Sompo Holdings Acquires Aspen Insurance for $3.5 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Source: WSJ
Deal Announcement: Apollo Global Management has agreed to sell Aspen Insurance Holdings to Japan's Sompo Holdings for approximately $3.5 billion.
Purchase Price: Sompo will pay $37.50 per share in cash for Aspen, representing a 14% premium over Aspen's closing price of $32.21 on the previous Tuesday.
Market Reaction: The offer is nearly 36% higher than Aspen's closing price of $27.66 on August 19, prior to reports of Sompo's interest in acquiring the company.
Company Background: Aspen Insurance Holdings is based in Bermuda and provides insurance and reinsurance services.
Analyst Views on AHL
Wall Street analysts forecast AHL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AHL is 37.50 USD with a low forecast of 37.50 USD and a high forecast of 37.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 37.260
Low
37.50
Averages
37.50
High
37.50
Current: 37.260
Low
37.50
Averages
37.50
High
37.50
About AHL
Aspen Insurance Holdings Limited is a Bermuda-based holding company. The Company provides insurance and reinsurance coverage to clients in various domestic and global markets through wholly owned operating subsidiaries in Bermuda, the United States and the United Kingdom, as well as its branch operations in Canada, Singapore and Switzerland. It manages its underwriting operations as two business segments: Insurance and Reinsurance. The Insurance segment underwrites primarily specialty risks across a diversified set of property and casualty lines of business. The Insurance segment is organized into four primary portfolios of business: financial and professional lines; casualty and liability lines; first party lines, and specialty lines. The Reinsurance segment is organized into four portfolios: casualty reinsurance, property catastrophe reinsurance, other property reinsurance and specialty reinsurance. Its casualty reinsurance is written on an excess of loss and proportional basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
