Citizens JMP Downgrades Aspen Insurance Holdings (AHL) to Market Perform

Citizens JMP analyst Matthew Carletti downgraded Aspen Insurance Holdings (NYSE: AHL) from Market Outperform to Market Perform.

The analyst comments: "We are downgrading shares of Aspen Insurance Holdings to Market Perform from Market Outperform following the announcement on August 27 that the company will be acquired by Sompo Holdings. Aspen announced this morning that it has agreed to be acquired by Sompo Holdings (SMPNY, NC) for total consideration of $37.50 per share, approximately $3.5 bln, entirely in cash. This represents an ~36% premium to the closing price per share of Aspen common stock on August 18 (the last trading day prior to rumors of the acquisition), a 7.5x multiple of 2026E EPS and 1.3x reported book value. With the shares currently trading at only an ~3% discount to Sompo's $37.50 acquisition price, we believe the market is currently fairly discounting the potential outcomes. While a better, competing offer can never be ruled out, we believe the odds are quite low given (1) the strategic fit offered by Sompo, (2) the premium being paid, and (3) the offer being 100% in cash. As such, we are downgrading shares to Market Perform."

For an analyst ratings summary and ratings history on Aspen Insurance Holdings click here. For more ratings news on Aspen Insurance Holdings click here.

Shares of Aspen Insurance Holdings closed at $32.21 yesterday.

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