Apollo Global Management, an alternative investment manager, has agreed to acquire Bermuda-based Aspen Insurance for $2.6bn in an all-cash deal through certain investment funds managed by its affiliates.
Aspen Insurance offers reinsurance and insurance coverage to clients across the world via its subsidiaries. The insurer maintains offices across Bermuda, Australia, Canada, the US, Ireland, Singapore, Switzerland, the UAE and the UK.
The investment funds, collectively called as Apollo Funds, will acquire 100% of the shares of the insurance company at $42.75 per share.
Aspen Insurance CEO Chris O’Kane said: “This transaction is a testament to the strength of Aspen’s franchise, the quality of our business and the talent and expertise of our people.
“Under the ownership of the Apollo Funds, Aspen will have additional scale and access to Apollo’s investment and strategic guidance, which will help us to accelerate our strategy and take Aspen to the next level.”
Earlier this month, the global insurance company reported a net loss after tax of $14.7m for the second quarter of 2018. Its gross written premiums were $853.8m in Q2.
Last year, Aspen Insurance reported $3.4bn in gross written premiums with $12.9bn in total assets, $6.7bn in gross reserves and $2.9bn in equity for the year ended 31 December, 2017.
Apollo partner Alex Humphreys said: “We believe that Aspen benefits from strong underwriting talent, specialized expertise and longstanding client relationships which makes them well positioned in the market.
“We look forward to working with Aspen to build on the existing high quality specialty insurance and reinsurance business and we aim to leverage Apollo’s resources and deep expertise in financial services to support the Company as it embarks on its next chapter.”
The Apollo Funds acquisition of Aspen Insurance, which is expected to complete in the first half of 2019, is subject to certain regulatory approvals, approval of the insurer’s shareholders and other closing conditions.
Post-acquisition, Aspen Insurance will be a privately held portfolio company of Apollo Funds and the former’s ordinary shares will be delisted from the New York Stock Exchange.