SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

As at December 31, 2018 and 2017



	As at December 31, 2018			As at December 31, 2017
	($ in millions, except per share amounts)
ASSETS
Short-term investments (available for sale)	$	—		$	—
Fixed income maturities (trading)	—			79.4
Cash and cash equivalents	55.6			32.0
Investments in subsidiaries ⁽¹⁾	3,178.7			3,394.7
Other investments (equity method)	3.7			3.4
Eurobond issued by subsidiary	—			—
Long-term debt issued by Silverton	1.1			20.6
Intercompany funds due from affiliates	—			5.2
Other assets	9.0			8.8
Total assets	$	3,248.1		$	3,544.1
LIABILITIES
Accrued expenses and other payables	47.3			4.7
Intercompany funds due to affiliates	120.1			61.4
Long-term debt	424.7			549.5
Total liabilities	$	592.1		$	615.6
SHAREHOLDERS’ EQUITY
Ordinary Shares:
59,743,156 shares of par value 0.15144558¢ each (December 31, 2017 — 59,474,085)	$	0.1		$	0.1
Preference Shares:
11,000,000 5.950% shares of par value 0.15144558¢ each (December 31, 2017 — 11,000,000)	—			—
10,000,000 5.625% shares of par value 0.15144558¢ each (December 31, 2017 — 10,000,000)	—			—
Additional paid in capital	967.5			954.7
Retained earnings	1,806.6			2,026.9
Non-controlling interest	3.7			2.7
Accumulated other comprehensive income, net of taxes:
Unrealized gains on investments	(66.8		)	9.7
Gain/(loss) on derivatives	0.3			2.1
Gains on foreign currency translation	(55.4		)	(67.7		)
Total accumulated other comprehensive (loss)/income	(121.9		)	(55.9		)
Total shareholders’ equity	2,656.0			2,928.5
Total liabilities and shareholders’ equity	$	3,248.1		$	3,544.1

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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 recognized 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, 2018, 2017 and 2016



	Twelve Months Ended December 31, 2018			Twelve Months Ended December 31, 2017			Twelve Months Ended December 31, 2016
	($ in millions)
Operating Activities:
Equity in net earnings of subsidiaries and other investments, equity method	$	(371.3	)	$	(590.7	)	$	(85.2	)
Dividend income	340.3			373.6			331.3
Interest income on Eurobond	—			18.7			21.1
Net realized and unrealized investment gains/(losses)	(5.1		)	(2.3		)	3.8
Other income	—			—			—
Total revenues	(36.1		)	(200.7		)	271.0
Expenses:
General, administrative and corporate expenses	(83.8		)	(36.2		)	(38.1		)
Interest expense	(25.9		)	(29.5		)	(29.5		)
Income from operations before income tax	(145.8		)	(266.4		)	203.4
Income tax	—			—			—
Net income	(145.8		)	(266.4		)	203.4
Amount attributable to non-controlling interest	(1.0		)	(1.3		)	(0.1		)
Net (loss)/income attributable to Aspen Insurance Holdings Limited ordinary shareholders	(146.8		)	(267.7		)	203.3
Other comprehensive (loss)/income, net of taxes:
Change in unrealized gains on investments	(76.5		)	(12.8		)	(37.7		)
Net change from current period hedged transactions	(1.8		)	2.6			0.7
Change in foreign currency translation adjustment	12.3			(40.6		)	(27.7		)
Other comprehensive (loss)/income, net of tax	(66.0		)	(50.8		)	(64.7		)
Comprehensive (loss)/income	$	(212.8	)	$	(318.5	)	$	138.6

ASPEN INSURANCE HOLDINGS LIMITED

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued

STATEMENTS OF CASH FLOWS

For the Twelve Months Ended December 31, 2018, 2017 and 2016



	Twelve Months Ended December 31, 2018			Twelve Months Ended December 31, 2017			Twelve Months Ended December 31, 2016
	($ in millions)
Cash Flows From/(Used In) Operating Activities:
Net income ⁽¹⁾ (excluding equity in net earnings of subsidiaries)	$	224.5		$	323.0		$	289.3
Adjustments:
Share-based compensation expenses	10.1			9.8			15.5
Realized and unrealized losses/(gains)	(0.7		)	(2.0		)	(3.2		)
Loss on derivative contracts	1.8			(2.6		)	0.5
Change in other receivables	—			—			—
Change in other assets	(0.2		)	(0.2		)	0.4
Change in accrued expenses and other payables	51.1			7.0			(9.3		)
Change in intercompany activities	63.9			(27.5		)	(40.7		)
Net cash generated by operating activities	350.5			307.5			252.5
Cash Flows From/(Used in) Investing Activities:
Proceeds/(purchases) of short term investments	—			25.1			(0.1		)
Proceeds/(purchases) of fixed income securities	79.4			66.3			(145.7		)
Investment in subsidiaries	(215.9		)	(111.9		)	(126.1		)
Investment in long-term debt issued by Silverton	—			—			(25.0		)
Repayment of loan notes issued by Silverton	18.6			13.5			19.2
Investment in Micro-insurance	—			(0.1		)	—
Investment in Bene	—			—			(3.3		)
Net proceeds from other investments, equity method	—			—			—
Net cash (used in) investing activities	(117.9		)	(7.1		)	(281.0		)
Cash Flows From/(Used in) Financing Activities:
Proceeds from issuance of ordinary shares, net of issuance costs	2.7			0.5			2.5
Proceeds from issuance of preference shares, net of issuance costs	—			—			241.3
Preference shares redeemed	—			(293.2		)	—
Ordinary share repurchase	—			(30.0		)	(75.0		)
Long term debt redemption	(125.0		)	—			—
Ordinary and preference share dividends paid	(73.4		)	(92.4		)	(94.5		)
Proceeds from maturity of Eurobond	—			—			—
Eurobond purchased from subsidiary	—			—			—
Make-whole payment	(8.6		)	—			—
Cash paid for tax withholding purposes	(4.7		)	(9.6		)	—
Net cash (used in)/from financing activities	(209.0		)	(424.7		)	74.3
Increase/(decrease) in cash and cash equivalents	23.6			(124.3		)	45.8
Cash and cash equivalents — beginning of period	32.0			156.3			110.5
Cash and cash equivalents — end of period	$	55.6		$	32.0		$	156.3

_________

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