The FTSE 100 insurer said its board had unanimously rejected Zurich’s latest proposal of 1,280 pence a share in cash, arguing the offer “materially undervalues Beazley and its longer‑term prospects as an independent company.”
The approach, disclosed earlier this week, represented a roughly 56% premium to Beazley’s closing price before news of Zurich’s interest became public. But Beazley on Thursday revealed that the Swiss group had tabled a higher bid last summer, valuing the company at £8.4 billion, and said the new offer fell short of that level.
Zurich’s latest proposal of 1,280p per share followed an earlier, previously undisclosed 1,230p‑a‑share approach on January 4, which Beazley had also turned down.
On Thursday, Beazley said Zurich had in fact made three proposals in June 2025, including one at 1,315p per share, implying an equity value of about £8.4bn. That is roughly £700m more than the latest offer.
The company said it had engaged with Zurich at the time, providing limited due‑diligence information “in a good faith effort to come to a shared understanding of value,” but concluded that the current proposal still failed to reflect its strategic position and growth potential.
Analysts at Jefferies and other brokers said the disclosure of the higher, rejected June bid “reframes the debate” around valuation and makes it difficult for Beazley’s board to recommend a lower price now.
Zurich confirmed the latest 1,280p‑a‑share approach earlier this week, saying the deal would create a global leader in specialty insurance with about US$15bn in gross written premiums, up from Zurich’s US$9bn in 2024. The Swiss group has highlighted Beazley’s Lloyd’s of London platform and cyber franchise as central to its strategic expansion.
RBC Capital Markets said Zurich’s move had “put the spotlight on Beazley’s strong strategic positioning, track record and the distinctiveness of its operations,” adding that it could draw interest from other potential suitors.
Beazley, which has been a major player in the standalone cyber insurance market, has recently scaled back some cyber writings as rates softened following several years of sharp increases. That pullback came amid a broader easing in specialty pricing as capital returned to the class.
Despite that, Beazley said on Thursday it remained “very confident” in its stand‑alone prospects and the attractiveness of its business model, pointing to its cyber leadership, underwriting track record and returns.
Beazley’s shares jumped 42% on Monday when Zurich’s interest first became public, and were trading above £11 on Thursday but still below the latest offer price. Zurich’s own stock edged higher in Zurich trading following news of the rejection.
Under UK takeover rules, Zurich has until February 16 to announce a firm intention to make an offer or walk away, in which case it would be barred from returning with another bid for at least six months.
Beazley said it remained “open‑minded about all options to deliver value” for shareholders, but stressed that any deal would have to reflect what it sees as the full value of its specialty platform.
For now, the ball is back in Zurich’s court: it can raise its offer, seek to win over Beazley investors directly, or retreat and pursue its planned Lloyd’s syndicate and specialty build‑out through other avenues. Whatever Zurich decides, its interest has already underlined how hot the global market has become for scale players in cyber and specialty lines – and how determined Beazley is to argue it is worth more than £7.7bn.
