Beazley valued at $11b as Zurich agrees offer terms

Cash proposal would pay 1,335p per share if the full dividend is included.

Zurich Insurance Group has agreed in principle to the financial terms of a possible cash offer to buy specialist insurer Beazley plc, in a deal that could value Beazley at around $11.0b (£8.0b).

Under the proposal, Beazley shareholders could receive up to 1,335 pence per share.

This includes 1,310 pence per share in cash, as well as permitted dividends of up to 25 pence per share for the financial year ended 31 December, 2025, if these are paid before the deal is completed.

The proposed cash offer is 59.8% higher than Beazley’s closing share price of 820 pence on 16 January 2026, which was the last trading day before the offer period started.

It is also 59.4% higher than the company’s average share price over the previous 30 days and 34.6% higher than its previous record share price of 973 pence in June 2025.

If the dividend is paid in full, Beazley shareholders would receive about $11.0b (£8.0b) in total. This is 62.8% higher than the company’s market value based on its share price on 16 January 2026.

If completed, the deal would combine the two insurers and create a global specialty insurance business with about $15b in gross written premiums.

The combined business would be based in the UK and would use Beazley’s position in the Lloyd’s of London market.

Beazley’s board said it has reviewed the proposal with its advisers and would likely recommend the deal to shareholders if Zurich confirms a firm offer and both companies agree on the final terms and documents.

Zurich will now carry out due diligence on Beazley before deciding whether to make a binding offer. The possible deal is still subject to regulatory and other usual conditions.

Under UK takeover rules, Zurich must either confirm a firm intention to make an offer or announce that it will not proceed by 5:00 p.m. London time on 16 February, unless the deadline is extended.

Zurich serves more than 75 million customers in over 200 countries and territories. Beazley operates across Europe, North America, Latin America and Asia, and underwrote $6.16b in gross premiums in 2024.

($1.00 = £0.73)