Aspen Insurance Holdings' chief executive says the insureris reducing its earthquake and wind exposure in the U.S. Propertyinsurance market due to the volatility of catastrophe risks.

During a conference call with financial analysts, Aspen CEOChris O'Kane said that while the company has taken measures toeliminate unprofitable lines of business, the current pricing andeconomic environment requires additional measures to improve thebottom line.

O'Kane said the company plans “a significant and controlledreduction” in its U.S. wind and earthquake exposure over the nexttwo years. He expects the move to free up $140 million in capital,which would be applied to the company's $500 million share buy-backprogram, announced earlier in the call, “unless other verycompelling opportunities emerge.”

There is no change of strategy for the Aspen Insurance U.S.Marine or Programs units; and within Aspen's reinsurance segment,Aspen's risk appetite for catastrophe-related risk isunchanged.

O'Kane said the rest of Aspen's U.S. book remains highlyprofitable and that the carrier plans to improve its investmentportfolio with high-yield investment securities.