Aspen Insurance, a Bermudian specialty insurer, made a strong debut on the New York Stock Exchange, with its shares jumping 10.8% to secure a valuation of $3.05 billion. The IPO market has seen a resurgence in activity after being temporarily paused due to tariff-driven volatility.
The company’s shares opened at $33.25 apiece, above the $30 offer price set by parent company Apollo Global. Apollo raised $397.5 million by selling 13.25 million shares, 20.5% more than initially planned. This successful listing marks the largest U.S. insurance flotation since Corebridge Financial’s $1.68 billion IPO in 2022.
Despite the uncertainty surrounding U.S. trade policy and market volatility, Aspen Insurance’s CEO, Mark Cloutier, remains optimistic about the company’s prospects. He noted that Aspen is less sensitive to economic headwinds and is positioned as a second-order impact company, making it less immediately impacted by tariffs.
The return of Aspen Insurance to the public market comes after Apollo acquired the company for $2.6 billion in 2019. Under Apollo’s ownership, Aspen focused on profitability by reducing catastrophe exposure and exiting certain insurance and reinsurance offerings.
While the IPO market is still awaiting stability, companies like Aspen are taking advantage of opportunities to engage with equity investors. NMS Capital Group CEO Trevor Saliba highlighted the resilience of insurance companies in the face of market fluctuations, emphasizing the long-term returns that patience can yield in the insurance industry.
Looking ahead, industry experts believe that macroeconomic and market stability will be key drivers for a rebound in IPO activity. Companies like Klarna and StubHub are currently on the sidelines, waiting for market conditions to improve before making their public debuts.
Overall, Aspen Insurance’s successful IPO signals a positive outlook for the insurance sector and demonstrates investor confidence in the company’s growth potential. With the IPO market poised for a comeback, companies are preparing to capitalize on favorable market conditions when they arise.
This article was reported by Prakhar Srivastava and Arasu Kannagi Basil in Bengaluru and edited by Shilpi Majumdar.
