Insurance firm Beazley has reported a sharp drop in profits for the first half of the year, just as its £8.1 billion takeover by Zurich is set to complete.
Pre-tax profits slumped by 52.7% to 237.7 million US dollars (£176.6 million) in the six months to June 2026, compared with the same period last year. The decline was partly attributed to 33.6 million dollars (£25 million) in costs related to the takeover.
Challenging risk landscape
Bosses said the profit slump was primarily linked to a “challenging risk landscape”, with the volatile geopolitical backdrop resulting in losses from war and conflict. Net insurance premiums also slipped by 6% to 2.44 billion dollars (£1.71 billion) for the half-year.
Adrian Cox, chief executive of Beazley, said the company was knocked by “rapidly softening conditions” in the specialist insurance market.
Zurich deal progress
The company was acquired by Swiss insurance giant Zurich in March in a deal worth £8.1 billion. Beazley shareholders will receive £13.35 per share, and the company will be delisted from the London Stock Exchange.
On Wednesday, Beazley said it expects the deal to complete by the end of the year.
Market reaction
Jefferies equity analyst Philip Kett said the update makes for “difficult reading” for Zurich shareholders ahead of the deal.
Beazley is a specialist insurer, with a growing cyber cover offering, as well as cover across professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business. Zurich has more than 63,000 employees and is headquartered in Switzerland.
