Shares of Aspen Insurance Holdings Limited (NYSE:AHL) surged 12% after Japanese insurer Sompo Holdings revealed plans to acquire the specialty insurer for $3.5 billion in cash, representing a substantial premium over its recent trading levels.
Sompo will pay $37.50 per share for Aspen’s outstanding Class A ordinary shares, a 35.6% premium over Aspen’s unaffected share price of $27.66 on August 19, 2025. The acquisition, unanimously approved by both companies’ boards, is expected to close in the first half of 2026, pending regulatory approval.
The deal will expand Sompo’s footprint in specialty insurance and reinsurance markets while granting access to Aspen’s capital markets platform, which manages over $2 billion in assets. Aspen reported a combined ratio of 87.9% and an operating return on average equity of 19.4% for the twelve months ending December 31, 2024.
“Sompo is a highly regarded brand and through this process it has become clear that they represent a long-term owner for Aspen that respects our business and shares our values and ethos,” said Mark Cloutier, Aspen Group Executive Chairman and Group CEO.
After the acquisition, Aspen’s preference shares will remain outstanding under their current terms, although the companies may redeem or delist these shares in the future. Meanwhile, Aspen’s Class A ordinary shares will be delisted from the NYSE upon completion of the merger.
Sompo anticipates that the acquisition will be immediately accretive to its return on equity, supporting its strategic goal of achieving an adjusted consolidated ROE of 13–15% by fiscal 2026.
Aspen Insurance Holdings stock
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