“Together with Beazley, we will create the world’s leading Specialty underwriter, with around $15 billion of pro forma gross written premiums, exceptional underwriting expertise and data capabilities, and leading access to global distribution,” said Mario Greco, chief executive officer of Zurich
London:The British insurer Beazley has agreed to the terms of an 8.1 billion pound ($10.8 billion) takeover bid from Zurich Insurance Group, the companies said on Monday, as the Swiss firm looks to expand its foothold in speciality insurance.
Analysts say the takeover is likely to pave the way for more deals across the sector, as competition rises for market share in the fast‑growing speciality insurance market.
“Beyond giving finality to the transaction, the announcement might also be read as a signal that Beazley’s loss exposures, and likely those of the broader Specialty Insurance Market, remain contained,” brokerage Jefferies said in a note.
Acquiring Beazley would significantly expand Zurich’s reach in speciality insurance, encompassing areas such as cyber, marine, aviation, space and fine art.
“Together with Beazley, we will create the world’s leading Specialty underwriter, with around $15 billion of pro forma gross written premiums, exceptional underwriting expertise and data capabilities, and leading access to global distribution,” said Mario Greco, chief executive officer of Zurich
After rejecting several previous bids, Beazley said in February that it would recommend a sweetened 8 billion pound ($11 billion) takeover by Zurich if a firm offer was made, ahead of a March 4 regulatory deadline.
Beazley shareholders will receive 1,335 pence per share, comprising 1,310 pence in cash and a dividend of 25 pence.
Beazley’s shares closed 1.8% higher at 1,291 pence, below the offer price. Zurich’s shares were down 1.2%.
Zurich said it expected to fund the acquisition through a combination of its existing cash resources, raising capital and bridge loan facilities.