Beazley has reported a 19% drop in PBT to US$1,146.5m for 2025 (from US$1,423.5m in 2024).

Highlighting the challenges of a “volatile global backdrop” and a “softening insurance rating environment”, chief executive officer Adrian Cox said Beazley’s “robust underwriting discipline and active cycle management” were central to the insurer’s success.

Net insurance written premiums were broadly stable at US$5,198.7m, while the undiscounted combined ratio rose slightly to 81% and RoE fell to 19%.

Earlier this week, Beazley announced that it had accepted Zurich’s all-cash offer for the company at 1,335 pence per share, including a permitted dividend of 25 pence. The offer values Beazley at approximately £8.2bn on a fully diluted basis, representing a 62.8% premium to Beazley’s market capitalisation before the offer period.

The agreement follows months of discussions and unsuccessful bids.

Commenting on the transaction, Mario Greco, CEO of Zurich, said "This transaction is a strong step in accelerating Zurich's Specialty strategy. Together with Beazley, we will create the world's leading specialty underwriter, with around US$15bn of pro forma gross written premiums, exceptional underwriting expertise and data capabilities, and leading access to global distribution. Leveraging Beazley's established Lloyd's platform, the combined specialty business will be headquartered in London and will be a powerful platform for long-term growth in specialty lines. The combination is financially compelling, delivering attractive Core EPS accretion from the first full year after completion, double-digit returns on investment in the medium term, and a clear path to exceeding our financial targets for the 2025-2027 period."

Cox added: “Today's announcement signals our joint intent to build a US$15bn, global specialty leader – with Beazley at its core. It will be a leading provider in cyber, a top-ten participant in the US excess and surplus lines market and the leader at Lloyd's. Our clients and brokers are navigating an era of accelerating risk, which also represents an outsized growth opportunity for specialty insurance. By combining our deep underwriting expertise and broad market reach, we will be able to support them to meet the challenges of an increasingly complex and volatile risk landscape."

Zurich has launched a private placement of approximately US$5bn in new shares to partly fund the acquisition, which is expected to complete before the end of 2026. Beazley shareholders are expected to vote on the scheme of arrangement in April.