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Investing.com - Aspen Insurance Holdings (NYSE:AHL), currently trading at $32.30 with a market capitalization of $2.56 billion, is reportedly in takeover talks with Japanese reinsurer Sompo Holdings, according to BMO Capital, which reiterated its Outperform rating and $38.00 price target on Aspen stock.
BMO Capital cited a report from Insurance Insider Media that Sompo Holdings, which has approximately $19.5 billion in shareholders’ equity, is discussing a potential acquisition of Apollo-backed Aspen, which has about $2.7 billion in shareholders’ equity. According to InvestingPro data, Aspen maintains a GOOD financial health score and trades at an attractive P/E ratio of 5.18.
Apollo Private Equity, which currently owns approximately 82% of Aspen’s shares, acquired the insurer in 2019 for just over one times book value and has reportedly been seeking a strategic buyer for years, according to BMO Capital. Currently, Aspen trades at 0.96 times book value, suggesting potential value for investors. InvestingPro subscribers can access additional valuation metrics and 6 more exclusive insights about Aspen’s financial position.
Sompo has previously demonstrated interest in expanding its non-Japanese insurance operations, which already represent more than 50% of its earnings. The Japanese firm purchased Endurance in 2016 for approximately $6.3 billion at a price-to-book value multiple of about 1.36 times.
BMO Capital noted that Sompo had previously shown interest in purchasing Axa (EPA:AXAF)’s reinsurance division, while Aspen’s current management team has experience in bringing insurance companies to market, having successfully taken Brit Group public before selling it to Fairfax.
In other recent news, Aspen Insurance Holdings Ltd. is reportedly in acquisition talks with Japan’s Sompo Holdings Inc., just three months after Aspen’s initial public offering. The discussions are said to be detailed, indicating a clear path toward finalizing the deal. In financial developments, Aspen Insurance has priced a $300 million public offering of senior notes due in 2030, with proceeds intended to repay outstanding debt. On the earnings front, Goldman Sachs has lowered its price target for Aspen Insurance to $33, citing weakening conditions in specialty insurance and reinsurance markets. Similarly, Jefferies adjusted its price target to $38, attributing the change to a mixed growth outlook and softening market conditions in short-term insurance lines.
In leadership updates, Aspen Insurance has appointed John Welch as Group Chief Underwriting Officer, effective August 1, 2025. Welch brings over 30 years of experience from global insurance firms such as AXA XL and XL Catlin Group. These developments reflect Aspen’s strategic moves amid shifting market conditions and leadership changes.
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