Aspen Insurance Holdings Limited first quarter income was off 12 percent at $61.8 million or 59 cents per share compared with $70.1 million or 98 cents per share in the first quarter 2005.

during the quarter, the Bermuda-based company experienced a benign period for losses.

Chris O?Kane, chief executive officer, said a re-focusing of property catastrophe exposures resulted in a major reduction in critical zone exposures beyond what the company had contemplated in planning. This also resulted in a meaningful reduction in premium.

?At January 1, in many cases, prices for catastrophe risk did not move sufficiently, but as the quarter progressed, we observed considerable strengthening of critical zone catastrophe pricing. We are encouraged by this trend and believe it will enable us to replace considerable parts of the business we have rejected with similar exposures at much better prices as the year advances.?

During the quarter the Company raised $29.1 million through the issuance of Perpetual Preferred Income Equity Replacement Securities.

@EDITRULE:

Report Card:

Results for the first three months of the year compared to the same period a year ago

Net income: $61.8 million, a 12 percent decrease from $70.1 million

Net income per share: 59 cents per share compared to 98 cents per share

Operating income: $61.7 million, a 14 percent decline compared to $72.1 million

Gross premiums written: $678.7 million, a 16 percent decrease from $804.1 million

Net premiums written: $451.9 million, a 29 percent decrease from $632.4 million

Net investment income: $44.5 million, a 74 percent increase from $25.5 million

Combined ratio: 90.4 percent compared to 81 percent

Shareholders? equity increased to $2.08 billion at March 31, 2006 compared to $2.04 billion at December 31, 2005