Aspen Insurance is planning to go public again in the United States, aiming for a valuation of up to $2.85 billion. This comes after more than six years since its last public offering. The company, based in Bermuda, is looking to capitalize on a calmer stock market, which has seen easing tensions in the U.S.-China trade war, making it a more favorable time for initial public offerings (IPOs).
Aspen’s parent company, Apollo Global Management, hopes to raise about $341 million from this IPO. They plan to offer 11 million shares, with prices set between $29 and $31 each. Lukas Muehlbauer, a research analyst at IPOX, noted that in light of ongoing recession fears, investors are showing more interest in sectors like insurance that are seen as stable and less affected by economic fluctuations.
Founded in 2002, Aspen specializes in insurance and reinsurance worldwide. It made its debut on the New York Stock Exchange in 2003 and later listed on the Bermuda Stock Exchange in 2004. However, its shares stopped trading in 2019 when Apollo acquired the company for $2.60 billion.
Before the acquisition, Aspen faced several challenges, including significant losses from natural disasters like hurricanes and wildfires. Apollo’s buyout included a clause that allowed them to exit the deal if Aspen’s losses from certain catastrophic events exceeded $350 million within a specific timeframe.
Under Apollo’s leadership, Aspen has seen a turnaround. Mark Cloutier, an insurance veteran, took charge and shifted the company’s focus to disciplined underwriting and profitable growth. After struggling financially from 2017 to 2020, Aspen returned to profitability in 2021. The company has since reduced its exposure to catastrophic events and streamlined its offerings to focus on niche areas like environmental liability and political risk.
Even after the IPO, Apollo will maintain a controlling interest in Aspen, holding 86.7% of the shares. The company plans to trade on the NYSE under the ticker symbol “AHL,” with Goldman Sachs, Citigroup, and Jefferies acting as lead underwriters for the offering.