Global insurer Zurich has now reached an agreement to acquire London-based specialist insurer Beazley in an all-cash deal worth £8.1bn ($10.8bn), bringing together “two highly complementary businesses to create a global leader in specialist insurance”.
The boards of directors of both companies have agreed to the terms of an all-cash tender offer proposed by Zurich to purchase the entire issued and outstanding share capital of Beazley.
Last month it was revealed that the two airlines had agreed in principle on key financial terms after Beazley rejected a number of proposals from Zurich in 2025 and early 2026, with an improved proposal worth up to 1,335p per Beazley share.
Under the terms of the transaction now agreed, Beazley shareholders will be entitled to receive a total value of 1,335p per Beazley share, which includes 1,310p in cash per Beazley share (cash consideration), and a dividend of 25p per Beazley share.
The announcement confirms that Beazley shareholders will be entitled to cash consideration totaling approximately £8.1 billion ($10.8 billion), which will increase to £8.2 billion ($11 billion) when including the allowable interim dividend of 25 pence per Beazley share.
The cash consideration alone represents a premium of approximately 59.8% to Beazley’s closing price of 820p on January 16, 2026, the last business day before the offer period. This is also a premium of approximately 59.4% to Beazley’s volume-weighted average share price of 822p for the 30-day period to 16 January 2026, and a 34.6% premium to Beazley’s all-time high share price before the offer period (973p on 6 June 2025).
Including the allowed interim dividend, the total consideration of £8.2bn is 68.2% higher than Beazley’s fully diluted market capitalization implied by the insurer’s closing price of 820p on 16 January 2026.
Zurich CEO Mario Greco commented: “This transaction is an important step in accelerating Zurich’s specialty insurance strategy. Together with Beazley, we will create a world-leading specialty underwriter with approximately $15 billion in projected gross written premiums, superior underwriting expertise and data capabilities, and leading global distribution channels.”
“Leveraging the Lloyd’s platform established by Beazley, the combined Specialties division will be headquartered in London and will be a strong platform for the long-term growth of Specialties.
“This merger is financially attractive, enabling attractive core earnings per share growth in the first full year following completion, delivering double-digit return on investment in the medium term and providing a clear path to exceeding our financial targets for the period 2025-2027.
“We are committed to championing underwriting excellence, retaining key talent and maintaining the Beazley brand within the wider Zurich Group.”
Clive Bannister, chairman of Beazley, said: “I am proud of everything Beazley has achieved over its first 40 years in business, growing from a Lloyd’s conglomerate to a global leader in specialist insurance and a member of the FTSE 100 Index.
“A merger with Zurich would create a $15 billion global leader in specialty underwriting at a price that reflects attractive value to shareholders. The Beazley Board is pleased to recommend acceptance of Zurich’s offer.
“On behalf of the Beazley Board of Directors, I would like to thank everyone involved in making Beazley the leading specialty underwriting company it is today, and I look forward to all that we will achieve in the future.”
The parties reiterated that the merger will create “a leading global specialty insurance underwriter” with expected total specialty insurance premiums of approximately $15 billion as of December 31, 2024.
For Zurich, the transaction expands its market coverage and distribution with a wider range of specialist products and, importantly, provides access to Lloyds, allowing the company to support clients in long-term growth areas such as infrastructure and technology.
The announcement of the agreement also indicates that Beazley’s directors are pleased with Zurich’s plans to make Beazley central to the combined Specialty business and that Zurich believes Beazley’s existing talent and leadership team are integral to driving and building the success of the combined entity.
Adrian Cox, chief executive of Beazley, added: “Beazley relentlessly combines underwriting discipline with a culture of innovation to deliver growth and success. This has made us a leading global brand in specialty insurance.
“Today’s announcement demonstrates our shared commitment to building a $15 billion global specialty leader with Beazley at its core. It will be a leading provider in cyber, a top 10 player in the U.S. excess and surplus lines insurance market and a leader in Lloyd’s.
“Our clients and brokers are experiencing an era of heightened risk, which also presents significant growth opportunities for specialty insurance. By combining our deep underwriting expertise and broad market coverage, we will be able to support them in meeting the challenges of an increasingly complex and volatile risk landscape.”
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