Sompo Holdings (8630) investor relations material

Deal rationale and strategic fit

• Acquisition accelerates growth strategy, positioning as a top 10 global reinsurer and expanding scale in insurance and reinsurance markets, including specialty lines and high-growth international markets.

• Expands product and geographic footprint, re-entering the Lloyd's market, accessing 80+ new markets, and deepening broker and client relationships.

• Enhances underwriting expertise and provides access to significant fee-based, capital-light income via Aspen Capital Markets.

• Strengthens global scale, distribution relationships, and supports long-term global growth strategy.

• Integrates Aspen’s business with overseas operations for further expansion in developed markets.

Financial terms and conditions

• All-cash acquisition of 100% of Aspen Insurance Holdings for $3.48 billion ($37.5 per share), representing a 35.6% premium to the unaffected share price and 1.3x–1.32x tangible book value.

• Funded with cash on hand; Aspen preference shares remain outstanding with unchanged terms post-closing.

• Transaction unanimously approved by both Boards and Aspen's majority owner.

• Transaction expected to close in the first half of 2026, pending regulatory approvals.

Synergies and expected cost savings

• Over $200 million in annual run-rate cost savings targeted by 2030, mainly from systems integration, operational efficiencies, and overlapping functions.

• One-off integration costs of $200 million expected.

• Synergies expected in operating expenses, capital policy, and leveraging third-party capital via Aspen Capital Markets.

• Significant cost and capital synergies identified to enhance capital optimization and reduce earnings volatility.