Zurich, the Swiss insurer, has agreed in principle to acquire UK specialist Beazley for about £8 billion, with Beazley shareholders receiving £13.10 in cash per share plus a 25p dividend.

Beazley specializes in cyber, art, yachts, aircraft and property, and the deal would create a global specialty platform combining Zurich’s footprint with Beazley’s Lloyd’s market position.

The offer price represents a premium of roughly 60% to Beazley’s mid-January share price and about 60% to the 30-day VWAP.

The transaction aims to establish a world-leading specialty insurer and strengthen Zurich’s presence in the Lloyd’s of London market.

Due diligence is set to begin, and a firm offer must be announced by mid-February under the UK Takeover Code unless extended.

Analysts say Zurich should formalize the offer; the premium may attract Beazley shareholders, though there are questions about long-term impact on the UK market.

Beazley shares rose around 9% on the day, while Zurich shares gained about 2%.

The financing is described as an all-cash offer, with regulatory approvals and due diligence remaining steps; no further financing details provided.

The offer price represents a 59.8% premium to Beazley’s closing price on Jan. 16, a 59.4% premium to the 30-day VWAP, and a 34.6% premium to Beazley’s pre-offer high.

Beazley is a key Lloyd’s participant, and the takeover could reduce the number of London-listed specialty insurers, reshaping City of London dynamics.

Zurich sees Beazley as a strong complement to its own specialty business and cites strategic priorities outlined at its recent capital markets day.

Beazley’s board has signaled it would be minded to recommend a firm offer at the proposed terms if one is announced.