Zurich Insurance Group and Beazley PLC have reached a definitive agreement for an all-cash acquisition of Beazley by Zurich, valuing the UK-based specialty insurer at approximately £8.1 billion (USD $10.8 billion), according to a joint statement released Tuesday.
The deal, which has been recommended by the Beazley board, will see Zurich acquire the entire issued and to be issued share capital of Beazley at a price of 1,335 pence per share. This comprises 1,310 pence in cash and a dividend of 25 pence per share. The offer represents a 59.8% premium to Beazley’s closing share price on January 16, 2026, the day before the offer period began.
Zurich intends to fund the transaction through a combination of existing cash reserves – approximately US$3.0 billion – new debt facilities of around US$2.9 billion, and a US$5.0 billion capital increase via an accelerated bookbuild, launched concurrently with the acquisition announcement. The overall terms were finalized ahead of a previously agreed March 4 deadline.
The acquisition aims to create a global leader in specialty insurance, leveraging Beazley’s established presence at Lloyd’s of London. Zurich already maintains a significant UK footprint, with over 4,500 employees across 14 cities and regional towns, but has historically operated outside of the Lloyd’s market. Combined, the businesses represent approximately US$15 billion of specialty gross written premiums as of December 31, 2024, with Zurich’s specialty franchise accounting for roughly US$9 billion as of December 31, 2025.
“The transaction is expected to generate significant shareholder value through the combination of two businesses with highly complementary capabilities,” Zurich said in a statement. The company anticipates an immediate boost to earnings upon completion and a double-digit return on investment in the medium term.
The deal is structured as a court-sanctioned scheme of arrangement and remains subject to regulatory and antitrust approvals. Zurich expects the transaction to close during the second half of 2026. Beazley shareholders will vote on the proposed acquisition in the coming months.
Zurich’s pursuit of Beazley has been ongoing, with multiple unsuccessful offers made throughout 2025 and early 2026 before reaching an agreement in principle last month. The final offer price of 13.35 pounds per share represents an enterprise value of approximately 8.2 billion pounds, or $11.06 billion, according to reports.
Zurich stated that the financing structure is designed to preserve its financial flexibility and capital strength, with the transaction expected to result in an estimated 30 percentage point reduction in its Swiss Solvency Test (SST) ratio.
