Company: AHL
Filing Date: 2025-04-29
Form Type: F-1/A
Source: 0001628280-25-020463
Chunk: 142

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-04-29
Form: F-1/A
Chunk 142
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 a limit of $3,570.0 million. The existing ADC between the parties that closed in June 2020 was absorbed into the LPT. The LPT transaction closed on May 20, 2022, following receipt of regulatory approvals and satisfaction of various other closing conditions.

The LPT transaction has positively impacted the Aspen Group’s overall capital position and enabled the deployment of capital into the continued attractive market environment, while significantly improving the protection of its balance sheet and future earnings from the potential impact of the reserve volatility on 2019 and prior accident years.

As at December 31, 2024, we estimate that we have approximately $379.0 million of remaining limit available under the terms of the LPT (As at December 31, 2023 — $420.0 million).

Increased Lloyd’s Capacity

Following a successful business planning process with Lloyd’s, we have significantly grown our Lloyd’s capacity to £1,300.0 million for the 2025 year of account from £566.0 million in 2018. In 2022, the Company expanded the scale of business written via our Lloyd’s syndicate, including a significant book of reinsurance that was previously written by Aspen UK, which was in line with our strategy to simplify our operations and more strategically align our platforms. This increased the relevance and scale in the important Lloyd’s market. Growing our presence in Lloyd’s is a critical part of our overall balance sheet simplification strategy. It also allows us to better utilize the advantages of the Lloyd’s platform, both for capital efficiencies and ease of access.

Price Inflation and Social Inflation

The elevated level of inflation relative to pre-pandemic levels, as well as the elevated level of uncertainty regarding the outlook for inflation in future periods, could affect our results. Specifically, with respect to premium pricing and loss reserving, those trends contribute to the risk of understating loss costs, which may be higher than anticipated due to increased inflation. Even though inflation has been decreasing compared to 2023, its outlook is currently uncertain, according to policymakers and business owners. The U.S. Federal Reserve and other monetary authorities see the level of uncertainty around their forecasts for core Personal Consumption Expenditures inflation as high, compared to the average over the past 20 years. The path of inflation has been historically and objectively difficult to predict since the pandemic started.

In addition, social inflation, or the increase in loss compensation cost over and above basic economic trends, is putting pressure on and contributing to the uncertainty in