Aspen Capital Markets, the third-party, ILS and alternative reinsurance capital management unit that now falls under Sompo after its acquisition of the re/insurer, reported another increase in fee income generated from its work with third-party capital partners in the first-quarter of 2026.
At the same time, fee income generated from this business segment rose 15% to $194.4 million for the full-year.
Fee income continues to be extremely attractive, with a further increase likely driven in part by the higher AUM available.
But the Aspen Capital Markets unit has long delivered a relatively high-level of fees, compared to AUM, thanks to its differentiated approach having a focus across multiple lines of business, including a specialism in casualty ILS.
For Q1 2026, Aspen Capital Markets fee income is reported to have risen to $50.6 million, an 11% increase from the prior year’s $45.6 million.
No further disclosures have been made in the Q1 earnings statement and it’s possible over time that visibility of the performance and AUM of this third-party and ILS capital unit becomes less apparent under the new ownership.
But it’s clear things continue to build positively, with higher AUM and still rising fee income to start 2026.
Recall that, when the planned acquisition of Aspen was announced executives from Sompo said that the integration is expected to expand the opportunity set for Aspen Capital Markets investors, while it intends to continue pursuing a capital light model leveraging third-party capital.
On branding, Sompo said when its acquisition of Aspen completed in February, that Aspen will transition over to the Sompo brand in time.
Sompo Capital Markets, potentially as part of Sompo Capital Partners, is expected to be the new brand when everything changes over.
It will be interesting to see how much visibility there is of assets under management and fee income in future quarters.
Aspen Capital Markets is just one of the dedicated insurance-linked securities (ILS) fund managers, and reinsurers offering ILS-style investment opportunities, listed in our Insurance-Linked Securities Investment Managers & Funds Directory.
