BMO Capital Initiates Coverage of Aspen Insurance (AHL) with Outperform Rating

On Monday, BMO Capital initiated coverage of Aspen Insurance Holdings Limited (NYSE:AHL) with an Outperform rating and a price target of $38. Analyst Michael Zaremski highlighted that Aspen successfully executed a turnaround, which positions it to close its valuation gap with peers by showing a less volatile underwriting profile compared to its historical performance.

A business executive reviewing insurance policy documents with a customer.

BMO anticipates a shift towards share buybacks at the expense of sales, which is projected to result in Aspen’s 2026 earnings estimates exceeding consensus by mid-single digits. This outlook from BMO Capital follows Aspen’s recent return to the public markets via an upsized IPO on May 8, with shares priced at $30. The IPO involved the sale of 13.25 million Class A ordinary shares by affiliates of Apollo Global Management, which generated $397.5 million in proceeds.

In its unaudited Q1 2025 results, released earlier on April 29, Aspen reported increased gross written premiums/GWP of $1.287 billion, which was up from $1.231 billion in Q1 2024. However, the company’s profitability saw a decline, with net income falling to $36.8 million from $111.8 million year-over-year.  Despite this, Aspen’s fee income from its Aspen Capital Markets division rose 36% to $45.6 million in Q1. Aspen Insurance Holdings Limited (NYSE:AHL) engages in the insurance and reinsurance businesses in Australia, Asia, the UK, Ireland, the rest of Europe, the US, Canada, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.