's new employment agreement are the same as his existing employment agreement.

Section 7 — Regulation FD

Item 7.01    Regulation FD Disclosure

On November 2, 2006, Aspen issued a press release announcing the appointment of Stuart Sinclair, John Cavoores and Glyn Jones to its Board of Directors. Aspen also announced that Julian Cusack, its Chief Financial Officer, will assume the additional role of Chairman of Aspen Bermuda. Mr. Cusack will remain in his current role until his successor as Chief Financial Officer is appointed and after a suitable hand-over period.

The information furnished under Item 7.01 ‘‘Regulation FD Disclosure’’ shall not be deemed ‘‘filed’’ for purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the ‘‘Securities Act’’), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Section 9 — Financial Statements and Exhibits

Item 9.01     Financial Statements and Exhibits

	(d)	The following exhibit is filed as part of this report:

	10.1	Amended and Restated Service Agreement between Julian Cusack and Aspen Insurance Holdings Limited.

The following exhibit is furnished as part of this report:

99.1    Press Release from Aspen Insurance Holdings Limited dated November 2, 2006.

Cautionary Statement Regarding Forward-Looking Statements

This Form 8-K, including Exhibit 99.1, contains, and the Company may from time to time make other written or verbal, forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that involve risks and uncertainties, including statements regarding our capital needs, business strategy, expectations and intentions. Statements that use the terms ‘‘believe’’, ‘‘do not believe’’, ‘‘anticipate’’, ‘‘expect’’, ‘‘plan’’, ‘‘estimate’’, ‘‘intend’’ and similar expressions are intended to identify forward-looking statements. These statements reflect our current views with respect to future events and because our business is subject to numerous risks, uncertainties and other factors, our actual results could differ materially from those anticipated in the forward-looking statements. The risks, uncertainties and other factors set forth in the Company's 2005 Annual Report on Form 10-K filed with the Securities and Exchange Commission and other cautionary statements made in this Form 8-K, as well as the following factors, should be read and understood as being applicable to all related forward-looking statements wherever they appear in this Form 8-K.

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. We believe that these factors include, but are not limited to, the following:

	•	the impact that our future operating results, capital position and rating agency and other considerations have on the execution of any capital management initiatives;

	•	the impact of any capital management initiatives on our financial condition;

	•	the impact of acts of terrorism and related legislation and acts of war;

	•	the possibility of greater frequency or severity of claims and loss activity, including as a result of natural or man-made catastrophic events such as Hurricanes Katrina, Rita and Wilma, than our underwriting, reserving, reinsurance purchasing or investment practices have anticipated;

	•	evolving interpretive issues with respect to coverage as a result of Hurricanes Katrina, Rita and Wilma;

	•	the level of inflation in repair costs due to limited availability of labor and materials after catastrophes;

	•	the effectiveness of our loss limitation methods;

	•	changes in the availability, cost or quality of reinsurance or retrocessional coverage;

	•	the reliability of, and changes in assumptions to, catastrophe pricing, accumulation and estimated loss models;

	•	loss of key personnel;

	•	a decline in our operating subsidiaries’ ratings with Standard & Poor’s, A.M. Best Company (‘‘A.M. Best’’) or Moody’s Investors Service;

	•	changes in general economic conditions, including inflation, foreign currency exchange rates, interest rates and other factors that could affect our investment portfolio;

	•	increased competition on the basis of pricing, capacity, coverage terms or other factors;

	•	decreased demand for our insurance or reinsurance products and cyclical downturn of the industry;

	•	changes in governmental regulations or tax laws in jurisdictions where we conduct business;

	•	Aspen Holdings or Aspen Bermuda becoming subject to income taxes in the United States or the United Kingdom;

	•	the effect on insurance markets, business practices and relationships of ongoing litigation, investigations and regulatory activity by the New York State Attorney General’s office and other authorities concerning contingent commission arrangements with brokers and bid solicitation activities;

	•	the total industry losses resulting from Hurricanes Katrina, Rita and Wilma, and the actual number of our insureds incurring losses from these storms; and

	•	with respect to Hurricanes Katrina, Rita and Wilma, the Company’s reliance on loss reports received from cedants and loss adjustors, our reliance on industry loss estimates and those generated by modeling techniques, the impact of these storms on our reinsurers, changes in assumptions on flood damage exclusions as a result of prevailing lawsuits and case law, any changes in our reinsurers’ credit quality, the amount and timing of reinsurance recoverables and reimbursements actually received by us from our reinsurers and the overall level of competition, and the related demand and supply dynamics as contracts come up for renewal.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Form 8-K. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise or disclose any difference between our actual results and those reflected in such statements.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements you read in this Form 8-K reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by the points made above. You should specifically consider the factors identified in this Form 8-K which could cause actual results to differ before making an investment decision.

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: November 3, 2006			By:			/s/ Christopher O'Kane
			Name:    Christopher O'Kane
			Title:      Chief Executive Officer

EX-10.1

Exhibit 10.1

JULIAN MICHAEL CUSACK

AND

ASPEN INSURANCE HOLDINGS LIMITED

AMENDED AND RESTATED SERVICE AGREEMENT

TABLE OF CONTENTS

Clause						Page
1.			INTERPRETATION					1
2.			AMENDMENT AND RESTATEMENT					2
3.			POSITION					2
4.			TERM					2
5.			DUTIES					2
6.			REMUNERATION AND COMMISSION					3
7.			PENSION AND INSURANCE BENEFITS					4
8.			EXPENSES					5
9.			HOLIDAYS AND HOLIDAY PAY					5
10.			DISABILITY OR DEATH					5
11.			CONFIDENTIAL INFORMATION					6
12.			COPYRIGHT AND DESIGNS					7
13.			GRATUITIES AND CODES OF CONDUCT					7
14.			RESTRICTIVE COVENANTS					8
15.			TERMINATION BY RECONSTRUCTION OR AMALGAMATION; CHANGE IN CONTROL					9
16.			TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE					10
17.			TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE					11
18.			TERMINATION OF EMPLOYMENT BY THE EXECUTIVE					11
19.			OBLIGATIONS UPON TERMINATION OF EMPLOYMENT; CERTAIN OTHER TERMINATIONS					12
20.			EFFECT OF TERMINATION OF THIS AGREEMENT					14
21.			GENERAL RELEASE					14
22.			OTHER TERMS AND CONDITIONS					14
23.			NOTICES					15
24.			PREVIOUS AND OTHER AGREEMENTS					15
25.			ENTIRE AGREEMENT/AMENDMENT					15
26.			ASSIGNMENT					15
27.			SEVERABILITY					16
28.			SUCCESSORS/BINDING AGREEMENT					16
29.			CO-OPERATION					16
30.			GOVERNING LAW					16
31.			COUNTERPARTS					16

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AMENDED AND RESTATED SERVICE AGREEMENT

DATE: TBA — commencement following the transfer of Group CFO responsibilities to a newly appointed Group CFO

PARTIES:

(1)	JULIAN MICHAEL CUSACK of ‘Baywatch’, 8 Williamsville Place, Southampton, Bermuda (the ‘‘Executive’’); and

(2)	ASPEN INSURANCE HOLDINGS LIMITED incorporated in the Islands of Bermuda whose registered office is at the Maxwell Roberts Building, 1 Church Street, Hamilton HM 11, Bermuda (the ‘‘Company’’).

