Sompo Holdings, a major Japanese insurance group, will acquire Aspen Insurance Holdings Limited, a leading global specialty insurer and reinsurer, in a $3.5bn transaction.
The transaction will be executed through a wholly owned subsidiary of Sompo International Holdings, according to InsurTech Insights.
The acquisition aims to diversify Sompo’s portfolio geographically, strengthen underwriting expertise in specialty insurance and reinsurance, and provide access to Aspen’s fee-based capital markets platform.
Aspen Class A ordinary shares will be redeemed for $37.50 per share in cash, with preference shares remaining outstanding.
The firm’s reinsurance portfolio spans casualty, property catastrophe, other property, and specialty reinsurance.
It also operates a Lloyd’s syndicate and manages Aspen Capital Markets, which oversees more than $2bn in assets and generates underwriting, management, and performance fees.
Aspen’s Class A shares will be delisted from the New York Stock Exchange, while preference shares remain unchanged.
The deal is expected to be immediately accretive to Sompo’s return on equity and has been unanimously approved by both boards. Closing is anticipated in the first half of 2026, subject to regulatory approvals.
Having streamlined its portfolio, strengthened its balance sheet, and improved financial performance, Aspen posted a combined ratio of 87.9 per cent and an operating return on equity of 19.4 per cent in 2014.
The deal represents a 35.6 per cent premium to Aspen’s unaffected share price of $27.66 on 19 August 2025 and a 24.6 per cent premium over the 30-day volume-weighted average price.
Mikio Okumura, CEO of Sompo Group, said, “This deal represents an important milestone in advancing the company’s purpose of ‘Connect and Be Connected.’”
James Shea, CEO of Sompo P&C, said, “Aspen represents an excellent opportunity at the right stage in the market cycle and fits into Sompo’s strategy of building a robust and diversified global property and casualty platform.”
Mark Cloutier, Aspen Group Executive Chairman and Group CEO, said, “Sompo is a long-term owner that respects Aspen’s business and values. The transaction represents an excellent outcome for Aspen shareholders, with a 35.6 per cent premium to the company’s unaffected share price. Sompo’s financial strength will unlock opportunities for customers, partners and employees while Aspen remains focused on delivering products and services.”
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