Terms

Series

5.625% Perpetual Non-Cumulative Preference Shares

Liquidation Preference

$25.00

Coupon Rate

5.625%

Rate Type

Fixed

Annual Dividend

$1.41

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

January 1, 2027

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Indebtedness And Other Liabilities Of Aspen Insurance Holdings Limited, 6.0% Senior Notes Due 2020, 6.0% Senior Notes Due 2023; Pari Passu With: 7.401% Perpetual Non-Cumulative Preference Shares, 7.250% Perpetual Non-Cumulative Preference Shares, 5.95% Fixed-To-Floating Rate Perpetual Non-Cumulative Preference Shares; Senior To: Ordinary Shares, Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

No

Shares Offered

9,000,000

Prospectus Summary

Aspen Insurance Holdings Limited, a Bermuda-domiciled insurance and reinsurance holding company, is offering 9,000,000 shares of its 5.625% Perpetual Non-Cumulative Preference Shares with a $25 liquidation preference, listed on the NYSE under 'AHLPRD.' The shares pay a fixed quarterly dividend of $0.3516 per share ($1.4063 annualized) on January 1, April 1, July 1, and October 1, with the first optional redemption date on January 1, 2027 at $25 per share. Critically, dividends are non-cumulative: if the board does not declare a dividend for any period, that payment is permanently forfeited and holders have no right to claim it in the future. The Preference Shares rank senior to Aspen's ordinary shares but pari passu with three existing preferred series (7.401%, 7.250%, and 5.95% preference shares, totaling approximately $568 million in liquidation preference). They rank junior to all of Aspen's indebtedness, including $549 million in senior notes. Because Aspen Holdings is a holding company with no direct operations, it depends entirely on upstream dividends from its regulated insurance subsidiaries — themselves subject to BMA, PRA, and state regulatory restrictions on dividend payments — creating structural subordination risk. A 'capital disqualification redemption event,' triggered if the shares lose Tier 1 capital status under BMA group insurance rules, allows the issuer to redeem at par on the next dividend payment date, potentially forcing reinvestment at an inopportune time. At the $25 offering price, the effective yield is 5.625%. Dividends are paid quarterly on the 1st of January, April, July, and October to holders of record on the preceding December 15, March 15, June 15, and September 15, respectively. U.S. individual investors may potentially qualify for the preferential 15%/20% qualified dividend income (QDI) rate, though the Bermuda domicile of the issuer introduces conditions that investors should confirm in the tax section. Corporate holders should note that the dividends-received deduction (DRD) is generally not available for foreign issuer preferred stock. Dividend stopper mechanics prevent the issuer from paying dividends on common or junior securities unless the most recent full dividend on the Preference Shares has been paid, providing a modest protective mechanism — though since dividends are non-cumulative, a board decision not to declare eliminates rather than defers the obligation.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full dividends on the Preference Shares for the latest completed period have not been paid, the issuer cannot pay dividends on or repurchase its ordinary shares or any junior securities, and can only pay dividends on parity preferred shares on a pro rata basis.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 63 (Strong)