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Aspen Insurance reached an agreement for a sale to Apollo Global, according to reports.
The announcement closes a five-month sale process for Aspen, currently valued at nearly US$2.6 billion. The insurer went up for sale in March after it posted a US$266 million loss.
It was revealed by Bloomberg News this morning that Apollo would pay $42.75 a share for the Bermuda-based insurer – that’s a premium of 6.6% compared to Monday’s closing share price. It is expected that the deal will be complete in the first half of 2019.
“Aspen benefits from strong underwriting talent, specialized expertise and longstanding client relationships which makes them well positioned in the market,” Alex Humphreys, a partner at Apollo, said in a statement on Tuesday.
News of the deal’s closure comes after Aspen agreed to sell off its aviation business to Starr Insurance earlier this month. The company also offered US$2 million to keep its group chief financial officer, Scott Kirk, from leaving Aspen; Kirk joined Aspen in 2014.
Aspen Insurance Holdings Limited was formed in 2002, managing to raise US$850 million in capital and establishing a Bermudian subsidiary in the same year. In 2003, the firm began to list its shares on the New York Stock Exchange. The company celebrated its 15th anniversary last year.
