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Investing.com -- Aspen Insurance Holdings Limited (NYSE:AHL) stock soared 12% after Japanese insurer Sompo Holdings announced plans to acquire the specialty insurer for $3.5 billion in cash, representing a significant premium to its previous trading price.
Sompo will pay $37.50 per share for Aspen’s outstanding Class A ordinary shares, a 35.6% premium to Aspen’s unaffected share price of $27.66 on August 19, 2025. The acquisition, unanimously approved by both companies’ boards, is expected to close in the first half of 2026, subject to regulatory approvals.
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. Aspen reported a combined ratio of 87.9% and operating return on average equity of 19.4% for the twelve months ended December 31, 2024.
"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," said Mark Cloutier, Aspen Group Executive Chairman and Group CEO.
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.
Sompo expects the acquisition to be immediately accretive to its return on equity, supporting its strategic plan to achieve adjusted consolidated ROE of 13-15% by fiscal year 2026.
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