Beazley has declined a $10.2bn (SFr8.06bn) takeover proposal from Zurich Insurance Group, stating the cash offer of 1,280 pence (£12.80) per share “materially undervalues Beazley and its longer-term prospects as an independent company”. 

The specialty insurer’s board unanimously rejected the latest terms, maintaining that the improved offer still falls short of a previous bid made by Zurich in June last year, which was also turned down. 

However, the company clarified that it has maintained engagement with Zurich and offered the Swiss insurer “certain limited due diligence information in a good faith effort”.

Zurich had recently increased its offer to buy out Beazley.  

If the deal were to go ahead, the merged entity would generate approximately $15bn in gross written premiums and have its headquarters in the UK. 

Beazley said: “The board is fully focused on maximising shareholder value, has listened carefully to the feedback it has received from its shareholders and is open-minded about all options to deliver value.” 

The board is also “very confident in Beazley’s stand-alone prospects as a publicly listed company and in the attractiveness of Beazley’s business model fundamentals”, noted the UK-based insurer. 

Zurich is preparing to launch its first ever syndicate at Lloyd’s of London within weeks.  

The move would enable Zurich to utilise private capital in underwriting risks within the Lloyd’s market and is seen as an alternative strategy should its Beazley takeover attempt not succeed. 

This development was first reported by the Financial Times, citing Zurich CEO Mario Greco, who said the company was nearing completion of arrangements for the new syndicate.  

Talks between Zurich and Lloyd’s are said to be at an advanced stage, with a potential launch date for the new entity as soon as 2 April.