Zurich Insurance Group (ZURN) Investor presentation summary

Strategic rationale and transaction overview

• Acquisition creates a global leader in Specialty insurance with combined GWP of $15.6bn, leveraging complementary strengths in cyber, marine, E&S, political risk, fine art, financial lines, construction, energy, and captives.

• Offer values Beazley at 1,335 pence per share, a 59.8% premium to the undisturbed price, with total consideration of $10.9bn funded by cash, new debt, and equity raise.

• Expands market reach, especially via Lloyd's platform, and enhances product range and distribution, supporting growth in infrastructure, technology, and complex global risks.

• Integration leverages Zurich’s M&A expertise, with Beazley forming the core of the combined Specialty business and maintaining its brand under the Zurich umbrella.

• Completion expected in H2 2026, subject to shareholder and regulatory approvals.

Financial impact and value creation

• Transaction is expected to deliver mid-single digit EPS accretion from the first full year and double-digit ROI in the medium term.

• Annual cost synergies of $150m before tax by 2029 and a one-off capital extraction of $1.0bn in the first two years.

• At least $1.0bn in annual incremental revenue growth opportunities in the medium term through cross-selling and expanded distribution.

• Funding structure preserves financial flexibility, with a post-transaction SST ratio impact of about -30ppts but remaining above the 160% floor.

• Dividend policy remains unchanged, targeting a ~75% payout ratio and increases based on sustainable earnings growth.

Market positioning and growth drivers

• Combined entity will have leading positions in cyber, marine, E&S, and Lloyd’s, with a strong track record of underwriting excellence and superior returns.

• Specialty insurance market benefits from structural growth drivers such as infrastructure investment, technology, and energy transition.

• Beazley brings industry-leading expertise in cyber insurance, with a 21% CAGR in cyber GWP and innovative risk management solutions.

• Enhanced data analytics and risk engineering capabilities will support technical excellence and customer resilience.

• Highly diversified and complementary portfolios create a broader product suite and access to new customer segments.