OPERATIVE TERMS:

	1.	INTERPRETATION

1.1    In this Agreement:

‘‘Affiliate’’		means any entity directly or indirectly controlling, controlled by, or under common control with the Company; or any other entity designated by the Board in which the Company or an Affiliate has an interest;

‘‘Board’’		means the Board of Directors of the Company from time to time;

‘‘Chief Executive Officer’’		means the Chief Executive Officer of the Company from time to time;

‘‘Group’’		means the Company and its Affiliates (and ‘‘Group Company’’ means the Company or any one of its Affiliates);

‘‘Manager’’		means the President and Chief Operating Officer of the Company or such other person as the Company may nominate from time to time as the person to whom the Executive shall report.

1.2    In this Agreement references to any statutory provision shall include such provision as from time to time amended, whether before on or (in the case of re-enactment or consolidation only) after the date hereof, and shall be deemed to include provision of earlier legislation (as from time to time amended) which have been re-enacted (with or without modification) or replaced (directly or indirectly) by such provision and shall further include all statutory instruments or orders from time to time made pursuant thereto.

	2.	AMENDMENT AND RESTATEMENT

This Agreement shall serve as a complete amendment and restatement of the Service Agreement entered into between Julian Cusack and Aspen Insurance Holdings Limited, dated 24 September 2004 (the ‘‘Original Agreement’’). Except as otherwise provided herein, all terms of the Original Agreement shall be superseded by the terms of this Agreement and, upon execution of this Agreement, the Original Agreement shall be of no further force and effect.

	3.	POSITION

The Company shall employ the Executive as Chairman, Aspen Insurance Ltd.

	4.	TERM

4.1    The Company shall employ the Executive, and the Executive shall serve the Company, on the terms and conditions set forth in this Agreement, beginning on the date hereof (the ‘‘Effective Date’’) and continuing unless and until terminated in accordance with the provisions contained in this Agreement.

4.2    Notwithstanding the provisions of Clause 4.1, the Executive’s employment shall terminate automatically when the Executive reaches the age of 65 years.

	5.	DUTIES

5.1    During his employment hereunder the Executive shall:

(a)    report to the Manager and perform the duties and exercise the powers and functions which from time to time may reasonably be assigned to or vested in him by the Board or the Chief Executive Officer in relation to the Company and any other Group Company to the extent consistent with his job title set out in Clause 3 (without being entitled to any additional remuneration in respect of such duties for any Group Company);

(b)    devote the whole of his working time, attention and ability to his duties in relation to the Company and any other Group Company at such place or places as the Board shall determine. The Executive shall work at the Company’s premises at the the Maxwell Roberts Building, 1 Church Street, Hamilton HM 11, Bermuda, or such other place as the Company and the Executive shall mutually agree, provided that the Executive shall not be required to reside outside Bermuda or the United Kingdom;

(c)    comply with all reasonable requests, instructions and regulations given or made by the Board (or by any one authorised by it) and promptly provide such explanations, information and assistance as to the performance of his duties assigned to him under this Agreement as the Board or the Chief Executive Officer may reasonably require;

(d)    faithfully and loyally serve the Company and each other Group Company to the best of his ability and use his utmost endeavours to promote its interests in all respects;

(e)    not engage in any activities which would detract from the proper performance of his duties hereunder, nor without the prior written consent of the Board in any capacity including as director, shareholder, principal, consultant, agent, partner or employee of any other company, firm or person (save as the holder for investment of securities which do not exceed three percent (3%) in nominal value of the share capital or stock of any class of any company quoted on a recognised stock exchange) engage or be concerned or interested directly or indirectly in any other trade, business or occupation whatsoever; and

(f)    comply (and shall use every reasonable endeavour to procure that his spouse and minor children will comply) with all applicable rules of law, stock exchange regulations, individual registration requirements (at a cost to be borne by the Company) and codes of conduct of the Company and any other Group Company in effect with respect to dealing in shares, debentures or other securities of the Company or other Group Company.

5.2    Nothing herein shall preclude the Executive from (a) serving on the boards of directors of a reasonable number of other corporations subject to the approval of the Chief Executive Officer in each case, which approval shall not be unreasonably withheld, (b) serving on the boards of a reasonable number of trade associations subject to the approval of the Chief Executive Officer, which approval shall not unreasonably be withheld, and/or charitable organizations, (c) engaging in any charitable activities and community affairs, and (d) managing his personal investments and affairs, provided that such activities set forth in this Clause 5.2 do not significantly interfere with the performance of his duties and responsibilities to any Group Company.

	6.	REMUNERATION AND COMMISSION

6.1    The Executive shall be paid by way of remuneration for his services during his employment hereunder a salary at the rate (the ‘‘Salary Rate’’) of $300,000 per annum, subject to increase pursuant to Clause 6.3., which shall be inclusive of any fees to which the Executive may be entitled as a director of the Company or of any other Group Company. The Company shall pay a housing alowence in respect of the Executive’s primary residence in Bermuda during the term of his employment. Prior to such payment the Executive shall provide to the Company any substantiation for such expenses requested by the Company. Notwithstanding the foregoing, the maximum amount the Company shall pay in respect of housing allowance shall be $144,000 per annum.

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6.2    The Executive shall be eligible for a cash bonus, based on a bonus potential of 60%, during his employment hereunder of such amounts (if any) at such times and subject to such conditions as the Compensation Committee of the Board (the ‘‘Compensation Committee’’) may in its absolute discretion decide; provided, however, that notwithstanding the preceding language of this Clause 6.2, the Executive shall participate in all management incentive plans made available to the Company’s senior executives at a level commensurate with Executive’s status and position at the Company.

6.3    The Company shall review the Salary Rate for increase at least once each year, and any change in the Salary Rate resulting from such review will take effect from 1 April. The Company’s review shall take into consideration, among other factors, the base salary paid to individuals performing similar services at comparable companies based in Bermuda, the United Kingdom and the United States, as well as other relevant local or global talent pool comparables, it being expressly understood that while it is intended that the Company shall consider these factors, it shall have no obligation to take any specific action based on such factors.

6.4    The Executive’s salary will be payable by equal monthly installments; each monthly installments will be in respect of a calendar month and will be paid on or before the last day of such calendar month. Where the employment has begun or ended in a calendar month, salary in respect of that month will be the proportion of a normal month’s installments which the days of employment in that month bear to the total days in the month.

6.5    The Company may withhold from amounts payable under this Agreement all applicable taxes that are required to be withheld by applicable laws or regulations.

	7.	PENSION AND INSURANCE BENEFITS

7.1    During his employment hereunder, the Executive shall continue to be a member of the pension scheme established by the Board (the ‘‘Scheme’’). The Executive’s membership in the Scheme shall be subject to the provisions thereof as may be amended from time to time.

