Zurich Insurance Group has reached an agreement in principle with Beazley on the key financial terms of a potential recommended cash offer for all existing and to-be-issued ordinary shares of the specialist insurer.
Readers may recall that on January 4, 2026, Zurich submitted a proposal of 1,230 pence in cash per Beazley share to acquire 100% of the London-headquartered insurer. That offer was rejected by Beazley’s board on January 16. Zurich returned on January 19 with an improved proposal of 1,280 pence per share, which was again rejected, with the board saying the offer “materially undervalues Beazley and its longer-term prospects as an independent company.”
Under the terms of the new proposal, Beazley shareholders would be entitled to receive a total value of up to 1,335 pence per share, comprising 1,310 pence in cash and permitted dividend(s) of up to 25 pence in respect of the year ended 31 December 2025, payable prior to completion.
Beazley explained that if the permitted dividend is declared and paid in full, shareholders would receive, in aggregate, approximately £8 billion, representing a 62.8% premium to Beazley’s market capitalisation as implied by its closing share price of 820 pence on 16 January 2026.
The Board of Beazley has reportedly “carefully considered” the proposal, together with its advisers, and concluded that the financial terms are sufficient for it to be inclined to recommend the offer to shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Takeover Code be announced. This remains subject to the satisfactory resolution of remaining terms and completion of definitive transaction documentation.
Zurich stated that it looks forward to commencing confirmatory due diligence and working with Beazley toward a binding offer announcement.
Separately, regulatory disclosures show that Zurich has acquired a minority shareholding of approximately 1.5% in Beazley, placing it among the insurer’s notable shareholders while discussions continue.
If completed, the transaction would combine two highly complementary businesses, creating a leading global specialty insurance platform with approximately $15 billion in gross written premiums, headquartered in the UK and leveraging Beazley’s Lloyd’s of London franchise.
