Zurich to Acquire Beazley for 8 Billion Pounds

Swiss insurer Zurich Insurance Group has reached an agreement in principle to acquire London-listed specialist insurer Beazley for approximately 8 billion pounds, marking the latest in a series of takeover bids after two previous rejections. The deal, announced Wednesday, values Beazley at up to 13.35 pounds per share, including a cash offer of 13.10 pounds and a potential 25-pence dividend for 2025.

Beazley's board, which had turned down Zurich's initial private approach last year and a subsequent public bid last month, stated it would recommend the new proposal to shareholders if a formal offer is tabled. "The board has carefully considered the proposal, together with its advisers," the company said in a joint statement with Zurich. "The board has concluded that the financial terms of the proposal are at a level that it would be minded to recommend to Beazley shareholders should a firm intention to make an offer be announced."

The agreement follows Zurich's escalation from an initial private offer of 12.30 pounds per share in early January, which Beazley deemed undervalued the company and its prospects. A public bid later that month at 12.80 pounds, valuing Beazley at about...