Global insurer Zurich is preparing to form a consortium in the specialist Lloyd’s insurance and reinsurance market as it awaits a response to its latest proposal to acquire London-based Beazley, its chief executive Mario Greco told the FT.
On Monday, Zurich revealed it had submitted an improved proposal to acquire 100% of the specialist insurer for 1,280 pence in cash per Beazley share, after an earlier proposal was rejected because the board believed the offers significantly undervalued the company.
Zurich believes that the combination of the two businesses will generate substantial returns for both shareholders of the company and create a global specialty insurance leader with approximately US$15 billion in total written premiums.
Today, the Financial Times reported that as Zurich continues to pursue Beazley, the company is finalizing plans to establish the first Lloyd’s group, with CEO Greco telling the publication that it could go live as soon as April 2, 2026.
The Lloyd’s consortium would offer Zurich another route into the Lloyd’s market if its latest bid for Beazley is rejected, although the insurer did not confirm to the Financial Times whether it would proceed with launching the consortium if the bid is successful.
Specialist insurer Beazley has a strong and established presence at Lloyd’s, with a number of syndicates under its management.
The Zurich-based consortium will seek hundreds of millions of pounds a year in premiums, the Financial Times reported, citing a person familiar with the matter, and Greco said it would give the airline another way to expand its global specialist business.
“You can trade on the Lloyd’s platform, where you have access to private capital, which is different from the capital provided by reinsurers,” Greco told the Financial Times.
