Aspen Insurance jumps on $3.5 billion buyout deal with Japan's Sompo

ReutersAug 27, 2025 2:38 PM

Specialty insurer Aspen Insurance's AHL.N shares jump 13.3% to $36.50

Japan's Sompo 8630.T will buy AHL for roughly $3.5 billion, just months after the insurer went public in New York

Sompo will pay $37.50 apiece for AHL, a 35.6% premium to the closing price on Aug. 19, before media reports of a potential deal first emerged

Japanese companies have been increasingly looking to expand overseas given slowing growth in their domestic insurance market amid shrinking and aging population

"While we think the company is worth more intrinsically, it is hard for us to imagine another bidder emerging," Citigroup analysts say

6 of 8 brokerages rate the stock "buy" or higher and 2 "hold"; median PT $40 - data compiled by LSEG

As of last close, AHL stock up 7.4% vs IPO price

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