Aspen has launched an initial public offering (IPO) of shares, seeking to raise as much as $392 million which could value the firm at almost $2.9 billion. In the disclosures made, Aspen revealed its third-party, ILS and alternative reinsurance capital management unit Aspen Capital Markets (ACM) saw a significant rise in fee income in Q1 2025.
Global insurance and reinsurance group Aspen is offering 11m shares at a price of between $29 and $31 per-share, with an additional 1.65m optional shares offered to the underwriters as well, which could see the firm raising anything between $319 million and $392 million, it seems.After the IPO offering, once Aspen’s shares are listed on the New York Stock Exchange under the symbol AHL, Aspen explains that it will have 91,841,482 ordinary shares outstanding, which if it achieves the top valuation of $31 per-share would value the re/insurer at close to $2.9 billion.
Alongside the IPO offering, Aspen has disclosed unaudited financial figures for the first-quarter of 2025, in which it has also provided an insight into how its third-party reinsurance capital and insurance-linked securities (ILS) business is tracking this year.
Aspen said that fee income earned by its Aspen Capital Markets division has reached an unaudited $45.6 million for Q1 2025.
That’s an impressive 36% increase on the $33.6 million of fee income its third-party reinsurance capital management business unit earned in Q1 2024.
Recall that, the Aspen Capital Markets team grew their assets under management by roughly 30% in 2024, to reach $2.2 billion at the end of December 2024.
In April 2024, Aspen launched a partnership with asset manager PIMCO, on the Pando Re sidecar-style vehicle, a Bermuda-based, casualty focused collateralised re/insurer that act as a reinsurance sidecar and which the company expects to drive further growth of third-party capital and fee income for Aspen Capital Markets.
Fee income for the full-year amounted to $169 million in 2024, which represented a year-on-year increase of 24.8%.
With $45.6 million of fee income already earned in Q1 2025 by ACM, the unit is on-track to lift its full-year total again, with the higher assets under management the unit commands set to drive more fee income generation opportunities for Aspen.
The IPO will raise additional funds for the company and the growing contribution made by its third-party capital management unit will certainly be one factor that is supportive of its eventual valuation.
It’s also worth noting that Aspen reported its unaudited combined ratio for Q1 2025 as being 96.1%, with a catastrophe loss ratio of only 13% despite the occurrence of the wildfires in California in the last quarter.
Aspen Capital Markets is just one of the dedicated insurance-linked securities (ILS) fund managers, and reinsurers offering ILS-style investment opportunities, listed in our Insurance-Linked Securities Investment Managers & Funds Directory.
