Aspen Insurance Holdings’ Successful IPO Raises $397.5 Million
Aspen Insurance Holdings, backed by Apollo Global Management, has successfully completed an upsized initial public offering (IPO), raising $397.5 million. The insurer and reinsurer offered 13.25 million shares at $30 each, according to Bloomberg, valuing the company at around $2.8 billion.
The IPO marks a significant return of activity to the US IPO market, which had slowed following former President Donald Trump’s tariff announcement on April 2. This development caused some companies to delay or reconsider their public offerings. Notably, Aspen’s IPO coincides with another from American Integrity Insurance Group Inc.
The insurance industry continues to experience tighter underwriting capacity due to a rise in natural catastrophe-related claims, leading to increased premiums. Some insurers have reported mark-to-market declines in their fixed income portfolios, although this may be less concerning for long-term investors who typically adopt a hold-to-maturity strategy.
Aspen’s financial performance in 2024 showed net income of $486.1 million on revenue of $3.26 billion, down from $534.7 million in net income on $2.97 billion in revenue the previous year, as per its filing with the US Securities and Exchange Commission.
Following the IPO, Apollo’s stake in Aspen is expected to decrease to 86.7% from 99.8%. Apollo acquired Aspen in 2019 for $2.6 billion. Under CEO Mark Cloutier, formerly of Brit Group, Aspen has made significant changes to its business mix, including reducing its reinsurance and property catastrophe exposure.
The underwriting group for the IPO was led by Goldman Sachs, Citigroup, and Jefferies, alongside 13 other firms. Aspen’s shares began trading on the New York Stock Exchange under the ticker symbol AHL.
