SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

As at December 31, 2017 and 2016



	As at December 31, 2017			As at December 31, 2016
	($ in millions, except per share amounts)
ASSETS
Short-term investments (available for sale)	$	—		$	25.1
Fixed income maturities (trading)	79.4			145.7
Cash and cash equivalents	32.0			156.3
Investments in subsidiaries ⁽¹⁾	3,394.7			3,405.8
Other investments (equity method)	3.4			11.7
Eurobond issued by subsidiary	—			480.0
Long-term debt issued by Silverton	20.6			54.5
Intercompany funds due from affiliates	5.2			9.8
Other assets	8.8			8.6
Total assets	$	3,544.1		$	4,297.5
LIABILITIES
Accrued expenses and other payables	4.7			6.4
Intercompany funds due to affiliates	61.4			93.5
Long-term debt	549.5			549.3
Total liabilities	$	615.6		$	649.2
SHAREHOLDERS’ EQUITY
Ordinary Shares:
59,474,085 shares of par value 0.15144558¢ each (December 31, 2016 — 59,774,464)	$	0.1		$	0.1
Preference Shares:
11,000,000 5.950% shares of par value 0.15144558¢ each (December 31, 2016 — 11,000,000)	—			—
Nil 7.401% shares of par value 0.15144558¢ each (December 31, 2016 — 5,327,500)	—			—
Nil 7.250% shares of par value 0.15144558¢ each (December 31, 2016 — 6,400,000)	—			—
10,000,000 5.625% shares of par value 0.15144558¢ each (December 31, 2016 — 10,000,000)	—			—
Additional paid in capital	954.7			1,259.6
Retained earnings	2,026.9			2,392.3
Non-controlling interest	2.7			1.4
Accumulated other comprehensive income, net of taxes:
Unrealized gains on investments	9.7			22.5
Gain/(loss) on derivatives	2.1			(0.5		)
Gains on foreign currency translation	(67.7		)	(27.1		)
Total accumulated other comprehensive (loss)/income	(55.9		)	(5.1		)
Total shareholders’ equity	2,928.5			3,648.3
Total liabilities and shareholders’ equity	$	3,544.1		$	4,297.5

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⁽¹⁾	The Company’s investment in subsidiaries are accounted for under the equity method and adjustments to the carrying value of these investments are made based on the Company’s share of capital, including share of income and expenses. Changes in the value were recognised in realized and unrealized investment gains and losses in the statement of operations.

ASPEN INSURANCE HOLDINGS LIMITED

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Twelve Months Ended December 31, 2017, 2016 and 2015



	Twelve Months Ended December 31, 2017			Twelve Months Ended December 31, 2016			Twelve Months Ended December 31, 2015
	($ in millions)
Operating Activities:
Equity in net earnings of subsidiaries and other investments, equity method	$	(590.7	)	$	(85.2	)	$	59.0
Dividend income	373.6			331.3			292.3
Interest income on Eurobond	18.7			21.1			29.5
Net realized and unrealized investment gains/(losses)	(2.3		)	3.8			4.3
Other income	—			—			1.9
Total revenues	(200.7		)	271.0			387.0
Expenses:
General, administrative and corporate expenses	(36.2		)	(38.1		)	(34.4		)
Interest expense	(29.5		)	(29.5		)	(29.5		)
Income from operations before income tax	(266.4		)	203.4			323.1
Income tax	—			—			—
Net income	(266.4		)	203.4			323.1
Amount attributable to non-controlling interest	(1.3		)	(0.1		)	(0.8		)
Net (loss)/income attributable to Aspen Insurance Holdings Limited ordinary shareholders	(267.7		)	203.3			322.3
Other comprehensive (loss)/income, net of taxes:
Change in unrealized gains on investments	(12.8		)	(37.7		)	(105.2		)
Net change from current period hedged transactions	2.6			0.7			2.6
Change in foreign currency translation adjustment	(40.6		)	(27.7		)	(72.1		)
Other comprehensive (loss)/income, net of tax	(50.8		)	(64.7		)	(174.7		)
Comprehensive (loss)/income	$	(318.5	)	$	138.6		$	147.6

ASPEN INSURANCE HOLDINGS LIMITED

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued

STATEMENTS OF CASH FLOWS

For the Twelve Months Ended December 31, 2017, 2016 and 2015



	Twelve Months Ended December 31, 2017			Twelve Months Ended December 31, 2016			Twelve Months Ended December 31, 2015
	($ in millions)
Cash Flows From/(Used In) Operating Activities:
Net income ⁽¹⁾ (excluding equity in net earnings of subsidiaries)	$	323.0		$	289.3		$	256.4
Adjustments:
Share-based compensation expenses	9.8			15.5			17.9
Realized and unrealized losses/(gains)	(2.0		)	(3.2		)	(4.3		)
Loss on derivative contracts	(2.6		)	0.5			1.2
Change in other receivables	—			—			—
Change in other assets	(0.2		)	0.4			(9.0		)
Change in accrued expenses and other payables	7.0			(9.3		)	(36.8		)
Change in intercompany activities	(27.5		)	(40.7		)	71.9
Net cash generated by operating activities	307.5			252.5			297.3
Cash Flows From/(Used in) Investing Activities:
Proceeds/(purchases) of short term investments	25.1			(0.1		)	(25.0		)
Proceeds/(purchases) of Fixed Income Securities	66.3			(145.7		)	—
Investment in subsidiaries	(111.9		)	(126.1		)	(171.5		)
Investment in long-term debt issued by Silverton	—			(25.0		)	(25.0		)
Repayment of loan notes issued by Silverton	13.5			19.2			20.5
Investment in Micro-insurance	(0.1		)	—			(0.8		)
Investment in Bene	—			(3.3		)	—
Net proceeds from other investments, equity method	—			—			—
Net cash (used in) investing activities	(7.1		)	(281.0		)	(201.8		)
Cash Flows From/(Used in) Financing Activities:
Proceeds from issuance of ordinary shares, net of issuance costs	0.5			2.5			6.8
Proceeds from issuance of preference shares, net of issuance costs	—			241.3			—
Preference shares redeemed	(293.2		)	—			—
Ordinary share repurchase	(30.0		)	(75.0		)	(83.7		)
Ordinary and preference share dividends paid	(92.4		)	(94.5		)	(88.7		)
Proceeds from maturity of Eurobond	—			—			573.8
Eurobond purchased from subsidiary	—			—			(480.0		)
Cash paid for tax withholding purposes	(9.6		)	—			—
Net cash (used in)/from financing activities	(424.7		)	74.3			(71.8		)
Increase/(decrease) in cash and cash equivalents	(124.3		)	45.8			23.7
Cash and cash equivalents — beginning of period	156.3			110.5			86.8
Cash and cash equivalents — end of period	$	32.0		$	156.3		$	110.5

_______________

⁽¹⁾Net income has been adjusted for the proportion due to non-controlling interest.