Switzerland’s Zurich said the offer it had gone public with on Monday was an improved bid, after Beazley’s management rejected on Friday its initial offer, made on January 4.
LONDON: Zurich Insurance Group announced a 7.67 billion pound ($10.3 billion) all-cash offer to buy speciality insurer Beazley on Monday, prompting a more than 40% surge in the British company’s shares.
Switzerland’s Zurich said the offer it had gone public with on Monday was an improved bid, after Beazley’s management rejected on Friday its initial offer, made on January 4.
The British company said the first offer significantly undervalued it, Zurich said in a statement.
The latest offer of 1,280 pence per share values Beazley at about 7.67 billion pounds, according to Reuters’ calculations, and represents a 56% premium to Beazley’s last closing price of 820 pence. Zurich said it would fund the bid with cash, new debt and an equity placing.
Beazley did not immediately respond to a Reuters request for comment.
Beazley’s shares were the top percentage gainer across all London-listed stocks afterZurich Insurance’s interest was made public.
Other London-listed insurance companies’ shares also rose, with Hiscox, up 5.7% and Lancashire climbing 5.1%.
Zurich shares slipped 1.7%.
Under UK takeover rules, Zurich Insurance has until February 16 to announce a firm intention to make an offer or walk away.
ZURICH WANTS TO GROW IN SPECIALITY INSURANCE AND IN THE UK
Zurich said buying Beazley would combine two highly complementary businesses, leveraging Beazley’s position in speciality insurance – a sector where Zurich recently launched its own unit – and its presence at the Lloyd’s of London marketplace.
“The transaction would be in line with the strategic priorities indicated at Zurich’s Investor Day on 18 November 2025,” Zurich said in a statement.
Zurich’s global property and casualty business had gross written premiums of around $47 billion in 2024, but the UK was only $5 billion of that.
The Swiss company’s shares have struggled in the past year, rising just 8% since early 2025, with its exposure to the United States and a weak dollar weighing on performance.
Beazley’s shares have also underperformed the wider stock market in the last 12 months.