In a landmark move that underscores its ambition to become a dominant global insurance player, Sompo Holdings, Inc. announced it will acquire Aspen Insurance Holdings Limited for $3.5 billion. The deal, structured as an all-cash transaction at $37.50 per share, represents a 35.6 percent premium to Aspen’s unaffected share price and signals Sompo’s determination to build a diversified property and casualty (P&C) platform with international reach.
Under the agreement, all outstanding Class A ordinary shares of Aspen will be redeemed for cash, while its preference shares will remain outstanding. Once complete, Aspen will be delisted from the New York Stock Exchange. The transaction has already been unanimously approved by both companies’ boards and is expected to close in the first half of 2026, pending regulatory approvals.
For Sompo, the acquisition is more than a geographic expansion. Aspen brings over $4.6 billion in annual gross written premiums and decades of expertise across specialty insurance and reinsurance lines, including cyber risk, credit and political risk, property catastrophe, casualty reinsurance, and management liability. Its Lloyd’s syndicate provides an additional foothold in complex and high-value global markets.
Strategic acquisitions have long been a part of Sompo’s growth plan to build a robust and diversified global P&C platform, and Aspen represents a strong opportunity at the right time in the market cycle.
Beyond underwriting, Aspen also brings an alternative capital advantage. Its Aspen Capital Markets (ACM) platform, which manages more than $2 billion in assets, allows third-party investors to provide capital for reinsurance risk, generating steady management and performance fees. In 2024, 80 percent of ACM’s income came from long-tail, non-catastrophe business, making it a reliable revenue driver. For Sompo, this fee-based income will offer both diversification and a tool to better manage capital volatility.
Aspen has worked in recent years to streamline operations, reduce exposure to volatile risks, and fortify its balance sheet. With a 2024 combined ratio of 87.9 percent and an operating return on equity of 19.4 percent, the company is entering the deal on strong footing.
For Sompo, the transaction aligns with its strategic targets of achieving adjusted ROE of 13 to 15 percent and EPS growth above 12 percent by fiscal year 2026. Management expects the deal to be immediately accretive to earnings and return on equity, while delivering cost and capital synergies across the group.
As global insurance markets face mounting challenges ranging from climate risk to cyber threats, scale, diversification, and access to alternative capital are increasingly vital. With Aspen in its portfolio, Sompo is positioning itself as a global leader capable of underwriting complex risks, supporting brokers and clients, and driving long-term shareholder returns.
