AM Best says Zurich $11b Beazley deal impact manageable
The acquisition financing includes existing cash new debt and an equity placing.
AM Best expects Zurich Insurance Group Ltd.’s plans to acquire all of Beazley’s shares for about $11b will have a manageable impact on the insurer’s capital position.
The deal will be funded through a mix of existing cash, new debt and an equity placing.
The transaction is subject to approval by Beazley’s shareholders and relevant regulatory and competition authorities.
Zurich estimates the deal would reduce its Swiss Solvency Test ratio by around 30 percentage points. At the end of 2025, Zurich reported a Swiss Solvency Test ratio of 259%.
The rating agency’s comments suggest it expects Zurich to maintain strong capitalisation and credit fundamentals if the acquisition proceeds.
If completed, the deal would strengthen Zurich’s position in the global speciality market and expand its presence at Lloyd’s of London through Beazley’s existing platform.