Zurich Insurance Group has announced an increase in its unsolicited bid to acquire 100% of U.K.-based specialty insurer Beazley to 7.67 billion British pounds (approximately $10.2 billion USD), which amounts to 1,280 pence per share.
The revised bid represents around a 56% premium to Beazley’s closing share price on January 16 — the last business day before the proposal. Zurich’s improved bid reportedly sent Beazley’s shares up 40% on January 19.
The bid increase comes after Beazley rejected Zurich’s previous offer of 1,230 pence per share on January 16. That offer was originally submitted on January 4. Further terms of the previous proposal are unknown, but Beasley’s board unanimously refused the offer due to it “significantly undervaluing” the insurer.
In a release, Zurich stated that it believes its new proposal will provide Beazley shareholders with an “immediate and certain” cash value for their investment.
“The transaction would create a global leader in Specialty insurance with $15 billion of gross written premiums, exceptional data availability and underwriting expertise, leading market and distribution capabilities and outstanding reinsurance and technology infrastructures,” Zurich’s release states. “This combination of two highly complementary businesses would establish a leading global Specialty platform, based in the UK which would also leverage Beazley's Lloyd's of London presence. 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.”
Beazley issued a response to Zurich’s possible offer on January 19, stating it had not yet had a chance to consider the improved offer. It also states that in accordance with code, Zurich is required to announce a firm intention to make an offer by February 16, at 5 p.m. London time.
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