Zurich Insurance Group has reached agreement in principle to buy Beazley plc.
Beazley ‘unanimously rejected’ a £7.7 billion takeover bid from fellow insurance giant Zurich – which is listed in Switzerland – last month following previous failed takeover attempts last year.
However Zurich has now been successful with an increased bid which values the FTSE 100 firm Beazley at £8bn.
The deal, which will be recommended to shareholders if formalised, is for 1,335 pence per Beazley share – 1,310p in cash and a 25p permitted dividend payout prior to completion.
The deal represents a premium of 59.8% to Beazley’s closing share price of 820p on 16th January, the last business day prior to the offer period; and 34.6% to Beazley’s all-time high share price of 973p on 6th June 2025.
The £8bn figure is also 62.8% higher than Beazley’s market capitalisation in mid-January.
Zurich said the transaction would “combine two highly complementary businesses and would establish a leading, global specialty platform with around $15bn of gross written premiums, based in the UK, which would also leverage Beazley’s Lloyd’s of London presence”.
The acquisition will be funded through a mix of existing cash, new debt facilities and an equity placing if it goes through, and will support Zurich’s broader ambition to grow its specialty unit.
Beazley, a specialist risk insurance and reinsurance company with a strong focus on cyber insurance, will announce its results for the full 2025 financial year on 4th March 2026.