Zurich Insurance Group has submitted an improved proposal of 1,280 pence in cash per share to acquire specialist insurer Beazley after the latter’s Board rejected a previous proposal they felt significantly undervalued the firm.
On January 4th, 2026, Zurich submitted a proposal of 1,230 pence in cash per Beazley share to acquire 100% of the London headquartered insurer, but this was rejected by Beazley’s Board of Directors on January 16th.
Today, Zurich has confirmed its initial, and its revised and improved proposal of 1,280 pence in cash per Beazley share, which represents a premium of 56% to Beazley’s closing share price of 820 pence on January 16th, 2026, the last business day prior to submission of the proposal.
This new offer price also represents a premium of 56% to Beazley’s volume weighted average share price of 822 pence for the 30 day period ended on January 16th, 2026; 27% to the median of sell-side analysts’ price targets for Beazley of 1,010 pence on the same date; and, 32% to Beazley’s all-time high share price of 973 pence on June 6th, 2025.
After this news of the increased offer emerged today, Beazley’s share price jumped by around 40% to as high as 1,192 pence, although this is still below Zurich’s latest proposal to acquire 100% of the carrier.
“Zurich believes that its proposal provides Beazley shareholders immediate and certain cash value for their investment at a level that exceeds what Beazley could achieve over a reasonable timeframe through the execution of its strategy (as set out at Beazley’s Capital Markets Day on 25 November 2025), and fully reflects Beazley’s fundamental value,” said Zurich in a statement on the proposal.
Zurich is a large global insurance company, and feels that the transaction would create a global leader in specialty insurance with roughly $15 billion of gross written premiums, “exceptional data availability and underwriting expertise, leading market and distribution capabilities and outstanding reinsurance and technology infrastructures.”
By acquiring Beazley, which Zurich describes as a “highly complementary business”, a leading, UK-based global specialty platform would be created, which would also utilise Beazley’s presence at the Lloyd’s insurance and reinsurance marketplace.
“The transaction would be in line with the strategic priorities indicated at Zurich’s Investor Day on 18 November 2025. It would be funded through existing cash and new debt facilities, with the remainder funded through an equity placing, and would be accretive to Zurich’s 2027 financial targets,” continued Zurich.
Zurich is one of Switzerland’s most prominent insurers, and has a strong and global presence in the commercial lines insurance segment and describes itself as a market leader in the UK. In fact, of the $47 billion of global P&C gross written premiums generated by the firm in 2024, roughly $5 billion was in the UK. At the same time, the company has reinforced its strategic direction through the creation of a Global Specialty Unit, which promotes greater focus on its specialty operation.
“Zurich is a disciplined acquirer with a strong focus on returns, and believes the transaction would deliver attractive returns for both Zurich’s and Beazley’s shareholders. Zurich has submitted this significantly increased proposal with a view to securing engagement from the Board of Beazley so that both companies can deliver a transaction,” said Zurich.
Since the news of the two proposals was announced, analysts at RBC Capital Markets have commented, stating that it is a reasonable offer, “given the uncertain outlook for Beazley’s earnings in coming years as Lloyd’s and US market end-markets soften.”
Jefferies analysts also commented, saying that while the two offers is a surprise, it perhaps shouldn’t have been given the focus on specialty lines at the investor day.
“On the one hand, we believe that the proposal offers fair value, the strategic rationale is logical, and a +56% premium is usually be enough for the deal to be recommended.
“On the other hand, we note that takeover multiples in the last cycle ranged from 1.6x to 2.5x P/B. As Beazley is a market leader, the 2.0x multiple offered is perhaps not as high as it could be,” said analysts at Jefferies.
Zurich states in its announcement on the latest proposal that there can be no guarantee that an offer will be made, but has reiterated to Beazley its desire to proceed at pace.
