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Investing.com - Jefferies downgraded Aspen Insurance Holdings (NYSE:AHL) from Buy to Hold and lowered its price target to $37.50 from $38.00 following the company’s acquisition agreement with Sompo. The stock, which currently trades at $36.55, has shown strong momentum, trading near its 52-week high of $36.78, according to InvestingPro data.
The downgrade comes after Aspen Insurance announced it will be acquired by Sompo in an all-cash deal valued at $3.5 billion, or $37.50 per share. The transaction represents a 1.2x price-to-book value excluding accumulated other comprehensive income, slightly below the company’s current P/B ratio of 1.27x. InvestingPro analysis shows Aspen maintains a "GREAT" financial health score of 3.1, supporting the valuation.
According to Jefferies, the acquisition price reflects a 36% premium to Aspen’s unaffected share price as of August 19, 2025, and a 25% premium over the 30-day volume-weighted average price.
Shareholders representing more than a majority of Aspen’s issued common shares have already provided consent approving the merger agreement, which is expected to close in the first half of 2026.
Jefferies noted that Aspen previously went private in 2018 for $2.6 billion, representing a 1.1x price-to-book value, while Bermuda and reinsurance merger and acquisition multiples have ranged between 1.0-1.4x price-to-book over the last decade.
In other recent news, Aspen Insurance Holdings has agreed to be acquired by Sompo Holdings for $37.50 per share, in an all-cash transaction valued at approximately $3.5 billion. This acquisition offer represents a 35.6% premium over Aspen’s share price from August 19, 2025, and has been unanimously approved by the boards of both companies. The deal is expected to close in the first half of 2026, pending regulatory approvals. Following this announcement, Citizens JMP downgraded Aspen Insurance’s stock rating from Market Outperform to Market Perform. Meanwhile, Jefferies has adjusted its price target for Aspen Insurance to $38.00, down from $41.00, citing a mixed growth outlook due to softening market conditions in short-term insurance lines. Prior to the acquisition announcement, BMO Capital had reiterated its Outperform rating and set a $38.00 price target for Aspen, noting Sompo’s significant interest in the company. These developments follow Aspen’s recent return to public markets after completing its initial public offering earlier this year.
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