Beazley has turned down a £7.67 billion ($10.3 billion) takeover offer from Zurich Insurance Group, leading to a tense standoff over the future of the London-based specialty insurer. The FTSE 100 company said its board unanimously rejected Zurich’s latest bid of 1,280 pence per share in cash, saying it undervalues Beazley and its potential as an independent business.
Zurich’s proposal came with about a 56% premium over Beazley’s share price before news of the interest surfaced. However, Beazley revealed that Zurich had made even higher offers in the past. In June 2025, Zurich proposed three bids, including one at 1,315 pence per share, valuing Beazley at roughly £8.4 billion—around £700 million more than the current bid. The insurer said it engaged with Zurich back then, sharing some due diligence information, but concluded the recent offer still falls short of the company’s value.
The disclosure of Zurich’s earlier, higher bids has shifted the conversation around Beazley’s worth. Analysts from Jefferies and other firms noted this makes it tough for Beazley’s board to back a lower price now.
Zurich has highlighted Beazley’s strong position in specialty insurance, especially its Lloyd’s of London platform and cyber insurance business, as key reasons for the acquisition. Zurich says the deal would create a global leader in specialty insurance with about $15 billion in gross written premiums, up from Zurich’s $9 billion in 2024. RBC Capital Markets also pointed out Beazley’s solid strategy and unique operations, suggesting this could attract interest from other buyers.
Beazley is known for its role in the standalone cyber insurance market but has recently scaled back some of that business as prices have softened after years of sharp increases. Despite this, Beazley remains confident in its prospects, citing its leadership in cyber insurance, strong underwriting, and good returns.
The market has reacted strongly. When Zurich’s interest was first announced, Beazley’s shares jumped 42%. By Thursday, shares were trading above £11, still below Zurich’s offer price. Zurich’s stock also rose slightly following the news of Beazley’s rejection.
Under UK takeover rules, Zurich must declare a firm intention to make an offer or walk away by February 16. If it pulls out now, Zurich cannot make another bid for at least six months.
Beazley says it is open to all options that maximize value for shareholders, but any offer must reflect what the company believes is its full worth in the specialty insurance market.
The ball is now in Zurich’s court. It can raise its bid, try to win over Beazley’s investors, or abandon the deal and continue building its specialty insurance business through other means. Whatever happens next, the interest from Zurich shines a spotlight on how active the market is for large players in cyber and specialty insurance—and how firmly Beazley believes it deserves more than £7.7 billion.