Aspen Insurance Holdings Ltd Class A (AHL) AI Stock Analysis

• Market Cap: $3.40B
• Dividend Yield: N/A
• Average Volume (3M): 246.28K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,128
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.08
• Shares Outstanding: 91,838,360
• 10 Day Avg. Volume: 245,206
• 30 Day Avg. Volume: 246,281
• PEG Ratio: -0.13
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 5.49
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $37.50
• Price Target Upside: 1.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $39.00 ▲(5.26% Upside)

Aspen Insurance Holdings Ltd Class A demonstrates strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet. The technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. The absence of valuation metrics introduces uncertainty, impacting the overall score.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates Aspen's successful market expansion and product adoption, strengthening its competitive position in the insurance industry.

Balance Sheet Health

Low leverage and a strong equity base provide Aspen with financial flexibility, reducing risk and supporting sustainable long-term operations.

Cash Flow Generation

Improved cash generation capabilities enhance Aspen's ability to invest in growth opportunities and manage liabilities, ensuring long-term financial health.

Negative Factors

Profitability Challenges

Despite strong revenue growth, declining net income suggests potential issues in cost management or market conditions, which could impact future profitability.

Cash Flow Coverage

Limited cash flow coverage may hinder Aspen's ability to meet financial obligations and invest in growth, posing a risk to long-term financial stability.

Acquisition Uncertainty

The acquisition by Sompo Holdings introduces uncertainty regarding strategic direction and potential integration challenges, impacting Aspen's future operations.

Aspen Insurance Holdings Ltd Class A Business Overview & Revenue Model

Company Description

Aspen Insurance Holdings Limited, together with its subsidiaries, engages in the insurance and reinsurance businesses in Australia, Asia, the United Kingdom, Ireland, rest of Europe, the United States, Canada, and internationally. It offers various reinsurance and retrocession products, including property catastrophe reinsurance, other property reinsurance, casualty reinsurance, and specialty reinsurance; and various insurance products, such as first party insurance, specialty insurance, casualty insurance, financial and professional lines insurance, and other insurance. The company offers its products primarily through brokers and reinsurance intermediaries. The company was formerly known as Exali Reinsurance Holdings Ltd and changed its name to Aspen Insurance Holdings Limited in November 2002. Aspen Insurance Holdings Limited was incorporated in 2002 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

Aspen Insurance Holdings generates revenue primarily through the collection of premiums from its insurance and reinsurance policies. The company charges clients upfront premiums in exchange for assuming the risk of various insured events. Key revenue streams include premium income from property and casualty insurance, as well as reinsurance contracts that cover risks taken on by other insurers. Additionally, Aspen earns investment income from the assets held in its investment portfolio, which includes fixed-income securities and equities. Significant partnerships with brokers and agents also play a crucial role in driving new business opportunities and expanding its market reach, thereby contributing to its overall earnings.

Aspen Insurance Holdings Ltd Class A Financial Statement Overview

Summary

Aspen Insurance Holdings Ltd Class A exhibits strong revenue growth and profitability, supported by a stable balance sheet with low leverage. The company has shown significant improvement in cash flow generation, although there are areas for enhancement in cash flow coverage. Overall, the financial statements reflect a solid financial performance with a positive growth trajectory, though attention to cash flow management is advisable.

Income Statement

Aspen Insurance Holdings Ltd Class A has shown a strong revenue growth rate of 338.86% in the latest year, indicating robust top-line expansion. The gross profit margin stands at 33.56%, and the net profit margin is 15.40%, reflecting solid profitability. The EBIT margin of 16.67% and EBITDA margin of 16.95% suggest efficient operational management. However, the decline in net income from the previous year indicates some challenges in maintaining profitability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The return on equity (ROE) is 14.42%, showcasing effective use of equity to generate profits. The equity ratio of 21.42% suggests a strong equity base relative to total assets. Overall, the balance sheet reflects a stable financial position, though there is room for improvement in asset utilization.

Cash Flow

Aspen Insurance Holdings Ltd Class A has achieved a significant free cash flow growth rate of 145.95%, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio of 0.49 and free cash flow to net income ratio of 0.97 indicate efficient cash flow management. However, the relatively low operating cash flow coverage ratio suggests potential challenges in covering net income with operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.18B	3.20B	2.89B	2.64B	2.59B	2.72B
Gross Profit	1.59B	1.06B	961.40M	531.00M	478.20M	417.60M
EBITDA	346.40M	535.10M	479.50M	70.10M	114.70M	53.50M
Net Income	453.90M	486.10M	534.70M	51.10M	29.80M	-56.40M
Balance Sheet
Total Assets	16.41B	15.75B	15.22B	15.16B	13.84B	13.09B
Cash, Cash Equivalents and Short-Term Investments	0.00	5.89B	5.26B	4.81B	6.21B	6.22B
Total Debt	296.60M	375.60M	386.10M	395.40M	415.10M	405.90M
Total Liabilities	12.94B	12.38B	12.32B	12.80B	11.07B	10.20B
Stockholders Equity	3.47B	3.37B	2.91B	2.36B	2.77B	2.89B
Cash Flow
Free Cash Flow	285.90M	537.40M	315.80M	-55.00M	460.20M	-713.40M
Operating Cash Flow	311.70M	554.90M	324.70M	-55.00M	524.70M	-672.70M
Investing Cash Flow	-399.50M	-352.80M	-172.20M	-196.50M	-950.30M	1.15B
Financing Cash Flow	-32.00M	-307.90M	-90.20M	-84.60M	500.00K	223.50M

Aspen Insurance Holdings Ltd Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HG	81 Outperform	$2.68B	6.22	17.62%	―	22.79%	-5.17%
SPNT	75 Outperform	$2.44B	13.24	8.09%	―	7.87%	-4.68%
SKWD	74 Outperform	$1.98B	14.49	16.06%	―	22.51%	2.19%
SYBT	69 Neutral	$1.95B	14.44	13.69%	1.94%	11.74%	26.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	66 Neutral	$1.25B	25.94	17.02%	―	38.50%	―
AHL	62 Neutral	$3.40B	―	13.97%	―	―	―

Aspen Insurance Holdings Ltd Class A Corporate Events

Aspen Insurance Reports Strong Q3 2025 Results Amid Sompo Group Acquisition

On November 13, 2025, Aspen Insurance Holdings Limited announced its financial results for the third quarter and the first nine months of 2025, showing strong performance with a net income of $111 million for the quarter and $166 million for the nine months. The company reported improvements in its combined ratio and growth in fee income from Aspen Capital Markets. The announcement highlighted Aspen’s strategic focus on underwriting discipline and sustainable profitability, as well as its ongoing acquisition by the Sompo Group, expected to close in the first half of 2026.

Aspen Insurance Announces Shareholder Information for Sompo Acquisition

On September 11, 2025, Aspen Insurance Holdings Limited announced that it provided an Information Statement to its shareholders regarding the Agreement and Plan of Merger with Sompo Holdings, Inc., which was initially entered into on August 27, 2025. The merger, valued at approximately US$3.5 billion, has already received the necessary shareholder approval, allowing the transaction to proceed without further shareholder consent. Shareholders are encouraged to review the Information Statement and vote accordingly. This merger marks a significant step in Aspen’s strategic direction, potentially impacting its market positioning and operations.

Aspen Insurance Declares Dividends on Preference Shares

On September 2, 2025, Aspen Insurance Holdings Limited announced dividends on its preference shares, payable on October 1, 2025, to holders of record as of September 15, 2025. This declaration reflects Aspen’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.