Zurich’s £7.7bn Bid for Beazley Sends Share Price Soaring
LONDON, 22 January 2026 – Shares in FTSE 100 insurer Beazley plc (LON:BEZ) remain sharply elevated after Zurich Insurance Group tabled a potential £7.7 billion cash takeover offer. The proposed deal, announced on 19 January, values Beazley at 1,280p per share, representing a significant premium and spotlighting the London-listed specialist insurer’s attractive portfolio.
The Takeover Proposal
Zurich Insurance Group confirmed it had approached the Beazley board with a preliminary offer. The 1,280p per share bid represents a premium of approximately 56% to Beazley’s closing share price prior to the announcement. In response, Beazley stated the offer “significantly undervalued” the company and its prospects, advising shareholders to take no action. The bid, if successful, would mark Zurich’s entry into the Lloyd’s of London market and create a global specialty insurance powerhouse with over $15 billion in premiums.
Financial Backdrop: A Year of Discipline in 2025
The bid comes after a year where Beazley emphasised underwriting discipline over aggressive growth. In its first-half 2025 results, profit before tax fell to $502.5 million (H1 2024: $728.9m) as the company prioritised rate adequacy. The combined ratio—a key measure of underwriting profitability—remained strong at 80.3%. By the third quarter, management had upgraded its full-year combined ratio guidance to the “low 80s” but tempered premium growth expectations to “flat to low single digits,” citing competitive markets, particularly in US cyber insurance.
Key Facts at a Glance
| Metric | Detail |
|---|---|
| Zurich Offer Price | 1,280 pence per share (cash) |
| Total Enterprise Value | Approximately £7.7 billion |
| Beazley Board Response | Offer “significantly undervalues” the company |
| Beazley H1 2025 Profit Before Tax | $502.5 million |
| Beazley H1 2025 Combined Ratio | 80.3% (undiscounted: 84.9%) |
| 2025 Growth Guidance (Q3 Update) | Insurance written premiums: Flat to low single digits |
| Strategic Initiative | $500 million investment in new Bermuda platform (from 2026) |
Market Reaction and Valuation
Prior to the bid approach, Beazley’s share price had been volatile in 2025, reacting to softer growth forecasts and its disciplined underwriting stance. The stock had attracted positive analyst sentiment, becoming the only FTSE 100 constituent with unanimous ‘buy’ recommendations from covering brokers in late 2025. Zurich’s offer of 1,280p per share implies a price-to-tangible-book multiple of around 1.7x, a valuation that has immediately prompted speculation about the attractiveness of other London-listed specialty insurers.
Frequently Asked Questions
What has Zurich Insurance Group offered for Beazley?
Zurich has made a preliminary cash offer of 1,280 pence for each Beazley share, valuing the entire company at approximately £7.7 billion.
How has Beazley’s board responded?
The Beazley board has rejected the initial offer, stating it “significantly undervalues” the company and its future prospects. It has advised shareholders to take no action at this time.
How did Beazley perform financially in 2025?
In the first half of 2025, Beazley reported a profit before tax of $502.5 million, with a strong combined ratio of 80.3%. Growth in written premiums slowed as the company prioritised underwriting discipline in a competitive market.
What is Beazley’s strategic plan for 2026?
Prior to the bid, Beazley had announced plans to deploy $500 million of capital to establish a new insurance platform in Bermuda, aimed at facilitating growth in the alternative risk transfer market from 2026 onward.