Endurance Specialty Holdings has offered to acquire all of the common shares of Aspen Insurance Holdings for $3.2bn, as part of its strategy to boost presence in specialty insurance and reinsurance.
The offer price of $47.50 per Aspen share includes 60% in Endurance common stock and 40% in cash.
The integrated company will have increased scale, market presence, diversification and profit potential with more than $5bn of combined annual gross premiums written, diversified across products and geographies, among others.
Endurance chairman and CEO John Charman said, "This transaction is, quite simply, a unique opportunity to deliver value to shareholders of both Aspen and Endurance, while creating a new global leader in the industry.
"The proposal offers up-front value for Aspen’s shareholders, who will receive a substantial premium for their shares, as well as the opportunity to participate – along with Endurance’s shareholders – in future value created by a stronger and more profitable company."
On completion of the deal, the united company will generate synergies exceeding $100m annually, including cost savings, underwriting improvements, capital efficiencies and enhanced capital management opportunities, according to Endurance.
Endurance plans to let the headquarters of the integrated entity to remain in Bermuda, with a significant presence in London, New York and other key markets.
Morgan Stanley & Co and Jefferies were hired as financial advisors, while Skadden, Arps, Slate, Meagher & Flom and ASW Law are acting as legal counsels.
Image: Endurance proposes to acquire Aspen Insurance for $3.2bn. Photo: courtesy of Stuart Miles/FreeDigitalPhotos.net.