Beazley board rejects Zurich’s £7.7bn approach as ‘materially undervaluing the business’

Beazley confirmed that its board has unanimously rejected Zurich Insurance Group’s cash proposal of 1,280 pence per share, saying it materially undervalues the company and its long term prospects as an independent listed business.

The decision follows what the London market re/insurer called a detailed evaluation of the proposal by the board and its advisers, coming after Zurich disclosed its possible offer earlier this week.

Beazley said the board remains fully focused on maximising shareholder value and has listened carefully to shareholder feedback while remaining open minded about options to deliver value.

The company said it had previously engaged constructively with Zurich after receiving three proposals in June last year.

Beazley said that engagement included the provision of limited due diligence information in what it described as a good faith effort to reach a shared understanding of value.

The board said Zurich’s latest proposal is below the final offer put forward in late June last year, which was rejected and valued Beazley at 1,315 pence per share.

That earlier proposal implied an equity valuation of £8.4bn, equivalent to around 2.4 times tangible book value at 31 December 2024.

Beazley said the board remains very confident in the company’s standalone prospects and the strength of its specialty insurance business model.

It said Beazley is uniquely positioned within the global insurance market to maximise long term shareholder value and realise the full potential of its specialty platform.

The board said this differentiation and value creation is underpinned by five core attributes.

It pointed to a long term track record of delivering shareholder value, with total shareholder returns of around 2,200% over the past 20 years, materially outperforming global specialty insurance peers.

The board also highlighted underwriting performance, noting an average undiscounted combined ratio of 78% since 2022.

Beazley said its position as a leader in cyber insurance remains a key strategic strength, describing cyber as one of the most significant structural growth opportunities in global specialty insurance.

It also cited return generation, with an average return on equity of 15.5% over the past 10 years and an average ROE of 25% since 2022, including through the Covid 19 period.

Capital strength was also highlighted, with Beazley having returned more than $2.5bn to shareholders over the past decade, including $1.3bn over the past three years, while maintaining what it described as a prudent capital and reserving policy.

The board said it is also delivering against the strategic priorities set out at its Capital Markets Day in November 2025.

It said milestones achieved in the second half of 2025 included the establishment of a Bermuda insurer, completing the globalisation of the business and strengthening access to major markets including the US.

Further priorities include investment in transition underwriting expertise and a continued focus on innovation led growth, including alternative risk transfer through ILS and captives.

Beazley advised shareholders to take no action in relation to the possible offer.

The company noted that a further announcement would be made when appropriate and confirmed that full year 2025 results will be published on 4 March 2026.

Beazley added  that the statement was made without the consent of Zurich.