Apollo appoints Cloutier as Aspen CEO, reshuffles board as it closes $2.6bn acquisition

Alternative investment manager Apollo has unveiled  Mark Cloutier as the new executive chairman and group chief executive officer of Aspen and made other leadership changes.

Its acquisition of Bermuda-based re/insurer, which was first announced in August 2018, closed this week following receipt of regulatory approvals and the approval of Aspen’s shareholders.

Under the terms of the agreement, Apollo Funds acquired all of the outstanding ordinary shares of Aspen for $42.75 per share in cash, representing an equity value of approximately $2.6 billion.

Following the completion of the deal, the company unveiled several leadership and board changes.

Glyn Jones has stepped down from his position as chairman of Aspen’s board and Chris O’Kane has stepped down as group chief executive officer and as a director.

In addition to Jones and O’Kane, Albert Beer, Matthew Botein, Gary Gregg, Heidi Hutter, Karl Mayr, Bret Pearlman and Ron Pressman have also ceased to be directors on the Aspen board.

John Cavoores and Gordon Ireland will remain as directors on the Aspen board and will be joined by Josh Black, Alex Humphreys, Gernot Lohr, Gary Parr and Michael Saffer, each of whom have been appointed to the Aspen board (in addition to Cloutier).

Cloutier has been appointed as executive chairman of Aspen’s board and group chief executive officer.

Alex Humphreys, partner at Apollo, said: “We are excited for our funds to be acquiring Aspen as it embarks on the next chapter of its development. We are delighted to be working with Mark again following our successful investment together in Brit Insurance.

"Mark has a long and successful track-record in the insurance sector and we believe he is ideally placed to lead Aspen through a period of transition to substantially improved profitability. We look forward to working with him and Aspen’s talented management team to drive value creation over the coming years.”

O’Kane said: “Seventeen years ago, with 38 colleagues, $600 million of assets and a vision, we formed Aspen. As a result of hard work, determination and an unwavering dedication to our clients, Aspen is now a force in the reinsurance and insurance markets with over $12 billion of assets and around 1,150 employees. I am extremely proud of our accomplishments and I cherish the relationships and friendships, both within Aspen and in the broader market, which we formed along the way.

"I would like to thank all my colleagues at Aspen as well as our clients and brokers for all their considerable support over the years and it delights me to see Aspen poised to go from strength to strength under the new leadership of Mark Cloutier. I wish Mark and Aspen every success for the future.”

Cloutier added: “I am honoured to be appointed as the next CEO of Aspen. I truly believe that the company benefits from strong underwriting talent and specialised expertise, which makes it ideally positioned to deliver innovative solutions to the increasingly complex risks faced by its customers.

"I am very excited about what Aspen can achieve in the coming years. I would like to thank Chris for his key role and support over the last few months and for making the transition from public to private so seamless. He has built an impressive franchise over the past 17 years and we wish him well in his future endeavours.”

Aspen is now wholly owned by the Apollo Funds, and Aspen’s ordinary shares have ceased trading on the New York Stock Exchange (NYSE) and the Bermuda Stock Exchange with effect from February 15, 2019.

The company said Aspen’s 5.95 percent Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares and 5.625 percent Perpetual Non-Cumulative Preference Shares will remain issued and outstanding and listed on the NYSE.