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

• Market Cap: $3.37B
• Dividend Yield: N/A
• Average Volume (3M): 414.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,128
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.22
• Shares Outstanding: 91,838,360
• 10 Day Avg. Volume: 220,921
• 30 Day Avg. Volume: 414,474
• PEG Ratio: -0.13
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 5.49
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 9.17
• 1Y Price Target: $38.00
• Price Target Upside: 3.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: $39.00 ▲(6.15% 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 sale of insurance and reinsurance policies. The company's revenue model is based on underwriting premiums collected from policyholders, which are a key revenue stream. Additionally, Aspen earns investment income from the premiums it collects and holds in reserve before claims are paid out. The company strategically invests these funds in various financial instruments to generate returns. Significant partnerships and relationships with brokers and reinsurance intermediaries enhance its market reach and contribute to earnings. The effective management of claims and risk exposure also plays a crucial role in maintaining profitability, as it allows Aspen to optimize the balance between premiums collected and claims paid out.

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	3.16B	3.20B	2.89B	2.64B	2.59B	2.80B
Gross Profit	1.01B	1.06B	961.40M	531.00M	478.20M	2.68B
EBITDA	429.00M	535.10M	479.50M	70.10M	114.70M	53.50M
Net Income	388.60M	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	6.21B	5.89B	5.26B	959.20M	6.21B	6.22B
Total Debt	367.40M	375.60M	386.10M	395.40M	415.10M	405.90M
Total Liabilities	13.07B	12.38B	12.32B	12.80B	11.07B	10.20B
Stockholders Equity	3.35B	3.37B	2.91B	2.36B	2.77B	2.89B
Cash Flow
Free Cash Flow	480.30M	537.40M	315.80M	-55.00M	460.20M	-713.40M
Operating Cash Flow	505.70M	554.90M	324.70M	-55.00M	524.70M	-672.70M
Investing Cash Flow	-368.00M	-352.80M	-172.20M	-196.50M	-950.30M	1.15B
Financing Cash Flow	-132.70M	-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	82 Outperform	$2.43B	6.46	15.86%	―	28.86%	-11.22%
SKWD	77 Outperform	$1.88B	14.82	16.20%	―	22.20%	5.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	66 Neutral	$1.20B	16.70	27.52%	―	59.76%	―
SPNT	65 Neutral	$2.07B	20.03	4.82%	―	-4.56%	-55.48%
AHL	62 Neutral	$3.37B	―	12.50%	―	―	―
SYBT	60 Neutral	$2.00B	15.59	13.51%	1.84%	13.28%	22.43%

Aspen Insurance Holdings Ltd Class A Corporate Events

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.

Aspen Insurance Holdings to be Acquired by Sompo Holdings

On August 27, 2025, Aspen Insurance Holdings Limited entered into a definitive merger agreement to be acquired by a wholly owned subsidiary of Sompo Holdings, Inc., a prominent global insurance provider. The merger will result in Aspen becoming a wholly owned subsidiary of Sompo, with each Class A ordinary share being converted into $37.50 in cash. The merger agreement includes various conditions, such as shareholder approval and regulatory consents, which have been met as of the announcement date. This acquisition is expected to enhance Aspen’s market positioning by integrating with Sompo’s extensive global network, potentially offering expanded opportunities for stakeholders.

Aspen Insurance Releases Mid-Year Financial Results for 2025

On August 13, 2025, Aspen Insurance Holdings Limited released its consolidated financial statements and management’s discussion for the three and six months ending June 30, 2025. This release provides insights into the company’s financial performance, showcasing a detailed analysis of its assets, liabilities, and overall financial condition. The report is crucial for stakeholders as it highlights Aspen’s financial health and strategic positioning in the market.

Aspen Insurance Reports Strong Q2 2025 Financial Results

Aspen Insurance Holdings Limited reported strong financial results for the second quarter of 2025, with a net income of $36 million and operating income of $111 million. The company showed an improvement in its combined ratio and significant growth in fee income from Aspen Capital Markets. These results highlight Aspen’s strategic positioning and operational strength, which were recognized by an upgrade in its ratings outlook by S&P. Aspen’s disciplined approach and focus on sustainable growth are expected to continue delivering value to shareholders.