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Aspen Insurance UK, a subsidiary of Aspen Insurance Holdings Limited (NYSE:AHL), has issued a detailed report on the state of Nursing and Residential Care Homes in the UK. Aspen believes that demand for insurance cover among Nursing and Residential Care Homes is set for strong and rapid growth as the sector expands and responds to ongoing reforms and structural changes. Key developments that are set to drive the increase in demand include the likely transfer of much of the care services for older people currently provided by the NHS to Local Authorities and private providers. Almost one million people over the age of 65 are in care, many as long-term patients in NHS facilities. With resources stretched, there has to be change. Last month, the Government published a consultative White Paper entitled Valuing People Now (the closing date for responses is 12 March 2008). A key proposal is the transfer of resources and responsibilities from the NHS to Local Authorities. These reforms have been proposed against a background of growing criticism of the quality of care being provided for older people within both NHS and Local Authority facilities. As highlighted in the new Aspen Opinion, �Nursing Homes and Residential Care � Flagging the bad risks�, the challenge of providing appropriate standards of care has been heightened by the growing difficulty of finding loyal, competent and caring personnel within one of the UK�s lowest paid sectors. To tackle mounting costs and deliver better quality care, the Health Secretary Alan Johnson has also recently announced sweeping reforms of how Local Authorities will manage their obligations (Putting People First). This includes giving Local Authorities greater control over the funding and design of care for older people to enable them to provide more individually-tailored services. Older people or their relatives will receive a monthly cheque to purchase the types of care they require, rather than being subject to a �one-cap-fits-all� Local Authority package. Within 20 years, the number of older people requiring round-the-clock care is expected to reach 1.3 million. While the Government�s new approach may achieve some reduction in residential care placements in the short-term, the demographics suggest that the overall demand will continue to increase. The pressure on care services created by rising demand is likely to be compounded the restructuring of the sector. The vision of transferring care responsibilities from the NHS set out in Valuing People Now is likely to be endorsed by the Health Service Commission Audit, due in 2008. This includes transferring the management of some 200 currently NHS-run Care Homes to Local Authorities, which are likely to purchase care services from charities and other private organisations. The transfer of provision will in turn increase demand for insurance cover. Tony Spice, Head of Aspen�s International Casualty Reinsurance explains, �The world�s ageing population has stretched available resources, and this is leading to public insistence on legal frameworks to curb abuse and raise care standards. Suppliers have struggled to deliver the required quality of care, and the rising need for care homes is going to increase the risks for care facility managers.� Tony Spice continues: �As the new Aspen Opinion describes, the potential risks facing care facility managers have been highlighted by the recent scandals at NHS hospitals in Sutton and Cornwall. As a result of the issues raised by these scandals, and consistent with Valuing People Now, around 200 NHS facilities might no longer be NHS-run and will become the responsibility of Local Authorities. Many Local Authorities will in turn contract out the day-to-day provision of care to private agencies including charities and commercial enterprises, who will require significant additional insurance services.� �Alongside the significant issue of care for older people, there are growing calls for a complete revamp of the delivery of care for people with learning disabilities. This includes proposals to transfer responsibility for people with learning disabilities who are not ill or under treatment or assessment from the NHS to Local Authorities. If the relevant funding reforms can be agreed, Local Authorities are in turn likely to contract out much of this care provision to charities and other agencies.� �As charities and other agencies take on more of the day-to-day responsibility for care provision, they will require Employers Liability, Public Liability, Medical Malpractice, Products Liability, Professional Indemnity and Directors & Officers protection at least,� says Tony Spice. �Our research shows that the provision of care is a high-risk area where large insurance claims can emerge from a wide range of daily operations. However, too many care homes are not fully aware of the risks. We believe that the insurance companies providing coverage to this growing sector need to consider the warning signs alerting them to poor or lax management, which are flagged in our newly published Aspen Opinion.� Aspen Insurance UK Limited provides insurance cover for the liability risk of care facilities and related services. About Aspen Insurance Holdings Limited Aspen provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, the United States, the United Kingdom, and Switzerland. For the nine months ended September 30, 2007, Aspen reported gross written premiums of $1.5 billion, net income of $353.8 million and total assets of $7.3 billion. For more information about Aspen, please visit www.aspen.bm. Aspen's Ratings � Aspen Insurance UK Limited Aspen Insurance Limited A (Strong) Standard & Poor's A (Strong) Standard & Poor's A (Excellent) A.M. Best A (Excellent) A.M. Best A2 (Good) Moody's A2 (Good) Moody's � Aspen Specialty Insurance Company A- (Excellent) A.M. Best Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This press release contains written, and Aspen's officers may make related oral, "forward-looking statements" within the meaning of the U.S. federal securities laws regarding its capital management plans, its outlook and financial results. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature. All forward-looking statements rely on a number of assumptions, estimates and data concerning future results and events and are subject to a number of uncertainties and other factors, many of which are outside Aspen's control that could cause actual results to differ materially from such statements. For a detailed description of uncertainties and other factors that could impact the forward-looking statements in this release, please see the "Risk Factors" section in Aspen's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the U.S. Securities and Exchange Commission on February 22, 2007.