Sompo International to acquire Aspen Insurance for $3.5 bn

Sompo Holdings, Inc. announced a definitive agreement for its subsidiary, Sompo International Holdings Ltd. (SIH), to acquire Aspen Insurance Holdings Limited for approximately $3.5 billion, plus advisory fees of approximately $15 million. The acquisition, unanimously approved by both companies' boards, aims to accelerate Sompo’s strategy to increase overseas contribution to gross premiums, Adjusted Consolidated Profit, and Adjusted Consolidated ROE, while transforming its revenue structure.

Aspen, a specialty insurance and reinsurance group operating in the U.S., U.K. (including Lloyd's market), and Bermuda, exhibits robust profitability with an average combined ratio of 89.5% over the past three years. This acquisition is expected to enhance SIH's capital position and earnings, increase Adjusted EPS, and contribute to achieving Sompo's mid-term Adjusted Consolidated ROE targets of 13–15%.

The transaction is subject to regulatory clearances and approvals, with Sompo expecting to complete the acquisition process by the end of the first half of 2026. This strategic move is projected to solidify SIH's position among the top 10 global reinsurance companies by gross premiums written, increasing the proportion of overseas insurance business within Sompo Group’s portfolio to approximately 56%. The acquisition will be financed exclusively through Sompo's internal capital.