London, 19 January 2026, 16:17 GMT
- Zurich has raised its cash offer for Beazley to 1,280p a share, following the rejection of an earlier 1,230p bid
- Beazley shares surged over 40% in London after the bid was announced publicly
- Zurich has until Feb. 16 under UK takeover rules to either finalize the offer or pull out
Zurich Insurance Group revealed on Monday an upgraded all-cash bid for UK specialty insurer Beazley, offering 1,280 pence per share. The deal values Beazley at roughly £7.67 billion ($10.3 billion). Following the announcement, Beazley’s shares jumped over 40% in London. 1
The move spotlights a niche in insurance: specialty coverage, where insurers tackle more specific, complex risks and aim to price them precisely. At the heart of this sector is Lloyd’s of London, serving as a marketplace where syndicates underwrite everything from cyber attacks to shipping and property risks.
Zurich said acquiring Beazley would add Beazley’s Lloyd’s footprint to its specialty lines push and strengthen Zurich’s UK presence. It highlighted its newly established Global Specialty Unit, noting the merged company would generate roughly $15 billion in gross written premiums — premiums before reinsurance and deductions. 2
Zurich put forward a 1,230 pence per share cash offer on Jan. 4, but it was rejected, the company confirmed. Insurance Times described the bid as a significant move for the London-listed insurer. 3
Zurich’s updated 1,280p bid represents a 56% premium over Beazley’s closing price on Jan. 16 and a 27% premium to the median sell-side analyst target it referenced. Under UK takeover rules, Zurich must announce a firm offer or withdraw by 5 p.m. London time on Feb. 16. 4
Zurich plans to finance the deal with a mix of existing cash and new debt, topping up the rest through an equity placing—issuing fresh shares to investors. The company also confirmed the transaction will boost its 2027 financial targets. 5
Zurich CEO Mario Greco told the Financial Times this marks the group’s fifth attempt in about a year and that “it was time to go public” and hear from shareholders directly. Jefferies analyst Philip Kett described the bid as offering “fair value” but noted the roughly two-times price-to-book multiple—a comparison of the offer to the company’s net asset value—was “perhaps not as high as it could be.” The FT also reported Zurich is working with advisors Goldman Sachs, Lazard, and UBS. 6
Beazley, established in 1986, has made its mark in specialty underwriting, covering areas like cyber and fine art, according to The Times. Zurich, with a workforce exceeding 63,000, said the deal would form a larger specialty unit based in the UK. 7
Beazley has yet to respond to the recent approach. Zurich, however, described the move as a strategy to accelerate growth in specialty lines instead of expanding the platform organically.
The road ahead isn’t straightforward. Beazley’s board has yet to back the offer, and Zurich’s strategy depends partly on raising equity—something that gets tricky if markets falter or investors hesitate over the price. Regulators and Lloyd’s oversight loom as well. As Beazley’s shares hover near the offer price, the market begins to factor in the risk of the deal falling through—or the possibility of a better bid emerging.
The bid sparked renewed focus on other specialty firms listed in London, as investors looked for clues on sector valuations. A competing offer would swiftly challenge Zurich’s determination.
The next key date is mid-February. Should Zurich commit firmly by that point, attention will turn to Beazley’s board—whether they respond, the terms tied to any recommendation, and how Zurich’s funding plan stands up to close examination.
