Aspen Insurance Holdings shareholder Apollo Global Management enjoyed a successful upsized initial public offering (IPO) – managing to raise an eye-catching $397.5 million from the insurer and reinsurer.
The firm offered 13.25 million shares, which, according to Bloomberg, were priced around $30 each. This would present Aspen with an approximate market value in the region of $2.8 billion.
The offering, along with an IPO from American Integrity Insurance Group Inc., marks a return of activity to the US IPO market. Listings slowed after former President Donald Trump’s April 2 tariff announcement, which prompted some companies to delay or reconsider going public. During this period, China’s Chagee Holdings Ltd. was the only large-scale IPO in the US since SmartStop Self Storage REIT Inc. raised $810 million earlier in the year.
The insurance industry continues to see tighter underwriting capacity amid a rise in natural catastrophe-related claims, contributing to increased premiums. Some insurers are reporting mark-to-market declines on fixed income portfolios, though these may be less of a concern for long-term investors given the typical hold-to-maturity strategy.
Aspen reported net income of $486.1 million on revenue of $3.26 billion in 2024, compared to $534.7 million in net income on $2.97 billion in revenue the previous year, according to its filing with the US Securities and Exchange Commission.
Apollo’s stake is expected to decline to 86.7% from 99.8% following the IPO. The firm acquired Aspen in 2019 in a $2.6 billion transaction.
In investor presentations, Aspen outlined changes to its business mix, including a reduction in reinsurance and property catastrophe exposure. These adjustments were made under CEO Mark Cloutier, former head of Brit Group, who joined Aspen as part of Apollo’s post-acquisition leadership changes.
Goldman Sachs, Citigroup, and Jefferies are leading the underwriting group, which includes 13 additional firms. Aspen’s shares began trading Thursday on the New York Stock Exchange under the symbol AHL.
