S&P rates Aspen Insurance Piers BBB-

Standard & Poor's said it assigned a BBB- junior subordinated debt rating to the perpetual Preferred Income Equity Replacement Securities (Piers) to be issued by Aspen Insurance Holdings Ltd. (BBB+/negative).

Proceeds raised from the issue will be used for general corporate purposes, which may include downstreaming to one or more operating subsidiaries to increase underwriting capacity.

S&P said the rating on Aspen Insurance Holdings reflects its position as the holding company of the Aspen group, the principal operating subsidiaries of which are Aspen Insurance U.K. Ltd. (A/negative) and Aspen Insurance Ltd. (A/negative).

The rating also reflects key features of the group's operating profile, such as Aspen's strong competitive position, proven management team, strong operating performance and strong capitalization.

These factors are partially offset by the potential volatility inherent in the business classes on which the group focuses, risks to the competitive position associated with changes to the group's underwriting strategy and risk appetite, operational controls requiring strengthening and the reinsurance and insurance industries' low barriers to entry, the agency said.

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