Outgoing Aspen CEO suggests senior management can stay

Aspen CEO Christopher O’Kane suggested that senior management will be allowed to stay as he is  replaced with Brit chairman Mark Cloutier when Apollo takes control.

Alternative investment manager Apollo Global Management is offering $2.6 billion to buy Bermuda-based Aspen Insurance Holdings and take the re/insurer private.

When the acquisition deal was revealed at the end of August 2018, O’Kane had commented that he was “excited about the future as we embark on a new chapter in our history with a partner that understands our strengths, culture and customer-centric philosophy.”

However, O’Kane will step down from his position as CEO and director of Aspen on or shortly after the completion of Aspen’s acquisition which is expected to close in the first half of 2019. Apollo informed Aspen that it anticipates that Mark Cloutier, who currently serves as executive chairman of Brit, will serve as Aspen’s CEO following the closing of the transaction.

“Apollo has no current plans to replace other members of the Aspen senior management team after closing,” O’Kane said in a letter to employees.

“Until our deal is concluded, I intend to be an extremely active CEO operating fully mindful of our continuing obligations to our public shareholders and other stakeholders, and to ensure that the company is as healthy, vigorous and well positioned as it can be,” O’Kane added.

He noted that Aspen needs to develop a business plan for 2019 in conjunction with Apollo and review a number of initiatives “which they are considering in the areas of our investment and outwards reinsurance strategy”.

Apollo has said that it wants to work with Aspen to build on the existing specialty insurance and reinsurance business by leveraging Apollo’s resources and expertise in financial services. The re/insurer is set to take advantage of Apollo’s investment and strategic guidance.

O’Kane also noted that there are a number of insurance and reinsurance conferences happening at the moment and that Aspen needs to carry a message of reassurance to its brokers and clients that Aspen will continue to serve them in the future as it has in the past.

“We have a big ‘business as usual’ work agenda to accomplish,” O’Kane said.

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