7.2    During his employment hereunder, the Executive shall be entitled to participate in all employee benefit and perquisite plans and programs made available to the Company’s senior level executives or to its employees generally, as such plans or programs may be in effect from time to time.

7.3    During his employment hereunder, the Executive will be eligible for 2 Business Class return airfares per annum from Bermuda to the UK for himself, spouse and dependent children. The Executive will also be eligible for reimbursement of reasonable expenses if he is required to move location to take up employment with a Group Company and reimbursement of reasonable expenses in connection with relocation to the UK upon termination (other than for Cause) in an amount to be agreed with the CEO at the time of such termination.

7.4    During his employment hereunder, the Company shall provide the Executive with medical insurance, permanent health insurance, personal accident insurance and life insurance (subject to the relevant insurers’ terms and conditions). The Board shall have the right to change the arrangements for the provision of such benefits as it sees fit or, if in the reasonable opinion of the Board, the Company is unable to secure any such insurance under the rules of any applicable scheme or otherwise at reasonable rates to cease to provide any or all of the insurances.

	8.	EXPENSES

The Company shall reimburse to the Executive all traveling, hotel, entertainment and other expenses properly and reasonably incurred by him in the performance of his duties hereunder and properly claimed and vouched for in accordance with the Company’s expense reporting procedure in force from time to time.

	9.	HOLIDAYS AND HOLIDAY PAY

9.1    In addition to public holidays in Bermuda, during his employment hereunder, the Executive shall be entitled to 30 working days’ paid holiday per holiday year and, if applicable, such additional days as are set out in the Company’s standard terms and conditions of employment from time to time, during each holiday year to be taken at such time or times as may be agreed with the Manager. Except as otherwise provided in the Company’s holiday policy, the Executive

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may not carry forward any unused part of his holiday entitlement to a subsequent holiday year and the Executive shall not be entitled to any salary in lieu of untaken holiday.

9.2    For the holiday year during which the Executive’s employment hereunder commences or terminates he shall be entitled to such proportion of his annual holiday entitlement as the period of his employment in each such holiday year bears to one holiday year as set out in the Company’s holiday policy. Upon termination of his employment for whatever reason, he shall, if appropriate, be entitled to salary in lieu of any outstanding holiday entitlement.

	10.	DISABILITY OR DEATH

10.1    The Company reserves the right at any time to require the Executive (at the expense of the Company) to be examined by a medical adviser nominated by the Company and the Executive consents to the medical adviser disclosing the results of the examination to the Company and shall provide the Company with such formal consents as may be necessary for this purpose.

10.2    If the Executive shall be prevented by illness, accident or other incapacity from properly performing his duties hereunder he shall report this fact forthwith to the Company Secretary’s office and if he is so prevented for seven or more consecutive days he shall if required by the Company provide an appropriate doctor’s certificate.

10.3    If the Executive shall be absent from his duties hereunder owing to illness, accident or other incapacity duly certified in accordance with the provisions of clause 10.2 he shall be paid his full remuneration for any period of absence of up to a maximum of 26 weeks in aggregate in any period of 52 consecutive weeks and thereafter, subject to the provisions of clause 16, to such remuneration (if any) as the Board shall in its absolute discretion allow.

10.4    If the Executive shall be, on the basis of a medical report supplied to the Company following his having undergone a medical examination pursuant to clause 10.1, in the opinion of the Board unfit ever to return to his duties (but in such circumstances and prior to any action being taken under this clause, the Executive shall have the right to have a second medical report from a duly qualified doctor or medical adviser selected by the Executive and approved by the Board, which approval shall not be unreasonably withheld) the Company shall be entitled to place the Executive on permanent sick leave without pay or benefits (other than permanent health insurance benefits) with effect from any time on or after the commencement of payments under the permanent health insurance arrangements referred to in clause 7.4.

10.5    In the event that the Executive’s employment is terminated due to his death, his estate or his beneficiaries, as the case may be, shall be entitled to: (a) salary at his Salary Rate up to and including the end of the month in which his death occurs, (b) the annual incentive award, if any, to which the Executive would have been entitled to pursuant to Clause 6.2 for the year in which the Executive’s death occurs, multiplied by a fraction, the numerator of which is the number of days that the Executive was employed during the applicable year and the denominator of which is 365, and (c) the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed, all of which amounts shall be payable in a lump sum in cash within 30 days after his death, except that the pro-rated incentive award shall be payable when such award would have otherwise been payable had the Executive not died.

	11.	CONFIDENTIAL INFORMATION

11.1    Except as otherwise provided in this Section, the Executive shall not during his employment hereunder or at any time after his termination for any reason whatsoever disclose to any person whatsoever or otherwise make use of any Confidential Information.

11.2    As used in this Section, the term ‘‘Confidential Information’’ shall mean any confidential or secret information which he has or may have acquired in the course of his employment relating to the Company or any other Group Company or any customers or clients of the Company or any other Group Company, including without limiting the generality of the foregoing:

	(a)	confidential or secret information relating to the past, current or future business, finances, activities and operations of the Company or any other Group Company;

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	(b)	confidential or secret information relating to the past, current or future business, finances, activities and operations of any third party to the extent that such information was obtained by the Company or any other Group Company pursuant to a confidentiality agreement;

but shall not include information that is generally known to, or recognised as standard practice in, the industry in which the Company is engaged unless such information is known or recognised as a result of the Executive's breach of this covenant.

11.3    The Executive will only use Confidential Information for the benefit of the Company or any other Group Company in the course of his employment and shall at all times exercise all due care and diligence to prevent the unauthorised disclosure or use of Confidential Information.

11.4    In the event that the Executive becomes compelled by a court or administrative order to disclose any of the Confidential Information other than as permitted pursuant to this Section, he will provide prompt notice to the Company so that the Company may seek a protective order or other appropriate remedy. In the event the Company fails to seek, or seeks and fails to obtain, such a protective order or other protective remedy, the Executive will furnish only that portion of the Confidential Information that, in the opinion of his counsel, he is legally required to furnish.

	12.	COPYRIGHT AND DESIGNS

12.1    The Executive hereby assigns to the Company all present and future copyright, design rights and other proprietary rights if any for the full term thereof throughout the world in respect of all works originated by him at any time during the period of his employment by the Company or any other Group Company whether during the course of his normal duties or other duties specifically assigned to him (whether or not during normal working hours) either alone or in conjunction with any other person and in which copyright or design rights may subsist except only those designs or other works written, originated, conceived or made by him wholly unconnected with his service hereunder.

12.2    The Executive agrees and undertakes that he will execute such deeds or documents and do all such acts and things as may be necessary or desirable to substantiate the rights of the Company in respect of the matters referred to in this Clause. To secure his obligation under this Agreement the Executive irrevocably appoints the Company to be his attorney in his name and on his behalf to execute such deeds or documents and do all such acts and things as may be necessary or desirable to substantiate the rights of the Company in respect of the matters referred to in this Clause.

12.3    The Executive hereby irrevocably waives all moral rights that he had or may have in any of the works referred to in Clause 12.1, subject to the exception therein.

