Beazley Rejects Zurich’s $10B Bid for Leader in Cyber Cat Bonds, ILS and Specialty Insurance Businesses

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Beazley plc’s board has unanimously rejected a £7.67 billion ($10.3 billion) takeover proposal from the Zurich Insurance Group. The offer, announced on January 19, 2026 for 1,280 pence per Beazley share, is lower than a bid from Zurich last year, but still reflects a substantial premium on Beazley’s public valuation. That was not enough to sway Beazley’s board. “Beazley confirms that the Board has unanimously rejected the cash proposal of 1,280 pence per share (the “Proposal”) from Zurich Insurance Group (“Zurich”) on the basis that it materially undervalues Beazley and its longer-term prospects as an independent company” and leader in cyber cat bonds and other specialty insurance products, the company reported in a January 22nd press release.

Image of Beazley insurance, leader in specialty insurance including cyber cat bonds, rejecting take-over offer from Zurich Insurance Group. cyber catastrophe bonds

Zurich’s bid was driven by a desire to accelerate its expansion in specialty insurance lines, including cyber insurance, cyber cat bonds and cyber ILS, where Beazley holds a leading position. The UK insurer has been a leader in cyber catastrophe bonds, issuing the recent $300 million PoleStar Re cyber cat bond last month, its fourth cyber cat bond. Earlier this month Beazley hired Richard Gray as General Manager of Bermuda, where he will manage the company’s plan to deploy $500 million in the sector while launching a new start-up to target cyber ILS opportunities.

Zurich Offered Substantial Premium to Beazley’s Public Valuation

Zurich’s statement noted its proposal reflected a 56% premium over Beazley’s market value on January 16th, providing “Beazley shareholders immediate and certain cash value for their investment at a level that exceeds what Beazley could achieve over a reasonable timeframe through the execution of its strategy (as set out at Beazley’s Capital Markets Day on 25 November 2025), and fully reflects Beazley’s fundamental value.”

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Beazley: We Can Do Better, In Part Because of Our Cyber Cat Bonds and ILS Offerings

The Beazley board rejected Zurich’s valuation logic, for reasons including the fact that that the company is a “Leader in Cyber: Beazley has a leading product set including notably in Cyber which, in the Board’s view, continues to be one of the most significant structural growth stories in global specialty insurance.” The company cited its “notable milestones achieved over the second half of 2025, including: i) the establishment of a Bermuda insurer, completing the globalisation of the Company, with access to all major markets including a significant presence in the US; ii) investments in expertise in the fast growing and exciting domain of transition underwriting; and iii) focusing on innovation-led growth, including in Alternative Risk Transfer (ILS and Captives).”  

Bullish Indicator for Cyber Insurance and Specialty Market

Despite the disagreement over the valuation of Beazley, the Zurich offer and the rejection of it reflect confidence in the future of specialty insurance and especially cyber insurance and ILS. We’d be surprised if this is the last buy-out offer as the cyber insurance market continues to grow rapidly.

Mark Sauter

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Mark Sauter’s insights on the financial, policy and security elements of cyber insurance are based on years of experience in the investment banking, media and business worlds. Co-author of the McGraw Hill university textbook “Homeland Security: a Complete Guide,” Sauter was also a consultant to one of the world’s largest software companies and served as a US Army Special Forces and infantry officer.

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