Zurich makes £7.7bn play for Beazley after FTSE 100 firm rejected first offer
Zurich Insurance Group has launched its second public pursuit of Lloyd’s of London prominent underwriter Beazley with a revised proposal at 1.280 pence per share, valuing the firm at just under £8bn.
At the start of the month, Zurich privately submitted a proposal to the Beazley board to acquire 100 per cent of the company at 1.230 pence per share in cash. However, this bid was rejected as it “significantly undervalues” the business.
On Monday, Zurich reiterated its offer – this time in public – of 1.280 pence per share (all-cash), valuing the FTSE 100 group at about £7.7bn, representing a 56 per cent premium to Beazley’s closing price on 16 January.
Zurich currently holds a 1.465 per cent stake in Beazley, representing 8,784,065 ordinary shares.
The insurer stated the acquisition would be funded through existing cash, new debt facilities, and an equity placing.
In its public statment, it said that the proposed transaction would create a global leader in speciality insurance, with approximately $15bn in gross written premiums, by combining two complementary businesses.
“Zurich is a disciplined acquirer with a strong focus on returns, and believes the transaction would deliver attractive returns for both Zurich’s and Beazley’s shareholders,” it added.
This comes as Beazley, one of the world’s biggest cyber insurers, revealed in November that amid rising claims and falling prices, it reduced its US cyber business to focus on price adequacy and managing a cycle.
Under the UK Takeover Code, Zurich has until 5pm. on 16 February 2026, to either announce a firm intention to make an offer or walk away.
Not yet looked at offer, says Beazley
In a response to Zurich’s announcement, Beazley’s board said it has not yet had the chance to consider Zurich’s improved proposal, but will update shareholders “in due course”.
However, the Lloyd’s of London insurer did confirm it “unanimously rejected” Zurich’s “unsolicited” offer on 4 January.
”In the meantime, Beazley shareholders are urged to take no action,” it added.
“Zurich Insurance’s £7.7bn bid for FTSE 100 index member Beazley means 2026 is starting with a bang for the UK stock market, whose tempting valuations are proving irresistible to both trade and financial buyers,” says AJ Bell investment director Russ Mould.
“If it goes through, the Swiss swoop will further boost cash returns for holders of UK-listed shares, who enjoyed a powerful combination of capital gains, dividends and share buybacks in 2025 and a repeat performance in 2026 could yet see the FTSE 100 and other benchmarks set fresh all-time highs,” he added.