Zurich Insurance Group has raised SFr3.9bn through an accelerated book-building to partly finance its proposed acquisition of UK-based insurer Beazley.

The Swiss insurer issued approximately 7.09 million new registered shares, each with a par value of SFr0.10, at SFr550 per share, generating gross proceeds of approximately SFr3.9bn.

The net proceeds will be used in part to fund the transaction, with the remaining consideration financed through existing cash resources and new debt facilities.

On 2 March, Zurich announced that Beazley shareholders would receive £13.35 per share, comprising £13.10 in cash and a permitted interim dividend of 25p per share for the year ended 31 December 2025, which is expected to be paid on 1 May 2026.

The cash component values Beazley at around £8.1bn. Including the permitted dividend, the total consideration stands at approximately £8.2bn on a fully diluted basis.

On a pro forma basis as of 31 December 2024, the combined business would account for around $15bn in specialty gross written premiums (GWP).

Zurich’s existing specialty operations generated approximately $9bn in specialty GWP as of 31 December 2025.

The offer represents a premium of 59.8% to Beazley’s closing share price of £8.20 on 16 January 2026, 59.4% to its 30-day volume-weighted average price of £8.22, and 34.6% to its previous high of £9.73 on 6 June 2025.

Following the capital increase, Zurich’s share capital will rise from SFr14.6m to SFr15.3m.

The company has also agreed to a 90-day lock-up period from 2 March 2026, subject to certain exceptions.

Zurich expects the combination to deliver annual pre-tax run-rate cost savings of around $150m by 2029, capital synergies of roughly $1bn within two years of completion and incremental revenue opportunities exceeding $1bn annually over the medium term.

Beazley’s board has unanimously recommended the proposal.

The transaction is subject to shareholder approval, court sanction and regulatory clearances, with completion expected in the second half of 2026.