Zurich Reveals Beazley Stake After UK Insurer Spurns Bid

Zurich Insurance Group AG disclosed a 1.5% stake in Beazley Plc, about two weeks after the UK specialty insurer rejected the industry giant’s latest takeover approach.

The Swiss company now holds about 8.87 million shares of the London-listed firm, or 1.47% of Beazley’s equity, according to a statement on Monday. It started disclosing its purchases in the stock from Jan. 19.

Beazley’s shares were trading up 3.6% at 1,174 pence as of 1:19 p.m. in London.

The move comes after Beazley rejected Zurich’s latest proposal of 1,280 pence per share on Jan. 22, saying it “materially undervalues” the company. The bid, announced by Zurich days earlier, was the fifth made by Chief Executive Officer Mario Greco.

In its Jan. 22 rejection, Beazley said that Zurich’s proposal in January had been lower than a previous one in June, when Zurich offered 1,315 pence per share.

Beazley’s stock has rallied more than 40% since the Jan. 19 bid was announced, but is still trading below the rejected offer price.

Photo: A Zurich Insurance Group AG building in Zurich, Switzerland. Photo credit: Alessandro Della Bella/Bloomberg