Company: AHL
Filing Date: 2025-03-20
Form Type: F-1/A
Source: 0001628280-25-014149
Chunk: 256

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-03-20
Form: F-1/A
Chunk 256
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 protect shareholder value while providing a high level of policyholder protection and regulatory compliance. The execution of our integrated risk management strategy is based on:

• the establishment and maintenance of an internal control and risk management system based on a three lines of defense approach to the allocation of responsibilities between risk accepting units (first line), risk management activity and oversight from the risk and compliance functions (second line) and independent assurance (provided by internal audit) (third line);

• identifying material risks to the achievement of the Aspen Group’s objectives including emerging risks;

• the articulation at Group level of our risk appetite and a consistent set of key risk limits which translate the risk appetite into measurable criteria and provide the primary control for accumulated risk exposures;

• the cascading of risk appetite and key risk limits for material risks to each risk-assuming operating subsidiary;

• measuring, monitoring, managing and reporting risk positions and trends;

• the use, subject to an understanding of its limitations, of the internal model to test strategic and tactical business decisions and to assess compliance with the risk appetite statement; and

• stress and scenario testing, including reverse stress testing, designed to help us better understand and develop contingency plans for the potential effects of extreme events or combinations of events on capital adequacy and liquidity.

Risk Appetite Statement

The risk appetite statement is a central component of the Aspen Group’s overall risk management framework and is approved by the Board. It sets out, at a high level, how we think about risk in the context of our business model, Aspen Group objectives and strategy, and provides the foundation for decision making during the implementation of our strategy and business plans. It sets out boundary conditions and limits for the level of risk we assume, together with a statement of the reward we aim to receive for this level of risk. Our risk appetite statement comprises the following components:

• Risk preferences: a high level description of the types of risks we prefer to assume and those we prefer to minimize or avoid;

• Return objective: a description of the return on capital we seek to achieve, subject to our risk constraints;

• Volatility objective: a description of earnings volatility tolerance;

• Capital objective: a description of the target level of risk adjusted capital; and

• Liquidity objective: a description of the target level of liquidity.

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Table of C ontents

Risk Components

The main types of risks that we face are summarized as follows:

Insurance risk — The risk that underwriting results vary from their expected amounts, including the risk that reserves established in