Zurich and Beazley have reached preliminary agreement on an £8 billion ($15.6 billion) takeover after the Swiss giant improved its offer for the speciality lines insurer.

Under the revised offer, Beazley shareholders would receive up to £13.35 ($26.07) per share, comprising £13.10 ($25.58) in cash and a dividend for the calendar year of up to 25p (49c).

“Zurich and Beazley confirm that they have reached agreement in principle on the key financial terms of a possible recommended cash offer for the entire issued and to be issued ordinary share capital of Beazley,” the pair said in a joint statement.

Beazley rebuffed five earlier approaches from Zurich, including three last June.

The Swiss insurer did not publicly reveal its interest until last month, when it made two further offers to conclude a deal aimed at fuelling its global expansion in specialty lines.

The Beazley board says it has carefully considered the latest proposal and has concluded it is “at a level that it would be minded to recommend” to shareholders.

The transaction would combine two complementary businesses and establish a global specialty platform with about $US15 billion ($21 billion) of gross written premium, based in the UK, which would leverage Beazley’s Lloyd’s presence.

Zurich says it “looks forward to commencing its confirmatory due diligence on Beazley and working with Beazley towards a binding offer announcement”.  

The £13.10 offer – up from a late-January proposal of £12.80 ($25) – represents a 59.8% premium to Beazley’s closing share price of £8.20 ($16.01) on January 16.

Zurich has signalled its ambition to expand in specialty markets. Last year it established a global specialty unit operating from London and appointed Saad Mered – who previously led the Canada business – as its CEO.

The insurer told a November briefing it already ranked third globally on specialities. The business accounted for about $US9 billion ($12.8 billion) of premium in 2024.

Beazley is active in areas including cyber, professional indemnity, marine, accident and life, political risks and contingency, and property.