The boards of Zurich and Beazley announce that they have agreed the terms of a recommended all-cash offer by Zurich for the entire issued and to be issued share capital of Beazley.
The transaction combines two highly complementary businesses to establish a global leader in specialty insurance, headquartered in the UK, that leverages Beazley's Lloyd's presence.
Under the terms of the transaction, Beazley shareholders will be entitled to receive cash ccnsideration of, in aggregate, approximately GBP8.1bn ($10.8bn).
Overall, they will be entitled to receive a total value of 1,335 pence per Beazley share, comprising 1,310 pence in cash per Beazley Share (the “cash consideration”) and a dividend of 25 pence per Beazley share.
The cash consideration represents a premium of approximately:
• 59.8% to Beazley’s Closing Price of 820 pence on 16 January 2026 (being the last business day before the offer period);
• 59.4% to Beazley’s volume-weighted average share price of 822 pence for the 30-day period ended on 16 January 2026; and
• 34.6% to Beazley’s all-time high share price, prior to the Offer Period, of 973 pence on 6 June 2025. I
Rationale for the deal
In a joint statement, Zurich and Beazley said, “The transaction represents a strong step in accelerating Zurich’s strategy to create the global leader in specialty insurance. It builds on the investments Zurich has already made in developing its market-leading specialty franchise, which currently writes c.$9 bn of specialty gross written premiums as at 31 December 2025.
The combined Group:
• Creates the leading Specialty underwriter globally with c.$15bn in combined specialty gross written premiums on a pro forma basis as at 31 December 2024, spanning a broad, welldiversified and highly attractive range of product lines, supported by top-tier underwriting talent, best-in-class financial strength and enhanced distribution capabilities.
• Combines complementary capabilities in growing markets. Beazley brings extensive expertise in high-growth specialty segments including Cyber, Marine, E&S, Political Risk, Fine Art & Specie and Financial Lines. This adds diversification and provides immediate scale in fast expanding markets. Beazley’s products will broaden Zurich’s Specialty offering, supporting deep relationships with leading brokers and increasing wallet share.
•Expands Zurich’s market reach and distribution with a broader Specialty product range and access to Lloyd’s, and in particular will support clients in secular growth areas such as infrastructure and technology.
• Has a shared culture of underwriting excellence. The transaction places a clear emphasis on retaining and developing underwriting talent and preserving the underwriting cultures that underpin the strong performance of both businesses, with London expected to remain the key hub for the Combined Group’s global specialty operations.
• Delivers enhanced value for Zurich shareholders, in part through unlocking growth and synergies, and in turn accelerates Zurich’s journey to exceed its financial targets for 2025- 27. The transaction is expected to unlock material incremental revenue growth opportunities estimated to be in excess of $1bn per annum in the medium term, approximately $150m of combined annual pre-tax run-rate cost savings by 2029 and meaningful capital synergies with a current estimation of c.$1bn of one-off capital extraction within the first two years following completion.
Zurich expects the transaction to be financially compelling, delivering mid-single digit Core EPS accretion from the first year of completion and a double-digit return on investment in the medium term. This will accelerate Zurich’s journey to exceed its financial targets for the 2025–27 period with Core EPS compound annual growth of >9%, Core RoE of >23% and cash remittances of >$19 bn (subject to an SST floor of 160%).
Accordingly, the Beazley board recommends acceptance of Zurich’s offer.
It is intended that the transaction will be implemented by way of a court-sanctioned scheme of arrangement that will become effective in the 2H2026, subject to conditions. The purpose of the Scheme is to provide for ZIC, a wholly-owned subsidiary of Zurich and the ultimate operating company of the Zurich Group, to become the owner of the entire issued and to be issued share capital of Beazley. It is intended that Beazley will become a wholly-owned subsidiary of ZIC.