Aspen Insurance Preferreds Update: All Still Rated Hold

(8min)

Summary

  • Apollo Global Management plans to spin off Aspen Insurance Holdings Limited in 2025, targeting a $4 billion valuation, after postponing the IPO due to unfavorable market conditions.
  • Aspen Insurance redeemed its 5.95% "C" preferred stock using funds from a recently issued 7% preferred, signaling positive financial health for existing preferreds.
  • Aspen's Q3 results show improved financials, with $3 billion available to cover preferred stockholders, indicating a strong coverage ratio and market confidence.
  • If the IPO achieves the $4 billion target, Aspen's coverage ratio for preferred stocks could increase to nearly 4x, enhancing investment attractiveness.
  • Aspen Insurance's preferred stocks remain rated as Hold, with potential price bumps if the IPO happens and the market views them as safer.
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Riding the Chair at Aspen

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Introduction

I last reviewed the Aspen Insurance Holdings Limited preferred stocks after Apollo Global Management (APO) postponed the IPO for this subsidiary (article link). Along with a brief overview of Aspen

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This article was written by

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Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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