	13.	GRATUITIES AND CODES OF CONDUCT

13.1    The Executive shall comply with all codes of conduct from time to time adopted by the Board.

13.2    The Executive shall not, except in accordance with the Compnay’s Gift and Hospitality Policy and any other code of conduct adopted by the Board or with the prior written consent of the Board, directly or indirectly accept any commission, rebate, discount, gratuity or gift, in cash or in kind from any person who has or is likely to have a business relationship with the Company or any other Group Company and shall notify the Company upon acceptance by the Executive of any commission, rebate, discount, gratuity or gift in accordance with the Company’s Gift and Hospitality Policy or any such code of conduct from time to time.

	14.	RESTRICTIVE COVENANTS

14.1    For the purpose of this Clause:

‘‘the Business’’ means the business of the Group or any Group Company at the date of termination of the Executive’s employment with which the Executive has been concerned to a material extent at any time in the Relevant Period;

references to the ‘‘Group’’ and ‘‘Group Companies’’ shall only be reference to the Group and Group Companies in respect of which the Executive has carried out material duties in the Relevant Period;

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‘‘Relevant Period’’ shall mean the period of 24 months immediately preceding the date of termination of the Executive’s employment or, in the event that the Company exercises all or any of its rights under Clause 18.3, the period of 24 months immediately preceding the date on which it exercises such rights;

‘‘Restricted Person’’ shall mean any person who or which has at any time during the Relevant Period done business with the Company or any other Group Company as customer or client or consultant and whom or which the Executive shall have had personal dealings with, contact with or responsibility for (each, in a business or commercial capacity) during the Relevant Period;

‘‘Key Employee’’ shall mean any person who at the date of termination of the Executive’s employment is employed or engaged by the Company or any other Group Company with whom the Executive has had material contact during the Relevant Period and (a) is employed or engaged in the capacity of Manager, Underwriter or otherwise in a senior capacity or in any other capacity as may be agreed in writing between the Executive Committee and the Executive from time to time and/or (b) is in the possession of Confidential Information and/or (c) is directly managed by or reports to the Executive.

14.2    The Executive covenants with the Company that he will not in connection with the carrying on of any business in competition with the Business during his employment and, in the event of resignation by the Executive (whether with or without Good Reason) or dismissal of the Executive by the Company (whether with or without Cause) for the period of 12 months after the termination of his employment (such period to be reduced by the amount of time during which, if at all, the Company exercises all or any of its rights under Clause 18.3) without the prior written consent of the Board either alone or jointly with or on behalf of any person directly or indirectly:

14.2.1    canvass, solicit or approach or cause to be canvassed or solicited or approached for orders in respect of any services provided and/or any products sold by the Company or any other Group Company any Restricted Person;

14.2.2    solicit or entice away or endeavour to solicit or entice away from the Company or any other Group Company any Key Employee.

14.3    The Executive further covenants with the Company that, in the event of resignation by the Executive (whether with or without Good Reason) or the dismissal of the Executive by the Company without Cause he will not, for the period of 12 months after the termination of his employment (such period to be reduced by the amount of time during which, if at all, the Company exercises all or any of its rights under Clause 18.3), be employed, engaged, interested in or concerned with any business or undertaking which is engaged in or carries on business in the United Kingdom, Bermuda or the USA which is or is about to be in competition with the Business;

14.4    The covenants contained in Clauses 14.2.1, 14.2.2 and 14.3 are intended to be separate and severable and enforceable as such. It is expressly understood and agreed that although the Executive and the Company consider the restrictions contained in this Clause 14 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against the Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

14.5    The Executive acknowledges and agrees that the Company’s remedies at law for a breach of any of the provisions of Clauses 11, 12 or 14 would be inadequate and the Company would suffer irreparable damages as a result of such breach. In recognition of this fact, the Executive agrees that, in the event of such a breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.

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	15.	TERMINATION BY RECONSTRUCTION OR AMALGAMATION; CHANGE IN CONTROL

15.1    If the employment of the Executive hereunder shall be terminated solely by reason of the liquidation of any Group Company for the purposes of amalgamation or reconstruction or as part of any arrangement for the amalgamation of the undertaking of such Group Company not involving liquidation (in each case, other than a ‘‘Change in Control’’, as defined below) and the Executive shall be offered employment with the amalgamated or reconstructed company on the same terms as the terms of this Agreement, the Executive shall have no claim against the Company or any Group Company in respect of the termination of his employment by the Company.

15.2    If the employment of the Executive hereunder shall be terminated by the Company without Cause or by the Executive with Good Reason within the six-month period prior to a Change in Control or within the two-year period after a Change in Control, in addition to the benefits provided in Clause 19.2, the Executive shall be entitled to the following benefits: (a) other than share options and other equity based awards granted prior to the date of this Agreement, which shall vest and be exercisable in accordance with the terms of their grant agreements, all share options and other equity — based awards shall immediately vest and remain exercisable for the remainder of their terms; and (b) (i) if the aggregate of all payments or benefits made or provided to the Executive under this Agreement and under all other plans and programs of the Company exceeds 2.99 times the Executive’s ‘‘base amount’’, as defined in Section 280(b)(3) of the Internal Revenue Code of 1986, as amended (the ‘‘Code’’), (the ‘‘Executive Limit Amount’’), by 10% or less of such Executive Limit Amount, the amounts constituting ‘‘parachute payments’’ within the meaning of Section 280G(b)(2) (the ‘‘Parachute Amount’’) which would otherwise be payable to or for the benefit of the Executive shall be reduced to the extent necessary so that the Parachute Amount is equal to the Executive Limit Amount; or (ii) if the aggregate of all payments or benefits made or provided to the Executive under this Agreement and under all other plans and programs of the Company exceeds the Executive Limit Amount by more than 10% of such Executive Limit Amount, the Company shall pay to the Executive, as and when due any excise tax imposed by Section 4999 of the Code is payable with respect to such payment, an additional amount which, after the imposition of all income, employment, excise and other taxes thereon, is equal to the excise tax imposed on such payment.

For purposes of this Agreement, ‘‘Change in Control’’ shall have the same meaning as under the Aspen Insurance Holdings 2003 Share Incentive Plan as in effect as of the date hereof.

	16.	TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE

16.1    The Company, without prejudice to any remedy which it may have against the Executive for the breach or non-performance of any of the provisions of this Agreement, may by notice in writing to the Executive forthwith terminate his employment for ‘‘Cause’’. In the event the Company terminates the Executive’s employment for Cause, the Executive shall be entitled to salary at his Salary Rate through the date of termination.

For purposes of this Agreement, ‘‘Cause’’ shall mean circumstances where the Executive:

(a)    becomes bankrupt or becomes the subject of an interim order under the Insolvency Act 1986 or makes any arrangement or composition with his creditors; or

(b)    is convicted of any criminal offence (other than an offence under road traffic legislation in the United Kingdom or elsewhere for which a penalty other than imprisonment is imposed); or

(c)    is guilty of any serious misconduct, any conduct tending to bring the Company or any other Group Company or himself into disrepute, or any material breach or non-observance of any of the provisions of this Agreement, or conducts himself in a way which is materially prejudicial or calculated to be materially prejudicial to the business of the Group; or

(d)    is disqualified from being a director of any company by reason of an order made by any competent court; or

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(e)    is guilty of any repeated breach or non-observance of any code of conduct or fails or ceases to be registered (where such registration is, in the reasonable opinion of the Board, required for the performance of his duties) by any regulatory body in the United Kingdom or elsewhere.

