Update: Beazley Rejects Zurich Insurance’s £7.7 Billion Takeover Bid

Beazley Plc has rejected Zurich Insurance Group AG’s £7.7 billion ($10.3 billion) takeover approach, the latest twist in the Swiss giant’s attempt to acquire the UK specialty insurer.

London-listed Beazley said its board has unanimously turned down Zurich’s latest cash proposal of 1,280 pence per share “on the basis that it materially undervalues” the company and its longer-term prospects, according to a statement Thursday.

The board said it received three proposals from Zurich in June 2025 and “engaged with Zurich appropriately.” However, the terms of Zurich’s latest bid are below the last proposal in late June, which valued Beazley at 1,315 pence a share at an implied equity value of £8.4 billion, according to the statement.

Shares in Beazley were 1% lower at 1,112 pence at 9:36 a.m. in London.

“If it makes sense for our shareholders to do a transaction, then we’ll do a transaction,” Beazley Chief Executive Officer Adrian Cox said in an interview. “It just needs to be a Premier League price for a Premier League company.”

On Monday, Zurich went public with an offer to buy Beazley for 1,280 pence per share in cash, a 56% premium to the company’s prior closing price on Jan. 16. The proposal was the fifth made by Zurich over more than a year, according to CEO Mario Greco.

Zurich’s Jan. 19 offer was 4% higher than a previous proposal earlier in the month, which Beazley’s board also rejected. Beazley’s shares have rallied almost 30% since the Jan. 19 offer was announced, but are still trading below the offer price.

Read more: Zurich Makes £7.7 Billion Bid for Specialty Insurer Beazley
“Now that we know that this week’s offer was not the highest, this reframes the debate,” Jefferies analysts including Derald Goh wrote in a note to clients Thursday. While it’s difficult for Beazley’s board to accept an offer that’s lower than 1,315 pence, a deal is still possible, they wrote.

“We think Zurich can afford better terms, but only up to an additional 10% from 1,280p,” the analysts wrote. “A 3% uplift to 1,315p sits comfortably within this.”

Top photograph: Zurich Insurance Group AG’s headquarters in Zurich. Photo credit: Michele Limina/Bloomberg