Sompo Shares Rise After Plan to Buy Aspen Insurance for $3.5 Billion

By Kosaku Narioka

Sompo Holdings shares rose sharply after it agreed to buy U.S.-listed Aspen Insurance Holdings for about $3.5 billion.

The Tokyo-listed stock was recently 4.0% higher at 4,860 yen, equivalent to $32.97, on Thursday after rising as much as 6.6% earlier.

The Japanese insurer said late Wednesday that it will buy Aspen, a specialty insurance company operating primarily in the U.S., U.K. and Bermuda, for about $3.5 billion in cash.

Sompo said its capital has grown steadily recently, thanks to higher profits and continuing sales of shares in other listed Japanese companies, allowing it to seek new investments.

The insurer said Aspen has unique strengths, such as its presence in the Lloyd's market in the U.K., and a stable fee-based business managing third-party capital.

Sompo said the acquisition, expected to be completed in the first half of 2026, will increase the proportion of its overseas insurance business in the group portfolio to about 56%.

In 2017, the Japanese company bought then U.S.-listed Endurance Specialty Holdings for $6.3 billion and has been expanding its earnings in its overseas property and casualty insurance sector.

New York-based buyout firm Apollo Global Management acquired Aspen for $2.6 billion in 2019 and returned it to the public market in May, though it still owns more than 80% of the company. Sompo said Aspen's board unanimously approved the acquisition.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 27, 2025 23:27 ET (03:27 GMT)