Slaughters, Freshfields lead on Zurich's £8bn takeover of FTSE 100 insurer

Slaughter and May is acting for insurance giant Zurich on its £8.2 billion takeover of FTSE 100-listed insurer Beazley, advised by Freshfields.

The all-cash deal will add a major specialty insurance business to Zurich, strengthening the group’s presence in London and expanding its access to the Lloyd’s market through Beazley’s platform. 

The takeover will diversify Zurich’s speciality offering - Beazley is known for its presence in specialty lines such as cyber, marine, political risk, and fine art & specie.

As of the end of last year, Zurich wrote around $9 billion in specialty gross written premiums. The acquisition would see this number increase to around $15 billion.

Zurich publicly launched its bid in January and agreed key terms with Beazley in February before confirming a final deal this week - around the same time Beazley reported a 19% drop in annual profits amid weak growth in its cyber business.

The deal will be funded through a Zurich share sale, with the remainder coming from existing cash and new debt. 

The takeover will see Beazley delist from the London Stock Exchange, becoming the latest major UK-listed company to leave the market. FTSE 100 asset manager Schroders is also currently being acquired by US investor Nuveen in a £9.9 billion deal that will result in its delisting, with Clifford Chance and Slaughter and May advising.

Advising

Slaughter and May is acting for Zurich, with a team including corporate partners Natalie Cook, Richard Smith and Hemita Sumanasuriya, insurance and financial regulation partners Nick Bonsall and Thomas Peacock, and finance partners Ed Fife and Kevin Howes.

Freshfields is advising Beazley. The deal team is led by London corporate partners Claire Wills, Andrew Hutchings - who is global co-head of M&A - and Meredith Bayley.