LONDON, January 22, 2026, 10:05 GMT
- Beazley’s board turned down Zurich’s cash offer of 1,280p per share, calling it insufficient.
- Zurich must meet a UK takeover-rule deadline to either confirm the bid or withdraw.
- Zurich is preparing a Lloyd’s syndicate as an alternative entry point into the market.
Beazley turned down Zurich Insurance’s all-cash bid on Thursday, calling the 1,280 pence-per-share offer a “material undervaluation” of the company and its future as an independent firm. Shares of the London-listed specialty insurer fell roughly 3% in early trading. 1
The refusal comes as Zurich pushes to expand its specialty insurance footprint—covering unique risks like cyber attacks, marine, and aviation—and amid growing chatter about deals in the London market. Zurich’s bid priced Beazley at a 56% premium over its pre-offer closing price. Shares of London peers Hiscox and Lancashire climbed earlier this week, fueled by speculation of more mergers ahead. Jefferies analysts called the premium “generous,” but highlighted Beazley’s strong cyber business and solid returns. 2
Beazley said it has reviewed the latest offer with advisers and found it below Zurich’s 1,315 pence bid from late June 2025, which implied a company value of £8.4 billion. The insurer highlighted a 2,200% total shareholder return over the past 20 years and an average combined ratio of 78% since 2022. It urged shareholders to hold off on any action until full-year results are released on March 4. 3
The combined ratio serves as a key measure of insurance profitability, weighing claims and expenses against premiums. A figure under 100% signals an underwriting profit. Beazley also pointed to tangible book value—net assets after excluding goodwill and similar items—as a benchmark in takeover valuations.
Zurich sees Beazley as a route to strengthen its hold on cyber and other specialty lines, while also broadening its reach in Britain via Beazley’s Lloyd’s presence. Lloyd’s of London operates as a marketplace where syndicates combine capital and underwrite risks under the Lloyd’s framework, instead of one insurer handling policies on its own balance sheet.
If the deal falls through, Zurich is lining up a backup plan to enter Lloyd’s directly. CEO Mario Greco told the Financial Times the insurer is working on launching a Lloyd’s syndicate, potentially active by April 2. The syndicate aims to write premiums in the “hundreds of millions of pounds,” according to a source familiar with the situation cited by the FT. “You can do deals on the Lloyd’s platform where you access private capital, which is different from capital offered by the reinsurance companies,” Greco explained. 4
Moody’s labeled the proposed acquisition as credit-positive for Zurich, highlighting possible cost savings, capital advantages, and access to third-party funds via Lloyd’s. Yet, it cautioned that “large acquisitions of this kind are inherently risky because of difficulties integrating distinct underwriting cultures.” The agency also flagged that debt-financed portions might strain solvency and boost leverage, while specialty insurers stay vulnerable to sizable losses. 5
Beazley’s shares surged over 40% after Zurich revealed its stake earlier this week, yet the stock still trades below the offer price, signaling investor skepticism over whether the deal will actually go through. The bid has also stirred wider talk about foreign firms targeting UK insurers. The Financial Times pointed to AIG’s recent move into Convex as another example of overseas appetite. 6
Beazley is sticking to its valuation and supporting its standalone strategy for the moment, though it hasn’t ruled out other options entirely. Zurich, bound by takeover regulations, faces a clear choice: boost its bid, strengthen its pitch, or pull out.
