Sompo Holdings, Inc. has reportedly received the necessary antitrust and insurance regulatory approvals to complete the acquisition of 100% of the outstanding Class A common shares of Aspen Insurance through a wholly-owned subsidiary of Sompo International Holdings Ltd. (SIH).
Last August, SIH agreed to acquire all outstanding Class A common shares of Aspen Insurance in a $3.5 billion deal.
The announcement prompted AM Best to review the financial strength ratings of Sompo Japan Insurance Inc. and its subsidiaries with a positive outlook, citing the company’s potential to bring “material benefits” to the broader group’s business profile.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the coming days, subject to customary closing conditions.
Sompo said Aspen would add a well-established global insurance and reinsurance franchise to the group with a strong underwriting culture.
In particular, Aspen’s leading Lloyd’s syndicate is expected to enhance Sompo’s ability to support complex risks and expand reinsurance licensing capabilities in underserved markets around the world.
Following the transaction, Sompo said it will begin integrating Aspen’s businesses and expertise to further strengthen its globally diversified property and casualty platform.
