London, February 4, 2026, 09:05 GMT
- Zurich proposes 1,310 pence a share in cash plus up to 25 pence in dividends, valuing Beazley at up to 1,335 pence a share
- Beazley’s board signals it would back the deal if Zurich makes a firm offer by Feb. 16 under UK takeover rules
- FTSE 100 hits a new intraday high, with GSK up on results while Relx and LSEG stay under pressure on AI disruption worries
Zurich Insurance Group has struck outline terms for an about 8 billion pound ($11 billion) cash takeover of FTSE 100 underwriter Beazley, with Beazley saying it would be minded to recommend the offer if Zurich turns it into a firm bid by Feb. 16.
The talks matter now because the UK Takeover Code forces a bidder into a near-term decision: Zurich must either publish a formal offer by a set deadline or step back. For Zurich, the prize is a deeper push into specialty insurance — cover for complex risks such as cyber, marine and aviation — and a bigger footprint through Lloyd’s of London.
It also lands in the middle of a jumpy market tape. London stocks hit record territory on a mix of takeover headlines and earnings, even as investors keep marking down data and software names facing new competition from fast-moving AI tools.
The Financial Times reported Zurich had agreed takeover terms for Beazley after raising its price, after earlier approaches were knocked back. Ft
Zurich’s latest proposal totals 1,335 pence per share, made up of 1,310 pence in cash and a permitted dividend of up to 25 pence, City AM reported. Beazley had rejected an earlier 1,280 pence-a-share approach as undervaluing the business, after a lower private proposal earlier in January, the report said, adding Zurich faces a 5 p.m. London time deadline on Feb. 16. Cityam
“After announcement it would seem risks should be low – both from any potential competing offer and indeed in terms of threat to closing,” Mark Kelly, chief executive of advisory firm MKI Global, told Reuters. Zurich has said it expects to begin confirmatory due diligence, while the deal would also build out its presence in Britain at a time when investors have fretted about the drag from its U.S. exposure and a weak dollar. Reuters
But both sides have underlined this is still only a “possible offer”. There is no certainty a firm bid will follow, and any final deal would have to clear due diligence and the usual approvals, leaving room for delays — or for Zurich to walk away.
In the market, the FTSE 100 pushed to a new intraday record, up 0.5% at 10,370.79, as Beazley jumped about 9% and GSK gained on results. “GSK has delivered a steady performance within a rapidly changing environment, as technology and policy provide both consistent opportunities and threats,” Richard Hunter, head of markets at Interactive Investor, said. GSK chief executive Luke Miels said 2026 would be a key year with a “strong focus on commercial launches and accelerating R&D”, as the drugmaker reported a 7% rise in 2025 core operating profit to 9.8 billion pounds and kept its 40 billion pound sales target for 2031. Standard
Elsewhere in the index, Relx and London Stock Exchange Group stayed under pressure after sharp falls the day before, as investors weighed whether new AI products — including tools pitched at automating legal work — could erode pricing power at data-heavy businesses.
For Beazley shareholders, the next date that matters is Feb. 16. Zurich now has to decide whether to lock in a binding offer, or let the clock run out and step aside.
