TOKYO, Aug 27 (Reuters) - Sompo Holdings ( NHOLF ) said

on Wednesday that it would acquire New York-listed Aspen

Insurance Holdings ( AHL ) for about $3.5 billion, joining a

number of Japanese financial firms that are investing in

overseas assets to drive growth.

Sompo ( NHOLF ) has offered $37.50 for each share of the U.S.

firm, which is majority-owned by Apollo Capital Management,

representing a 35.6% premium to Aspen's unaffected share price.

Aspen shares rose 13% to $36.40 in morning trading.

Dwindling growth in the domestic financial market has

prompted Japanese companies, including insurers, brokerages and

banks, to explore overseas options.

Some of the recent deals include Nippon Life Insurance

buying Resolution

Life Group Holdings for about $8.2 billion and

Nomura's

decision to acquire Macquarie Group's U.S. and

European public asset management businesses for $1.8 billion.

Sompo ( NHOLF ) plans to integrate Aspen's operations with its

overseas insurance business to strengthen its presence in major

markets, including the Americas and the UK.

"Strategic acquisitions have been a key part of our

growth plan to build a robust and diversified global P&C

(property and casualty) platform, and Aspen represents an

excellent opportunity at the right time in the market cycle,"

Sompo P&C CEO James Shea said.

Apollo, which holds an 82% stake in Aspen Insurance ( AHL ),

took the company

public

earlier this year after taking it private in 2019 for $2.6

billion. The company's valuation hit a little over $3 billion on

its debut day.

Aspen's acquisition will be financed entirely through

Sompo's ( NHOLF ) internal capital, the Japanese company said. The deal is

expected to close in the first half of 2026.

Morgan Stanley is Sompo's ( NHOLF ) financial adviser, while

Goldman is advising Aspen on the deal.