Beazley, a British insurer specialising in cyber-attacks, fine art, and luxury yachts, has agreed to an £8bn takeover by Swiss rival Zurich. The deal, announced on Wednesday, represents a significant premium for shareholders and marks another high-profile departure from the London stock market.
Under the agreement in principle, Beazley shareholders will receive up to £13.35 per share, comprising £13.10 in cash and a 25p dividend for 2025. The offer price is nearly 60% above Beazley's closing price on 16 January, before Zurich's interest became public. Zurich had previously offered £12.80 per share, which was rejected by Beazley's board last month.
Beazley's board indicated it would recommend the new offer to shareholders once Zurich completes due diligence. The combined entity would create a global specialty insurer with $15bn in gross written premiums, based in the UK, leveraging Beazley's presence at Lloyd's of London.
Dan Coatsworth, head of markets at AJ Bell, noted that the 60% premium is higher than the average for UK takeovers in the past five years, which may win over shareholders. However, he added that the loss of another major financials business is a downside for the UK stock market.
