UK's Beazley rejects Zurich Insurance's $10 billion takeover bid (updated)
22/01/2026 08:36
Bid was at 56% premium to closing price before offers disclosed Beazley says it rejected 1,315 pence per share offer last June Zurich declines to comment Beazley shares fall 7% before recovering most losses Adds Zurich response in paragraph 5, Beazley comment in 4, details on offers in 7-8, analyst in 9, shares in 2-3 and 6 Jan 22 (Reuters) - Beazley BEZG.L on Thursday rejected a 7.67-billion-pound ($10.3 billion) takeover offer from Zurich Insurance ZURN.S as materially undervaluing the UK speciality insurer, adding it was lower than another proposal the group turned down last year. The rejection of Zurich's latest 1,280 pence per share proposal sent Beazley shares down 7% to 1,045 pence, but they later recovered most losses to trade 1% lower at 0937 GMT. The stock had rallied in recent days, given the proposed offer was 56% above Beazley's closing price before the approach was disclosed on Monday. Beazley said it was confident in its standalone prospects and in the attractiveness of its business model, adding it was "open-minded about all options to deliver value". Zurich, Europe's second-largest insurer by market value, declined to comment. SPOTLIGHT ON BEAZLEY'S TRACK RECORD Beazley's rejection sets the stage for a possible long battle between the companies over valuation, after the British insurer snubbed multiple approaches from Zurich. Beazley's stock, which gained just 2% in 2025, has surged 40% since the Swiss company's interest has been made public. Beazley said the latest offer was below a previously undisclosed bid of 1,315 pence per share put forward by the Swiss group last June, which the British firm also turned down. At that price, a deal would value Beazley's equity at about 8.4 billion pounds, the company said. Beazley said it had received three proposals from Zurich that month and engaged with it "appropriately," including giving Zurich some limited due diligence information in good faith. RBC Capital Markets analysts said Zurich's overtures had put the spotlight on "Beazley's strong strategic positioning, track record and the distinctiveness of its operations," which could attract other suitors, without naming any. Zurich is looking to build up its speciality insurance business, and sees Beazley as a good fit given its expertise in cyber, marine, aviation and space, and fine art insurance. ($1 = 0.7450 pounds) (Reporting by Pushkala Aripaka, Yamini Kalia, and Rishab Shaju in Bengaluru. Editing by Sherry Jacob-Phillips and Mark Potter) ((Yamini.Kalia@thomsonreuters.com;))