Zurich Insurance has agreed an improved takeover bid for UK-listed cyber and speciality insurer Beazley, valuing the company at about £8 billion ($10.96 billion).
Under the revised cash offer, Beazley shareholders would receive £13.35 per share, including a dividend payment.
The bid represents a 63% premium to Beazley’s closing share price of £8.20 on Jan. 16, the day before the offer period began.
The companies confirmed the terms in a joint statement on Wednesday.
Beazley’s board “has concluded that the financial terms of the proposal are at a level that it would be minded to recommend” to its shareholders, according to the joint statement.
“Zurich looks forward to commencing its confirmatory due diligence on Beazley and working with Beazley towards a binding offer announcement.”
Beazley’s share price jumped more than 8% following the announcement, reflecting investor confidence that the improved bid could succeed.
The broader market also reacted positively, with the FTSE index rising to a fresh peak above 10,383 points before edging higher to 10,408.49 by mid-morning.
Beazley board to recommend offer to shareholders
Beazley’s board said it would recommend the offer to shareholders, reversing its earlier stance that Zurich’s proposals undervalued the company and its growth prospects.
Zurich has until Feb. 16 to submit a firm offer or walk away under UK takeover rules.
Analysts said the enhanced offer appears sufficient to bridge the gap between the two companies’ expectations.
“It has always felt that this was one where the bid ask was bridgeable and a 4% improvement has been sufficient,” analysts at MKI Global Partners said.
“The risks now seem low in terms of a potential competing offer and threats to closing,” they added.
Strategic rationale behind Zurich’s pursuit
Zurich, led by chief executive Mario Greco, has been courting Beazley for more than a year.
The latest proposal marks its sixth bid, underscoring the Swiss insurer’s determination to secure the acquisition.
The deal would create what Zurich described as a global leader in speciality insurance, with roughly $15 billion in gross written premiums based in the UK.
The transaction would also strengthen Zurich’s footprint at Lloyd’s of London, where Beazley has a significant presence.
Zurich said the acquisition aligns with the strategic priorities outlined at its investor day in November, highlighting its ambition to expand in high-growth speciality and cyber insurance segments.
The company has already begun building a stake in Beazley, disclosing earlier this week that it had accumulated about 1.5% of the insurer’s shares.
“Beazley is a very complementary business to ours, there’s nothing we don’t need or don’t like,” Greco told Bloomberg News previously. “The fit is very strong.”
Beazley’s business profile and growth appeal
Beazley operates across Europe, North America, Latin America and Asia, with a diversified portfolio spanning property, speciality, cyber, marine, aviation and political risk insurance.
The company reported net insurance written premiums of $5.2 billion in 2024 and $2.6 billion in the first half of 2025.
Property and speciality risks each accounted for roughly one-third of premium income in the first half of 2025, while cyber and digital insurance represented about a fifth of the total.
Analysts have long viewed Beazley as a rare asset within the Lloyd’s market, combining scale, growth potential and expertise in complex risk areas.
That profile has made it an attractive target for larger insurers seeking to deepen their presence in speciality lines.
Offer more favourable to Zurich than Beazley: analysts
Despite the board’s support for the revised bid, some analysts argue that Zurich may be securing the better end of the deal.
Keefe, Bruyette and Woods said the improved offer still appears favourable for Zurich and suggested that Beazley “can do better”.
“Given this price…we are surprised that no alternative options have emerged for this rare and high-quality Lloyd’s franchise,” they said, adding that they hoped Beazley still has the opportunity to court other suitors, though the door seemed to be closing.
Zurich’s pursuit has been marked by a series of escalating proposals.
The company approached Beazley multiple times last June and submitted two offers in January, including a £12.80-per-share bid that followed an earlier £13.15-per-share proposal that had not been publicly disclosed at the time.
Beazley had rejected the January offer, arguing that it materially undervalued the company. The latest bid, however, appears to have tipped the balance.
If completed, the acquisition would strengthen Zurich’s position in speciality and cyber insurance, sectors that have seen rapid growth amid rising digital risks and complex global threats.
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