Following two previous rejections last month, Lloyd’s of London underwriter Beazley has confirmed in a joint statement on Wednesday morning that it has reached an agreement in principle with Zurich.
The offer proposed by Zurich has a total value of 1,335 pence per share. This is composed of a 1,310p cash payment from Zurich and a permitted dividend of up to 25p to be paid by Beazley to its shareholders.
The total package represents a 59.8 per cent premium over Beazley’s closing price on 16 January 2026 and is 34.6 per cent higher than the company’s all-time high share price.
At the start of 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. However, this bid was rejected as it “significantly undervalues” the business.
Later in the month, Zurich reiterated its offer – this time in public – of 1.280 pence per share (all-cash), valuing the FTSE 100 group at about £7.7bn. Beazley also rejected the offer, saying the board considered it “materially undervalues” the firm’s future prospects.
However, the board has now stated that it is “minded to recommend” this proposal to shareholders, pending final documentation.
The merger would create a global specialty insurance leader with around $15bn (£10.9bn) in gross written premiums, based in the UK, and would leverage Beazley’s Lloyd’s of London presence.
Under the UK Takeover Code, Zurich has until 5 pm on 16 February 2026 to either announce a firm intention to make an offer or walk away.
The statement noted this is still a ‘possible offer’, that there is no certainty that any firm offer will be made, even if the pre-conditions referred to above are satisfied or waived.
