Zurich Insurance offers $10 billion for UK's Beazley in latest bid

By Tommy Reggiori Wilkes and Charlie Conchie

LONDON, Jan 19 (Reuters) - Zurich Insurance Group ZURN.S has made a 7.67 billion pound ($10.3 billion) offer for speciality insurer Beazley BEZG.L, going public with an improved bid that sent shares in the British company up 40% on Monday.

Europe's second‑largest insurer by market value announced the proposal after Beazley rejected several earlier approaches, details of which had not previously been disclosed.

London-listed Beazley, which on Friday rejected a January 4 proposal that it said significantly undervalued its business, said it had yet to consider Zurich's latest offer.

Buying Beazley would give Zurich a bigger foothold in speciality insurance, covering areas such as cyber, marine, aviation and space, and fine art, while also expanding in Britain at a time when its exposure to the U.S. and the weak dollar have weighed on its performance and shares.

Zurich told investors in November it planned to scale up in speciality insurance, and this month it launched a London‑based global unit for the business.

Zurich's latest proposal of 1,280 pence per share values Beazley at about 7.67 billion pounds, according to Reuters calculations, representing a 56% premium to Beazley's last closing price of 820 pence. Zurich said it would fund the bid with cash, new debt and an equity placing.

CEO Mario Greco told the Financial Times on Monday that Zurich had made five attempts in the past year to buy Beazley. The most recent previous offer was for 1,230 pence per share, Beazley and Zurich said.

SHARES IN RIVAL LONDON INSURERS ALSO GAIN

Beazley's shares were the top percentage gainer across all London-listed stocks as they hit a record high. Rivals also rose, with Hiscox HSX.L up 7.4% and Lancashire LRE.L up 4.5% at 1600 GMT as investors bet on further industry consolidation.

A successful deal would mark the latest foreign bid for a London-listed company, with relatively lower UK valuations continuing to draw buyers.

Zurich shares slipped 0.9%.

Jefferies analysts said the 56% premium "feels generous", but added that Beazley's differentiated cyber business and market-leading return on equity might justify a higher valuation.

Under UK takeover rules, Zurich has until February 16 to announce a firm intention to make an offer or walk away.

Goldman Sachs, Lazard and UBS are advising Zurich, sources close to the matter said. Beazley said it was being advised by JPMorgan and Barclays.

ZURICH SEEKS GROWTH IN SPECIALITY INSURANCE AND UK

Zurich said buying Beazley would combine two complementary businesses, leveraging Beazley's strength in speciality insurance and its presence at the Lloyd's of London marketplace.

A deal would be in line with the strategic priorities outlined at Zurich's Investor Day on November 18, the Swiss company said.

Zurich's global property and casualty business wrote about $47 billion in gross premiums in 2024, of which only $5 billion came from the UK. Zurich's shares have risen just 8% since early 2025, pressured by its U.S. exposure and the weak dollar.

Beazley's shares had also underperformed as of Friday's close, with the stock little changed over the previous 12 months against a 20% gain in the FTSE 100 .FTSE.

($1 = 0.7459 pounds)