- Zurich Insurance launches £7.7bn takeover bid for Beazley, triggering a sharp surge in Beazley’s share price.
- The offer values Beazley at a 56% premium, reflecting Zurich’s push to expand in specialty and cyber insurance.
- Investors now await Beazley’s board response and a possible revised offer ahead of the UK takeover deadline.
Zurich Insurance Group has gone public with a £7.67 billion ($10.3 billion) takeover proposal for UK specialty insurer Beazley, escalating a year-long pursuit and triggering one of the sharpest share price reactions in the London market this year.
The Swiss insurer confirmed on Monday, January 19, 2026, that it has submitted an improved all-cash offer of 1,280 pence per share, after Beazley rejected an earlier approach earlier this month according to Reinsurance News. The move marks Zurich’s fifth attempt to acquire the Lloyd’s of London insurer and signals growing consolidation pressure across the specialty insurance sector.
Beazley Share Price Jumps Over 40% After Zurich Makes Bid Public
Beazley shares surged more than 40% in early London trading following the announcement, pushing the stock to record highs and making it the top performer on the UK market.
Reuters reported that Zurich’s decision to disclose the bid publicly followed multiple private approaches that were rejected by Beazley’s board, including a 1,230-pence proposal submitted on January 4.
Rival London-listed insurers also rallied, with Hiscox and Lancashire Holdings gaining as investors speculated that further sector consolidation could follow.
Why Zurich Wants Beazley: Specialty Insurance and Lloyd’s Access
Zurich has made clear that Beazley fits squarely within its strategy to expand in specialty insurance, including cyber, marine, aviation, energy, infrastructure, and emerging AI-related risks.
A successful acquisition would significantly deepen Zurich’s presence at the Lloyd’s of London marketplace and lift its specialty gross written premiums from roughly $9 billion to around $15 billion, based on company disclosures.
Zurich CEO Mario Greco told the Financial Times that the insurer had pursued Beazley consistently over the past year and chose to go public to allow shareholders to determine whether the offer reflects fair value.
Is Zurich’s Offer Enough? Analysts Question Valuation
Analyst reaction has been mixed. Jefferies described the 56% premium to Beazley’s pre-bid share price as generous, but noted that takeover multiples in previous insurance cycles have ranged as high as 2.5 times book value, compared with roughly 2.0x implied by Zurich’s offer.
RBC Capital Markets said the bid appears reasonable given a softening outlook for specialty and reinsurance pricing, particularly in cyber insurance, where premiums have eased and claims have risen.
Beazley said on Monday that its board has not yet had the opportunity to consider Zurich’s revised proposal and advised shareholders to take no action.
What Happens Next in the Zurich–Beazley Takeover Process?
Under UK takeover rules, Zurich has until February 16, 2026, to either announce a firm intention to make an offer or withdraw for at least six months.
Zurich said the transaction would be funded through existing cash, new debt facilities, and an equity placing, and would be accretive to its 2027 financial targets.
For now, investors are watching whether Beazley’s board engages with Zurich or seeks a higher valuation, as foreign buyers continue to target undervalued UK-listed companies amid elevated global M&A activity.
Zurich is targeting Beazley to expand its specialty insurance business, particularly in cyber, marine, aviation, and energy lines, and to strengthen its presence at the Lloyd’s of London marketplace.
Zurich has made an all-cash offer of 1,280 pence per share, valuing Beazley at approximately £7.7 billion ($10.3 billion), representing a 56% premium to the stock’s pre-bid price.
No. Beazley has confirmed that its board has not yet considered the revised offer and has advised shareholders to take no action at this stage.