Sompo Holdings Acquires Aspen Insurance Holdings for $3.5 Billion, Shares Rise

Sompo Holdings plans to acquire Aspen Insurance Holdings for $3.5 billion. Sompo's capital has grown steadily, allowing it to seek new investments. The acquisition will increase Sompo's overseas insurance business to about 56%. Sompo's board approved the deal, with completion expected in H1 2026.

Sompo Holdings has announced plans to acquire Aspen Insurance Holdings for $3.5 billion in cash. The acquisition, which represents a substantial premium over Aspen's recent trading levels, was unanimously approved by both companies' boards and is expected to close in the first half of 2026, pending regulatory approvals [1].

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 [1]. The deal will strengthen Sompo’s global presence in specialty insurance and reinsurance markets while providing access to Aspen’s capital markets platform, which manages over $2 billion in assets [2].

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 [1]. The acquisition is expected to be immediately accretive to Sompo’s return on equity, supporting its strategic plan to achieve an adjusted consolidated ROE of 13-15% by fiscal year 2026 [1].

Mark Cloutier, Aspen Group Executive Chairman and Group CEO, stated, “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” [1].

Following the transaction, Aspen’s preference shares will remain outstanding with unchanged terms, though the companies may seek to redeem or delist these shares in the future. Aspen’s Class A ordinary shares will be delisted from the NYSE upon completion of the merger [1].

This acquisition is a significant step for Sompo, which has seen steady growth in its capital, allowing it to seek new investment opportunities. The deal will increase Sompo's overseas insurance business to about 56% [2].

References:
[1] https://www.investing.com/news/stock-market-news/aspen-insurance-stock-soars-after-sompos-35-billion-acquisition-offer-93CH-4212633
[2] https://investorshub.advfn.com/market-news/article/15330/aspen-insurance-shares-jump-after-sompos-3-5b-takeover-proposal