A Zurich spokesperson confirmed the development, noting the syndicate could begin operations as early as April 2. The move would provide Zurich with access to private capital backing underwritten risks within the Lloyd's market.
The planned syndicate is expected to write hundreds of millions of pounds in premiums, according to a Best Wire report. It would mark another entry point into the Lloyd's market for the Swiss-based insurer.
Zurich's syndicate plans come alongside its ongoing pursuit of Beazley, one of Lloyd's most prominent underwriters. The group raised its offer after Beazley's board rejected a previous proposal on January 16.
Under the revised terms, Beazley shareholders would receive £12.80 (US$17.20) in cash per share. Zurich said the improved offer followed an earlier submission on 4 January, which valued shares at £12.30 each.
The proposed price equates to almost 40% of Zurich's total half-year 2025 equity and approximately 28% of its total available regulatory capital at year-end 2024, according to Moody's. The rating agency assessed the potential transaction as credit positive for Zurich.
Berenberg's modelling suggests the offer could lift Zurich's earnings per share at 1,280p, though accretion declines materially at higher price points.
Beazley's board rejected the initial proposal, stating it significantly undervalued the company. In response, Zurich said its revised offer "provides full value for Beazley across all relevant metrics and is designed to facilitate prompt engagement."
Beazley said its board has not yet had the opportunity to consider the improved proposal. The company has not indicated a timeline for its response.
The potential acquisition would represent one of the largest deals in the Lloyd's market in recent years. Beazley operates across multiple specialty insurance lines, including cyber, property and marine.
