Sompo Holdings has announced a definitive agreement to acquire Aspen Insurance Holdings Limited in a cash transaction valued at approximately $3.5 billion. The move strengthens Sompo’s property and casualty operations outside Japan.
Details of the Agreement
The acquisition will be executed through Sompo International Holdings, a subsidiary of Sompo Holdings. Under the agreement, all outstanding Class A ordinary shares of Aspen will be purchased for $37.50 per share in cash.
This price reflects a 35.6% premium over Aspen’s closing share price of $27.66 on August 19 and a 24.6% premium compared with its 30-day average. Aspen’s preference shares will remain unchanged under their current terms.
The boards of both companies have approved the merger. The deal is expected to close in the first half of 2026, pending regulatory approvals and customary conditions.
Sompo’s Strategic Objectives
Sompo has been actively building its property and casualty business globally. Aspen, which generates more than $4.6 billion in annual gross written premiums, offers a diverse portfolio of specialty insurance, including cyber, political risk, inland marine, construction, and management liability.
In addition, Aspen operates a global reinsurance book across property, casualty, and specialty lines, and runs a Lloyd’s syndicate.
Mikio Okumura, Sompo Group chief executive, emphasized that the acquisition aligns with Sompo’s strategy to strengthen resilience and foster group-wide collaboration.
James Shea, CEO of Sompo P&C, highlighted the timing of the deal: “Aspen provides an opportunity at the right point in the market cycle as Sompo continues to build scale in property and casualty insurance.”
Aspen’s Perspective
Mark Cloutier, Aspen executive chairman and CEO, described the transaction as delivering long-term stability and capital strength under Sompo’s ownership.
“This transaction represents an excellent outcome for Aspen and our shareholders,” Cloutier said. He added that Sompo’s scale would generate opportunities for customers, trading partners, and employees.
Cloutier also noted that Aspen’s valuation reflects its achievements, including the Aspen Capital Markets platform, which manages more than $2 billion in third-party investor assets. This platform focuses on non-catastrophe, long-tail business lines and provides fee-based income.
Financial Impact
Aspen reported a combined ratio of 87.9% and an operating return on equity of 19.4% for 2024.
Sompo anticipates that the acquisition will be accretive to its return on equity and contribute toward medium-term goals. These targets include achieving a 13% to 15% adjusted consolidated ROE and more than 12% adjusted earnings per share growth by fiscal year 2026.
Cost and capital synergies are also expected as the two businesses integrate.
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