Beazley PLC (LSE:BEZ) shares jumped 8.5% after the specialty insurer said it had reached agreement in principle on a takeover proposal from Zurich Insurance Group that values the company at around £8 billion. The announcement followed Zurich’s sixth approach, which offers 1,335 pence per share, made up of 1,310 pence in cash plus permitted dividends of up to 25 pence for the year ended 31 December 2025.
The revised proposal represents a 4.2% uplift on Zurich’s previous bid and implies a substantial premium for Beazley shareholders. The offer equates to a 59.8% premium to Beazley’s closing share price of 820 pence on 16 January, the final trading day before the offer period began, and stands 34.6% above the company’s all-time high of 973 pence recorded in June 2025. Assuming the permitted dividend is paid in full, shareholders would receive close to £8 billion in aggregate, equivalent to a 62.8% premium to Beazley’s market capitalisation prior to the bid.
At approximately 2.3 times forecast 2025 tangible net asset value, the proposal is seen as reflecting a robust valuation for Beazley’s specialty insurance franchise. The Beazley board said it would be “minded to recommend” the offer to shareholders should Zurich formally confirm its intention to proceed on the proposed terms, subject to the completion of final documentation.
If completed, the transaction would significantly strengthen Zurich’s position in the global specialty insurance market. The combined group would have around US$15 billion in gross written premiums and benefit from Beazley’s established presence at Lloyd’s of London. Zurich currently holds a 1.479% stake in Beazley, equivalent to roughly 8.9 million shares.
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