Zurich Insurance offers US$10 billion to buy UK insurer Beazley

[LONDON] Swiss insurance company Zurich Insurance Group has raised its offer to buy rival speciality insurer Beazley to 1,280 pence (S$22.016) per share in cash, it said on Monday (Jan 19), sending the British company’s shares surging over 40 per cent.

The latest offer values Beazley at about US$10.28 billion, according to Reuters’ calculations.

The latest offer, representing a 56 per cent premium to Beazley’s last closing price of 820 pence, comes after Beazley’s board rejected a previous bid of 1,230 pence on January 16, Zurich Insurance said, with the British company calling it a significant undervaluation.

Beazley’s shares were the top percentage gainer across all London-listed stocks after Zurich Insurance’s interest was made public, reflecting investor expectations that a transaction could materialise at an attractive premium.

Under UK takeover rules, Zurich Insurance has until February 16 to announce a firm intention to make an offer or walk away.

Beazley did not immediately respond to a Reuters request for comment. REUTERS