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

SOMPO Holdings

27/08/2025 15:38

** 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

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com))