Beazley Agrees to Zurich’s Sweetened £8 Billion Takeover Bid

Core Viewpoint - Zurich Insurance Group AG has made an £8 billion ($11 billion) bid to acquire Beazley Plc, which has received tentative approval from Beazley's board [1][2]. Bid Details - The revised cash offer is 1,310 pence per share, an increase from the previous 1,280 pence, and is agreed "in-principle" [2]. - Including a potential dividend of up to 25 pence, the total value of the offer reaches 1,335 pence per share [2]. - The offer price represents a nearly 60% premium over Beazley's closing share price prior to the public announcement on January 19 [3]. Market Reaction - Beazley's shares rose by as much as 9% in early London trading and have increased by 54% since the bid was first disclosed [3]. Strategic Implications - The acquisition would create a "global leader" in specialty insurance with approximately $15 billion in gross written premiums [4]. - Zurich has been pursuing Beazley for a year, with this being its sixth bid, indicating a strong strategic interest [4]. Financial Context - Zurich's offer is seen as generous, especially given the recent downturn in pricing across Beazley's specialty lines of business [9]. - Beazley reported net insurance written premiums of $5.2 billion in 2024 and $2.6 billion in the first half of 2025, with significant contributions from property, specialty, and cyber insurance [7]. Previous Offers - Beazley had previously rejected an offer made on January 19, citing that it materially undervalued the company [8]. Zurich's Acquisition Strategy - Zurich has been actively building its stake in Beazley, having acquired 1.5% of the company's shares recently [5]. - The Beazley acquisition represents Zurich's largest strategic move since 2016 and aligns with its long-term strategic priorities [5].