	17.	TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE

17.1    The Company may terminate the employment of the Executive at any time during the employment hereunder without Cause by either (i) giving to the Executive 12 months’ prior notice in writing; or (ii) terminating the employment of the Executive immediately and paying the Executive in lieu of the notice to which he would have otherwise been entitled under (i) above (which payment in lieu shall be deemed to be included within the Severance Payment referred to in Clause 19.2).

	18.	TERMINATION OF EMPLOYMENT BY THE EXECUTIVE

18.1    The Executive shall have the right to terminate his employment at any time for Good Reason by immediate notice if, following submission of the written notice by the Executive to the Company detailing the events alleged to constitute Good Reason in accordance with this Clause, the Company shall have failed to cure such events within the 30 day period following submission of such notice. For purposes of this Agreement, ‘‘Good Reason’’ shall mean (i) a reduction in the Executive’s annual base salary or annual bonus opportunity, or the failure to pay or provide the same when due, (ii) a material diminution in the Executive’s duties, authority, responsibilities or title, or the assignment to the Executive of duties or responsibilities which are materially inconsistent with his positions, (iii) the removal of the Executive from the position described in Clause 3, (iv) or (iv) the Company’s requiring the Executive to be based at any office or location more than fifty (50) miles from the Executive’s office as of the date hereof; provided, however, that no such event(s) shall constitute ‘‘Good Reason’’ unless the Company shall have failed to cure such event(s) within 30 days after receipt by the Company from the Executive of written notice describing in detail such event(s).

18.2    The Executive shall have the right to terminate his employment at any time without Good Reason upon giving 12 months’ prior written notice to the Company.

18.3    If the Executive gives notice to terminate his employment without Good Reason under Clause 18.2 or if the Executive seeks to terminate his employment without Good Reason and without the notice required by Clause 18.2 or the Company gives notice to terminate the Executive’s employment under Clause 17.1(i), then provided the Company continues to provide the Executive with the salary and contractual benefits in accordance with this Agreement, the Company has, at its discretion, the right for the period (the ‘‘Garden Leave Period’’) then outstanding until the date of the termination of the Executive's employment:

(a)    to exclude the Executive from any premises of the Company or any Group Company and require the Executive not to attend at any premises of the Company or any Group Company; and/or

(b)    to require the Executive to carry out no duties; and/or

(c)    to require the Executive not to communicate or deal with any employees, agents, consultants, clients or other representatives of the Company or any other Group Company; and/or

(d)    to require the Executive to resign with immediate effect from any offices he holds with the Company or any other Group Company (and any related trusteeships); and/or

(e)    to require the Executive to take any holiday which has accrued under clause 9 during the Garden Leave Period.

The Executive shall continue to be bound by the duties set out in Clause 5 (insofar as they are compatible with being placed on garden leave), the restrictions set out in Clause 14.2 and all duties of good faith and fidelity during the Garden Leave Period

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	19.	OBLIGATIONS UPON TERMINATION OF EMPLOYMENT; CERTAIN OTHER TERMINATIONS

19.1    Upon the termination of his employment hereunder for whatever reason the Executive shall:

(a)    forthwith tender his resignation as a Director of the Company and of any other Group Company without compensation, but without prejudice to any other rights which he may have under this Agreement. To secure his obligation under this Agreement the Executive irrevocably appoints the Company to be his attorney in his name and on his behalf to sign any documents and do any things necessary to give effect thereto, if the Executive shall fail to sign or do the same himself.

(b)    deliver up to the Company all keys, credit cards, correspondence, documents, specifications, reports, papers and records (including any computer materials such as discs or tapes) and all copies thereof and any other property (whether or not similar to the foregoing or any of them) belonging to the Company or any other Group Company which may be in his possession or under his control, and (unless prevented by the owner thereof) any such property belonging to others which may be in his possession or under his control and which relates in any way to the business or affairs of the Company or any other Group Company or any supplier, agent, distributor or customer of the Company or any other Group Company, and he shall not without written consent of the Board retain any copies thereof;

(c)    if so requested send to the Company Secretary a signed statement confirming that he has complied with Clause 19.1(b); and

(d)    not at any time make any untrue or misleading oral or written statement concerning the business and affairs of the Company or any other Group Company or represent himself or permit himself to be held out as being in any way connected with or interested in the business of the Company or any other Group Company (except as a former employee for the purpose of communicating with prospective employers or complying with any applicable statutory requirements).

19.2    In the event of a termination of Executive’s employment hereunder by the Executive with Good Reason or by the Company without Cause (other than by reason of death), the Executive shall be entitled to (a) salary at his Salary Rate through the date in which his termination occurs; (b) the lesser of (x) the target annual incentive award for the year in which the Executive’s termination occurs, and (y) the average of the annual incentive awards received by the Executive in the prior three years (or, if less the number of prior years in which the Executive was employed by the Company), multiplied by a fraction, the numerator of which is the number of days that the Executive was employed during the applicable year and the denominator of which is 365; (c) subject to Clause 19.3 below, the sum of (x) the Executive’s highest Salary Rate during the term of this Agreement and (y) the average bonus under the Company’s annual incentive plan actually earned by the Executive during the three years (or number of complete years employed by the Company, if fewer) immediately prior to the year of termination (the sum of (x) and (y) hereafter referred to as the ‘‘Severance Payment’’), and (d) the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed, but which have not yet been paid, all of which amounts shall be payable in a lump sum in cash within 30 days after his termination. In the event that the Company terminates the Executive’s employment without Cause under the provisions of Clause 17.1(ii) the parties acknowledge that the Severance Payment will be inclusive of the Executive’s rights to be paid in lieu of the 12 months’ notice period to which he is entitled under that Clause. In the event of a termination of the Executive’s employment hereunder by the Executive for Good Reason or by the Company without Cause (other than by reason of death) within 12 months of the commencement of the employment as Chairman, AIL, then the entitlements described above will be multiplied by two.

19.3    In the event that the Executive’s employment is terminated by the Company without Cause under the provisions of Clause 17.1 (i) and the Company exercises all or any of its rights under

9

Clause 18.3 during the 12 months’ notice period, the Severance Payment shall be reduced by a sum equal to the total salary and bonus payments received by the Executive during the Garden Leave Period.

19.4    Upon any termination of employment, the Executive shall be entitled to (a) any expense reimbursement due to him and (b) other benefits (if any) in accordance with the applicable plans and programs of the Company.

19.5    In the event of any termination of employment under this Agreement, the Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain.

	20.	EFFECT OF TERMINATION OF THIS AGREEMENT

20.1    The expiry or termination of this Agreement however arising shall not operate to affect any of the provisions hereof which are expressed to operate or have effect thereafter and shall not prejudice the exercise of any right or remedy of either party accrued beforehand.

