Zurich Insurance Group has agreed the key financial terms of an £8bn takeover of Beazley, paving the way for one of the largest insurance acquisitions involving a UK-listed company in recent years and reviving scrutiny of London’s position as a global financial centre, The WP Times reports, citing Financial Times.
Under the proposed transaction, Zurich would acquire all issued and to-be-issued shares in Beazley for a total consideration of up to 1,335p per share, comprising 1,310p in cash and permitted dividends of up to 25p linked to the 2025 financial year. The valuation represents a premium of more than 60% to the beazley share price prior to the emergence of takeover talks in January, underscoring the scale of Zurich’s final approach after two earlier bids were rejected.
Beazley’s board said it had carefully assessed the revised terms with its advisers and concluded that the financial conditions were sufficient for the offer to be recommended to shareholders, subject to the satisfactory resolution of outstanding terms, confirmatory due diligence and regulatory approvals. Zurich is expected to proceed with due diligence ahead of a formal offer in line with UK takeover rules.
Beazley is a FTSE 100 specialist insurer focused on complex and high-margin commercial risks, including cyber insurance, professional liability, marine, aviation and energy. A significant proportion of its underwriting is conducted through Lloyd’s of London, providing access to global corporate clients and specialist risk markets. In recent years, the company has benefited from sustained demand for cyber cover and firmer pricing across parts of the specialty insurance sector.
For Zurich, the acquisition would accelerate its expansion in specialty insurance, an area widely viewed as offering stronger growth prospects and greater pricing discipline than traditional personal lines. The combined business would generate around $15bn in gross written premiums, creating a larger global specialty insurance platform with a substantial operational presence in the UK.
Market reaction centred on Beazley. The beazley share price rose sharply following confirmation of the agreed terms, indicating that investors are increasingly pricing in a high probability that the transaction will proceed broadly on the outlined conditions. Zurich’s shares, by contrast, were more muted, reflecting investor caution over the cost of the deal, potential integration challenges and the short-term impact on capital ratios.
Beyond the companies involved, the proposed takeover has intensified debate over the future of London’s stock market. The potential removal of another FTSE 100 insurer through a foreign acquisition adds to concerns that UK-listed companies remain vulnerable to overseas bids amid comparatively low valuations and limited liquidity. Critics argue that the gap between the offer price and the pre-bid beazley share price highlights structural weaknesses in the UK equity market, while supporters say shareholders are being rewarded with a substantial premium consistent with global consolidation trends.
The transaction remains subject to shareholder approval and regulatory clearance. If completed, it would rank among the largest insurance acquisitions involving a UK-listed company in recent years, resulting in the exit of another major insurer from the London market and reinforcing concerns over the UK’s long-term market competitiveness.
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