S&P affirms Aspen Piers rating at BBB-

Standard & Poor's said it affirmed the BBB- junior subordinated debt rating on the $200 million 5 5/8% perpetual Preferred Income Equity Replacement Securities (Piers) issued by Bermuda-based Aspen Insurance Holdings Ltd. (BBB+/negative), following receipt of final documentation.

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

The rating reflects the fact that the securities constitute junior subordinated obligations of Aspen Insurance and will rank junior to all of Aspen Insurance's other current debt.

The rating 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, the agency said.

S&P said these positive 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.

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