Sompo Holdings has announced that its wholly owned subsidiary Sompo International Holdings Ltd has entered into a definitive merger agreement with Aspen Insurance Holdings Limited in a deal worth approximately £2.6bn.

Explaining its rationale for the purchase, Sompo said the deal would give it an enhanced presence in the UK, Bermuda and the Lloyd’s market as well as adding complementary lines of business to its portfolio.

It stated: “Aspen’s syndicates offer unique access to Lloyd’s distribution and licensing. It has a strong underwriting track record and capital discipline and is recognised as one of the best-performing Lloyd’s platforms.

“Additionally, it has a stable fee-based business managing third-party capital, a unique strength that would otherwise be difficult to build organically.”

The deal is expected to complete in the first half of next year.