	21.	GENERAL RELEASE

Notwithstanding any provision herein to the contrary, prior to payment of any amount pursuant to Clauses 15.2 and 19.2, the Executive shall execute a valid general release, in the form attached hereto (except to the extent that the Company considers that a change in law or any current practice existing at the date of termination requires a modification to such release), pursuant to which the Executive shall release the Group and its shareholders, directors, officers, employees and agents, to the maximum extent permitted by law, from any and all claims the Executive may have against the Group that relate to or arise out of the Executive’s employment or termination of employment, except such claims arising under this Agreement.

	22.	OTHER TERMS AND CONDITIONS

22.1    The Executive’s period of continuous employment which began on 1^st July 1989 shall be recognised by the Company.

22.2    The Company shall maintain a directors’ and officers’ liability insurance policy covering the Executive which is no less favorable than the policy covering other senior executive officers of the Company. In addition, the Company expressly acknowledges that the Executive is in the class of individuals entitled to be an ‘‘Indemnified Person’’ (as such term is defined in the Amended and Restated Bye-Laws of the Company (the ‘‘Bye-Laws’’)). As such, the Executive shall be entitled to the greatest of any and all protections regarding indemnity, insurance and advancement and reimbursement of expenses provided under the Bye-Laws as in existence on the date hereof, the directors’ and officers’ policy described above, or such greater protection as may be provided under applicable law; provided, however, that if the Bye-Laws are amended after the date hereof, and, as amended, they provide greater benefits than the existing Bye-Laws, the Executive shall be entitled to such greater benefits.

22.3    In the event that a new Bermuda work permit is required to enable the Executive to take up his new position, and the Company is unable to obtain such a permit (other than by reason of an action by the Executive) so within 6 months after the Executive was scheduled to take on his new position, then the Company will use reasonable efforts to provide the Executive with alternative employment in Bermuda or the United Kingdom with the Company or one of its Affiliates at a level commensurate with the proposed role of Chairman, AIL. If the Company is unable to do so, then the Executive’s employment with the Company will be terminated by mutual agreement, but the Executive will receive the financial benefits of this contract on the same terms as if he had been terminated without Cause.

	23.	NOTICES

Any notice to be given hereunder shall be in writing. Notice to the Executive shall be sufficiently served by being delivered personally to him or be being sent by first class post addressed to him at his usual or last known place of residence, Notice to the Company shall be sufficiently served by being delivered to the Company Secretary or by being sent by first class post to the registered

10

office of the Company. Any notice if so posted shall be deemed served upon the third day following that on which it was posted.

	24.	PREVIOUS AND OTHER AGREEMENTS

This Agreement shall take effect in substitution for all previous agreements and arrangements (whether written, oral or implied) between the Company and the Executive (including, without limitation, the Original Agreement) relating to his employment which shall be deemed to have been terminated by mutual consent with effect from the commencement of this Agreement.

	25.	ENTIRE AGREEMENT/AMENDMENT

This Agreement contains the entire understanding of the parties with respect to the employment of the Executive by the Company. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.

	26.	ASSIGNMENT

This Agreement, and all of the Executive’s rights and duties hereunder, shall not be assignable or delegable by the Executive. Any purported assignment or delegation by the Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity that is the successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such successor person or entity. Failure by such successor of the Company to expressly assume this Agreement shall constitute an event of ‘‘Good Reason’’, entitling Executive to the Benefits set forth in Clause 15 or 19, as applicable.

	27.	SEVERABILITY

In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

	28.	SUCCESSORS/BINDING AGREEMENT

This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees of the parties hereto.

	29.	CO-OPERATION

During employment by the Company and thereafter, the Executive shall provide his reasonable co-operation in connection with any action or proceeding (or any appeal from any action or proceeding) that relates to events occurring during the Executive’s employment; provided, however, that after the Executive’s employment by the Company has ended, (i) any request for such co-operation shall accommodate the demands of the Executive’s then existing schedule and (ii) if any such request will involve more than a de minimis amount of the Executive’s time, the Executive shall be entitled to reasonable compensation therefor.

	30.	GOVERNING LAW

Bermuda law shall apply to this Agreement.

	31.	COUNTERPARTS

This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

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IN WITNESS whereof this Agreement has been duly executed and delivered as a deed the day and year first before written.

SIGNED as a Deed                                              )
and DELIVERED by                                           )
JULIAN MICHAEL CUSACK                        )
in the presence of:                                                )

Witness Signature:

Witness Name:

Witness Address:

Witness Occupation:

ASPEN INSURANCE HOLDINGS LIMITED

By:                                                                             

         Name:
         Title:

12

    
    
    
    
    
DATED                                                                     

ASPEN INSURANCE HOLDINGS LIMITED (1)

    
    
and

    
    
JULIAN MICHAEL CUSACK
    
    
    

    
SEVERANCE AGREEMENT
    

    
    
    
    
    
    
LeBoeuf, Lamb, Greene & MacRae
1 Minster Court
Mincing Lane

London EC3R 7YL

Tel: +44 (0)20 7459 5000
Fax: +44 (0)20 7459 5099
www.llgm.com

13

THIS AGREEMENT is made as of the              day of                                      [20[ ]]

BETWEEN:

(1)	ASPEN INSURANCE HOLDINGS LIMITED, incorporated in the Islands of Bermuda whose registered office is at the Maxwell Roberts Building, 1 Church Street, Hamilton HM 11, Bermuda (the ‘‘Company’’); and

(2)	JULIAN MICHAEL CUSACK of Baywatch, 8 Williamsville Drive, Southampton, Bermuda (hereinafter referred to as the ‘‘Executive’’).

IT IS AGREED AS FOLLOWS:

1.	INTERPRETATION

	(i)	In this Agreement:

‘‘Affiliate’’		means any entity directly or indirectly controlling, controlled by, or under common control with the Company; or any other entity designated by the Board in which the Company or an Affiliate has an interest.

‘‘Board’’		means the Board of Directors of the Company from time to time;

‘‘Group’’		means the Company and its Affiliates (and ‘‘Group Company’’ means the Company or any one of its Affiliates).;

‘‘Option Agreement’’		means the nonqualified share option agreement entered into by the Executive and the Company on 20 August 2003; and

‘‘Service Agreement’’		shall mean the service agreement entered into between the Executive and the Company dated [], as subsequently amended.

2.	TERMINATION DATE

The Executive’s employment with the Company [will end][ended] on [date] (the ‘‘Termination Date’’).

3.	PAYMENT OF SALARY ETC

TheCompany will continue to provide the Executive with his salary and all other contractual benefits up to the Termination Date in the normal way. Within 14 days of the Termination Date the Company will also pay the Executive in respect of his accrued but untaken holiday (less such deductions for income tax and national insurance as are required by law).

