Aspen Insurance Holdings Acquired by Sompo for $3.5 Billion, Shares Surge 13.72%

Aspen Insurance Holdings (AHL) surged 13.72% to $36.63 after announcing a $3.5 billion merger with Sompo International Holdings. The deal, which marks a 35.6% premium to AHL's share price on August 19, is expected to close in the first half of 2026, subject to regulatory approvals. AHL's Executive Chairman and CEO, James Shea, expressed optimism about the transaction, citing Sompo's scale and capital strength as opportunities for customers and employees.

Sompo Holdings has signed a definitive agreement to acquire Aspen Insurance Holdings Limited in a transaction worth approximately US$3.5 billion (NZ$5.9 billion), marking a significant expansion of its property and casualty operations outside Japan. The deal, valued at US$37.50 per share, represents a 35.6% premium to Aspen’s closing price of US$27.66 on August 19, 2025 [1].

The acquisition, expected to close in the first half of 2026, subject to regulatory clearances and customary closing conditions, will see Sompo’s subsidiary Sompo International Holdings purchase all outstanding Class A ordinary shares of Aspen. Aspen’s preference shares will remain unaffected [1].

Aspen, with annual gross written premiums of over US$4.6 billion, provides specialty insurance offerings including cyber, political risk, inland marine, construction, and management liability. It also has a global reinsurance book across property, casualty, and specialty segments, alongside a Lloyd’s syndicate [1].

Sompo’s strategic aims include strengthening resilience and increasing group-wide collaboration. Mikio Okumura, Sompo Group chief executive, expressed his appreciation for the successful realization of this transaction, attributing it to the diverse capabilities and market intelligence of the Sompo International Holdings executive team, Jim’s leadership, and close collaboration with Sompo Holdings [1].

James Shea, CEO of Sompo P&C, highlighted that Aspen provides an opportunity at the right point in the market cycle, as Sompo continues to build scale in property and casualty insurance. He looks forward to welcoming the Aspen team, recognizing the importance of platforms that can underwrite and manage capital and risk at scale [1].

Mark Cloutier, Aspen executive chairman and CEO, noted that Sompo’s ownership offers capital strength and long-term stability. He added that the premium offered recognizes the business Aspen has built, including its Aspen Capital Markets platform, which manages more than US$2 billion in assets from third-party investors [1].

The acquisition is expected to be accretive to Sompo’s return on equity and contribute to its medium-term targets, which include a 13% to 15% adjusted consolidated ROE and more than 12% adjusted earnings per share growth by fiscal year 2026 [1]. The group anticipates cost and capital synergies following the integration of the businesses.

Advisors to the transaction include Morgan Stanley & Co. LLC for Sompo and Goldman Sachs & Co. LLC, Insurance Advisory Partners LLC, and Sidley Austin LLP for Aspen [1].

References:
[1] https://www.insurancebusinessmag.com/nz/news/breaking-news/sompo-acquires-aspen-in-multibilliondollar-cash-purchase-547585.aspx