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A.M. Best Assigns Issue Credit Rating to Aspen Insurance Holdings Limited’s Perpetual Non-Cumulative Preference Shares


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David Drummond
Senior Financial Analyst
+44 20 7397 0327
david.drummond@ambest.com

Catherine Thomas
Senior Director, Analytics
+44 20 7397 0281
catherine.thomas@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - SEPTEMBER 14, 2016 10:58 AM (EDT)
A.M. Best has assigned the Long-Term Issue Credit Rating (Long-Term IR) of “bb+” to the USD 225 million 5.625% perpetual non-cumulative preference shares issued on 13 September 2016 by Aspen Insurance Holdings Limited (Aspen) (Bermuda). The outlook assigned to this Credit Rating is positive.

The preference shares have a liquidation preference of USD 25 per share. Holders of the preference shares will be entitled to receive, only if declared by Aspen’s board of directors, non-cumulative cash dividends from and including the original issue date, quarterly in arrears on 1 January, 1 April, 1 July and 1 October of each year, commencing on 1 January 2017, in an amount per share equal to 5.625% of the liquidation preference per annum (equivalent to USD 0.3516 per share for a full dividend period).

The net proceeds of the issue are expected to be used to fund the redemption or repurchase of the 7.401% preference shares and the 7.250% preference shares, in whole or in part, after they become redeemable on 1 January 2017 and 1 July 2017, respectively.

Aspen’s financial ratios are expected to remain within tolerance for its rating, and A.M. Best will continue to monitor the company’s interest coverage and leverage ratios. The Long-Term IR of the preference shares is two notches down from Aspen’s Long-Term Issuer Credit Rating of “bbb” with a positive outlook.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

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AMB# Company Name
051148 Aspen Insurance Holdings Limited