4.	TERMINATION SUMS

Subject to the Executive agreeing to all of the conditions set out below, and receipt by the Company of a copy of this Agreement signed by the Executive and the attached certificate signed by the Executive’s legal adviser, the Company will pay the Executive the following sums:

	(i)	£[appropriate figure to be inserted] in respect of the Executive’s entitlement to an annual incentive award for the year in which the termination of the Executive’s employment with the Company occurs, as calculated in accordance with Clause 19.2 (b) of the Service Agreement;

	(ii)	the sum of £[appropriate figure to be inserted] in respect of the Executive’s entitlement to a Severance Payment, as calculated and defined in accordance with Clauses 19.2(c) and 19.3 of the Service Agreement; and

14

	(iii)	the sum of £[appropriate figure to be inserted] in respect of the Executive’s entitlement to the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed as at the Termination Date but not yet paid, as calculated in accordance with Clause 19.2(d) of the Service Agreement.

The sums set out in (i) to (iii) above will be subject to such deductions for income tax and national insurance as are required by law and will be paid to the Executive within [14] days of the date of signature by him of this Agreement and signature by his legal adviser of the attached certificate. Payment will be made by transfer to the Executive’s bank account.

4.	SHARE OPTIONS

[The Company confirms that:

(a)    with respect to share options issued under the Option Agreement; notwithstanding any provision in the Option Agreement to the contrary, the Shares underlying the Time Option (as defined in the Option Agreement) that remain unvested at the date of this Agreement shall vest and become exercisable on 31 December 2006; and the Shares underlying the Performance-Accelerated Option (as defined in the Option Agreement) that remain unvested at the date of this Agreement shall continue to vest and become exercisable in accordance with the provisions of clause 2(b) of the Option Agreement; and

(b)    with repect to other share options, the extent to which share options held by the Executive as at the Termination Date shall be exercisable following the Termination Date will be determined solely in accordance with terms of the agreements under which such share options were granted.] or [Other than in relation to share options granted to the Executive prior to the date of the Service Agreement, the Company confirms that all share options granted to the Executive have vested and will remain exercisable for the remainder of their terms.]¹

6.	WAIVER OF CLAIMS

The Executive accepts the terms set out in this Agreement in full and final settlement of all and any claims that he has or may have against the Company, the Board or any other Group Company or any of its or their current or former shareholders, directors, officers, employees or agents, whether contractual (whether known or unknown, existing now or in the future), statutory or otherwise, arising out of or in connection with his employment with the Company or the termination of his employment and his directorship of the Company and any Group Company or his resignation therefrom. The Executive also agrees to waive irrevocably and release the Company, the Board and all Group Companies (and all of its or their current or former shareholders, directors, officers, employees or agents) from and against any claims whether contractual (whether known or unknown, existing now or in the future), statutory or otherwise, arising out of or in connection with his employment with the Company or the termination of his employment and his directorship of the Company and any Group Company or his resignation therefrom. This waiver shall not apply in relation to any claim relating to his pension rights that have accrued up to the Termination Date.

7.	CONFIRMATION OF NO BREACHES

The Executive confirms and warrants to the Company that he has not at any time during his employment committed a fundamental breach of the terms of the Service Agreement.

8.	SATISFACTION OF STATUTORY CONDITIONS

The Executive is aware of his rights under the Employment Act 2000 and the Human Rights Amendment Act 1987 and has informed the Company of any and all claims that he might seek to bring arising from his employment or termination of employment. This agreement relates to his claims under the Employment Act 2000 and the Human Rights Amendment Act 1987.

1	Second alternative to be used in the event of qualifying termination in connection with a Change of Control under Clause 15.2 of the Service Agreement.

15

9.	RESIGNATION OF DIRECTORSHIP

At the same time as executing this Agreement the Executive will resign with immediate effect from his directorship of the Company and from all directorships and offices held with other Group Companies (and all related trusteeships) by signing and delivering the attached letters of resignation.

10.	POST-TERMINATION RESTRAINTS

The Executive acknowledges that the provisions of Clause 11 (Confidentiality) and Clause 14 (Restrictive Covenants) of the Service Agreement will (to the extent that they are applicable in the circumstances of the termination of the Executive’s employment with the Company) remain in full force and effect notwithstanding the termination of his employment.

11.	RETURN OF COMPANY PROPERTY

Before any payment under Clause 4 above is made, the Executive will, in accordance with Clause 19.1(b) of the Service Agreement, deliver up to the Company all vehicles, keys, credit cards, correspondence, documents, specifications, reports, papers and records (including any computer materials such as discs or tapes) and all copies thereof and any other property (whether or not similar to the foregoing or any of them) belonging to the Company or any other Group Company which may be in his possession or under his control, and (unless prevented by the owner thereof) any such property belonging to others which may be in his possession or under his control and which relates in any way to the business or affairs of the Company or any other Group Company or any supplier, agent, distributor or customer of the Company or any other Group Company, and he confirms that he has not retained any copies thereof.

12.	CONFIDENTIALITY

Save by reason of any legal obligation or to enforce the terms of this letter, the Executive will not:

	(a)	disclose the existence or terms of this Agreement to anyone (other than to the Executive’s professional advisers, the Inland Revenue or any other competent authority or the Executive’s spouse);

	(b)	directly or indirectly disseminate, publish or otherwise disclose (or allow to be disseminated, published or otherwise disclosed) by any means (whether oral, written or otherwise) or medium (including without limitation electronic, paper, radio or television) any information directly or indirectly relating to the termination of the Executive’s employment; or

	(c)	make any derogatory or disparaging comments about the Company, any Group Company or any of its or their shareholders, directors, officers, employees or agents.

13.	NO ADMISSION OF LIABILITY

This agreement is made without any admission on the part of the Company or any Group Company that it has or they have in any way breached any law or regulation or that the Executive has any claims against the Company or any Group Company.

14.	TAX INDEMNITY

The Executive hereby agrees to be responsible for the payment of any tax and employee’s national insurance contributions imposed by any competent taxation authority in respect of any of the payments and benefits provided under this Agreement (other than for the avoidance of doubt, any tax and/or employee’s national insurance contributions deducted or withheld by the Company in paying the sums to the Executive). The Executive further agrees to indemnify the Company and all Group Companies and keep them indemnified on an ongoing basis against any claim or demand which is made by any competent taxation authority against the Company or any Group Company in respect of any liability of the Company or any Group Company to deduct an amount of tax or an amount in respect of tax or any employee’s national insurance contributions from the payments made and benefits provided under this Agreement, including any related interest or penalties imposed by any competent taxation authority.

16

15.	ENTIRE AGREEMENT

This letter sets out the entire agreement between the Executive and the Company and, save as set out in Clauses 5 and 10 above, supersedes all prior arrangements, proposals, representations, statements and/or understandings between the Executive, the Company and any Group Company.

16.	APPLICABLE LAW

This agreement is subject to Bermuda law and the exclusive jurisdiction of the Bermuda courts.

                                                                            
Julian Michael Cusack

    
                                                                            
dated

    
                                                                            
For and on behalf of Aspen Insurance Holdings Limited

    
                                                                            
dated

17

To the board of Directors
Aspen Insurance Holdings Limited

    
    
    
    
    
[date]
    
    
    
    

Dear Sirs

Aspen Insurance Holdings Limited (the ‘‘Company’’)

I hereby irrevocably and unconditionally resign from the office of Director of the Company with immediate effect, and I acknowledge and confirm that I have no claim of whatsoever kind outstanding for compensation or otherwise against the Company, its servants, officers, agents or employees in respect of the termination of my appointment.

