Zurich makes $10.3B bid for Beazley

Core Viewpoint - Zurich Insurance Group AG has made a £7.67 billion ($10.3 billion) bid to acquire Beazley Plc, marking a significant move in the specialty insurance sector [1][2]. Group 1: Acquisition Details - Zurich has offered 1,280 pence per share in cash, representing a 56% premium over Beazley's closing price prior to the announcement [2]. - The acquisition would create a "global leader" in specialty insurance with approximately $15 billion in gross written premiums [2]. - This proposal is Zurich's fifth attempt to acquire Beazley over the past year, and it is the largest bid since CEO Mario Greco took over in 2016 [3]. Group 2: Market Reaction - Following the announcement, Beazley's shares surged by as much as 46%, reaching their highest level since the company's debut in 2002, while Zurich's shares fell by up to 1.9% [5]. - Beazley's board has yet to consider the latest bid, with some shareholders believing the offer still undervalues the company [4]. Group 3: Financial Performance - Beazley reported net insurance written premiums of $5.2 billion in 2024 and $2.6 billion in the first half of 2025, with a significant portion of its premium income derived from property, specialty, and cyber insurance [6]. - The company's share price more than doubled from 2021 to the end of 2025, driven by increased demand for cyber insurance [7]. Group 4: Strategic Implications - The acquisition aligns with Zurich's strategic priorities and is expected to be accretive to its 2027 financial targets [8]. - Zurich has until February 16 to announce a firm offer for Beazley, in accordance with UK takeover regulations [8]. Group 5: Advisory and Previous Acquisitions - Investment banks UBS, Goldman Sachs, and Lazard are advising Zurich on the Beazley bid, while Beazley's advisers include JPMorgan Cazenove and Barclays [11]. - Recent acquisitions by Zurich include a minority stake in Icen Risk, a global travel insurance business from AIG, and a majority stake in Kotak General Insurance in India [10].