Zurich Insurance Group has reached agreement in principle on the main financial terms of a recommended £8 billion ($11 billion) takeover of UK-based specialty insurer Beazley plc. Under the proposed terms, Beazley shareholders would receive £13.10 ($17.95) per share in cash plus a dividend of up to £0.25 ($0.34) for 2025, valuing the total consideration at up to £13.35 ($18.30) per share. The offer represents nearly a 60% premium to Beazley’s January 16 closing share price, the last business day before Zurich’s interest was made public (The Guardian; Insurance Journal).
Zurich had previously made lower proposals, including a £12.80 ($17.55) per share bid that Beazley rejected as materially undervaluing the company (Reuters). Prior to the agreed terms, Beazley’s market valuation stood at £6.8 billion ($9.29 billion) (Reuters). Beazley’s board said it would, “be minded to recommend” the revised offer should a firm bid be made (The Guardian). The companies have agreed to extend the deadline for Zurich to announce a firm intention to make an offer until March 4, 2026 (Insurance Journal).
The transaction would combine two specialty-focused insurers and establish a UK-based global specialty insurer with $15 billion in gross written premiums (The Guardian). Beazley is a leading participant at Lloyd’s of London, where its managing agent, Beazley Furlonge Ltd., is the largest in the market by gross written premium. Business written at Lloyd’s accounted for 77.7% of Beazley’s total insurance revenue in 2024 (S&P Global Market Intelligence). Zurich currently lacks a Lloyd’s presence, and the acquisition would make it the largest participant in that market (S&P Global Market Intelligence).
For additional information regarding the acquisition, you can visit Zurich's website for their official statements.
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