Yours faithfully

SIGNED as a DEED                                          )
and DELIVERED                                               )
by JULIAN MICHAEL CUSACK                     )
in the presence of:                                               )

Witness Signature:

Witness Name:

Witness Address:

[note: separate individual similar letters of resignation should be produced for any other Group companies of which the individual is a director]

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EX-99.1

Press Release

Aspen Appoints Three New Directors, Strengthens Management in Bermuda

Stuart Sinclair, John Cavoores and Glyn Jones join the Board of
Aspen Insurance Holdings Limited

Hamilton, Bermuda, November 2, 2006 — Aspen Insurance Holdings Limited (‘‘Aspen’’) (NYSE:AHL; BSX:AHL BH) today announces the appointment of three new directors: Stuart Sinclair, President and Chief Operating Officer of Aspen, John Cavoores, the former President and Chief Executive Officer of OneBeacon Insurance Company, and Glyn Jones, the former CEO of Thames River Capital and Gartmore Investment Management, join the Board of Aspen Insurance Holdings Limited with immediate effect.

Commenting on these appointments, Paul Myners, Aspen’s Chairman, said, ‘‘I am delighted to announce the appointment of three new directors, which will strengthen further the Aspen Board. Stuart, John, and Glyn bring a wealth of knowledge and experience to the Board as we continue to pursue our strategy of diversification and profitable growth. As an Executive Director, Stuart will be able to leverage his significant industry experience and daily role as Aspen’s President and Chief Operating Officer to make a significant contribution to the management team and serve as a valuable member of the Board. John is a seasoned insurance executive with more than twenty five years working in an underwriting or senior management capacity, and Glyn’s experience as a former Chief Executive Officer within a number of major financial institutions will provide the Board with additional perspective and expertise in financial institutions and investment markets as Aspen continues to mature. I look forward to working closely with them.’’

In addition, and reflecting the continuing growth of Aspen’s underwriting activities in Bermuda, Julian Cusack, Aspen’s Chief Financial Officer and Chief Executive Officer of its Bermuda-based operating company, Aspen Insurance Limited (‘‘AIL’’), is appointed to the expanded role of Chairman and CEO of AIL. He will assume this new responsibility once his successor as Chief Financial Officer is appointed and after a suitable hand-over period. He will also continue to chair the Company’s Reserving Committee in his new position. A search is already under way. Until that time, Mr. Cusack will continue to serve as Chief Financial Officer.

Commenting on this change, Chris O’Kane, Aspen’s Chief Executive Officer said, ‘‘Aspen’s underwriting business in Bermuda has grown rapidly over recent years. Together with Julian, we have recognized the need to create a new, dedicated executive role that is focused on continuing to grow our business in Bermuda and I am delighted that he is to take up the expanded role as Chairman and CEO of AIL once his successor as Group CFO is appointed. As CFO since Aspen’s formation in 2002, Julian has made many valuable contributions to the company, not least of which was his critical role in building our Bermuda operating company to the point where it is the largest company, in terms of balance sheet size, in the Aspen Group. I am pleased that we will continue to benefit from his considerable insight and expertise, in particular through his continuing to Chair the Company’s Reserving Committee.’’

Including these appointments, Aspen now has 13 Directors on its Board. Mr. Cavoores will be a member of the Board’s Investment Committee and Risk Committee. Mr. Jones will be a member of the Board’s Compensation and Investment Committees.

Notes to Editors

About Julian Cusack

Mr. Cusack, 55, has been Aspen’s Chief Financial Officer and a director since the formation of the company in June 2002. He has been the Chief Executive Officer of Aspen Insurance Bermuda, Limited since 2002. From 2002 until March 31, 2004, he was also Finance Director of Aspen Re. Mr. Cusack previously worked at Wellington where he was Managing Director of Wellington Underwriting Agencies Ltd. from 1992 to 1996, and in 1994 joined the board of directors of Wellington Underwriting Holdings Limited. He was Group Finance Director of Wellington Underwriting plc from 1996 to 2002.

About John Cavoores

Mr. Cavoores, 49, is currently an advisor to Blackstone, one of Aspen’s shareholders, advising on current portfolio investments (including Aspen) and new opportunities. Mr. Cavoores has 27 years of experience in the insurance industry and recently served as President and Chief Executive Officer of OneBeacon Insurance Company, a subsidiary of White Mountains Insurance Group. Among his other positions, Mr. Cavoores was President of National Union Insurance Company, a subsidiary of American International Group (AIG). He spent 19 years at Chubb Insurance Group, where he served as Chief Underwriting Officer, and Executive Vice President and Managing Director of overseas operations, based in London. Mr. Cavoores holds a BA degree in economics from Holy Cross.

About Glyn Jones

Mr. Jones, 54, was most recently the Chief Executive Officer of Thames River Capital. From 2000 to 2004 he served as Chief Executive Officer of Gartmore Investment Management in the UK where he developed a successful strategy and improved operating efficiencies. Prior to Gartmore, Mr. Jones was Chief Executive of Coutts NatWest Group and Coutts Group, which he joined in 1997 and was accountable for strategic leadership, business performance and risk management.

Mr. Jones was a consulting partner with Coopers & Lybrand/Deloitte Haskins & Sells Management Consultants from 1981 to 1990. In 1991 he joined Standard Chartered, later becoming the General Manager of Global Private Banking. Mr. Jones holds an MA in Economics and Social Sciences from Cambridge and is a Fellow of the Institute of Chartered Accountants in England and Wales.

About Stuart Sinclair

Prior to his August 7, 2006 appointment as President and Chief Operating Officer of Aspen, Mr. Sinclair, 53, was most recently President and CEO, Greater China, GE Financial Services, which is part of GE Capital. Previously, he served as President and UK Chief Executive of GE Consumer Finance. Before joining GE Capital, Mr. Sinclair held several positions at Royal Bank of Scotland, including CEO of Tesco Personal Finance.

In addition to his recent work experience, Mr. Sinclair has held a number of management consultancy roles at firms based in the United States, including Mercer Management Consulting. He was also an International Economist, lecturing at the University of Reading and advising the Saudi Arabian Foreign Ministry. Mr. Sinclair holds an MBA from UCLA, an MA in Economic Development from Rutgers University and an MA in Economics from the University of Aberdeen.

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 specialty insurance and reinsurance consisting mainly of marine and energy and aviation worldwide. 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 founding shareholders include The Blackstone Group, Candover Partners Limited and Credit Suisse First Boston Private Equity. For more information about Aspen, please visit the Company’s website at www.aspen.bm.

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Contact:
Aspen Insurance Holdings Limited Noah Fields, Head of Investor Relations			T  +1  441  297  9382
OR
North American Contact:
The Abernathy MacGregor Group Eliza Johnson			T   +1  212  371  5999
OR
European Contact: Maitland Brian Hudspith			T  +44  20  7379  5151

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