Zurich Insurance Group has acquired Beazley, to create the world's largest specialty insurance business.
In a media release, Zurich stated that the boards of both companies have announced a recommended all-cash offer for the entire issued and to be issued share capital of Beazley by Zurich.
The merger creates a global specialty insurance giant based in the UK, generating over $15bn in gross written premiums by aligning complementary assets and leveraging Beazley's Lloyd’s presence
Zurich expects the integration of Beazley into its Global Specialty division to generate more than $1 bn in additional annual revenue by 2029. Additionally, the move is projected to deliver at least $150m in annual cost savings.
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The deal is also expected to generate capital synergies, including at least $1b in one-off capital extraction within the first two years, while improving capital efficiency across the enlarged specialty business.
Zurich said Beazley’s underwriting teams will gain access to its distribution network and customer service operations.
The combined business will also join Lloyd’s of London, giving Zurich greater access to the market’s specialist underwriting and global distribution platform.