The latest proposal caps a months-long pursuit by the Swiss insurer, which first approached Beazley in June 2025 with three separate offers – the highest at 1,315 pence per share, implying an equity value of around £8.4 billion. All were rejected.
Zurich returned with a fresh approach on January 4 this year, offering 1,230 pence per share. Beazley rebuffed it on January 16, saying the bid "significantly undervalued" the company.
An improved offer of 1,280 pence followed on January 19, but was again rejected on January 22 – this time on grounds that it "materially undervalued" the cyber specialist.
Under the current agreement, Beazley shareholders would receive up to 1,335 pence per share, comprising a cash offer price of 1,310 pence plus a permitted dividend of up to 25 pence for the year ended December 31, 2025.
Excluding the dividend, the offer represents a 59.8% premium to Beazley's closing share price of 820 pence on January 16, the last trading day before the offer period began. Compared to the company's all-time high of 973 pence recorded on June 6, 2025, the offer represents a 34.6% premium.
The total consideration, if the permitted dividend is declared and paid in full, would be 62.8% higher than Beazley's market capitalization based on its January 16 closing price.
A regulatory filing released on February 3 showed Zurich already holds a 1.47% stake in Beazley, amounting to approximately 8.9 million ordinary shares – placing it among the company's top 20 shareholders.
The proposed transaction would create a specialty insurance platform with approximately US$15 billion in gross written premiums and leverage Beazley's presence at Lloyd's of London.
Zurich has confirmed it is preparing to launch its first Lloyd's syndicate as part of a broader specialty growth strategy, with business potentially beginning as early as April 2026 and expected to write hundreds of millions of pounds in premiums.
Beazley's board said it has "carefully considered the proposal, together with its advisers" and determined that the financial terms are at a level it would be prepared to recommend to shareholders, subject to satisfactory resolution of other terms and definitive transaction documentation.
Zurich has until 5pm London time on February 16 to announce either a firm intention to make an offer or a decision not to proceed. Any firm offer remains subject to customary pre-conditions and regulatory requirements under the UK Takeover Code.
