Zurich Insurance raises bid for UK's Beazley to $10.3 billion, shares surge

Dubai: Zurich Insurance Group said on Monday it had raised its offer to acquire British specialty insurer Beazley to 1,280 pence per share in cash, valuing the company at about £7.67 billion ($10.28 billion), as it seeks to create a global specialty insurance platform.

The improved proposal represents a 56% premium to Beazley’s closing price of 820 pence on January 16, the last trading day before Zurich submitted the offer, according to Zurich. Beazley’s board had rejected an earlier bid of 1,230 pence earlier this month, saying it significantly undervalued the company.

Beazley shares jumped more than 40% in early London trading, making the insurer the top percentage gainer across the UK market.

Better offer?

Zurich said the new offer fully reflected Beazley’s fundamental value and was intended to facilitate prompt engagement with the board. The company said the bid also represents a 27% premium to the median of sell-side analysts’ price targets and a 32% premium to Beazley’s previous all-time high.

Under UK takeover rules, Zurich has until February 16 to announce a firm intention to make an offer or walk away.

The Swiss insurer said the transaction would create a global leader in specialty insurance with about $15 billion of gross written premiums, combining Zurich’s commercial insurance operations with Beazley’s specialty underwriting franchise and Lloyd’s of London presence.

Mixed funding

Zurich said the deal would be funded through a mix of existing cash, new debt facilities, and an equity placing. It added the transaction would be accretive to its 2027 financial targets.

Zurich is a major global commercial insurer and a market leader in the UK. Its global property and casualty business generated about $47 billion in gross written premiums in 2024, including roughly $5 billion in the UK. The company recently created a Global Specialty unit as part of a strategic push to expand in higher-margin specialty lines.

Zurich said there was no certainty an offer would be made and that a further announcement would follow if and when appropriate.