10:37 AM EDT, 08/27/2025 (MT Newswires) -- Aspen Insurance ( AHL ) shares surged intraday Wednesday after the insurance and reinsurance coverage provider agreed to be acquired in a $3.5 billion deal with Sompo Holdings, a Japanese insurance and financial services group seeking portfolio diversification.

Each Aspen class A share will be converted into the right to receive $37.50 in cash at closing, representing a premium of about 36% to the share price on Aug. 19, according to a joint statement.

The companies expect to close the deal, which requires regulatory approvals, in the first half of 2026. Aspen's shares were up 13% in Wednesday trade.

"This transaction represents an excellent outcome for Aspen and our shareholders, while Sompo's scale and capital strength will create significant opportunities for our customers, trading partners and colleagues," Aspen Chief Executive Mark Cloutier said.

Aspen, which will be delisted from the New York Stock Exchange as part of the Sompo deal, reported gross written premiums of $4.61 billion in 2024.

"Strategic acquisitions have been a key part of our growth plan to build a robust and diversified global (property and casualty) platform, and Aspen represents an excellent opportunity at the right time in the market cycle," said James Shea, CEO of Sompo's P&C unit.

Sompo said it has identified "significant cost and capital synergies" stemming from this transaction.

Price: 36.45, Change: +4.24, Percent Change: +13.17