Certain investment funds affiliated with private equity group Apollo Global Management has agreed to acquire Bermuda-based Aspen Insurance in an all-cash deal worth $2.6bn.

Aspen offers reinsurance and insurance services through offices in Bermuda, Australia, Canada, Ireland, Singapore, Switzerland, the UAE, the UK and the US. The business managed $12.9bn in assets for the year ended December 2017.

As per the agreed terms of the transaction, the Apollo Funds will pay $42.75 per share.

The deal will make Aspen a privately held portfolio company of the Apollo Funds.

Apollo partner Alex Humphreys said: “We believe that Aspen benefits from strong underwriting talent, specialised expertise and longstanding client relationships which makes them well positioned in the market.

“We look forward to working with Aspen to build on the existing high quality specialty insurance and reinsurance business and we aim to leverage Apollo’s resources and deep expertise in financial services to support the Company as it embarks on its next chapter.”

The deal already secured the green light from the Aspen board. It is expected to be wrapped up in the first half of next year, subject to shareholder and regulatory nod.

Aspen group CEO Chris O’Kane said: “Under the ownership of the Apollo Funds, Aspen will have additional scale and access to Apollo’s investment and strategic guidance, which will help us to accelerate our strategy and take Aspen to the next level.”