Sompo Holdings strikes $3.5bn Aspen Insurance deal

November 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

November 2025 Issue

Japanese insurance group Sompo Holdings has announced an agreement to acquire Aspen Insurance Holdings, a Bermuda-based insurance and reinsurance firm, in a transaction valued at $3.5bn.

Each issued class A ordinary share of Aspen will be converted into the right to receive $37.50 in cash upon closing. This represents a 35.6 percent premium to Aspen’s unaffected share price of $27.66 on 19 August 2025, the last full trading day before speculation about the deal, and a 24.6 percent premium over its 30-day volume-weighted average price.

The transaction has been unanimously approved by both companies’ boards and is expected to close in the first half of 2026, subject to customary conditions, including antitrust and insurance regulatory approvals and expiration of applicable waiting periods.

Sompo stated that the acquisition will strengthen its position in high-growth international markets, diversify revenue streams and enhance its financial profile. Executives noted the deal will expand opportunities for Aspen Capital Markets investors. Aspen intends to maintain its capital-light model, leveraging third-party capital. Aspen Capital Markets manages over $2bn in assets, with 80 percent of its 2024 fee income from non-catastrophe, long-tail lines.

Sompo expects the acquisition to reinforce its insurance and reinsurance operations and generate synergies in operating expenses and capital policy estimated at $200m by 2030. The deal is also expected to support mid-term financial targets, including an adjusted return on equity of 13 to 15 percent and earnings per share growth exceeding 12 percent by the end of financial year 2026.

“In pursuit of realising Sompo’s Purpose, we have been striving to enhance resilience and to promote ‘Connect and Be Connected’,” said Mikio Okumura, chief executive of Sompo Group. “To accelerate capital circulation and collaboration across the Group, we established Sompo P&C and appointed James Shea as CEO. This transaction is an excellent example of those initiatives in action.

“I would like to express my appreciation for the successful realisation of this transaction, made possible through the diverse capabilities and market intelligence of the SIH executive team, Jim’s leadership and close collaboration with Sompo Holdings.”

James Shea, chief executive of Sompo P&C, commented: “Strategic acquisitions have been key to building a robust and diversified global P&C platform, and Aspen represents an excellent opportunity at the right time in the market cycle. We look forward to welcoming the Aspen team as we bring our organisations together, recognising that the property/casualty market values platforms that can manage capital and risk at scale – and with exceptional skill.”

Mark Cloutier, executive chairman and group chief executive of Aspen, added: “Sompo is a highly regarded brand and it is clear they represent a long-term owner for Aspen that respects our business and shares our values. This transaction is an excellent outcome for Aspen and our shareholders, while Sompo’s scale and capital strength will create significant opportunities for our customers, trading partners and colleagues. The 35.6 percent premium reflects the quality Sompo sees in our team, the depth of our distribution relationships and the strength of the franchise we have built. We look forward to sharing more details as we work towards completion, while maintaining our focus on delivering great service and products.”

Aspen operates a leading specialty insurance and reinsurance franchise, generating more than $4.6bn in annual gross written premiums. Its portfolio is centred on bespoke solutions and complex specialty lines, including cyber, credit and political risk, inland marine, UK property and construction and US management liability. The company also runs a top-tier Lloyd’s syndicate and maintains branch operations in Canada, Singapore and Switzerland.

Richard Summerfield