Lloyd’s of London underwriter agrees to £8bn acquisition by Zurich
Lloyd’s of London underwriter Beazley has agreed an £8bn deal to be acquired by Zurich after rejecting two earlier bids last month, reports BritPanorama.
Zurich’s proposed offer has a total value of 1,335 pence per share, comprising a 1,310p cash payment from Zurich and a permitted dividend of up to 25p to be paid by Beazley to its shareholders.
This transaction would conclude Beazley’s substantial presence on the London stock market, representing a 59.8 per cent premium over Beazley’s closing price on 16 January 2026 and 34.6 per cent above the company’s all-time high share price.
Earlier in January, Zurich privately submitted a proposal to the Beazley board to acquire 100 per cent of the company at 1,230 pence per share in cash. This bid was turned down for being “significantly undervalued,” as reported by City AM.
Latter in January, Zurich reiterated its offer at 1,280 pence per share (all-cash), valuing the FTSE 100 group at approximately £7.7bn. Beazley also rejected this, stating it “materially undervalues” the firm’s future prospects.
The board has now indicated it is “minded to recommend” this latest proposal to shareholders, subject to final documentation. The merge would create a worldwide specialty insurance powerhouse with around $15bn (£10.9bn) in gross written premiums, headquartered in the UK, while leveraging Beazley’s foothold at Lloyd’s of London.
According to the UK Takeover Code, Zurich has until 5pm on February 16, 2026, to either formally announce its intention to make an offer or withdraw from the process.
The statement underscored that this remains a ‘possible offer’, with no guarantee that any firm offer will materialize, even if the aforementioned pre-conditions are met or waived.
In response to the news of the potential transaction, Beazley’s share price has surged nearly 9 per cent this morning. Since takeover discussions began in January, the listed underwriter’s stock has increased approximately 55 per cent over the past month.
Industry observers suggest that this transaction could trigger a wave of consolidation, prompting other firms to become acquisition targets.
Ben Cohen, an analyst at RBC, identified Hiscox and Lancashire as potential candidates, noting a higher likelihood of Hiscox being a takeover target attributed to the strategic importance of its retail operations.
Erin Sims, senior analyst at RSM UK, remarked that a successful combination of Zurich and Beazley would represent one of the most significant consolidations in specialty insurance in over a decade, marking a renewed phase of scale-driven mergers and acquisitions after several years of strong underwriting results and capital accumulation across the sector.
Sims noted that the cyber insurance market is “becoming a key differentiator” wherein Zurich’s capabilities could enhance Beazley’s established strengths. She added, “This takeover therefore aligns closely with where market demand is heading.”
Beazley maintains offices in London, Birmingham, and Dublin, while Zurich operates across the UK.
The recent agreement between Beazley and Zurich signals a pivotal moment in the specialty insurance landscape, reflecting ongoing trends of consolidation and strategic expansion in the sector. As companies adapt to evolving market demands, particularly in areas like cyber insurance, the implications of this merger could reshape industry dynamics considerably.
