Apollo’s Aspen Insurance Targets $2.9B Valuation in US Stock Market Return

Aspen Insurance said on Tuesday it was seeking a valuation of up to $2.85 billion in its New York flotation, as the Bermudian specialty insurer looks to go public again in the United States after more than six years.

Stock markets have calmed down in recent days amid signs of easing tensions in the U.S.-China trade war, paving the way for companies to proceed with their initial public offerings.

Aspen parent, Apollo Global Management, is seeking to raise up to $341 million in the IPO by offering 11 million shares priced between $29 and $31 each.

“With ongoing recessionary concerns, we anticipate continued interest in sectors perceived as more defensive and less sensitive to macroeconomic headwinds or tariffs,” said Lukas Muehlbauer, research analyst at IPOX. “Insurance fits this profile.”

Founded in 2002, Aspen underwrites specialty insurance and reinsurance globally. Its founding shareholders included buyout giant Blackstone.

Aspen initially went public on the New York Stock Exchange in 2003, followed by a secondary listing on the Bermuda Stock Exchange in 2004.

Its ordinary shares traded on the NYSE and the BSX until 2019, when Apollo acquired it for $2.60 billion.

TURNAROUND UNDER APOLLO

Prior to Apollo’s acquisition, Aspen suffered multiple quarterly losses, hit by hurricanes, wildfires and earthquakes.

Apollo’s buyout deal included a termination right if Aspen’s net losses exceeded $350 million from certain catastrophic events between July 2018 and January 2019.

Related: A Turnaround Story: Boost People, Then Financial Results, Aspen CEO Says

With Apollo came insurance veteran Mark Cloutier. Under his leadership, Aspen focused on disciplined underwriting and profitable growth. After losing money from 2017 to 2020, it returned to profitability in 2021.

Under Apollo, Aspen shrunk catastrophe exposure and repositioned its underwriting portfolio — exiting a number of insurance and reinsurance offerings to focus on core business.

Aspen’s insurance offerings now focus on niche specialty lines such as environmental liability and credit and political risk.

Apollo will remain Aspen’s controlling shareholder post-IPO with an 86.7% stake.

Aspen will list on the NYSE under “AHL.” Goldman Sachs, Citigroup and Jefferies are the lead underwriters.

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