FILE PHOTO: The Beazley logo is seen in this illustration taken on January 31, 2025. REUTERS
Jan 22 (Reuters) – Beazley rejected a 7.67-billion-pound ($10.3 billion) takeover bid from Zurich Insurance on Thursday, citing that it “materially undervalues” the UK speciality insurer and was lower than another proposal it rejected last year.
The rejection sent Beazley shares down about 3% following a rally fuelled by optimism over Zurich’s offer of 1,280 pence per share. The bid was at a 56% premium to Beazley’s last closing price before the approaches were disclosed on Monday.
Beazley said Zurich’s latest proposal was below the previous proposal of 1,315 pence apiece put forward by the Swiss group last June – also rejected by Beazley.
At the price, a deal for Beazley would have an implied equity value of 8.4 billion pounds, the company added.
Zurich Insurance, Europe’s second-largest insurer by market value, did not immediately respond to a Reuters request for comment.
The company has been looking to build out its speciality insurance business, and sees Beazley as a highly complementary fit given its expertise in cyber, marine, aviation and space, and fine art insurance.
Reporting by Yamini Kalia and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips
